The DOI matches its Crossref record; 51 of the 51 references it cites were found in a registry or an index.
Does Corporate Governance Matter to Bondholders?
Open accessAbstract
We examine the relation between the cost of debt financing and a governance index that contains various antitakeover and shareholder protection provisions. Using firm-level data from the Investors Research Responsibility Center for the period 1990–2000, we find that antitakeover governance provisions lower the cost of debt financing. Segmenting the data into firms with the strongest management rights (strongest antitakeover provisions) and firms with the strongest shareholder rights (weakest antitakeover provisions), we find that strong antitakeover provisions are associated with a lower cost of debt financing while weak antitakeover provisions are associated with a higher cost of debt financing, with a difference of about 34 basis points between the two groups. Overall, the results suggest that antitakeover governance provisions, although not beneficial to stockholders, are viewed favorably in the bond market.
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Cites
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What Matters in Corporate Governance?
Bebchuk, L., Cohen, A., & Ferrell, A. (2009) · Review of Financial Studies · doi:10.1093/rfs/hhn099 · Cited by 2,906
Corporate Governance and Acquirer Returns
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The effect of pro-environmental preferences on bond prices: Evidence from green bonds
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Creditor rights, information sharing, and bank risk taking
Houston, J. F., Lin, C., Lin, P., & Ma, Y. (2010) · Journal of Financial Economics · doi:10.1016/j.jfineco.2010.02.008 · Cited by 955
From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance
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Metadata
- Authors
- Klock, M. S., Mansi, S. A., & Maxwell, W. F.
- Venue
- Journal of Financial and Quantitative Analysis
- Publisher
- Cambridge University Press (CUP)
- Published
- 2005-12
- Volume
- 40
- Issue
- 4
- Pages
- 693-719
- ISSN
- 0022-1090 (ISSN-L)
- 1756-6916
- OpenAlex
- W3121983875
- Cited by
- 613
- References
- 51
- FWCI
- 87.74
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
