Corporate governance and cost of debt financing: Empirical evidence from Canada

Ghouma, Hatem; Ben‐Nasr, Hamdi; Rui-qian, Yan

doi:10.1016/j.qref.2017.06.004

Cited by 80 publications

(94 citation statements)

References 30 publications

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“…These results were confirmed for companies listed in Tehran Stock Exchange [7] and in Muscat Securities Market [8]. Moreover, Ghouma, Ben-Nasr and Yana [9] argue that the quality of the board composition/structure as well as the disclosure quality reduces the cost of bond financing in Canada. Adam, Mukhtaruddin, Soraya and Yusrianti [10] show, however, that the variables of Good Corporate Governance partially and simultaneously do not have a significant effect on the cost of debt of Indonesian listed companies.…”

Section: Introductionmentioning

confidence: 76%

Corporate Governance Practices and Audit Quality: Do They Matter for the Cost of Debt?

Bacha¹

2019

TEL

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This paper sheds light on the effect of corporate governance practices and audit quality on the cost of debt. Particularly, we investigate the effect of the ownership structure and the audit committee independance, as well as the reputation of the external auditor, on the cost of debt. Based on a sample of Tunisian listed companies over the period 2007 to 2016 and using OLS regression models estimated with robust standard errors, our findings show that the cost of debt is inversely related to the director board size and the ownership concentration. Tunisian debtholders favour monitoring mechanisms that are likely to limit managerial opportunism and consider board monitoring effectiveness and the presence of blockholders as a source of greater assurance. The results also reveal evidence of a debt pricing effect of audit quality as measured by auditor size (Big4). The findings report, however, that the board composition and the presence of managerial shareholders, as well as the independence of audit committee have non-significant effect on the cost of debt.

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Section: Introductionmentioning

confidence: 76%

Corporate Governance Practices and Audit Quality: Do They Matter for the Cost of Debt?

Bacha¹

2019

TEL

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“…Em relação ao custo de financiamento da dívida, cujo indicador médio foi de 0,46 no período, ao compará-lo com o de Caroprezo 2011 Anderson et al (2004), Ashbaugh-Skaife et al (2006, Fields et al (2012), Bradley e Chen (2015) e Ghouma et al (2018) e alinhados aos argumentos de que conselhos mais independentes fornecem uma supervisão superior do processo financeiro e, por isso, os credores da dívida se beneficiam diretamente de uma maior transparência e credibilidade dos relatórios contábeis, resultando em um menor custo da dívida.…”

Section: Discussão Dos Resultadosunclassified

“…No que se refere ao ROA, os resultados confirmaram que empresas mais lucrativas apresentarão menor dificuldade de pagar dívidas. Por isso, tendem a apresentar menor custo da dívida, conforme relataram Fields et al (2012), Aman e Nguyen (2013), Bradley e Chen (2015) e Ghouma et al (2018).…”

Section: Discussão Dos Resultadosunclassified

“…Assim, ao realizar tal operação, os proprietários recebem a maior parte dos benefícios, enquanto os credores assumem a maior parte do risco e do custo. Então, os credores podem cobrar juros mais elevados das empresas sujeitas a maiores riscos de expropriação (ASHBAUGH-SKAIFE et al, 2006;GHOUMA et al, 2018).…”

Section: Evidenciação Dos Precatórios Nas Demonstrações Financeirasunclassified

“…Também podem tornar os contratos da empresa tão implícitos quanto possível e ainda investir apenas em projetos em que eles tenham experiência, independentemente do impacto no desempenho e no valor. Em razão destas possibilidades os credores podem cobrar juros mais elevados (ASHBAUGH-SKAIFE et al, 2006;GHOUMA et al, 2018). Quanto menor é a influência dos acionistas controladores sobre os membros do conselho, menores são as chances de os conselhos agirem somente em benefício dos controladores (ANDERSON et al, 2004;AMA;NGUYEN, 2013;TANAKA, 2014).…”

Section: Evidenciação Dos Precatórios Nas Demonstrações Financeirasunclassified

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O Custo Do Financiamento Da Dívida É Influenciado Pela Independência Do Conselho De Administração?

Bonetti¹,

Moura²,

Mazzioni³

et al. 2019

Tendências Da Contabilidade Contemporânea 3

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The board gender composition and cost of debt: Empirical evidence from Jordan

Mansour,

Al Zobi,

Saleh

et al. 2023

Bus Strat Dev

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The present research aims to examine the influences of board gender composition on debt costs and its significance to Jordanian creditors: mainly banks, using agency and resource dependence theories. A sample of 113 non‐financial Jordanian firms listed on the Amman Stock Exchange (ASE) from 2010 to 2019 was utilised to explore the impact of board gender on the cost of debt financing through panel regression analysis. To tackle endogeneity concerns, we employ a two‐step system generalised method of moments estimator. The findings discovered that more female directors on firm boards generated economic benefits for non‐financial sectors, which achieved an average 0.75% cut‐off interest rate incurred by lenders compared to the counterparts with fewer female directors. Our findings are still robust to endogeneity concerns. The findings offered valuable insights for academics, shareholders, firms, and regulators. Shareholders are required to provide more pressure on firms to enhance gender equality. Firms should adjust board gender composition via the inclusion of more female directors while regulators should develop guidelines, such as a minimum female quota in promoting more females to the board. The finding generalisability is limited to developing markets with similar settings. This study bridged a vital gap in the governance literature on the nexus between board gender composition and debt costs in Jordanian contexts where no minimum gender quota exists.

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Corporate governance and cost of debt financing: Empirical evidence from Canada

Cited by 80 publications

References 30 publications

Corporate Governance Practices and Audit Quality: Do They Matter for the Cost of Debt?

Corporate Governance Practices and Audit Quality: Do They Matter for the Cost of Debt?

O Custo Do Financiamento Da Dívida É Influenciado Pela Independência Do Conselho De Administração?

The board gender composition and cost of debt: Empirical evidence from Jordan

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