Open Access
Subscription Access
Open Access
Subscription Access
Board of Directors Characteristic and Cost of Debt in Tehran Stock Exchange
Subscribe/Renew Journal
This study investigates the effect of board composition on debt cost of firms listed in Tehran Stock Exchange (TSE). To do so, 90 firms are selected to be studied during the period of 2008 to 2012 using panel data and regression model. Board composition involved in this study are outside board, board size and board independence. Results show that there is a negative and significant relationship between outside board and debt cost. Board size has positive significant relationship and board independence has no significant relationship with debt expense. Control variables of return of assets, return of equity and debt size have a negative relationship and market to book value, financial leverage and firms size have a positive and significant relationship with debt cost.
Keywords
Board Size, Board Independence, Debt Expense, Independence Size of Board of Directors.
Subscription
Login to verify subscription
User
Font Size
Information
- Ahmadpour, A., Kashani, M., & Shojaee, M. R. (2010). The effects of corporate governance and audit quality on cost of debt. Accounting and Auditing Reviews, 62.
- Amrah, M. R. A. (2011). Characteristics of board of directors and cost of debts: A case of united Arabs Emirates listed companies, M.A thesis, University Utara Malaysia.
- Andersona, R. C., Mansib, S. A., & Reeb, D. R., (2003). Board characteristics, accounting report integrity, and the cost of debt, Retrieved from http://astro.temple.edu/∼dreeb/BoardChar.pdf.
- Byun, H. Y. (2007). The cost of debt capital and corporate governance practices. Asia-Pacific Journal of Financial Studies, 36(5), 765-806.
- Francis, B., Hasan, I., Koetter, M., & Wu, Q. (2012). Corporate boards and bank loan contracting. Bank of Finland Research, Discussion Papers.
- Frantz, P., & Instefjord, N. (2012). Corporate governance and the cost of borrowing. Retrieved from http://ssrn.com/abstract=2016280 or http://dx.doi.org/10.2139/ssrn.2016280.
- Jandik, T., & McCumber, W. R. (2012). Governance, takeover probability, and the cost of private debt. Retrived from http://ssrn.com/abstract=1929027 or http://dx.doi.org/10.2139/ssrn.1929027.
- Klock, M., Mansi, S., & Maxwell, W. F. (2004). Does Corporate Governance Matter to Bondholders?. Journal of Financial and Quantitative Analysis, Forthcoming. Retrieved from http://ssrn.com/abstract=563882.
- Morales, C. L., Ballesta, J. P. S, & Meca, E. G. (2010). Exploring the relation between board and cost of debt: A study of the Spanish case, Working paper.
- Nikomaram, H., Talebnia, G., & Khosropour, S. (2013). Investigation of the effect of audit reputation on the relationship between accruals quality and cost of debt, 6, 77-87.
- Piot, C., & Missonier-Piera, F. (2009). Piot corporate governance reform and the cost of debt financing of listed french companies. Retrieved from http://ssrn.com/abstract=960681 or http://dx.doi.org/10.2139/ssrn.960681.
- Schauten, M., & Jasper, B. (2006). Corporate governance and the cost of debt. Retrieved from http://ssrn.com/abstract=933615 or http://dx.doi.org/10.2139/ssrn.933615.
- Zhu, F. (2012). Differential Effects of Corporate Governance on the Cost of Equity and Debt Capital: An International Study. Retrieved from http://ssrn. com/abstract=2160150 or http://dx.doi.org/10.2139/ ssrn.2160150.
Abstract Views: 448
PDF Views: 2