Artikel
Corporate governance and corporate creditworthiness
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.
- Language
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Englisch
- Bibliographic citation
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Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 4 ; Year: 2012 ; Issue: 1 ; Pages: 1-42 ; Basel: MDPI
- Classification
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Wirtschaft
Bankruptcy; Liquidation
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- Subject
-
Corporate Governance
Bankruptcy Risk
G-index
Endogeneity Tests
Corporate Governance Provisions
- Event
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Geistige Schöpfung
- (who)
-
Parnes, Dror
- Event
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Veröffentlichung
- (who)
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MDPI
- (where)
-
Basel
- (when)
-
2011
- DOI
-
doi:10.3390/jrfm4010001
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Parnes, Dror
- MDPI
Time of origin
- 2011
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