Journal article
The effects of corporate governance on firms’ credit ratings
Journal of accounting & economics, Vol.42(1), pp.203-243
10/01/2006
DOI: 10.1016/j.jacceco.2006.02.003
Abstract
We investigate whether firms with strong corporate governance benefit from higher credit ratings relative to firms with weaker governance. We document, after controlling for firm-specific risk characteristics, that credit ratings are negatively associated with the number of blockholders and CEO power, and positively related to takeover defenses, accrual quality, earnings timeliness, board independence, board stock ownership, and board expertise. We also provide evidence that CEOs of firms with speculative-grade credit ratings are overcompensated to a greater degree than their counterparts at firms with investment-grade ratings, thus providing one explanation for why some firms operate with weak governance.
Details
- Title: Subtitle
- The effects of corporate governance on firms’ credit ratings
- Creators
- Hollis Ashbaugh-Skaife - University of Wisconsin–MadisonDaniel W. Collins - University of IowaRyan LaFond - New School
- Resource Type
- Journal article
- Publication Details
- Journal of accounting & economics, Vol.42(1), pp.203-243
- DOI
- 10.1016/j.jacceco.2006.02.003
- ISSN
- 0165-4101
- eISSN
- 1879-1980
- Publisher
- Elsevier B.V
- Number of pages
- 41
- Language
- English
- Date published
- 10/01/2006
- Academic Unit
- Accounting
- Record Identifier
- 9984962549602771
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