Control/ownership structure, creditor rights protection, and the cost of debt financing: International evidence

2010 ◽  
Vol 34 (10) ◽  
pp. 2481-2499 ◽  
Author(s):  
Narjess Boubakri ◽  
Hatem Ghouma
Keyword(s):  
Ownership Structure ◽  
Debt Financing ◽  
Cost Of Debt ◽  
Creditor Rights ◽  
Rights Protection ◽  
International Evidence ◽  
The Cost

scholarly journals Influence of ownership structure and family management on the debt financing cost of brazilian publicly traded companies

2020 ◽  
pp. 1-24
Author(s):  
Geovanne Dias de Moura ◽  
Jovani Lanzarin ◽  
Sady Mazzioni ◽  
Francisca Francivânia Rodrigues Ribeiro Macêdo ◽  
Ilse Maria Beuren
Keyword(s):  
Ownership Structure ◽  
Quantitative Research ◽  
Debt Financing ◽  
Cost Of Debt ◽  
Family Management ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Financing Cost ◽  
Documentary Analysis ◽  
The Cost

The objective of this study was to verify the influence of the structure of ownership and family management in the cost of debt financing of publicly traded companies listed in B3. For this, a descriptive, quantitative research was carried out by means of documentary analysis, with consultation to Reference Forms, Economatica database and B3 website. The sample was composed of 211 companies in 2012, 214 in 2013, 225 in 2014, 220 in 2015 and 223 in 2016. The results showed that the average cost of debt financing, in most years, was not lower in the group of companies that had a family-owned structure. However, when comparing the cost of debt financing between companies that had family and non-family management, it was noticed that, in most years, the cost was lower in the group of family-run companies. Therefore, it was found that only the family management influenced to reduce the cost of debt financing. It is concluded that companies with ownership structure and family management enjoy greater alignment of interests between the controller and the manager, in accordance with the principal-agent perspective of Agency Theory. The research contributes to strengthen the understanding of the theme in the Brazilian scenario and expands the existing discussion in the literature by addressing a factor that influences the cost of debt still little explored in Brazil. It also increases the literature in the area with empirical evidence related to the Brazilian scenario, which still lacks research of this nature.

Ownership Structure, Antitakeover Provisions, and the Cost of Debt

2020 ◽  
Author(s):  
Yuzi Chen ◽  
Jun-Koo Kang ◽  
Jungmin Kim ◽  
Hyun Seung Na
Keyword(s):  
Ownership Structure ◽  
Cost Of Debt ◽  
The Cost

Extending the benefits of ESG disclosure: The effect on the cost of debt financing

2021 ◽  
Author(s):  
Nicola Raimo ◽  
Alessandra Caragnano ◽  
Marianna Zito ◽  
Filippo Vitolla ◽  
Massimo Mariani
Keyword(s):  
Debt Financing ◽  
Cost Of Debt ◽  
The Cost

Does opening high-speed railways affect the cost of debt financing? A quasi-natural experiment

2020 ◽  
Vol 10 (4) ◽  
pp. 473-496
Author(s):  
Hongling Guo ◽  
Keping Wu
Keyword(s):  
High Speed ◽  
Geographical Location ◽  
Debt Financing ◽  
Cost Of Debt ◽  
High Speed Railway ◽  
Content Type ◽  
Financing Cost ◽  
Debt Market ◽  
The Cost ◽  
The Impact

PurposeThis study aims to investigate how opening high-speed railways affects the cost of debt financing based on China's background.Design/methodology/approachUsing panel data on Chinese listed firms from 2008 to 2017, this study constructs a quasi-natural experiment and adopts a difference-in-difference model with multiple time periods to empirically examine the relation between the high-speed railway openings and debt financing cost.FindingsOur results show that opening high-speed railways reduces the cost of debt financing, and this negative correlation is more significant in non-state firms, firms with weaker internal control, and firms that hire non-Big Four auditors. Besides, we explore the impact mechanisms and find that opening high-speed railways improves analyst attention, institutional investor participation, and information disclosure quality, which in turn lowers the cost of debt financing.Research limitations/implicationsThe results imply that the opening of high-speed railways helps to alleviate the information asymmetry and adverse selection between firms and creditors and ultimately reduces the cost of corporate debt financing.Practical implicationsThis paper can inform firms and stakeholders about the impact of opening high-speed railways on debt financing cost: it improves the information environment, reduces the geographical location restrictions of debt financing, ensures the reasonable pricing of corporate debt, and thus promotes the healthy and sound development of the debt market.Originality/valueThis paper provides theoretical support and empirical evidence for the impact of infrastructure construction on the information environment of the debt market in China, which enriches the research on the “high-speed railway economy.” In addition, as an exogenous event, the opening of high-speed railways instantly shortens the time distance between firms and external stakeholders, which gives us a natural environment to conduct empirical research, thus providing a new perspective for financial research on firms' geographical location.

Business group affiliation, ownership structure, and the cost of debt

2013 ◽  
Vol 23 ◽  
pp. 311-331 ◽  
Author(s):  
Hae-Young Byun ◽  
Sunhwa Choi ◽  
Lee-Seok Hwang ◽  
Robert G. Kim
Keyword(s):  
Ownership Structure ◽  
Business Group ◽  
Cost Of Debt ◽  
Group Affiliation ◽  
Business Group Affiliation ◽  
The Cost

scholarly journals ESG Scores and the Credit Market

2020 ◽  
Vol 12 (8) ◽  
pp. 3456 ◽  
Author(s):  
Ga-Young Jang ◽  
Hyoung-Goo Kang ◽  
Ju-Yeong Lee ◽  
Kyounghun Bae
Keyword(s):  
Small Firms ◽  
Credit Rating ◽  
Credit Ratings ◽  
Debt Financing ◽  
Corporate Bond ◽  
Cost Of Debt ◽  
Rating Agencies ◽  
Bond Returns ◽  
The Cost ◽  
The Relationship

This study analyzes the relationship between Environmental, Social and Governance (ESG) scores and bond returns using the corporate bond data in Korea during the period of 2010 to 2015. We find that ESG scores include valuable information about the downside risk of firms. This effect is particularly salient for the firms with high information asymmetry such as small firms. Interestingly, of the three ESG criteria, only environmental scores show a significant impact on bond returns when interacted with the firm size, suggesting that high environmental scores lower the cost of debt financing for small firms. Finally, ESG is complementary to credit ratings in assessing credit quality as credit ratings cannot explain away ESG effects in predicting future bond returns. This result suggests that credit rating agencies should either integrate ESG scores into their current rating process or produce separate ESG scores which bond investors integrate with the existing credit ratings by themselves.

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