Defaults of Extra-Large Enterprises in the Czech Republic

摘要

This paper focuses on the issue of bankrupt enterprises. Corporate bankruptcies have many consequences, including unfulfilled business goals, lost equity, unsatisfied claims of creditors, and increased unemployment. Companies usually have more than one creditor to whom they cannot fulfill payables. Therefore, the enforcement of receivables is solved collectively in the form of insolvency proceedings. The several types of settlement insolvency proceedings are bankruptcy, reorganization, and debt relief, intended only for individuals whose debts were not created during entrepreneur-ship. Institutional economics postulates that extra-large enterprises are too big to fail. The aim of this paper is to verify this postulation.