In this research, we explore the implication of judicial prejudice in bankruptcy for creditor interests and local financial market development. Based on prefecture-level data, we find compelling evidence that judicial prejudice leads to capital market frictions. Regions with stronger judicial prejudice have higher borrowing costs. Moreover, judicial prejudice is negatively related to local financial market development. In sum, our research sheds light on the impact of judicial prejudice on financial market development.

中文翻译：

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破产司法偏见对债权人和地方金融发展的影响


在本研究中，我们探讨了破产中司法偏见对债权人利益和地方金融市场发展的影响。基于地市级数据，我们发现了司法偏见导致资本市场摩擦的有力证据。司法偏见越严重的地区，借贷成本越高。此外，司法偏见与当地金融市场发展呈负相关。总之，我们的研究揭示了司法偏见对金融市场发展的影响。