o:28256 Judicial efficiency and loan performance micro evidence from Serbia en Abstract: There is plenty of evidence that judicial efficiency reduces credit rationing and increases lending. In contrast, inefficient courts may lead to borrowers’ opportun- istic behavior and, as a result, decrease loan performance and the availability of credit. We combine caseload data from commercial courts in Serbia with micro-data on company loans to study the impact of judicial efficiency on loan performance. We document the presence of a robust negative relationship between the clearance rate and the number of days in arrears for companies from the districts under cor- responding court jurisdictions. We use financial ratios, industry dummies and time fixed effects to control for the usual determinants of payment ability. Keywords: Court efficiency; Contract enforcement; Payment arrears; Clearance rate; Credit market 1552099 10.1007/s10657-021-09696-4 2023-03-16T15:24:44.249Z 44 no 46 Miloš Božović Univerzitet u Beogradu Ekonomski fakultet 1544295 0000-0002-5087-1977 application/pdf 868616 https://phaidrabg.bg.ac.rs/o:28256 no yes 18 70 92000001 11A03 1 European journal of law and economics 52 1 33 56 2021