Vintage Capital and Creditor Protection
Author(s)
Benmelech, Efraim; Bergman, Nittai
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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.
Date issued
2010-02Department
Sloan School of ManagementJournal
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
ISSN
0898-2937