Network ties in voting on corporate reorganization plans
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Abstract
This paper investigates the professional or academic connections between creditor lawyers and lawyers representing companies undergoing judicial recovery processes, focusing on the likelihood of plan approval as the central variable. We also examines the possible relationship between plan approval and prior collaboration among lawyers and/or judicial administrators in other cases with the same judge. Using manually collected data from 1,054 professionals via LinkedIn, involved in 565 corporate reorganizations, we find a positive association between the connection of the debtor's lawyer and the bank's lawyer and the approval of the judicial reorganization plan. Additionally, prior connections with judges through collaborations in other cases show a positive marginal effect on the likelihood of plan approval. This study underscores the relevance of professional and collaborative networks between lawyers and judges in the approval process of judicial reorganization plans.
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References
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