Absolute Priority Rule Violations in Bankruptcy
研究了私人债务重组和破产重整中违反绝对优先权规则的原因及其对经济效率的影响，发现最优破产制度应允许合同参与者事先决定是否允许此类违反。
Violations of the absolute priority rule in both private workouts and Chapter 11 reorganizations have been enigmatic for financial economists. Why do such violations exist? Do they promote or curtail economic efficiency? This paper demonstrates that the answers depend on the specific contracting problem that a firm and its creditors face. As a result, an optimal bankruptcy institution should allow contract participants to decide ex ante whether such violations will occur.