Projects per year
In this study, we examine the effect of worldwide board reforms on the cost of debt financing. We document an increase of loan spread after a country initiates the reform. The increase is larger among firms that are more exposed to shareholder-debtholder conflicts. The results suggest that board reforms empower shareholders at the cost of debtholders. However, we also find that, while the reform component related to board independence leads to the increase in the cost of debt, the component related to audit committee independence helps decrease the cost.
|Number of pages||33|
|Journal||Journal of Financial and Quantitative Analysis|
|Early online date||12 Aug 2022|
|Publication status||Published - 12 Feb 2023|
Bibliographical noteThe work described in this paper was partially supported by a grant from the Research Grant Council of the Hong Kong Special Administrative Region, China (Project No. T35/710/20R). Zhao would like to thank the financial support from the China National Social Science Youth Fund Project (Nos. 19CJL048).
© The Author(s), 2022. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington
© 2022 Cambridge University Press. All rights reserved.
- 1 Active
Financial Technology, Stability, and Inclusion (金融科技、金融穩定和普惠金融) (LU Part)
CHEN, L., ARNER, D. W., HUANG, Y., LIAO, L., LAM, T. W., LIN, P., LUO, Y., SONG, Z. M., TANG, Y. D., WANG, P., WANG, S., WEI, L., BELLONI, A., CHEN, X., CHEN, X., KWAN, A. P., LUO, Z., LIU, S., LIU, Y., TAI, M., XIE, W. & YIU, S. M.
Research Grants Council (HKSAR)
1/01/21 → 31/12/25
Project: Grant Research