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Corporate General Counsels in Top Management Teams: Do They Impede or Facilitate Efficient Debt Contracting?

Author

Listed:
  • Gimhani Ekanayake
  • Arifur Khan
  • Paul Mather
  • George Tanewski

Abstract

We investigate whether corporate general counsels (CGCs) in top management teams (TMT) influence bank debt costs. Analysing 1827 US syndicate loans in the post‐global financial crisis period (2010–2018), our findings indicate that CGCs‐in‐TMT are associated with a reduction in the overall cost of bank debt. Specifically, they impact the indirect rather than the direct cost of bank debt, with a more pronounced influence in high‐information asymmetry and high‐credit risk environments. Our study contributes to debt contracting literature, highlighting CGCs‐in‐TMT as an efficient alternative monitoring mechanism, reducing the cost of bank debt.

Suggested Citation

  • Gimhani Ekanayake & Arifur Khan & Paul Mather & George Tanewski, 2025. "Corporate General Counsels in Top Management Teams: Do They Impede or Facilitate Efficient Debt Contracting?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(4), pages 4158-4186, December.
    • Handle: RePEc:bla:acctfi:v:65:y:2025:i:4:p:4158-4186
    DOI: 10.1111/acfi.70076
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    References listed on IDEAS

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