Vintage capital and creditor protection

Efraim Benmelech*, Nittai K. Bergman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

39 Scopus citations


We provide novel evidence linking the level of creditor protection provided by law to the degree of usage of technologically older, vintage capital in the airline industry. Using a panel of aircraft-level data around the world, we find that better creditor rights are associated with both aircraft of a younger vintage and newer technology, as well as firms with larger aircraft fleets. We propose that by mitigating financial shortfalls, enhanced legal protection of creditors facilitates the ability of firms to make large capital investments, adapt advanced technologies, and foster productivity.

Original languageEnglish (US)
Pages (from-to)308-332
Number of pages25
JournalJournal of Financial Economics
Issue number2
StatePublished - Feb 2011


  • Asset-backed securities
  • Bankruptcy
  • Collateral
  • Contagion

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management


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