Management trustworthiness in distressed companies: relevance for the approval of restructuring plans by Brazilian private Banks
This research hypothesizes that, for companies in financial distress, management trustworthiness is relevant in creditors' decisions – specifically private banks – regarding the approval or rejection of the borrowers' restructuring plan. Data extracted from the most extensive restructuring proceedings filed before the Court of the State of São Paulo show a moderate positive correlation between changes in the debtors' management and the approval of their plans.