Houston, Joel F.; Lin, Chen; Lin, Ping; Ma, Yue - In: Journal of Financial Economics 96 (2010) 3, pp. 485-512
Looking at a sample of nearly 2,400 banks in 69 countries, we find that stronger creditor rights tend to promote greater bank risk taking. Consistent with this finding, we also show that stronger creditor rights increase the likelihood of financial crisis. On the plus side, we find that stronger...
