TY - JOUR
T1 - Vintage capital and creditor protection
AU - Benmelech, Efraim
AU - Bergman, Nittai K.
PY - 2011/2
Y1 - 2011/2
N2 - 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.
AB - 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.
KW - Asset-backed securities
KW - Bankruptcy
KW - Collateral
KW - Contagion
UR - http://www.scopus.com/inward/record.url?scp=78650305374&partnerID=8YFLogxK
U2 - 10.1016/j.jfineco.2010.09.004
DO - 10.1016/j.jfineco.2010.09.004
M3 - ???researchoutput.researchoutputtypes.contributiontojournal.article???
AN - SCOPUS:78650305374
VL - 99
SP - 308
EP - 332
JO - Journal of Financial Economics
JF - Journal of Financial Economics
SN - 0304-405X
IS - 2
ER -