Table 8 reports results of regressions of the ratio of shareholders' equity to long-term debt on creditor protection. The
estimated coefficient on Creditor Rights in Model 1 is significantly positive at 0.024. Hence, on average, a one-unit increase in
creditor protection leads to an increase in the use of shareholders' equity in long-term financing of 2.4 percentage points. Further,
as shown in Models 2 through 5, the individual components of the creditor rights index load positively, although the effect of No
Automatic Stay is not significant. Among the four components, the effect of No Management Stay is the greatest in terms of the size