2024/04/10 by Inmaculada Aguiar‐Díaz, Inmaculada Aguiar Díaz, Ewelina Monica Mruk +3
Economics, Econometrics and Finance · #Business #Cost structure #Debt #Debt-to-GDP ratio #Economics #Finance #Financial system #Insurance and Financial Risk Management #Internal debt #Law, Economics, and Judicial Systems #Legal and Constitutional Studies #Microeconomics #Monetary economics #Senior debt
paper · pdf · doi:10.1002/mde.4207
crossref issued 2024/04/10 · crossref published 2024/04/10 · crossref published-online 2024/04/10 · openalex publication_date 2024/04/10 · crossref created 2024/04/10 · crossref deposited 2024/08/05 · crossref published-print 2024/09/01 · openalex created_date 2025/10/10 · crossref indexed 2026/07/31 · openalex updated_date 2026/08/01
Abstract In the framework of law and finance literature, this study investigates the link between judicial efficiency and financial debt cost in 1487 non‐financial firms across the euro zone from 2010 to 2021. Utilizing qualitative (rule of law) and quantitative (judicial proceeding length) indicators from the Worldwide Governance Indicators and Doing Business databases, our findings support the hypothesis that efficient justice lowers financial debt cost. Additionally, we observe a moderating effect of debt structure, specifically that private non‐bank debt enhances the reduction impact of judicial efficiency on debt cost, unlike bank and corporate bonds debt.