RT Article
T1 Board Effectiveness and Cost of Debt
JF Journal of business ethics
VO 100
IS 4
SP 613
OP 631
A1 Lorca, Carmen
A1 Sánchez-Ballesta, Juan P.
A1 García-Meca, Emma
A2 Sánchez-Ballesta, Juan P.
A2 García-Meca, Emma
LA English
YR 2011
UL https://ixtheo.de/Record/178564193X
AB Does the board of directors influence cost of debt financing? This study of a sample of Spanish listed companies during the period 2004–2007 provides some evidence about the question. The results suggest that two board attributes – director ownership and board activity – appear to influence in the risk assessment of debtholders because of their ability to reduce agency cost and information asymmetry. We also find a non-linear relationship between board size and cost of debt, suggesting that from certain levels the benefits of large boards may be outweighed by the cost of poorer communication and increased decision-making time.
K1 Cost of debt
K1 Corporate Governance
K1 Board of directors
DO 10.1007/s10551-010-0699-3