Corpus ID: 168248674

Corporate Governance and Default Risk

  title={Corporate Governance and Default Risk},
  author={Tzveta K. Vateva},
Stock liquidity and default risk around the world
Abstract We document the negative effect of stock liquidity on default risk for a sample of 46 countries. We further find that default risk declines following the introduction of the Directive onExpand
Sukuk Default: Could Corporate Governance & Sustainability be the Defenders?
2009 was the default year of Malaysian sukuk. It grew larger due to blind market information about defaults, summing up the loss of USD 2.243 billion. Malaysian sukuk market still survived mainly dueExpand
The Effect of Dual Holdings on the Level of Accounting Conservatism
This study evaluates whether dual holdings report less conservatively than non-dual holdings. We define dual holdings as firms who have at least one shareholder who is a creditor simultaneously andExpand


Agency Costs of Free Cash Flow and the Effect of Shareholder Rights on the Implied Cost of Equity Capital
  • Kevin C. W. Chen, Zhihong Chen, K. Wei
  • Business
  • Journal of Financial and Quantitative Analysis
  • 2010
Abstract In this paper, we examine the effect of shareholder rights on reducing the cost of equity and the impact of agency problems from free cash flow (FCF) on this effect. We find that firms withExpand
The Effect of Corporate Governance on Firm’s Credit Ratings: Further Evidence Using Governance Score in the United States
We investigate whether corporate governance affects firms’ credit ratings and whether improvement in corporate governance standards is associated with improvement in investment grade rating. We useExpand
Forecasting with Mixed Frequencies
A dilemma faced by forecasters is that data are not all sampled at the same frequency. Most macroeconomic data are sampled monthly (e.g., employment) or quarterly (e.g., GDP). Most financialExpand
The Elusive Quest for Global Governance Standards
Researchers and shareholder advisers have devoted much attention to developing metrics for assessing the governance of public companies around the world. These important and influential efforts, weExpand
Forecasting Default with the Merton Distance to Default Model
We examine the accuracy and contribution of the Merton distance to default (DD) model, which is based on Merton's (1974) bond pricing model. We compare the model to a "naive" alternative, which usesExpand
Why Does Corporate Governance Explain Credit Spreads?
This study explores a number of alternative explanations for the relation between credit spreads and governance. These include the overinvestment story in Li (2007), the information quality story ofExpand
Corporate Governance, the Cross Section of Returns and Financing Choices
I develop a dynamic model of corporate investment with taxes, costly equity and debt financing, agency conflicts between shareholders and managers, and a parameterized time-varying pricing kernel.Expand
Governance Mechanisms and Bond Prices
We investigate the effects of shareholder governance mechanisms on bondholders and document two new findings. First, the impact of shareholder control (proxied by large institutional blockholders) onExpand
Corporate yield spreads: default risk or liquidity? New evidence from the credit-default swap market
  • Journal of Finance
  • 2005
Does Corporate Governance Matter to Bondholders?
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 InvestorsExpand