Designing Effective Insolvency Frameworks for Multinational Corporations: A Literature Review on Reform Priorities and Value Foundations in Developing Countries

Cahyatih Kumandang ; Mia Christy Patricia
International Journal of Business Law, Business Et... 📅 2026 Vol 3, No 2 🔗 DOI: 10.70142/ijbge.v3i2.458
Abstract
This study conducts a qualitative literature review to examine how insolvency frameworks in developing countries can be designed to effectively accommodate multinational corporations (MNCs). Drawing on interdisciplinary legal, economic, and policy oriented scholarship, the review analyses why MNCs frequently avoid initiating insolvency proceedings in host developing jurisdictions and instead engage in forum shopping toward developed economies. The findings indicate that institutional weaknesses, limited judicial and professional capacity, inadequate group-insolvency coordination, and low procedural predictability significantly reduce the attractiveness of domestic insolvency regimes. The review further identifies core value foundations legal certainty, transparency, efficiency, stakeholder balance, and enterprise value preservation as essential elements of effective insolvency law reform. The study contributes by synthesising reform priorities that move beyond formal legislative change toward strengthening institutional credibility and normative legitimacy, offering policy relevant insights for developing countries seeking to retain multinational insolvency cases and enhance economic resilience.
Keywords
Multinational insolvency; Developing countries; Insolvency law reform; Forum shopping; Institutional and value foundations
How to Cite

Cahyatih Kumandang & Mia Christy Patricia (2026). Designing Effective Insolvency Frameworks for Multinational Corporations: A Literature Review on Reform Priorities and Value Foundations in Developing Countries. International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE), 3(2). https://doi.org/10.70142/ijbge.v3i2.458

Cahyatih Kumandang; Mia Christy Patricia, "Designing Effective Insolvency Frameworks for Multinational Corporations: A Literature Review on Reform Priorities and Value Foundations in Developing Countries," International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE), vol. 3, no. 2, 2026.

Cahyatih Kumandang; Mia Christy Patricia. "Designing Effective Insolvency Frameworks for Multinational Corporations: A Literature Review on Reform Priorities and Value Foundations in Developing Countries." International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE), vol. 3, no. 2, 2026.

Cahyatih Kumandang; Mia Christy Patricia. "Designing Effective Insolvency Frameworks for Multinational Corporations: A Literature Review on Reform Priorities and Value Foundations in Developing Countries." International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE) 3, no. 2 (2026).

Cahyatih Kumandang & Mia Christy Patricia (2026) 'Designing Effective Insolvency Frameworks for Multinational Corporations: A Literature Review on Reform Priorities and Value Foundations in Developing Countries', International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE), 3(2). doi: 10.70142/ijbge.v3i2.458.

Cahyatih Kumandang; Mia Christy Patricia. Designing Effective Insolvency Frameworks for Multinational Corporations: A Literature Review on Reform Priorities and Value Foundations in Developing Countries. International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE). 2026;3(2).

Artikel Terkait

Agency Costs, Voting Divergence, and Corporate Governance: A Qualitative Synthesis of Dual-Class Stock and Sunset Clause Mechanisms

Benardi; Kusnanto, Eri

Humanity, Resilience, and Equity in Corporate Failure: A Literature Review on Developing Fairness Metrics for Inclusive Insolvency Systems

Grace Yulianti; Sigit Pramono Hadi

Balancing Transparency and Innovation in the Global Litigation Finance Market: A Qualitative Synthesis of Risks, Regulation, and Policy Debates

Novrizal; Ria Wulandari

Climate Risk, Legal Liability, and Portfolio Strategy: A Qualitative Review of Brown Assets as Hedging Instruments in High-Carbon Scenarios

Santoso, Seger; Qalbia, Farah

Designing Optimal Whistleblowing Mechanisms: A Qualitative Literature Review on Bounty Size, Strategic Thresholds, and Regulatory Effectiveness

Ahembang; Agustina, Selvi

Moral Legitimacy and Joint Purpose: A Literature Review on the Ethical Foundations of Collaborative Organizations

Yulianti, Grace; Irawan, Dadang
Tren Sitasi Jurnal