全球智库信息集成服务系统(G2TT): Does Uncertainty about Management Affect Firms\u2019 Costs of Borrowing?

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w20674
来源ID	Working Paper 20674
	Does Uncertainty about Management Affect Firms\u2019 Costs of Borrowing?
	Yihui Pan; Tracy Yue Wang; Michael S. Weisbach
发表日期	2014-11-17
出版年	2014
语种	英语
摘要	Uncertainty about management appears to affect firms’ cost of borrowing and financial policies. In a sample of S&P 1500 firms between 1987 and 2010, CDS spreads, loan spreads and bond yield spreads all decline over the first three years of CEO tenure, holding other macroeconomic, firm, and security level factors constant. This decline occurs regardless of the reason for the prior CEO’s departure. Similar but smaller declines occur following turnovers of CFOs. The spreads are more sensitive to CEO tenure when the prior uncertainty about the CEO’s ability is likely to be higher: when he is not an heir apparent, is an outsider, is younger, and when he does not have a prior relationship with the lender. The spread- tenure sensitivity is also higher when the firm has a higher default risk and when the debt claim is riskier. These patterns are consistent with the view that the decline in spreads in a manager’s first three years of tenure reflects the resolution of uncertainty about management. Firms adjust their propensities to issue external debt, precautionary cash holding, and reliance on internal funds in response to these short-term increases in borrowing costs early in their CEOs’ tenure.
主题	Financial Economics ; Corporate Finance ; Other ; Accounting, Marketing, and Personnel
URL	https://www.nber.org/papers/w20674
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/578348
推荐引用方式 GB/T 7714	Yihui Pan,Tracy Yue Wang,Michael S. Weisbach. Does Uncertainty about Management Affect Firms\u2019 Costs of Borrowing?. 2014.