메뉴 건너뛰기




Volumn 17, Issue 1, 2011, Pages 83-107

Corporate governance and the cost of debt: Evidence from director limited liability and indemnification provisions

Author keywords

Board of directors; Corporate governance; Cost of debt; Indemnification; Limited liability provision; Risk taking

Indexed keywords


EID: 78649913763     PISSN: 09291199     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jcorpfin.2010.08.001     Document Type: Article
Times cited : (112)

References (76)
  • 1
    • 27544515879 scopus 로고    scopus 로고
    • Powerful CEOs and their impact on corporate performance
    • Adams R., Almeida H., Ferreira D. Powerful CEOs and their impact on corporate performance. Rev. Finan. Stud. 2005, 18:1403-1432.
    • (2005) Rev. Finan. Stud. , vol.18 , pp. 1403-1432
    • Adams, R.1    Almeida, H.2    Ferreira, D.3
  • 2
    • 77955843069 scopus 로고    scopus 로고
    • The role of boards of directors in corporate governance: a conceptual framework and survey
    • Adams R., Hermalin B., Weisbach M. The role of boards of directors in corporate governance: a conceptual framework and survey. Journal of Economic Literature 2010, 48(1):58-107.
    • (2010) Journal of Economic Literature , vol.48 , Issue.1 , pp. 58-107
    • Adams, R.1    Hermalin, B.2    Weisbach, M.3
  • 3
    • 0019610159 scopus 로고
    • Risk reduction as a managerial motive for conglomerate mergers
    • Amihud Y., Lev B. Risk reduction as a managerial motive for conglomerate mergers. Bell J. Econ. 1981, 12:605-617.
    • (1981) Bell J. Econ. , vol.12 , pp. 605-617
    • Amihud, Y.1    Lev, B.2
  • 4
    • 33746863743 scopus 로고    scopus 로고
    • The effects of corporate governance on firms' credit ratings
    • Ashbaugh-Skaife H., Collins D., LaFond R. The effects of corporate governance on firms' credit ratings. J. Acc. Econ. 2006, 42:203-243.
    • (2006) J. Acc. Econ. , vol.42 , pp. 203-243
    • Ashbaugh-Skaife, H.1    Collins, D.2    LaFond, R.3
  • 5
    • 40849094618 scopus 로고    scopus 로고
    • Board classification and managerial entrenchment: evidence from the market for corporate control
    • Bates T.W., Becher D.A., Lemmon M.L. Board classification and managerial entrenchment: evidence from the market for corporate control. J. Finan. Econ. 2008, 87:656-677.
    • (2008) J. Finan. Econ. , vol.87 , pp. 656-677
    • Bates, T.W.1    Becher, D.A.2    Lemmon, M.L.3
  • 7
    • 27244453990 scopus 로고    scopus 로고
    • The costs of entrenched boards
    • Bebchuk L., Cohen A. The costs of entrenched boards. J. Finan. Econ. 2005, 78:409-433.
    • (2005) J. Finan. Econ. , vol.78 , pp. 409-433
    • Bebchuk, L.1    Cohen, A.2
  • 10
    • 0039784061 scopus 로고    scopus 로고
    • Are CEOs rewarded for luck? The ones without principals are
    • Bertrand M., Mullainathan S. Are CEOs rewarded for luck? The ones without principals are. Quart. J. Econ. 2001, 116(3):901-932.
    • (2001) Quart. J. Econ. , vol.116 , Issue.3 , pp. 901-932
    • Bertrand, M.1    Mullainathan, S.2
  • 11
    • 0344983396 scopus 로고    scopus 로고
    • Enjoying the quiet life? corporate governance and managerial preferences
    • Bertrand M., Mullainathan S. Enjoying the quiet life? corporate governance and managerial preferences. J. Polit. Economy 2003, 111:1043-1075.
    • (2003) J. Polit. Economy , vol.111 , pp. 1043-1075
    • Bertrand, M.1    Mullainathan, S.2
  • 12
    • 0011563815 scopus 로고
    • Managerial indemnification and liability insurance: the effect on shareholder wealth
    • Bhagat S., Brickley J., Coles J. Managerial indemnification and liability insurance: the effect on shareholder wealth. J. Risk Insur. 1987, 54:721-736.
