Home > Research > Publications & Outputs > How Do Laws and Institutions Affect Recovery Ra...

Research

Associated organisational unit

Electronic data

  • DILS_20190718

    Rights statement: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Review of Corporate Finance Studies following peer review. The definitive publisher-authenticated version Hans Degryse, Vasso Ioannidou, José María Liberti, Jason Sturgess, How Do Laws and Institutions Affect Recovery Rates for Collateral?, The Review of Corporate Finance Studies, Volume 9, Issue 1, March 2020, Pages 1–43, https://doi.org/10.1093/rcfs/cfz011 is available online at: https://academic.oup.com/rcfs/article/9/1/1/5658634

    Accepted author manuscript, 557 KB, PDF document

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

Links

Text available via DOI:

Keywords

View graph of relations

How Do Laws and Institutions Affect Recovery Rates for Collateral?

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published

Standard

How Do Laws and Institutions Affect Recovery Rates for Collateral? / Degryse, H.; Ioannidou, V.; Liberti, J.M. et al.
In: Review of Corporate Finance Studies, Vol. 9, No. 1, 01.03.2020, p. 1-43.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Degryse, H, Ioannidou, V, Liberti, JM & Sturgess, J 2020, 'How Do Laws and Institutions Affect Recovery Rates for Collateral?', Review of Corporate Finance Studies, vol. 9, no. 1, pp. 1-43. https://doi.org/10.1093/rcfs/cfz011

APA

Degryse, H., Ioannidou, V., Liberti, J. M., & Sturgess, J. (2020). How Do Laws and Institutions Affect Recovery Rates for Collateral? Review of Corporate Finance Studies, 9(1), 1-43. https://doi.org/10.1093/rcfs/cfz011

Vancouver

Degryse H, Ioannidou V, Liberti JM, Sturgess J. How Do Laws and Institutions Affect Recovery Rates for Collateral? Review of Corporate Finance Studies. 2020 Mar 1;9(1):1-43. Epub 2019 Dec 5. doi: 10.1093/rcfs/cfz011

Author

Degryse, H. ; Ioannidou, V. ; Liberti, J.M. et al. / How Do Laws and Institutions Affect Recovery Rates for Collateral?. In: Review of Corporate Finance Studies. 2020 ; Vol. 9, No. 1. pp. 1-43.

Bibtex

@article{67482a2768fc4a1eb273b8c83393ab3a,
title = "How Do Laws and Institutions Affect Recovery Rates for Collateral?",
abstract = "Using unique internal bank data on ex ante appraised liquidation and market values of assets pledged as collateral in sixteen countries, we show that laws and institutions that strengthen creditor protection increase expected recovery rates for collateral. Stronger creditor protection increases expected recovery rates for movable collateral relative to immovable collateral and shifts the composition of collateral toward movable assets, thereby increasing debt capacity through both higher loan-to-values and attenuating the creditor's liquidation bias. Our results suggest that the recovery rate for collateral is an important first-stage mechanism through which creditor protection can improve contracting efficiency and enhance access to credit. Received September 17, 2018; editorial decision July 9, 2019 by Editor Andrew Ellul.",
keywords = "G2, G33, G38, K1",
author = "H. Degryse and V. Ioannidou and J.M. Liberti and J. Sturgess",
note = "This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Review of Corporate Finance Studies following peer review. The definitive publisher-authenticated version Hans Degryse, Vasso Ioannidou, Jos{\'e} Mar{\'i}a Liberti, Jason Sturgess, How Do Laws and Institutions Affect Recovery Rates for Collateral?, The Review of Corporate Finance Studies, Volume 9, Issue 1, March 2020, Pages 1–43, https://doi.org/10.1093/rcfs/cfz011 is available online at: https://academic.oup.com/rcfs/article/9/1/1/5658634",
year = "2020",
month = mar,
day = "1",
doi = "10.1093/rcfs/cfz011",
language = "English",
volume = "9",
pages = "1--43",
journal = "Review of Corporate Finance Studies",
number = "1",

}

RIS

TY - JOUR

T1 - How Do Laws and Institutions Affect Recovery Rates for Collateral?

AU - Degryse, H.

AU - Ioannidou, V.

AU - Liberti, J.M.

AU - Sturgess, J.

N1 - This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Review of Corporate Finance Studies following peer review. The definitive publisher-authenticated version Hans Degryse, Vasso Ioannidou, José María Liberti, Jason Sturgess, How Do Laws and Institutions Affect Recovery Rates for Collateral?, The Review of Corporate Finance Studies, Volume 9, Issue 1, March 2020, Pages 1–43, https://doi.org/10.1093/rcfs/cfz011 is available online at: https://academic.oup.com/rcfs/article/9/1/1/5658634

PY - 2020/3/1

Y1 - 2020/3/1

N2 - Using unique internal bank data on ex ante appraised liquidation and market values of assets pledged as collateral in sixteen countries, we show that laws and institutions that strengthen creditor protection increase expected recovery rates for collateral. Stronger creditor protection increases expected recovery rates for movable collateral relative to immovable collateral and shifts the composition of collateral toward movable assets, thereby increasing debt capacity through both higher loan-to-values and attenuating the creditor's liquidation bias. Our results suggest that the recovery rate for collateral is an important first-stage mechanism through which creditor protection can improve contracting efficiency and enhance access to credit. Received September 17, 2018; editorial decision July 9, 2019 by Editor Andrew Ellul.

AB - Using unique internal bank data on ex ante appraised liquidation and market values of assets pledged as collateral in sixteen countries, we show that laws and institutions that strengthen creditor protection increase expected recovery rates for collateral. Stronger creditor protection increases expected recovery rates for movable collateral relative to immovable collateral and shifts the composition of collateral toward movable assets, thereby increasing debt capacity through both higher loan-to-values and attenuating the creditor's liquidation bias. Our results suggest that the recovery rate for collateral is an important first-stage mechanism through which creditor protection can improve contracting efficiency and enhance access to credit. Received September 17, 2018; editorial decision July 9, 2019 by Editor Andrew Ellul.

KW - G2

KW - G33

KW - G38

KW - K1

U2 - 10.1093/rcfs/cfz011

DO - 10.1093/rcfs/cfz011

M3 - Journal article

VL - 9

SP - 1

EP - 43

JO - Review of Corporate Finance Studies

JF - Review of Corporate Finance Studies

IS - 1

ER -