This thesis seeks to contribute to our understanding of why creditors and debtors do not ordinarily use China's reformed Enterprise Bankruptcy Law ('EBL'), whether the low use of the EBL is problematic, and if so, what can be done to ensure a more efficient resolution of corporate insolvencies and corporate financial distress in China. The EBL has been lauded – domestically and internationally – as a major legislative success. However, despite the rapidly growing number of companies, level of corporate indebtedness and non-performing loans – which should, one might expect, lead to an increase in the use of the EBL – the number of court-run insolvency cases has in fact been decreasing since the law was implemented in 2007. The thesis draws on newly collected insights from a series of interviews in China - to supplement the scarce and often incoherent data that is available - to determine what motivates debtors and creditors not to use the EBL. The findings are presented as four complementary constraints on a more effective and efficient operation of the EBL. First two constraints relate to the low payoffs under the EBL that debtors and creditors expect to receive due to (i) flaws in the EBL itself and (ii) problems in surrounding non-bankruptcy rules and practices that reduce or prevent recoveries under the EBL. A third constraint affects those debtors and creditors who wish to use the EBL despite the low expected payoffs – for example to avoid directors' liability for corporate insolvency – but are prevented from doing so due to (iii) potential enforcers' limitations and biases. A fourth and final constraint on the use of the EBL that reinforces debtors' and creditors' unwillingness to use the EBL is (iv) the parties' (often inaccurate) perception that alternative debt enforcement mechanisms may offer comparatively higher payoffs (v. the EBL). Building on this discussion, the thesis then considers the desirability of, and options for, reform. It argues that reform and subsequent greater use of court-enforced insolvency law are desirable in China because the (reformed) EBL has the potential to contribute to economic development through more efficient resolution of complex financial distress; better control of bad debt; easier and cheaper corporate financing; more efficient allocation of resources; and more entrepreneurial activity. However, because the necessary changes to deliver this are likely to be slow in coming, it proposes a dual-track reform encompassing (i) substantive reform of the EBL and select non-bankruptcy laws and practices; accompanied by (ii) the introduction of a new speedy, independent and confidential mechanism for insolvency resolution, 'MedArb'.

Made available in DSpace on 2014-06-11T19:24:13Z (GMT). No. of bitstreams: 0 Previous issue date: 2008-05-28Bitstream added on 2014-06-13T20:31:16Z : No. of bitstreams: 1 carmo_efs_me_fran.pdf: 901110 bytes, checksum: 69be430935103a0a33ed6613c46c986d (MD5) / Nas últimas décadas, notadamente a partir da década de 80, a globalização mundial e a liberalização da economia, aliadas aos avanços tecnológicos e às profundas modificações das economias nacionais, alteraram significativamente os padrões de concorrência nos mercados. Nesse ambiente de competição extrema, o acúmulo do poder econômico assumiu um novo significado para os agentes econômicos e tornou-se verdadeira garantia de sobrevivência comercial. As concentrações econômicas, portanto, apresentaram-se como meio eficaz para combater os obstáculos impostos por este novo e desconhecido mercado, de modo que sua utilização foi até mesmo incentivada por vários Estados, como instrumento de fortalecimento das economias nacionais. Porém, muito embora as concentrações econômicas possam trazer aumento de tecnologia, diminuição dos preços ao consumidor, melhoria na qualidade dos produtos e serviços, entre outros benefícios; podem também representar um grande risco à manutenção da higidez dos mercados, decorrente do uso irrazoável do poder econômico por parte desses agentes em detrimento ao bem-estar dos consumidores e da economia. Nesse contexto, um conceito passa a adquirir importante relevância na ordenação dos mercados: a defesa da concorrência. A defesa da concorrência é hoje atuada pelos Estados não mais como um instrumento para a correção de distorções tópicas, mas sim como um verdadeiro instrumento de políticas públicas, que buscam garantir a manutenção de mercado saudável e competitivo, tutelando os consumidores e a economia como um todo, através da efetivação dos princípios da livre iniciativa, livre concorrência e da repressão ao abuso do poder econômico. No que diz respeito às concentrações econômicas, a solução para equilibrar o conflito de valores por elas... / Over the last decades, remarkably since the 80’s, the world-wide globalization and economy liberalism along with technology breakthroughs as well as deep domestic economies changes have all significantly altered the markets trade competition standards. Amid such a highly competitive scenario, the economic power control has both acquired a novel meaning for the economy players and become a commercial survival true guarantee. Thus economical concentrations have shown to be effective in overcoming the pitfalls posed by this unknown new market. Therefore, several States have been encouraging such a model even as a tool to strengthen domestic economies. Yet, although economical concentrations might bring about a technological boom, lower prices to the final consumer, and an improved products and services quality, they may also represent a high risk to robust markets maintenance due to this economical power mismanagement which tends to neglect both the consumers’ and the economy’s well-being. Thus, a major concept has been playing a crucial role in ordering markets: the trade competition defense. Nowadays, States have no longer been defending trade competition as a mere tool to fix topical misplacements, but as a true public policies instrument aimed at assuring a sustained healthy competitive market on which consumers and economy are protected as a whole by means of effective liberal principles, free trade competition, and by fighting economical power abuse. As to the economical concentrations, a solution to balance the emerging values conflict lies on the trade competition control, once allowing the use of abusive economical power and other hazardous trading practices has shown to be as damaging as not enjoying the advantages provided by the economical concentrations.

