Interactions between corporate governance, bankruptcy law and firms' debt financing: The Brazilian case
This paper examines the relationship between corporate governance level and the bankruptcy law for such debt variables as firms' cost of debt and amount (and variation) of debt. Our empirical results are consistent with the model's prediction. First, we find that the better the corporate g...
| Autores: | , , |
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2008 |
| País: | Brasil |
| Institución: | Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD) |
| Repositorio: | BAR - Brazilian Administration Review |
| Idioma: | inglés |
| OAI Identifier: | oai:ojs3.bar.anpad.org.br:article/77 |
| Acceso en línea: | https://bar.anpad.org.br/index.php/bar/article/view/77 |
| Access Level: | acceso abierto |
| Palabra clave: | debt cost of debt corporate governance bankruptcy |
| Sumario: | This paper examines the relationship between corporate governance level and the bankruptcy law for such debt variables as firms' cost of debt and amount (and variation) of debt. Our empirical results are consistent with the model's prediction. First, we find that the better the corporate governance, the lower the cost of debt. Second, we find that better corporate governance arrangements relate to firms with higher amounts of debt. Finally we find that better governance and harsher bankruptcy laws have a positive effect on debt. Moreover, this effect is stronger for firms with worse corporate governance, which indicates that the law works as a substitute for governance practices to protect creditors' interests. |
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