The real effects of judicial enforcement
- This paper shows that judicial enforcement has substantial effects on firms’ decisions with regard to their employment policies. To establish causality, I exploit a reorganization of the court districts in Italy involving judicial district mergers as a shock to court productivity. I find that an improvement in enforcement, as measured by a reduction in average trial length, has a large, positive effect on firm employment. These effects are stronger in firms with high leverage, or that belong to industries more dependent on external finance and characterized by higher complementarity between labor and capital, consistent with a financing channel driving the results. Moreover, in presence of stronger enforcement, firms can raise more debt to dampen the impact of negative shocks and, in this way, reduce employment fluctuations.
Verfasserangaben: | Vincenzo PezoneORCiD |
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URN: | urn:nbn:de:hebis:30:3-616519 |
DOI: | https://doi.org/10.2139/ssrn.3090884 |
Titel des übergeordneten Werkes (Englisch): | SAFE working paper series ; No. 192, LawFin working paper ; No. 11 |
Schriftenreihe (Bandnummer): | LawFin Working Paper (11) |
SAFE working paper (192 n) | |
Verlag: | Center for Advanced Studies on the Foundations of Law and Finance, House of Finance, Goethe University |
Verlagsort: | Frankfurt am Main |
Dokumentart: | Arbeitspapier |
Sprache: | Englisch |
Jahr der Fertigstellung: | 2020 |
Jahr der Erstveröffentlichung: | 2020 |
Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Datum der Freischaltung: | 09.09.2021 |
Freies Schlagwort / Tag: | Duration of Civil Proceedings; Finance and Employment; Financing Constraints; Law Enforcement |
Ausgabe / Heft: | Friday 24th April, 2020 |
Seitenzahl: | 70 |
Letzte Seite: | 66 |
Institute: | Rechtswissenschaft / Rechtswissenschaft |
Wirtschaftswissenschaften / Wirtschaftswissenschaften | |
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE) | |
Wissenschaftliche Zentren und koordinierte Programme / DFG-Forschergruppen / Foundation of Law and Finance | |
DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
3 Sozialwissenschaften / 34 Recht / 340 Recht | |
Sammlungen: | Universitätspublikationen |
Lizenz (Deutsch): | ![]() |