Arbeitspapier
Corporate governance, product market competition and debt financing
This paper examines the impact of product market competition and corporate governance on the cost of debt financing and the use of bond covenants. We find that more antitakeover provisions are associated with a lower cost of debt only in competitive industries. Because they are exposed to higher takeover risk in competitive industries, bondholders charge higher bond spreads to firms that have fewer anti-takeover provisions. Once firms' anti-takeover provisions are in place, we find that bondholders use fewer payment and debt priority covenants in competitive industries. Our results suggest that product market competition plays a crucial role in explaining the way a firm's anti-takeover protection affects the cost of debt and the use of bond covenants.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Working Paper ; No. 2014-5
- Klassifikation
-
Wirtschaft
Asset Pricing; Trading Volume; Bond Interest Rates
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- Thema
-
Financial markets
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Paligorova, Teodora
Yang, Jun
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2014
- DOI
-
doi:10.34989/swp-2014-5
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Paligorova, Teodora
- Yang, Jun
- Bank of Canada
Entstanden
- 2014
Ähnliche Objekte (12)
Corporate debt composition and business cycles
Market timing of long-term debt issuance
Monetary policy and government debt dynamics without commitment
Changing fortunes: Long-termism - G-Zero, artificial intelligence and debt
Time-consistent management of a liquidity trap with government debt
Trade and market power in product and labor markets
An equilibrium analysis of the rise in house prices and mortgage debt
Amazon effects in Canadian online retail firm-product-level data
Imperfect banking competition and macroeconomic volatility: A DSGE framework
Market size and entry in international trade: Product versus firm fixed costs
Indebtedness and the household financial health: An examination of the Canadian debt service ratio distribution
Natural monopoly and distorted competition: Evidence from unbundling fiber-optic networks
Corporate debt composition and business cycles
Market timing of long-term debt issuance
Monetary policy and government debt dynamics without commitment
Changing fortunes: Long-termism - G-Zero, artificial intelligence and debt
Time-consistent management of a liquidity trap with government debt
Trade and market power in product and labor markets
An equilibrium analysis of the rise in house prices and mortgage debt
Amazon effects in Canadian online retail firm-product-level data
Imperfect banking competition and macroeconomic volatility: A DSGE framework
Market size and entry in international trade: Product versus firm fixed costs
Indebtedness and the household financial health: An examination of the Canadian debt service ratio distribution
Natural monopoly and distorted competition: Evidence from unbundling fiber-optic networks
Corporate debt composition and business cycles
Market timing of long-term debt issuance
Monetary policy and government debt dynamics without commitment
Changing fortunes: Long-termism - G-Zero, artificial intelligence and debt
Time-consistent management of a liquidity trap with government debt
Trade and market power in product and labor markets
An equilibrium analysis of the rise in house prices and mortgage debt
Amazon effects in Canadian online retail firm-product-level data
Imperfect banking competition and macroeconomic volatility: A DSGE framework
Market size and entry in international trade: Product versus firm fixed costs
Indebtedness and the household financial health: An examination of the Canadian debt service ratio distribution