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Corporate governance and the cost of public debt financing: Evidence from Japan

Listed author(s):
  • Tanaka, Takanori
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    This paper explores the relationship between corporate governance mechanisms and the cost of public debt financing in Japan. Using a sample of corporate bonds newly issued in Japan during the period 2005–2008, I find that CEO ownership is associated with higher yield spreads after controlling for other governance, bond, and firm characteristics. Founding family ownership is also positively related to yield spreads. In contrast, firms with large corporate shareholders enjoy lower yield spreads. These results are robust to various alternative specifications. Overall, my results indicate the importance of corporate governance mechanisms in Japanese corporate bond markets.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0889158314000185
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    Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

    Volume (Year): 34 (2014)
    Issue (Month): C ()
    Pages: 315-335

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    Handle: RePEc:eee:jjieco:v:34:y:2014:i:c:p:315-335
    DOI: 10.1016/j.jjie.2014.03.002
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622903

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