Vintage capital and creditor protection

Efraim Benmelech, Nittai K. Bergman

Research output: Contribution to journalArticlepeer-review


We provide novel evidence linking the level of creditor protection provided by law to the degree of usage of technologically older, vintage capital in the airline industry. Using a panel of aircraft-level data around the world, we find that better creditor rights are associated with both aircraft of a younger vintage and newer technology, as well as firms with larger aircraft fleets. We propose that by mitigating financial shortfalls, enhanced legal protection of creditors facilitates the ability of firms to make large capital investments, adapt advanced technologies, and foster productivity.

Original languageEnglish
Pages (from-to)308-332
Number of pages25
JournalJournal of Financial Economics
Issue number2
StatePublished - Feb 2011
Externally publishedYes


  • Asset-backed securities
  • Bankruptcy
  • Collateral
  • Contagion


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