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The purpose of this paper is to investigate the determinants of bankruptcy protection duration of Canadian public firms, and also investigate the duration for various bankruptcy outcomes including the liquidation and re-emergence of bankrupt firms.

This study uses data on all Canadian public firms that applied for bankruptcy protection over the period 1992–2014. The authors mainly apply duration and survival analyses to draw the main conclusions.

The authors find that larger and older firms with more complicated structures and issues to settle tend to remain under protection from creditors longer, and also ascertain that the fate of relatively successful companies is determined faster. Moreover, the authors report that it takes less time to achieve a final solution for firms under bankruptcy protection when interest rates are increasing and the term spread is high. Finally, firms that file for protection under the Companies’ Creditors Arrangement Act (CCAA) spend longer restructuring than firms that file under the Bankruptcy and Insolvency Act.

The paper investigates only publicly listed firms. The data on private firms that are required to conduct the research are not available.

Various stakeholders including regulators can predict the bankruptcy protection period using the paper’s findings. Depending on the desired outcomes (reduce uncertainly, safeguard jobs or protect creditors’ rights), specific rules can be followed.

To the authors; knowledge, this is the first paper that investigates the Canadian bankruptcy protection duration. It uses the unique Canadian framework to infer the determinants of bankruptcy protection duration and bankrupt firms’ outcomes.

The origin of bankruptcy dates back to the laws of the Roman Empire which were instrumental in the formation of both English and American laws (Galligan, 1991). However, it was not until 1898 that the United States enacted its bankruptcy laws for the first time. Later, the Chandler Act of 1938 was added in order to legislate reorganisation into existing bankruptcy laws. In order to expand this critical domain, the 1978 Bankruptcy Reform Act was made into law. Finally, Congress passed the Bankruptcy Amendments and Federal Judgeship Act in 1984 so that some weaknesses in the 1978 reform act could be improved.

A neglected area of research in ODC is the turnaround of poorly performing firms such as those under bankruptcy protection. We researched 142 companies that attempted reorganization under bankruptcy protection between 1983 and 2003. Firms deployed one or more of four distinct strategies to turnaround: rationalizing existing resources, developing existing resources, generating new resources, and investing in future resources. Firms that generated new resources, and developed and rationalized existing resources, had the highest probability of emergence. Interestingly firms that sustained their turnaround post-emergence invested in future resources in addition to generating, developing, and rationalizing resources. Implications for ODC are discussed.

The purpose of the paper is to analyze the new Bankruptcy Law in Saudi Arabia (KSA Bankruptcy Law) under both a comparative lens and a policy-oriented one, while highlighting some of the most essential operational steps and procedures in a bankruptcy proceeding under the law.

The approach adopted analyzes the specific mechanics and procedures of a bankruptcy law under the general policies and goals of bankruptcy. Additionally, where appropriate, a brief comparison to the US Bankruptcy code and its provisions is presented to provide an alternative approach on how similar issues are handled under a reputable and proven bankruptcy system.

Overall, the KSA Bankruptcy Law is a major accomplishment and advancement to the Kingdom’s insolvency regime. The law consolidated and codified the laws governing bankruptcy under the Kingdom’s prior regime, and followed the structure of a modern bankruptcy regime. In doing so, several of the law’s policies and objectives have been fulfilled by providing an effective, predictable and reliable bankruptcy system.

Given the relatively recent adoption of the KSA Bankruptcy Law, the paper provides a comprehensive assessment of the law’s operation and its effectiveness in achieving its policy goals as a modern bankruptcy law.

The purpose of this paper is to show how the choice and ongoing evaluation of a firm’s business model, as a matter of strategic guidance, are key aspects of corporate governance (CG), with particular reference to risk management (RM) in Islamic banks.

This research uses a case study approach, with a single case, which was chosen as it fits very well the purpose of this research. The data collection was based largely on documentary evidence. Company data were collected from company annual reports, press releases and legitimate web sites. The ORBIS Bank Focus database was also used to produce a comparative financial analysis.

The study findings illustrate how an apparently successful business model may fail due to an inherent instability that could have been identified through the application of careful risk analysis (including stress testing) in the choice and ongoing evaluation of the business model, which robust CG and strategic guidance require. In particular, Arcapita’s problems illustrate the dangers to Islamic financial institutions (IFI) from business models that involve undue exposure to liquidity risk.

