ABSTRACT
And when considered historically, the tools for addressing fi nancial distress do seem to develop hand in hand with a country’s economy. us England enacted its fi rst between bankruptcy law for traders in 1705 (Goode, 2005) and the United States enacted a similar law in 1800 (Mann, 2002). Insolvency procedures dealing with corporate entities came in the mid-to late-nineteenth century (Lubben, 2004). China, on the other hand, enacted its fi rst bankruptcy law in 1986 and even then the law only applied to state-owned enterprises (Zhang and Booth, 2001).
