TY  - UNPD
A1  - Bian, Bo
T1  - Globally consistent creditor protection, reallocation, and productivity
T2  - LawFin working paper ; No. 6
N2  - This paper documents that resource reallocation across firms is an important mechanism through which creditor rights affect real outcomes. I exploit the staggered adoption of an international convention that provides globally consistent strong creditor protection for aircraft finance. After this reform, country-level productivity in the aviation sector increases by 12%, driven mostly by across-firm reallocation. Productive airlines borrow more, expand, and adopt new technology at the expense of unproductive ones. Such reallocation is facilitated by (i) easier and quicker asset redeployment; and (ii) the influx of foreign financiers offering innovative financial products to improve credit allocative efficiency. I further document an increase in competition and an improvement in the breadth and the quality of products available to consumers.
T3  - LawFin Working Paper - 6 
KW  - Creditor Rights
KW  - Allocative Effciency
KW  - Reallocation
KW  - Productivity and Growth
KW  - Law and Finance
Y1  - 2020
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/61646
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-616460
IS  - October 19, 2020
EP  - A20
PB  - Center for Advanced Studies on the Foundations of Law and Finance, House of Finance, Goethe University
CY  - Frankfurt am Main
ER  -