  This study aims to empirically investigate the impact of managers'
characteristics on their choice between in-court and out-of-court
restructuring. Based on the theory of upper echelons, we tested the preferences
of 342 managers of financially distressed French firms regarding restructuring
decisions. The overall findings of this study provide empirical support for the
upper echelons theory. Specifically, managers with a long tenure and those with
a high level of education are less likely to restructure before the court and
are more likely to restructure privately. The findings also indicate that
managers' age and gender do not significantly affect their choice between
in-court and out-of-court restructuring. This study contributes to the
literature on bankruptcy and corporate restructuring by turning the focus from
firm characteristics to manager characteristics to explain restructuring
decisions.
