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The effects of corporate governance on the borrowing costs
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 Title & Authors
The effects of corporate governance on the borrowing costs
Gong, Jaisik;
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This paper investigates the impact of corporate governance structure on the firm`s debt costs under different governance environments. We find that after the 2008 banking crisis, family firms with controlling shareholders benefit from lower debt cost through the strong control rights of dominating large shareholders, compared with the firms with diversified minority-shareholders. Foreign investors are related statistically to the higher cost of debt. Before the 2008 banking crisis, cash flows and growth potentials are positively associated with the firm`s cost of debt.
Agency costs;Borrowing costs;Corporate governance;Debt cost;Large shareholders;Family firms;
 Cited by
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