Hale, Galina; Razîn, Assaf; Tong, Hui - 2011
creditor protection increases the expected level and lowers the variance of stock prices in the presence of credit crunches …. There are two main channels through which creditor protection enhances the performance of the stock market: (1) The credit …-constrained stock price increases with better protection of creditors; (2) The probability of a credit crunch leading to a binding …