Does Corporate Governance Matter to Bondholders

  title={Does Corporate Governance Matter to Bondholders},
  author={Mark Klock and Sattar Mansi and W. Maxwell},
  journal={Journal of Financial and Quantitative Analysis},
  • Mark Klock, Sattar Mansi, W. Maxwell
  • Published 2004
  • Business
  • Journal of Financial and Quantitative Analysis
  • 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… CONTINUE READING
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