As financial markets become more global, the question arises whether any country specific considerations are still relevant for insurance companies' capital structure. This research examines this questions with firm-level data across a broad range of countries including those in developing...

Stronger creditor rights reduce credit costs and thus may allow firms to increase leverage and investments, but also increase distress costs and thus may prompt firms to lower leverage and undertake risk-reducing but unprofitable investments. Using a German bankruptcy law reform, on average, we...