Does Corporate Governance Matter to Bondholders

@article{Klock2004DoesCG,
  title={Does Corporate Governance Matter to Bondholders},
  author={Mark Klock and Sattar Mansi and W. Maxwell},
  journal={Journal of Financial and Quantitative Analysis},
  year={2004},
  volume={40},
  pages={693-719}
}
  • 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
    386 Citations
    Corporate governance and restrictions in debt contracts 1
    • 6
    Corporate governance and the cost of public debt financing: Evidence from Japan
    • 22
    • PDF
    Debt Maturity Structure, Shareholder Rights, and Corporate Governance
    • 27
    Board Quality and the Cost of Debt Capital: The Case of Bank Loans
    • 87
    • Highly Influenced
    • PDF

    References

    SHOWING 1-10 OF 56 REFERENCES
    Governance Mechanisms and Equity Prices
    • 1,235
    On financial contracting: An analysis of bond covenants
    • 2,716
    The Econometrics of Corporate Governance Studies
    • 167
    • PDF
    Agency Cost of Free Cash Flow, Corporate Finance, and Takeovers
    • 18,686
    • PDF