Brown walking dead killer : implication of specialized bankruptcy court

Abstract

This paper investigates the impact of judicial enforcement efficiency on the negative externalities of bankrupt firms. Utilizing the introduction of specialized bankruptcy courts in China, which reduced the duration of bankruptcy cases by more than 90 days, I find that bankrupt firms accepted in these specialized courts cause 2.22 fewer lightly polluted days, 2.21 fewer moderately polluted days, and 0.83 fewer heavily polluted days per month compared to firms processed in traditional civil courts. The findings suggest that an improvement in judicial enforcement efficiency can lead to a reduction in pollution from insolvent firms during bankruptcy proceedings. This paper provides valuable insights into the relationship between the efficiency of legal institutions and the environmental consequences of firm insolvency.

Date of Award	2024
Original language	English
Awarding Institution	The Hong Kong University of Science and Technology
Supervisor	Emilio BISETTI (Supervisor)