This study aims to investigate the relationship between creditor protection and the debt maturity structure of corporations in the Gulf Cooperation Council (GCC) countries. The GCC countries enjoy large GDPs, growing capital markets, especially the Islamic bonds (Sukuk) market, and negligible...

The paper investigates the influence of creditor rights reforms on leverage. Based on a partial equilibrium agency cost model, we propose a novel channel running from the owner/manager's private bankruptcy costs to leverage. Such costs mitigate the firms' agency problem toward creditors, thereby...

This study investigates the impact of the Insolvency and Bankruptcy Code (IBC) on the capital structure speed of adjustment (SOA) of Indian firms. The IBC, introduced in 2016, significantly enhanced creditors' rights and streamlined the bankruptcy process, providing a quasi-natural experiment to...

I estimate the relationship between increased creditor rights and legal expenditures of debtor corporations by analyzing the effect of a major securitization law in India allowing secured creditors to seize collateral. While the law decreased spending on legal proceedings commonly used by firms...

This is a draft chapter for a forthcoming volume, "Freedom of establishment and cross-border mobility for companies in the EU", edited by Paula Del Val Talens, Wolters Kluwer (2023 expected). It provides an illustration and a critical assessment of the EU creditor protection regime established...

We analyze how creditor rights affect the nonsynchronicity of global corporate credit default swap spreads (CDS-NS). We find that CDS-NS is negatively related to the country-level creditor-control rights, especially to the “restrictions on reorganization” component, where...

This study investigates the influence of creditor control rights on the pricing of corporate loans. We construct a novel dataset that combines hand-collected covenant violations data with individual borrowers, creditors, and loan contract information. Our data allows us to distinguish between...

This paper examines the effects of improvement in creditors' rights protection on firms' financing choices and securities issuance. I exploit exogenous variation in creditors' rights protection induced by the staggered adoption of anti-recharacterization laws by some U.S. states. Using...

Relying on an unbalanced panel of 25,211 observations of Polish unlisted companies for the period 2005-2018, we employ panel data analysis to investigate the role of the capital maintenance principle in securing creditors' interests. We document a persistently higher level of indebtedness among...

This study aims to investigate the relationship between creditor protection and the debt maturity structure of corporations in the Gulf Cooperation Council (GCC) countries. The GCC countries enjoy large GDPs, growing capital markets, especially the Islamic bonds (Sukuk) market, and negligible...

Die restrukturierungs- und insolvenzrechtliche Priorität legt fest, in welcher Reihenfolge Eigen- und Fremdkapitalgeber in der finanziellen Krise des Unternehmens Zugriff auf den Unternehmenswert erhalten. Damit entfaltet die Priorität verhaltenssteuernde Anreizwirkungen und bestimmt...

Previous studies show that, in common-law countries, the explanatory power of stock returns is higher using cash flows than earnings and accruals, while the opposite is true in code-law countries. Moreover, the literature has shown the existence of a country-specific effect motivated by...

We examine how creditor rights affect the trade-off between non-debt and debt tax shields. Using four bankruptcy reforms, a panel of private and public firms, and tax return data from Italy, we show that laws empowering creditors reduce tax avoidance and increase debt financing, consistent with...

We study a 2013 court decision that enhanced creditor control rights in Israeli firms by allowing them to force companies into bankruptcy. We find that the market expected the court ruling to benefit creditors: bond (equity) prices of companies affected by the new rule responded positively...

At all times a debtor exist when there is a creditor. According to the current Rwandan law relating to insolvency, it is provided that the commencement of the insolvency proceedings shall lead to the stay of among others the individual actions or proceedings concerning the debtor’s rights,...

This paper examines the effect of host economy creditor rights and information sharing on the profit performance of foreign banks vis-à-vis domestic banks for a global sample of commercial banks over the 2005-2009 period. To this end, we employ the recent foreign bank ownership dataset of...

This study examines the impact of the Uniform Fraudulent Transfer Act (UFTA) on venture capital (VC) investment, innovation activity, successful exit, and financial distress of entrepreneur entities. The UFTA mainly contributes to eliminating the burden of proof against fraudulent transfer...

Previous studies show that, in common-law countries, the explanatory power of stock returns is higher using cash flows than earnings and accruals, while the opposite is true in code-law countries. Moreover, the literature has shown the existence of a country-specific effect motivated by...

This note analyzes select aspects of the system for insolvency and creditors' rights in the context of an overall assessment of the Irish financial sector. It focuses on two areas: (1) the use and effectiveness of the corporate restructuring regime and (2) the resolution of mortgage related...

A. Einleitung -- Problemstellung und Untersuchungsgegenstand — Themenabgrenzung — Gang der Untersuchung — Begriff des Haftkapitals -- B. Grundlegungen -- Begriffsbestimmung »Mezzanine-Kapital« — Zweck der Verwendung mezzaniner Finanzierungsinstrumente — Bestandsaufnahme der in...