Board reforms and debt choice

Ben‐Nasr, Hamdi; Boubaker, Sabri; Sassi, Syrine

doi:10.1016/j.jcorpfin.2021.102009

Cited by 35 publications

(25 citation statements)

References 54 publications

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Section: Prior Studiesmentioning

confidence: 99%

“…In the research of Ben-Nasr et al (2021), companies that carry out board reform can reduce bank debt ratios because board reform and bank debts are substitutes for monitoring managers' actions. There are two sources of corporate debt financing: the first is from bonds from the public investors and the second is from direct loans to financial institutions, and owning one of them can increase the contribution to debt market development (Ben-Nasr et al 2021). Various factors are considered when deciding the type of debt financing to take by the company, such as managerial ownership (Denis and Mihov 2003), the divergence of control-ownership from the controlling owner (Lin et al 2013), multiple large shareholders (Boubaker et al 2017), gender diversity, and board demographic factors (Cimini 2022).…”

Section: Prior Studiesmentioning

confidence: 99%

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Politically Connected Independent Commissioners and Independent Directors on the Cost of Debt

Junus

Harymawan

Nasih

et al. 2022

IJFS

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This study examines the relationship between politically connected independent commissioners and independent directors regarding the cost of debt. The sample is all companies listed on the Indonesia Stock Exchange for the 2010–2017 period, totaling 327 companies with a total data value of 1722 firm-year observations. We used the ordinary least squares regression model (OLS) and the Heckman 2SLS method to solve the endogeneity problem. We found that politically connected independent commissioners and politically connected independent directors negatively correlate with the cost of debt. These results indicate the importance of politically connected independent commissioners and independent directors in managing companies, especially in obtaining loans with low interest rates. In addition, our results are robust due to the use of the Heckman 2SLS test. Therefore, this research can contribute to the development of the literature related to corporate governance and political connections in public companies, so that politically connected independent commissioners and independent directors have an essential role in decision-making in companies.

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Section: Prior Studiesmentioning

confidence: 99%

Section: Prior Studiesmentioning

confidence: 99%

Politically Connected Independent Commissioners and Independent Directors on the Cost of Debt

Junus

Harymawan

Nasih

et al. 2022

IJFS

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mentioning

confidence: 91%

“…Through a comprehensive list of loan characteristics has been included as control variables, we shall still interpret the results with care. To better interpret our results in the context of the large simultaneity of various loan characteristics, please refer toBoubaker et al (2017),Ben-Nasr et al (2021), Ben-Nasr et al (2015,Tan et al (2020), andNguyen et al (2020).5 Note that −0.0295 is the standardized coefficient of the environmental score, measured by multiplying the unstandardized coefficient by the ratio of the standard deviations of the independent variable and dependent variable.…”

mentioning

confidence: 99%

Corporate environmental responsibility and bank loans

Cai

2022

Business Ethics Env & Resp

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Drawing on both qualitative analyses of banks' sustainability reports and quantitative analyses of 11,538 bank loans from 1993 to 2018, we explore interactions between corporate environmental responsibility (CER) and bank loan contracting. We find CER dominates how corporate social responsibility (CSR) affects bank loans. We propose a two‐way relationship between CER and bank loans. Firms with strong CER performance receive cheaper bank loans due to banks' environmental risk management efforts. These banks provide services to corporate borrowers that have a positive influence on borrowers' ongoing environmental performance.

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“…Beyond the relative effectiveness of short-and long-term debt, there is also the issue of relative effectiveness of the bank debt versus bond debt. It would be good practice to control for the source of debt given the findings indicating that bank debt is associated with stronger monitoring and thus stronger effects on managerial effort(Boubaker et al, 2017 andBen-Nasr et al, 2021). However, we are unable to address this question here as our data-source does not provide information on the source of debt.…”

mentioning

confidence: 96%