The Effects of Corporate Governance on Firms' Credit Ratings
@article{AshbaughSkaife2004TheEO,
title={The Effects of Corporate Governance on Firms' Credit Ratings},
author={H. Ashbaugh-Skaife and D. Collins and R. Lafond},
journal={Journal of Accounting and Economics},
year={2004},
volume={42},
pages={203-243}
}We investigate whether firms with strong corporate governance benefit from higher credit ratings relative to firms with weaker governance. We document, after controlling for firm-specific risk characteristics, that credit ratings are negatively associated with the number of blockholders and CEO power, and positively related to takeover defenses, accrual quality, earnings timeliness, board independence, board stock ownership, and board expertise. We also provide evidence that CEOs of firms with… CONTINUE READING
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