Aretz, Kevin
[Verfasser:in]
;
Campello, Murillo
[Sonstige Person, Familie und Körperschaft];
Marchica, Maria‐Teresa
[Sonstige Person, Familie und Körperschaft]
Access to Collateral and the Democratization of Credit
Anmerkungen:
In: Journal of Finance, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 20, 2019 erstellt
Beschreibung:
France's Ordonnance 2006-346 repudiated the notion of possessory ownership in the Napoleonic Code, easing the pledge of physical assets in a country where credit was highly concentrated. Using a differences-test strategy, we show that firms operating newly-pledgeable assets significantly increased their borrowing following the reform. Small, young, and financially constrained businesses benefitted the most, observing improved credit access and real-side outcomes. Start-ups operating newly-pledgeable assets emerged with higher “at-inception” leverage, located farther from large cities, with more assets-in-place than before. Their exit and bankruptcy rates declined. Spatial analyses show that the reform reached firms in rural areas, reducing credit access inequality across France's countryside