Creditors’ Rights, Threat of Liquidation, and the Labor and Capital Choices of Firms
研究2002年印度加强债权人权利的法律改革如何影响企业劳动和资本决策，发现企业增加雇佣、减少资本投资，尤其在法院效率低的地区效果更明显。
In 2002, India introduced a legal reform that allowed secured creditors to seize and liquidate a defaulter’s assets, thereby strengthening creditors’ rights. We study the impact of the legal change on firms’ real decisions regarding their capital and labor, exploiting variation in their prepolicy proportion of collateralizable assets. We find that firms increased employment and reduced their capital investments. These effects are especially strong for firms in regions with less-efficient courts. Our results are consistent with an increased threat of liquidation for firms following the passage of the law.