The assessment of company’s solvency is important for various agents (i.e., owners, creditors, employees, and other institutions). Defaults and bankruptcies can also have serious consequences for related firms in the sector and for broader economy.

Early identification of financial distress is fundamental in efficient resource allocation in the economy in broad sense and more specifically enables companies to keep on operating and growing. Insolvency codes play a major role in the decisions related to the capital structure (creditors more willing to lend if their rights are protected by the code but the borrowers may prefer less debt in a creditor friendly environment), as well as investments (the ease of exit can make investments more attractive but at a social cost). For both, economic and social reasons, restructuring is preferable to liquidation of the firm and it is crucial that appropriate restructuring strategies are adopted for the circumstances.

A prospective PhD candidate is expected to analyse why some firms liquidate others restructure more quickly, and others are able to avoid bankruptcy by successful restructuring.

Supervisors: Dr Vineet Agarwal and Dr Nemanja Radic

Application Details: The PhD candidate should hold a minimum 2.1 class undergraduate degree in a related discipline and have passed, or be expected to have passed by autumn, a master’s degree or equivalent research experience in a work setting. See admission and English language requirements.

Deadline: Expressions of interest alongside a CV are invited via email to and