    • (1987) J. Risk Insur. , vol.54 , pp. 721-736
    • Bhagat, S.1    Brickley, J.2    Coles, J.3
  • 13
    • 0345016930 scopus 로고    scopus 로고
    • Effects of corporate governance on bond ratings and yields: the role of institutional investors and outside directors
    • Bhojraj S., Sengupta P. Effects of corporate governance on bond ratings and yields: the role of institutional investors and outside directors. J. Bus. 2003, 76:455-476.
    • (2003) J. Bus. , vol.76 , pp. 455-476
    • Bhojraj, S.1    Sengupta, P.2
  • 14
    • 1642279962 scopus 로고    scopus 로고
    • Bondholder wealth effects in mergers and acquisitions: new evidence from the 1980s and 1990s
    • Billett M., King T., Mauer D. Bondholder wealth effects in mergers and acquisitions: new evidence from the 1980s and 1990s. J. Finance 2004, 59:107-135.
    • (2004) J. Finance , vol.59 , pp. 107-135
    • Billett, M.1    King, T.2    Mauer, D.3
  • 16
    • 0000089875 scopus 로고
    • Future investment opportunities and value of call provision on a bond
    • Bodie Z., Taggart R.A. Future investment opportunities and value of call provision on a bond. J. Finance 1978, 33:1187-1200.
    • (1978) J. Finance , vol.33 , pp. 1187-1200
    • Bodie, Z.1    Taggart, R.A.2
  • 17
    • 34249892837 scopus 로고    scopus 로고
    • The determinants of corporate board size and composition: an empirical analysis
    • Boone A., Field L., Karpoff J., Raheja C. The determinants of corporate board size and composition: an empirical analysis. J. Finan. Econ. 2007, 85:66-101.
    • (2007) J. Finan. Econ. , vol.85 , pp. 66-101
    • Boone, A.1    Field, L.2    Karpoff, J.3    Raheja, C.4
  • 18
    • 0029716604 scopus 로고    scopus 로고
    • Factors affecting the number of outside directorships held by CEOs
    • Booth J., Deli D. Factors affecting the number of outside directorships held by CEOs. J. Finan. Econ. 1996, 40:81-104.
    • (1996) J. Finan. Econ. , vol.40 , pp. 81-104
    • Booth, J.1    Deli, D.2
  • 20
    • 0040965113 scopus 로고
    • The relevance of duty of care standard in corporate governance
    • Bradley M., Schipani C. The relevance of duty of care standard in corporate governance. Iowa Law Rev. 1989, 75:1-74.
    • (1989) Iowa Law Rev. , vol.75 , pp. 1-74
    • Bradley, M.1    Schipani, C.2
  • 21
    • 0002479105 scopus 로고
    • Synergistic gains from corporate acquisitions and their division between target and acquiring firms
    • Bradley M., Desai A., Kim H. Synergistic gains from corporate acquisitions and their division between target and acquiring firms. J. Finan. Econ. 1988, 21:3-40.
    • (1988) J. Finan. Econ. , vol.21 , pp. 3-40
    • Bradley, M.1    Desai, A.2    Kim, H.3
  • 22
    • 84971872399 scopus 로고
    • Shareholder wealth effects of directors' liability limitation provisions
    • Brook Y., Rao R. Shareholder wealth effects of directors' liability limitation provisions. J. Finan. Quant. Anal. 1994, 29:481-497.
    • (1994) J. Finan. Quant. Anal. , vol.29 , pp. 481-497
    • Brook, Y.1    Rao, R.2
  • 23
    • 0041669323 scopus 로고    scopus 로고
    • Managerial opportunism? evidence from directors' and officers' insurance purchases
    • Chalmers J., Dann L., Harford J. Managerial opportunism? evidence from directors' and officers' insurance purchases. J. Finance 2002, 57:609-636.
    • (2002) J. Finance , vol.57 , pp. 609-636
    • Chalmers, J.1    Dann, L.2    Harford, J.3
  • 24
    • 68349130284 scopus 로고    scopus 로고
    • Do shareholder rights affect the cost of bank loans?
