Template-Type: ReDIF-Paper 1.0
Title: Creditor Rights, Information Sharing, and Borrower Behavior:
Theory and Evidence
Author-Name: John H. Boyd
Author-Email: boydx002@umn.edu
Author-Name: Hendrik Hakenes
Author-Email: hakenes@uni-bonn.de
Author-Name: Amanda Heitz
Author-Email: aheitz@tulane.edu
Classification-JEL: G21, G28, L15
Keywords: Creditor rights, information sharing

Abstract: This paper provides a comprehensive theoretical and empirical analysis of "creditor rights" and "information sharing"
throughout over 1.8 million private firms in Europe.
We show that many of the outcomes associated with greater levels of creditor rights can be obtained with higher information sharing between banks.
Both theory and empirics show that creditor rights and information sharing are associated with greater firm leverage, lower profitability,
and greater distance to default. Moreover, theory and empirics find that creditor rights and information sharing are robust substitutes.
Our analysis suggests that poor creditor rights can be substituted by improved information sharing.

Note: 
Length: 65
Creation-Date: 2018-10
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp046
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2018_046