Economic theory conjectures complementarities between the ranking of creditors in formal insolvency proceedings and the … use of collateral in bank loan contracts as well as the exist-ence of relational compared to arm's length lending. In this … paper we seek evidence for the-se hypotheses taking France and Germany as examples which differ significantly concerning the …

, we find that countries with stronger legal rights for borrowers and lenders (through collateral and bankruptcy laws …

, we find that countries with stronger legal rights for borrowers and lenders (through collateral and bankruptcy laws …

, we find that countries with stronger legal rights for borrowers and lenders (through collateral and bankruptcy laws …

of firms in Western Germany and Eastern Germany as a transitional economy. Innovative activity has a positive impact on … firm value proxied by ratings in Western Germany, but a negative impact in Eastern Germany. We also consider future … financial distress, and find that R&D in Eastern German firms leads to higher default risk, in contrast to Western Germany …