The legal right protection of lenders and corporate employment: Evidence from specialized bankruptcy courts

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-02-13 DOI:10.1016/j.frl.2025.106960

Jiacai Xiong , Chen Peng , Zelin Yang

引用次数: 0

Abstract

This paper examines the impact of enhanced creditor protection on corporate employment. We exploit the staggered establishment of specialized bankruptcy courts (SBCs) as an exogenous positive shock. Utilizing a sample of Chinese listed firms from 2011 to 2021, we find that the SBCs can significantly encourage corporate employment. The positive effect is more salient in firms with higher financial risk, and in regions with lower financial development and poorer legal environment. Additional analyses indicate that the increased trade credit availability, eased financial constraints and reduced zombie firms serve as mechanisms underlying the baseline relationship.

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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