    • Chava S., Livdan D., Purnanandam A. Do shareholder rights affect the cost of bank loans?. Rev. Finan. Stud. 2009, 22:2973-3004.
    • (2009) Rev. Finan. Stud. , vol.22 , pp. 2973-3004
    • Chava, S.1    Livdan, D.2    Purnanandam, A.3
  • 25
    • 77951213955 scopus 로고    scopus 로고
    • Managerial agency and bond covenants
    • Chava S., Kumar P., Warga A. Managerial agency and bond covenants. Rev. Finan. Stud. 2010, 23:1120-1148.
    • (2010) Rev. Finan. Stud. , vol.23 , pp. 1120-1148
    • Chava, S.1    Kumar, P.2    Warga, A.3
  • 28
    • 36849044680 scopus 로고    scopus 로고
    • Board size and the variability of corporate performance
    • Cheng S. Board size and the variability of corporate performance. J. Finan. Econ. 2008, 87:157-176.
    • (2008) J. Finan. Econ. , vol.87 , pp. 157-176
    • Cheng, S.1
  • 31
    • 0002815497 scopus 로고    scopus 로고
    • On the corporate demand for directors' and officers' insurance
    • Core J.E. On the corporate demand for directors' and officers' insurance. J. Risk Insur. 1997, 64:63-87.
    • (1997) J. Risk Insur. , vol.64 , pp. 63-87
    • Core, J.E.1
  • 32
    • 0034359918 scopus 로고    scopus 로고
    • The directors' and officers' insurance premium: an outside assessment of the quality of corporate governance
    • Core J.E. The directors' and officers' insurance premium: an outside assessment of the quality of corporate governance. J. Law, Econ., Organ. 2000, 16:449-477.
    • (2000) J. Law, Econ., Organ. , vol.16 , pp. 449-477
    • Core, J.E.1
  • 33
    • 0001650996 scopus 로고    scopus 로고
    • Corporate governance, chief executive officer compensation, and firm performance
    • Core J.E., Holthausen R.W., Larcker D.F. Corporate governance, chief executive officer compensation, and firm performance. J. Finan. Econ. 1999, 51:371-406.
    • (1999) J. Finan. Econ. , vol.51 , pp. 371-406
    • Core, J.E.1    Holthausen, R.W.2    Larcker, D.F.3
  • 34
    • 0042674101 scopus 로고    scopus 로고
    • The Cadbury committee, corporate performance, and top management turnover
    • Dahya J., McConnell J.J., Travlos N.G. The Cadbury committee, corporate performance, and top management turnover. J. Finance 2002, 57:461-483.
    • (2002) J. Finance , vol.57 , pp. 461-483
    • Dahya, J.1    McConnell, J.J.2    Travlos, N.G.3
  • 35
    • 0031211335 scopus 로고    scopus 로고
    • Ownership structure and top executive turnover
    • Denis D.J., Denis D.K., Sarin A. Ownership structure and top executive turnover. J. Finan. Econ. 1997, 45:193-221.
    • (1997) J. Finan. Econ. , vol.45 , pp. 193-221
    • Denis, D.J.1    Denis, D.K.2    Sarin, A.3
  • 36
  • 37
    • 56349129204 scopus 로고    scopus 로고
    • Board compensation practices and agency costs of debt
    • Ertugrul M., Hegde S. Board compensation practices and agency costs of debt. J. Corp. Finance 2008, 14:512-531.
    • (2008) J. Corp. Finance , vol.14 , pp. 512-531
    • Ertugrul, M.1    Hegde, S.2
  • 38
    • 0040807288 scopus 로고    scopus 로고
    • The consequences of forced CEO succession for outside directors
    • Farrell K., Whidbee D. The consequences of forced CEO succession for outside directors. J. Bus. 2000, 73:597-627.
    • (2000) J. Bus. , vol.73 , pp. 597-627
    • Farrell, K.1    Whidbee, D.2
  • 39
    • 23944436026 scopus 로고    scopus 로고
    • Are some outside directors better than others? evidence from director appointments by fortune 1000 firms
    • Fich E. Are some outside directors better than others? evidence from director appointments by fortune 1000 firms. J. Bus. 2005, 78:1943-1971.
