How Do Laws and Institutions affect Recovery Rates on Collateral?

Accounting and Finance

Electronic data

DILS_20190703
Rights statement: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in The Review of Corporate Financial 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, is available online at: https://academic.oup.com/rcfs/article/9/1/1/5658634
Accepted author manuscript, 906 KB, PDF document
Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

Text available via DOI:

https://doi.org/10.1093/rcfs/cfz011
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Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published

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How Do Laws and Institutions affect Recovery Rates on Collateral? / Degryse, Hans ; Ioannidou, Vasso; Liberti, Jose 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, J & Sturgess, J 2020, 'How Do Laws and Institutions affect Recovery Rates on 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., & Sturgess, J. (2020). How Do Laws and Institutions affect Recovery Rates on Collateral? Review of Corporate Finance Studies, 9(1), 1-43. https://doi.org/10.1093/rcfs/cfz011

Vancouver

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

Author

Degryse, Hans ; Ioannidou, Vasso ; Liberti, Jose et al. / How Do Laws and Institutions affect Recovery Rates on Collateral?. In: Review of Corporate Finance Studies. 2020 ; Vol. 9, No. 1. pp. 1-43.

Bibtex

@article{5299d049d193430183ed626528b5f480,

title = "How Do Laws and Institutions affect Recovery Rates on Collateral?",

abstract = "We show that laws and institutions that strengthen creditor protection increase expected recovery rates on collateral using unique internal bank data on ex-ante appraised liquidation and market values of assets pledged as collateral in 16 countries. Stronger creditor protection increases expected recovery rates on movable collateral relative to immovable collateral and shifts the composition of collateral towards movable assets, which increases debt capacity through both higher loan-to-values and attenuating the creditor{\textquoteright}s liquidation bias. Our results suggest that the recovery rate on collateral is an important first-stage mechanism through which creditor protection can improve contracting efficiency and enhance access to credit.",

author = "Hans Degryse and Vasso Ioannidou and Jose Liberti and Jason Sturgess",

note = "This is a pre-copy-editing, author-produced PDF of an article accepted for publication in The Review of Corporate Financial 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, 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",