Economics and management of national economy

Analysis of basic bankruptcy proceedings (case study of Russia and developed countries)

Economic Annals-XXI

Economic Annals-ХХI: Volume 163, Issue 1-2, Pages: 60-63

Citation information:
Emelyanov, S., & Minakova, I. (2017). Analysis of basic bankruptcy proceedings (case study of Russia and developed countries). Economic Annals-XXI, 163(1-2), 60-63. doi: https://doi.org/10.21003/ea.V163-13

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Sergey Emelyanov
D.Sc. (Engineering),
Professor, Rector,
Southwest State University
94, 50 let Oktyabrya Str., Kursk, 305040, Russia
rector@swsu.ru
ORCID ID: http://orcid.org/0000-0002-3012-0383

Irina Minakova
D.Sc. (Economics),
Professor,
Head of the Faculty of Governmental Administration and International Relations,
Southwest State University
94, 50 let Oktyabrya Str., Kursk, 305040, Russia
irene19752000@mail.ru
ORCID ID: http://orcid.org/0000-0001-6838-7940

Analysis of basic bankruptcy proceedings (case study of Russia and developed countries)

Abstract. The author examine the basic mechanisms of modern systems of bankruptcy regulations through using instruments and methods of modern institutionalism. The efficiency of voluntary agreements has been proved as a tool for solving crises situations which cause cost reduction. Voluntary agreements help maintain confidentiality and a shorter duration of reorganisation procedures.

The article studies and describes characteristics of the contracting of economic agents in the framework of bankruptcy depending on two parameters: self-interest focus and available information, as well as defines its effect on differentiation of the outcome of crises. The authors have specified the trends in modern bankruptcy systems of business entities in the Russian Federation, France, Germany and the USA, as well as determined their influence on the choice of the priority mechanism for resolving the current crises situation. The effectiveness of bankruptcy institute functioning also depends on the type of bankruptcy regulatory system (either prodebtor or procreditor type). In the first case, there is a big risk of unjustified liquidations of insolvent businesses, in the second case, there can occur an undesirable situation when many businesses will be kept operating, though their dissolution is economically preferable.

Keywords: Financial Insolvency; Liquidation Procedures; Rehabilitation Procedures; Voluntary Agreements

JEL Classificatio: D21; D23; G33

DOI: https://doi.org/10.21003/ea.V163-13

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Received 5.10.2016

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