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The effects of corporate governance on firms' credit ratings [An article from: Journal of Accounting and Economics]
The effects of corporate governance on firms' credit ratings [An article from: Journal of Accounting and Economics]

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Authors: H. Ashbaugh-skaife, D.w. Collins, R. Lafond
Publisher: Elsevier
Category: Book

Buy New: $10.95




Format: Html
Media: Digital
Pages: 40

ASIN: B000PA9YNY

Publication Date: October 1, 2006
Availability: Available for download now

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Product Description
This digital document is a journal article from Journal of Accounting and Economics, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
We investigate whether firms with strong corporate governance benefit from higher credit ratings relative to firms with weaker governance. We document, after controlling for firm-specific risk characteristics, that credit ratings are negatively associated with the number of blockholders and CEO power, and positively related to takeover defenses, accrual quality, earnings timeliness, board independence, board stock ownership, and board expertise. We also provide evidence that CEOs of firms with speculative-grade credit ratings are overcompensated to a greater degree than their counterparts at firms with investment-grade ratings, thus providing one explanation for why some firms operate with weak governance.


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