Record Details

The effect of disclosure level on credit rating and cost of debt capital

Journal of Financial Studies

View Archive Info
 
 
Field Value
 
Title The effect of disclosure level on credit rating and cost of debt capital
 
Creator Jui Pin Chen
Tzu-Ching Weng
Quan-Bin Zhuo
 
Description Recently, the Securities and Futures Commission of Taiwan promote the corporate governance targets to solve the problem of information asymmetry between manager and investors by raising information transparency. The purpose of this study is to investigate the impact of disclosure level on credit rating and cost of debt capital. The findings of this study can be summarized as follows: First, it is significantly negative association between disclosure level and credit rating in the order probit regression. Second, the disclosure level is negatively related with the cost of debt capital in the ordinary least squares regression. In additions, we consider the endogenous relation between disclosure level and cost of debt capital, and use two stage least squares to estimate that relation. The finding persists even after we control the endogenous problem.
Keywords：Corporate governance, disclosure level, credit rating, cost of debt capital
 
Publisher Journal of Financial Studies
財務金èžå­¸åˆŠ
 
Date 2011-03-10
 
Type —
 
Format application/pdf
 
Identifier http://www.jfs.org.tw/index.php/jfs/article/view/2011077
 
Source Journal of Financial Studies; Vol 17, No 2 (2009); 71
財務金èžå­¸åˆŠ; Vol 17, No 2 (2009); 71
 
Language —