Bankruptcy Law And Equity Capital: Evidence From India

UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance

Prasanna Tantri

Topic: Bankruptcy Law And Equity Capital: Evidence From India

Speaker: Prasanna Tantri, Indian School of Business

Abstract: We study the impact of a creditor-in-control bankruptcy regime in India on equity capital particularly on outside equity, which refers to investment by non-controlling shareholders. We exploit the distance of lenders from the bankruptcy courts for identification. The in ow of both inside and outside equity capital increases significantly and cost reduces as a result of the bankruptcy law. A significant reduction in tunneling of resources by the insiders seems to be the channel at work. An increase in equity is also accompanied by an increase in debt at a lower cost. Firms use the additional capital to increase investment.

Moderator: Thomas Matthys, University of Technology Sydney

Date: Wednesday, 4th November 2020
Time: 4-5 pm (Australian Eastern Daylight Time)
Venue: This is on online Zoom webinar.

Seminar protocols:

  • The webinar will run for 45 minutes, followed by a 15 minute Q&A session.
  • There will be a moderator for each seminar event, who will facilitate communication and resolve any technical issues.
  • Participants can use the chat facility or raise their had to ask questions during the presentation. The moderator will then alert the speaker at the appropriate time and either ask the questions raised or unmute the participant so they can ask the question directly to the presenter.

Co-ordinator: Harry Scheule

Enquiries: Duncan Ford

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Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.