Corporate governance and corporate creditworthiness

Artikel

We examine the relation between corporate governance and bankruptcy risk as an underlying force affecting a bond's yield. The level of corporate governance is captured by the G-index, along with the explicit groups of governance provisions. We estimate bankruptcy risk by Z-score, by cash-flow-score, by O-score, through Merton structural model default probabilities, and by S&P credit ratings. After addressing endogeneity and while controlling for firm-specific factors, based on the four objective methodologies we find that corporate governance is inversely related to bankruptcy risk. Yet, rating agencies take a mixed approach towards this association likely because of the conflicting impact of different governance provisions.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 4 ; Year: 2012 ; Issue: 1 ; Pages: 1-42 ; Basel: MDPI

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Bankruptcy; Liquidation ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
• Thema: Corporate Governance ; Bankruptcy Risk ; G-index ; Endogeneity Tests ; Corporate Governance Provisions

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Parnes, Dror
• Ereignis: Veröffentlichung
• (wer): MDPI
• (wo): Basel
• (wann): 2011

Weitere Informationen

• DOI: doi:10.3390/jrfm4010001
• Handle: http://hdl.handle.net/10419/178528
• Letzte Aktualisierung: 20.09.2024, 08:20 MESZ