The issues raised in the paper are important in that Islamic banking and finance is an integral part of the global banking and finance industry. Investors and regulators are now requesting corporate management to provide improved service to shareholders and other stakeholders alike. IFI rely on the confidence of investors and market participants, just like conventional institutions and when this confidence erodes, it may prove difficult to regain.

The global credit crisis of 2008 caused significant difficulties to firms, especially financial institutions, even with substantial government intervention in the economy, which raised some issues of CG and ethics.

This paper extends the knowledge of the potential effects of weaknesses in CG and RM, with specific reference to strategic guidance in the choice and ongoing evaluation of a firm’s business model, especially in relation to the Islamic banking sector. It also provides a telling illustration of the need for the enhancements of the Basel Committee’s prudential requirements set out in the various Basel III documents.

This study aims to analyze the effects of COVID-19 on airlines, airports and the destination Andalusia. On that basis, the study has assessed the bankruptcy of some airlines, closure and reduction of the frequency of air routes, COVID-19 measures at airports by governments, etc., to adapt to new circumstances, be efficient and plan their resources according to the tourist demand.

A review of the relevant literature on the impact of COVID-19 on the aviation industry, airports and tourism sector are undertaken to understand the link between them. The paper begins by explaining the effects of the pandemic on the aviation industry and discusses its impact in the Andalusian region. Furthermore, this study uses secondary data from IATA, AENA, EUROCONTROL, INE, OAG, UNTWO, etc., to support research results.

The results of the effects of the pandemic in Andalusia are being devastating and this destination is heavily dependent on tourism. The drastic drop in flight frequencies at airports during the pandemic has caused an average decrease of −65% in passenger arrivals at airports until October 2020 that is 23 million passengers, too many passengers for the Andalusian economy, which depends mainly on the tourism sector.

The study contributes toward assessing the COVID-19 effects on the aviation industry and tourist destinations. Both sectors will re-emerge in the medium term and at different speeds in different regions. The contribution of this study is essential for managers and operators of airlines, airports and tourist destinations to make better future decisions.

COVID-19 对安达卢西亚旅游业和航空业的影响

本研究旨在分析COVID-19对航空公司、机场和目的地安达卢西亚的影响。在此基础上, 研究评估了部分航空公司破产、关闭和减少航线班次、政府在机场采取的COVID-19措施等, 以适应新形势, 提高效率, 按需规划资源。

审查了关于COVID-19对航空业、机场和旅游部门影响的相关文献, 以了解它们之间的联系。文章首先解释了这一流行病对航空业的影响, 并分析了其对安达卢西亚地区的影响。本研究采用IATA、AENA、EUROCONTROL、INE 、UNTWO、OAG等机构的二手数据来支持研究结果。

安达卢西亚大流行的影响结果是毁灭性的, 这个目的地严重依赖旅游业。大流行期间, 机场的航班频次急剧下降, 导致安达卢西亚6个机场到2020年10月的旅客数量平均下降了−65%, 即2300万人次, 对于主要依靠旅游业的安达卢西亚经济来说, 旅客数量太多。

该研究有助于评估COVID-19对航空业和旅游目的地的影响。这两个行业将在中期内重新崛起, 并且在不同地区以不同的速度发展。本研究的贡献对于航空公司、机场和旅游目的地的管理者和经营者来说是非常必要的, 可以让他们在未来做出更好的决策。

Los efectos del COVID-19 en el turismo y sector aéreo andaluz

Este estudio tiene la finalidad de analizar los efectos del COVID-19 en las aerolíneas, aeropuertos y el destino Andalucía. Sobre esta base, el estudio ha valorado la quiebra de algunas aerolíneas, el cierre y reducción de la frecuencia de rutas aéreas, las medidas COVID-19 en los aeropuertos por parte de los gobiernos, etc., con la finalidad de adaptarse a las nuevas circunstancias, ser eficientes y planificar sus recursos según la demanda.

