Legal Solvency Tests and Financial Economics
Abstract
Legal solvency tests play a crucial role in high‐stakes financial transactions. This article presents a brief introduction to legal solvency tests that play important roles in bankruptcy and corporate law. The author then proceeds to analyze these tests from the perspective of financial economics, and argues that optimal solvency tests should be context‐dependent.
Citation
HEATON, J.B. (2002), "Legal Solvency Tests and Financial Economics", Journal of Risk Finance, Vol. 4 No. 1, pp. 57-62. https://doi.org/10.1108/eb022955
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited