Legal Rights Matter: Evidence from Panel Data on Creditor Protection and Debt
2008 (English)In: International Finance Review, ISSN 1569-3767, Vol. 9, 303-336 p.Article in journal (Refereed) Published
Using panel data derived from recent financial statements, we examine the relationship between changing creditor protection and leverage (and debt maturity) in a number of emerging market countries located in Central and Eastern Europe. We examine unlisted firms, which are more likely than listed companies to face credit constraints. Our main hypothesis is whether unlisted firms change their leverage and debt maturity as creditor rights increase. We confirm this to be the case at both the country- and firm-level; our findings are robust to alternative econometric specifications and inclusion of countrylevel and firm-level controls. We also find that legal origin is related to the level of debt and its maturity.
Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2008. Vol. 9, 303-336 p.
Investor Protection, Creditor Rights, Leverage, Debt Maturity, Emerging Markets
investerarskydd, borgenärsskydd, hävstång, löptid, Östeuropa, emerging markets
Economics and Business Law and Society
Research subject Business Administration; Private Law
IdentifiersURN: urn:nbn:se:su:diva-98056DOI: 10.1016/S1569-3767(08)09013-4OAI: oai:DiVA.org:su-98056DiVA: diva2:682267
FunderThe Foundation for Baltic and East European Studies