The Project of Electronic Monitoring of Insolvency Proceeding Results in the Czech Republic: Utilization of IT Reduces Information Asymmetry among Economic Subjects

Abstract

The study provides information regarding the results of comprehensive statistical surveys of insolvency proceedings and especially the real results thereof. These surveys have been conducted in the Czech Republic over the last three years. The study first shows the significance of such statistics and the possibility of further analyses of the data gained. It then devotes attention to the gradual implementation of a unique project of systematic acquisition of information on insolvency proceedings and about the mechanisms by which this information will be made public in the near future. As a result, it will in essence be possible for anyone to compile, without any expense, data files online regarding results of those proceedings that are of interest to them from the perspective of their decision-making processes. This will be an entirely unique system which does not yet exist in any developed country. Its main contribution will be the reduction of the information asymmetry which exists in every national economy, where debtors and, among creditors, system creditors (especially banks) have a primary advantage in terms of information. Implementation of a freely accessible database, however, will enable all subjects without difference to acquire better documentation for decision-making processes.