Paper co-authored by Doctoral Programme alumna Dr. Aishwarya Krishna and Prof. M Jayadev selected for Best Paper Award at Research Symposium of Krea University
The paper is titled, ‘Does creditor protection reduce default risk and agency costs? Evidence from Indian private and public firms’
3 July, 2024, Bengaluru: A paper titled, ‘Does creditor protection reduce default risk and agency costs? Evidence from Indian private and public firms’, co-authored by Dr. Aishwarya Krishna, alumna of the Doctoral programme of IIM Bangalore (Fellow Programme in Management) and Prof. M Jayadev, Dean, Administration, Chairperson, Centre for Capital Markets & Risk Management and faculty of the Finance & Accounting area of IIM Bangalore, has been selected for the Best Paper Award in Finance Track at the Research Symposium on Finance and Economics (RSFE 2024), conducted by Krea University from 12 to 14 June 2024. More than 100 papers were presented from 20 countries at the symposium.
Dr. Aishwarya Krishna is currently Adjunct Faculty of IIMB and Research Consultant, Centre for Capital Markets & Risk Management (CCMRM), IIMB.
The research study assesses the impact of the Insolvency and Bankruptcy Code (IBC 2016) on private firms. Utilizing a unique dataset of one million private firms from India's Ministry of Corporate Affairs, the study reveals that IBC 2016 has been instrumental in reducing leverage, default risk, cost of credit and agency costs for private firms. Notably, the effect is more significant for private firms compared to listed public firms. This indicates that a creditor protection law such as IBC 2016 improves the overall financial health of companies.