Vintage Capital and Creditor Protection
Name
Bergman_Vintage Capital.pdf
Size
344.32 KB
Format
Adobe PDF
Checksum (MD5)
8fdafab255662e2eeb52da493f29d4b7
Author(s)
Benmelech, Efraim
Bergman, Nittai
Date Issued
February 2010
Journal
Working paper series (National Bureau of Economic Research)
Publisher
National Bureau of Economic Research
Citation
Benmelech, Efraim and Nittai K. Bergman. "Vintage Capital and Creditor Protection." NBER Working Papers, Feb. 2010, no.15735 (Working papers series (National Bureau of Economic Research)) http://www.nber.org/papers/w15735.pdf
Version
Author's final manuscript
Abstract
We provide novel evidence linking the level of creditor protection provided by law to the degree of usage of technologically older, vintage capital in the airline industry. Using a panel of aircraft-level data around the world, we find that better creditor rights are associated with both aircraft of a younger vintage and newer technology as well as firms with larger aircraft fleets. We propose that by mitigating financial shortfalls, enhanced legal protection of creditors facilitates the ability of firms to make large capital investments, adapt advanced technologies and foster productivity.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike 3.0
Persistent DSpace Link
DOI of Published Version
http://ideas.repec.org/p/nbr/nberwo/15735.html