    • (2005) J. Bus. , vol.78 , pp. 1943-1971
    • Fich, E.1
  • 40
    • 33644891336 scopus 로고    scopus 로고
    • Are busy boards effective monitors?
    • Fich E., Shivdasani A. Are busy boards effective monitors?. J. Finance 2006, 61:689-724.
    • (2006) J. Finance , vol.61 , pp. 689-724
    • Fich, E.1    Shivdasani, A.2
  • 41
    • 77049121014 scopus 로고    scopus 로고
    • The effect of state antitakeover laws on the firm's bondholders
    • Francis B., Iftekhar H., Kose J., Maya W. The effect of state antitakeover laws on the firm's bondholders. J. Finan. Econ. 2010, 96:127-154.
    • (2010) J. Finan. Econ. , vol.96 , pp. 127-154
    • Francis, B.1    Iftekhar, H.2    Kose, J.3    Maya, W.4
  • 43
    • 0037332214 scopus 로고    scopus 로고
    • Corporate governance and equity prices
    • Gompers P., Ishii J., Metrick A. Corporate governance and equity prices. Quart. J. Econ. 2003, 118:107-115.
    • (2003) Quart. J. Econ. , vol.118 , pp. 107-115
    • Gompers, P.1    Ishii, J.2    Metrick, A.3
  • 45
    • 0032276385 scopus 로고    scopus 로고
    • An empirical analysis of reincorporation decision
    • Heron R., Lewellen W. An empirical analysis of reincorporation decision. J. Finan. Quant. Anal. 1998, 33:549-568.
    • (1998) J. Finan. Quant. Anal. , vol.33 , pp. 549-568
    • Heron, R.1    Lewellen, W.2
  • 46
    • 0000373072 scopus 로고
    • Managerial conservatism, project choice, and debt
    • Hirshleifer D., Thakor A.V. Managerial conservatism, project choice, and debt. Rev. Finan. Stud. 1992, 5:437-470.
    • (1992) Rev. Finan. Stud. , vol.5 , pp. 437-470
    • Hirshleifer, D.1    Thakor, A.V.2
  • 47
    • 0001649619 scopus 로고
    • Managerial incentives and capital management
    • Holmstrom B., Costa J.R.I. Managerial incentives and capital management. Quart. J. Econ. 1986, 101:835-860.
    • (1986) Quart. J. Econ. , vol.101 , pp. 835-860
    • Holmstrom, B.1    Costa, J.R.I.2
  • 48
    • 0040331678 scopus 로고    scopus 로고
    • Internal monitoring mechanisms and CEO turnover: a long-term perspective
    • Huson M.R., Parrino R., Starks L.T. Internal monitoring mechanisms and CEO turnover: a long-term perspective. J. Finance 2001, 56:2265-2297.
    • (2001) J. Finance , vol.56 , pp. 2265-2297
    • Huson, M.R.1    Parrino, R.2    Starks, L.T.3
  • 49
    • 84986440343 scopus 로고
    • The elimination of director liability and stockholder returns: an empirical investigation
    • Janjigian V., Bolster P. The elimination of director liability and stockholder returns: an empirical investigation. J. Finan. Res. 1990, 13:53-60.
    • (1990) J. Finan. Res. , vol.13 , pp. 53-60
    • Janjigian, V.1    Bolster, P.2
  • 50
    • 0001066475 scopus 로고
    • Agency costs of free cash flow, corporate finance, and takeovers
    • Jensen M. Agency costs of free cash flow, corporate finance, and takeovers. Am. Econ. Rev. 1986, 76:323-329.
    • (1986) Am. Econ. Rev. , vol.76 , pp. 323-329
    • Jensen, M.1
  • 51
    • 44649197264 scopus 로고
    • Theory of the firm: managerial behavior, agency costs, and ownership structure
    • Jensen M., Meckling W. Theory of the firm: managerial behavior, agency costs, and ownership structure. J. Finan. Econ. 1976, 3:305-360.
    • (1976) J. Finan. Econ. , vol.3 , pp. 305-360
    • Jensen, M.1    Meckling, W.2
  • 52
    • 84936016411 scopus 로고
    • Performance pay and top-management incentives
    • Jensen M., Murphy K. Performance pay and top-management incentives. J. Polit. Economy 1990, 98:225-264.
