Interactions between Corporate Governance, Bankruptcy Law and Firms' Debt Financing: the Brazilian Case



Título del documento: Interactions between Corporate Governance, Bankruptcy Law and Firms' Debt Financing: the Brazilian Case
Revista: BAR - Brazilian Administration Review
Base de datos: CLASE
Número de sistema: 000337260
ISSN: 1807-7692
Autores: 1
1
2
Instituciones: 1FUCAPE Business School, Vitoria, Espirito Santo. Brasil
2Universidade de Sao Paulo, Faculdade de Economia, Administracao e Contabilidade, Sao Paulo. Brasil
Año:
Periodo: Jul-Sep
Volumen: 5
Número: 3
Paginación: 245-259
País: Brasil
Idioma: Inglés
Tipo de documento: Artículo
Enfoque: Analítico
Resumen en inglés This paper examines the relationship between corporate governance level and the bankruptcy law for such debt variables as firms’ cost of debt and amount (and variation) of debt. Our empirical results are consistent with the model's prediction. First, we find that the better the corporate governance, the lower the cost of debt. Second, we find that better corporate governance arrangements relate to firms with higher amounts of debt. Finally we find that better governance and harsher bankruptcy laws have a positive effect on debt. Moreover, this effect is stronger for firms with worse corporate governance, which indicates that the law works as a substitute for governance practices to protect creditors' interests
Disciplinas: Administración y contaduría,
Economía
Palabras clave: Dirección y control,
Planeación,
Empresas,
Gobernanza corporativa,
Bancarrota,
Deuda,
Financiamiento,
Ley de quiebras,
Brasil
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