Abstract
The purpose of this study is to examine the characteristics of firms (n = 60) that have interrupted their reorganisation proceedings under Finnish Company Reorganization Act (comparable to Chapter 11 in Bankruptcy Act in the USA) during the period 1 June 2008?31 May 2009. Cluster analysis is applied to estimate the differences in characteristics of interrupted firms. The results show that the firms are statistically significantly different in terms of prefiling financial ratios. There are also some statistically significant differences in non-financial characteristics among the groups. Overall, the empirical evidence is consistent with a view that the interruptions are primarily caused by inefficient reorganisation proceedings.
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