Corporate Governance and Credit Ratings
Authors
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Associate Professor, Department of Commerce, Sri Guru Tegh Bahadur Khalsa College, University of Delhi ,IN
Rachan Sareen -
Professor, Faculty of Management Studies, University of Delhi ,INMadhu Vij
Keywords:
Corporate Governance, Credit Ratings, Governance Indices, Ordinal Logit RegressionAbstract
Corporate governance is a well-researched concept. The primary focus of the extant literature has been on the relationship of corporate governance with the cost of equity, firm's performance, capital structure and cost of debt. There is negligible research dedicated to its association with credit ratings. An entity with higher ratings is expected to have satisfactory corporate governance practices. The present study examines the impact of compliance of corporate governance provisions by Indian companies on their long-term credit ratings using the ordinal logit regression model. The results suggest that corporate governance is an important determinant of credit ratings. It also documents that the companies with favorable disclosure policies and practices are more likely to get higher ratings.Downloads
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All the articles published in JBT are distributed under a creative commons license. The journal allows the author(s) to hold the copyright of their work (all usages allowed except for commercial purpose).Accepted 2018-05-16
Published 2014-02-16
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