Se realiza una revisión de la literatura relevante sobre el impacto del COVID-19 en la industria de la aviación, los aeropuertos y el sector turístico para comprender el vínculo entre ellos. El artículo comienza explicando los efectos de la pandemia en la industria de la aviación y analiza su impacto en la región de Andalucía. Este estudio utiliza datos secundarios de IATA, AENA, EUROCONTROL, INE, OAG, UNTWO, etc., para respaldar los resultados de la investigación.

Los resultados de los efectos de la pandemia en Andalucía están siendo devastadores y este destino depende en gran medida del turismo. La drástica caída de la frecuencia de vuelos en los aeropuertos durante la pandemia ha provocado un descenso medio del −65% en las llegadas de pasajeros en los seis aeropuertos andaluces hasta octubre de 2020, es decir, 23 millones de pasajeros, demasiados pasajeros para una economía andaluza que depende principalmente del sector turístico.

El estudio contribuye a evaluar los efectos del COVID-19 en el sector aéreo y los destinos turísticos. Ambos sectores resurgirán a medio plazo y a distintas velocidades en diferentes regiones. La contribución de este estudio es fundamental para que los gestores y operadores de aerolíneas, aeropuertos y destinos turísticos tomen mejores decisiones futuras.

This paper aims to explore the barriers that constrain the venture capital (VC) financing in Iran based on the institutional theory.

To answer the question, “How institutional barriers constrain the VC financing in Iran?”, 31 detailed interviews were conducted, and the interviewed data were analysed by using the grounded theory method.

There exist several institutional barriers (formal and informal) in different stages of the VC investment process in Iran. Major formal institutional deficiencies include lack of appropriate financial regulations, inefficacy in tax, labour, property rights, financial disclosure, bankruptcy, investor’s protection laws and regulations, lack of credit rating/scoring system, inefficacy in small and medium-sized enterprise-supporting policies and capital market underdevelopment. Moreover, there exist some informal institutional barriers such as culture of capitalism disapproval, culture of secrecy, individualistic customs and weakness of managerial skills that constrain VC activities in Iran.

The research findings imply that the government’s role should change from “establishment of government-sponsored VC funds” to “enforcement of institutional reforms that lead to an appropriate framework for VC investment”.

This paper has made three key contributions. First, it has provided comprehensive insights into how institutional barriers constrain the VC investment in a developing country. Second, a new stage-wise model is proposed for analysing the VC investment process. Third, existing knowledge about the role of both formal and informal institutions in the VC investment is extended.

Grocery store chain Winn-Dixie had rapidly expanded in an effort to become a national retailer, and by 1999 it had more than 1,000 stores. The company began manufacturing its own products, reasoning that by owning more of the supply chain, it could offer the customer less expensive options. With its new geographic focus and manufacturing facilities, Winn-Dixie attempted to secure a position as a low-cost provider with a national presence. Instead of improving the company's position in the market, however, this strategy crippled both the short- and long-term prospects for Winn-Dixie. The company paid a high premium to expand and increased its leverage without ever realizing the purposed synergies. In fact, there were dis-economies of scale because the distribution, marketing, and administrative costs had risen along with the increased revenue. The expansion and inefficient manufacturing added complexity to its distribution network, and with a greater debt load and less cash, the company was unable to reposition itself in the market when its low-cost provider strategy failed. Not only was the company unable to pursue other opportunities but it also did not have the cash to properly maintain many of its existing stores, which quickly became run down. Winn-Dixie was stuck as a general grocer with few options at a time when the industry was rapidly evolving. Following faulty strategies of expansion, supply chain changes, and increased debt, Winn-Dixie declared bankruptcy. Students will take the view that Paul “Flip” Huffard, lead consultant from Blackstone LP, had in determining the valuation and new capital structure of the company. These decisions would be critical, as they affected what each creditor class would receive and whether Winn-Dixie could emerge from bankruptcy.

Students will: 1. Assess the importance and negative financial impact of past strategic moves, and suggest possible future strategic directions and the expected benefits of such changes. 2. Learn quantitative valuation methods for a company in Chapter 11 and their effects on stakeholders. 3. Learn the elements of a plan of reorganization, including the capital structure, treatment of multiple creditor groups, and management compensation. 4. Discuss sources and uses of capital during a Chapter 11 turnaround.