    • (1990) J. Polit. Economy , vol.98 , pp. 225-264
    • Jensen, M.1    Murphy, K.2
  • 53
    • 84993908989 scopus 로고
    • Top-management compensation and capital structure
    • John T.A., John K. Top-management compensation and capital structure. J. Finance 1993, 48:949-974.
    • (1993) J. Finance , vol.48 , pp. 949-974
    • John, T.A.1    John, K.2
  • 54
    • 47849107249 scopus 로고    scopus 로고
    • Corporate governance and risk-taking
    • John K., Litov L., Yeung B. Corporate governance and risk-taking. J. Finance 2008, 63:1679-1728.
    • (2008) J. Finance , vol.63 , pp. 1679-1728
    • John, K.1    Litov, L.2    Yeung, B.3
  • 55
    • 62749120032 scopus 로고    scopus 로고
    • Employment risk, compensation incentives, and managerial risk taking: evidence from the mutual fund industry
    • Kempf A., Ruenzi S., Thiele T. Employment risk, compensation incentives, and managerial risk taking: evidence from the mutual fund industry. J. Finan. Econ. 2009, 92:92-108.
    • (2009) J. Finan. Econ. , vol.92 , pp. 92-108
    • Kempf, A.1    Ruenzi, S.2    Thiele, T.3
  • 56
    • 30344478243 scopus 로고    scopus 로고
    • Does corporate governance matter to bondholders?
    • Klock M., Mansi S., Maxwell W. Does corporate governance matter to bondholders?. J. Finan. Quant. Anal. 2005, 40:693-719.
    • (2005) J. Finan. Quant. Anal. , vol.40 , pp. 693-719
    • Klock, M.1    Mansi, S.2    Maxwell, W.3
  • 57
    • 67849124158 scopus 로고    scopus 로고
    • Bank governance, regulation, and risk taking
    • Laeven L., Levine R. Bank governance, regulation, and risk taking. J. Finan. Econ. 2009, 93:259-275.
    • (2009) J. Finan. Econ. , vol.93 , pp. 259-275
    • Laeven, L.1    Levine, R.2
  • 59
    • 84977733537 scopus 로고
    • Free cash flow and stockholder gains in going private transactions
    • Lehn K., Poulsen A. Free cash flow and stockholder gains in going private transactions. J. Finance 1989, 44:771-787.
    • (1989) J. Finance , vol.44 , pp. 771-787
    • Lehn, K.1    Poulsen, A.2
  • 60
    • 68349158748 scopus 로고    scopus 로고
    • The effects and unintended consequences of the Sarbanes-Oxley Act on the supply and demand for directors
    • Linck J., Netter J., Yang T. The effects and unintended consequences of the Sarbanes-Oxley Act on the supply and demand for directors. Rev. Finan. Stud. 2009, 22:3287-3328.
    • (2009) Rev. Finan. Stud. , vol.22 , pp. 3287-3328
    • Linck, J.1    Netter, J.2    Yang, T.3
  • 61
    • 75649103167 scopus 로고    scopus 로고
    • Credit protection laws and the cost of debt
    • Mansi S., Maxwell W., Wald J. Credit protection laws and the cost of debt. J. Law Econ. 2009, 52:701-726.
    • (2009) J. Law Econ. , vol.52 , pp. 701-726
    • Mansi, S.1    Maxwell, W.2    Wald, J.3
  • 62
    • 34547880030 scopus 로고    scopus 로고
    • Corporate governance and acquirer returns
    • Masulis R.W., Wang C., Xie F. Corporate governance and acquirer returns. J. Finance 2007, 62:1851-1889.
    • (2007) J. Finance , vol.62 , pp. 1851-1889
    • Masulis, R.W.1    Wang, C.2    Xie, F.3
  • 63
    • 49449125071 scopus 로고
    • Determinants of corporate borrowing
    • Myers S. Determinants of corporate borrowing. J. Finan. Econ. 1977, 5:147-175.
    • (1977) J. Finan. Econ. , vol.5 , pp. 147-175
    • Myers, S.1
  • 64
    • 0001867517 scopus 로고
    • State corporation laws and shareholders: the rent experience
    • Netter J., Poulsen A. State corporation laws and shareholders: the rent experience. Finan. Manage. 1989, 18:29-40.
