Creditor protection, shareholder protection, and cost of debt financing around the world

Debt financing plays an important role in corporate financial decisions. Therefore, the cost of debt is an interesting topic in corporate finance. Using a sample of 153,784 observations across 30 countries from 2003 to 2016, we find that creditor rights positively affect the cost of debt. In additio...

Full description

Saved in:
Bibliographic Details
Published in:Australian journal of management 2023-02, Vol.48 (1), p.90-107
Main Authors: Dao, Thi Huong, Tran, Quoc Trung, Nguyen, Thi Mai, Nguyen, Tran Sy
Format: Article
Language:English
Subjects:
Capital costs
Corporate governance
Corporations
Debt financing (Corporations)
Finance
Stock exchanges
Stockholders
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Debt financing plays an important role in corporate financial decisions. Therefore, the cost of debt is an interesting topic in corporate finance. Using a sample of 153,784 observations across 30 countries from 2003 to 2016, we find that creditor rights positively affect the cost of debt. In addition, the effect of shareholder rights is weaker in countries with stronger creditor protection.
ISSN:0312-8962
1327-2020
DOI:10.1177/03128962221083375