Abstract
The bankruptcy duration of reorganized firms should be different from that of failed firms. Adopting a competing risk model and using the Korean corporate bankruptcy data, we confirm the differences in reorganized and failed cases. We find that the failure decision of bigger firms seems delayed (the too-big-to-fail-too-early hypothesis). In systemic bankruptcy, the bankruptcy period is shortened and the reorganization bias is increased (Super Chapter 11 principle). Also, if bankruptcy is filed in a poor business environment, reorganization may occur faster and failure slower for that company (handicapped signal theory).
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