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Asian Review of Financial Research Vol.18 No.2 pp.41-65
Private Property Donation of Manager and Efficiency of Business Restructuring
Sang Woo Lee Jeonju University
Key Words : 기업도산,채무불이행,출자전환,기업구조조정,사재출연


After foreign currency crisis in 1997, many firms went bankruptcy, and their restructurings have been one of major issues in financial economics. Under perfect information, viable firms must be restructured quickly and actively. But debtholders do not have perfect information about viability of bankrupt firms.In this situation, debtholders do not take active actions such as debt-equity swap or liquidation. They may take passive action - maturity extension. Maturity extension will be best action for the debthoders, but it will result in lower resturction performance.In this study, I analyse private property donation of manager. The manager knows much about firm's viability than debthoders and this private property donation will play a signal of firm's viability.I investigate under which situation, manager will propose private property donation and efficiency of restructuring process will be improved.
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