    • (1989) Finan. Manage. , vol.18 , pp. 29-40
    • Netter, J.1    Poulsen, A.2
  • 65
    • 33745291760 scopus 로고    scopus 로고
    • Top management incentives and the pricing of corporate public debt
    • Ortiz-Molina H. Top management incentives and the pricing of corporate public debt. J. Finan. Quant. Anal. 2006, 41:317-340.
    • (2006) J. Finan. Quant. Anal. , vol.41 , pp. 317-340
    • Ortiz-Molina, H.1
  • 66
    • 64049086212 scopus 로고    scopus 로고
    • Strong boards, CEO power and bank risk-taking
    • Pathan S. Strong boards, CEO power and bank risk-taking. J. Bank. Finance 2009, 33:1340-1350.
    • (2009) J. Bank. Finance , vol.33 , pp. 1340-1350
    • Pathan, S.1
  • 67
    • 84892702170 scopus 로고    scopus 로고
    • Estimating standard errors in finance panel data sets: comparing approaches
    • Petersen M. Estimating standard errors in finance panel data sets: comparing approaches. Rev. Finan. Stud. 2009, 22:435-480.
    • (2009) Rev. Finan. Stud. , vol.22 , pp. 435-480
    • Petersen, M.1
  • 68
    • 68749084552 scopus 로고    scopus 로고
    • The market for corporate control and the cost of debt
    • Qiu J., Yu F. The market for corporate control and the cost of debt. J. Finan. Econ. 2009, 93:505-524.
    • (2009) J. Finan. Econ. , vol.93 , pp. 505-524
    • Qiu, J.1    Yu, F.2
  • 69
    • 0002876742 scopus 로고
    • The shareholder suit: litigation without foundation?
    • Romano R. The shareholder suit: litigation without foundation?. J. Law, Econ., Organ. 1991, 7:55-87.
    • (1991) J. Law, Econ., Organ. , vol.7 , pp. 55-87
    • Romano, R.1
  • 70
    • 78649903299 scopus 로고    scopus 로고
    • The states as a laboratory: legal innovation and state competition for corporate charters
    • Romano R. The states as a laboratory: legal innovation and state competition for corporate charters. Yale J. Regul. 2006, 23:209-247.
    • (2006) Yale J. Regul. , vol.23 , pp. 209-247
    • Romano, R.1
  • 71
    • 0001026456 scopus 로고    scopus 로고
    • A survey of corporate governance
    • Shleifer A., Vishny R. A survey of corporate governance. J. Finance 1997, 52:737-783.
    • (1997) J. Finance , vol.52 , pp. 737-783
    • Shleifer, A.1    Vishny, R.2
  • 72
    • 78649964860 scopus 로고    scopus 로고
    • Tillinghast-Towers Perrin, 2005, 2006. Directors and officers liability survey
    • Tillinghast-Towers Perrin, 2004, 2005, 2006. Directors and officers liability survey.
    • (2004)
  • 74
    • 33845790377 scopus 로고
    • Outside directors and CEO turnover
    • Weisbach M.S. Outside directors and CEO turnover. J. Finan. Econ. 1988, 20(1-2):431-460.
    • (1988) J. Finan. Econ. , vol.20 , Issue.1-2 , pp. 431-460
    • Weisbach, M.S.1
  • 75
    • 4344638635 scopus 로고    scopus 로고
    • Remuneration, retention, and reputation incentives for outside directors
    • Yermack D. Remuneration, retention, and reputation incentives for outside directors. J. Finance 2004, 59:2281-2308.
    • (2004) J. Finance , vol.59 , pp. 2281-2308
    • Yermack, D.1
  • 76
    • 0003300715 scopus 로고    scopus 로고
    • Understanding the determinants of managerial ownership and the link between ownership and performance: comment
    • Zhou X. Understanding the determinants of managerial ownership and the link between ownership and performance: comment. J. Finan. Econ. 2001, 62:559-571.
    • (2001) J. Finan. Econ. , vol.62 , pp. 559-571
    • Zhou, X.1


* 이 정보는 Elsevier사의 SCOPUS DB에서 KISTI가 분석하여 추출한 것입니다.