Orientador: Jete Jane Fiorati / Banca: Carla Aparecida Arena Ventura / Banca: José Carlos Garcia de Freitas / Resumo: Nas últimas décadas, notadamente a partir da década de 80, a globalização mundial e a liberalização da economia, aliadas aos avanços tecnológicos e às profundas modificações das economias nacionais, alteraram significativamente os padrões de concorrência nos mercados. Nesse ambiente de competição extrema, o acúmulo do poder econômico assumiu um novo significado para os agentes econômicos e tornou-se verdadeira garantia de sobrevivência comercial. As concentrações econômicas, portanto, apresentaram-se como meio eficaz para combater os obstáculos impostos por este novo e desconhecido mercado, de modo que sua utilização foi até mesmo incentivada por vários Estados, como instrumento de fortalecimento das economias nacionais. Porém, muito embora as concentrações econômicas possam trazer aumento de tecnologia, diminuição dos preços ao consumidor, melhoria na qualidade dos produtos e serviços, entre outros benefícios; podem também representar um grande risco à manutenção da higidez dos mercados, decorrente do uso irrazoável do poder econômico por parte desses agentes em detrimento ao bem-estar dos consumidores e da economia. Nesse contexto, um conceito passa a adquirir importante relevância na ordenação dos mercados: a defesa da concorrência. A defesa da concorrência é hoje atuada pelos Estados não mais como um instrumento para a correção de distorções tópicas, mas sim como um verdadeiro instrumento de políticas públicas, que buscam garantir a manutenção de mercado saudável e competitivo, tutelando os consumidores e a economia como um todo, através da efetivação dos princípios da livre iniciativa, livre concorrência e da repressão ao abuso do poder econômico. No que diz respeito às concentrações econômicas, a solução para equilibrar o conflito de valores por elas... (Resumo completo, clicar acesso eletrônico abaixo) / Abstract: Over the last decades, remarkably since the 80's, the world-wide globalization and economy liberalism along with technology breakthroughs as well as deep domestic economies changes have all significantly altered the markets trade competition standards. Amid such a highly competitive scenario, the economic power control has both acquired a novel meaning for the economy players and become a commercial survival true guarantee. Thus economical concentrations have shown to be effective in overcoming the pitfalls posed by this unknown new market. Therefore, several States have been encouraging such a model even as a tool to strengthen domestic economies. Yet, although economical concentrations might bring about a technological boom, lower prices to the final consumer, and an improved products and services quality, they may also represent a high risk to robust markets maintenance due to this economical power mismanagement which tends to neglect both the consumers' and the economy's well-being. Thus, a major concept has been playing a crucial role in ordering markets: the trade competition defense. Nowadays, States have no longer been defending trade competition as a mere tool to fix topical misplacements, but as a true public policies instrument aimed at assuring a sustained healthy competitive market on which consumers and economy are protected as a whole by means of effective liberal principles, free trade competition, and by fighting economical power abuse. As to the economical concentrations, a solution to balance the emerging values conflict lies on the trade competition control, once allowing the use of abusive economical power and other hazardous trading practices has shown to be as damaging as not enjoying the advantages provided by the economical concentrations. / Mestre