Corporate Governance, Credit Condition, and the Cost of Debt

2011 ◽  
Author(s):  
Michael Bradley ◽  
Dong Chen
Keyword(s):  
Corporate Governance ◽  
Cost Of Debt ◽  
The Cost

scholarly journals ANALYSIS OF FACTORS AFFECTING COMPANY USING DERIVATIVES

2021 ◽  
Vol 3 (1) ◽  
pp. 11
Author(s):  
Sriwati Sriwati
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Logistic Regression ◽  
Regression Analysis ◽  
Firm Size ◽  
Cost Of Debt ◽  
Return On Assets ◽  
Factors Affecting ◽  
The Cost ◽  
Size Variable

<p>This study aims to determine the factors that influence companies in using derivatives. In this study, the factors studied were the cost of debt, foreign sales, risk management, and corporate governance on the company's decision to use derivatives. The analytical method used in this research is logistic regression analysis using the Statistical Product and Services Solutions software. A total of 60 samples were used in this study, which were 20 companies included in the Corporate Governance Perception Index survey from 2016 to 2018. The Corporate Governance Perception Index survey is a survey conducted by the Indonesian Institute for Corporate Governance. The results of this study indicate that the cost of debt variable has a significant effect on the decision to use derivatives by the company. The corporate governance variable also has a significant effect on the decision to use derivatives by the company. The foreign sales variable in this study does not have a significant effect on the decision to use derivatives by companies. The risk management variable does not have a significant effect on the decision to use derivatives by the company. In this study, there are also control variables, namely firm size and return on assets. In this study, the firm size variable does not have a significant effect on the decision to use derivatives by the company. Meanwhile, the return on assets variable has a significant effect on the decision to use derivatives by the company.</p>

Does Corporate Governance Matter to Bondholders?

2005 ◽  
Vol 40 (4) ◽  
pp. 693-719 ◽  
Author(s):  
Mark S. Klock ◽  
Sattar A. Mansi ◽  
William F. Maxwell
Keyword(s):  
Corporate Governance ◽  
Lower Cost ◽  
Bond Market ◽  
Debt Financing ◽  
Cost Of Debt ◽  
Firm Level ◽  
Shareholder Protection ◽  
Level Data ◽  
Firm Level Data ◽  
The Cost

AbstractWe 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.

scholarly journals Penerapan Good Corporate Governance dan Earning Management terhadap Biaya Hutang pada Perusahaan BUMN Listing CGPI 2010 – 2012

2018 ◽  
Vol 11 (1) ◽  
pp. 067
Author(s):  
Rieke Pernamasari
Keyword(s):  
Corporate Governance ◽  
Government Policies ◽  
Cost Of Debt ◽  
Risk Level ◽  
Company Stock ◽  
Company Value ◽  
Good Corporate Governance ◽  
Policies And Programs ◽  
The Cost ◽  
A Company

The company's efforts in increasing the high trust of creditors will be low risk, so the company can improve the effectiveness of motoring action that is in company like Good Corporate Governance. Investors tend to see the level of GCG implementation as an indicator of the company's risk level before making a funding decision. While the decision of investors in investing in a company based on various considerations, one of which is profit. As an organization, BUMN functioning as a development agent but also carrying out government policies and programs, while on the other hand it is required to become a healthy business unit. The results of this study indicate that the GCG index has no significant effect on the cost of debt and accrual income management has a significant effect on the cost of debt. It means that earnings management is done by management to influence investor perception, especially to influence buying decision of company stock and influence company value.

scholarly journals Corporate Governance Index, Corporate Ownership Structure and Audit Committee on Debt Costs

2020 ◽  
Vol 1 (2) ◽  
Author(s):  
Siti Nur Azizah ◽  
Yulia Nurcahyani
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Audit Committee ◽  
Stock Exchange ◽  
Investment Decision ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Cost Of Debt ◽  
Governance Index ◽  
The Cost

This study aims to analyze corporate governance index and ownership structure and audit committee on the cost of debt. The study based on agency theory by Jensen and Meckling in 1976. This study use secondary data derived from financial statements of companies participating in the Corporate Governance Perception Index (CGPI) for 2014-2018 which are listed on the Indonesia Stock Exchange. The method of data collection in this study used purposive sampling. The data was analyzed by multiple linear regression analysis. The results of this study indicate that corporate governance index and institutional ownership negatively effect on the cost of debt. In contrast, audit committee and managerial ownership has no impact on the cost of debt. The findings in this study can be beneficial for investors in assessing the governance of a company in managing its debt. Investors can consider for an investment decision both long term and short term.

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