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Creditor control rights and board independence

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Resumo:We find that the number of independent directors on corporate boards increases by approximately 24% following financial covenant violations in credit agreements. Most of these new directors have links to creditors. Firms that appoint new directors after violations are more likely to issue new equity, and to decrease payout, operational risk, and CEO cash compensation, than firms without such appointments. We conclude that a firm's board composition, governance, and policies are shaped by current and past credit agreements.
Autores principais:Ferreira, Daniel
Outros Autores:Ferreira, Miguel A.; Mariano, Beatriz
Assunto:Accounting Finance Economics and Econometrics
Ano:2018
País:Portugal
Tipo de documento:artigo
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
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author Ferreira, Daniel
author2 Ferreira, Miguel A.
Mariano, Beatriz
author2_role author
author
author_facet Ferreira, Daniel
Ferreira, Miguel A.
Mariano, Beatriz
author_role author
contributor_name_str_mv NOVA School of Business and Economics (NOVA SBE)
Wiley
RUN
country_str PT
creators_json_txt [{\"Person.name\":\"Ferreira, Daniel\"},{\"Person.name\":\"Ferreira, Miguel A.\"},{\"Person.name\":\"Mariano, Beatriz\"}]
datacite.contributors.contributor.contributorName.fl_str_mv NOVA School of Business and Economics (NOVA SBE)
Wiley
RUN
datacite.creators.creator.creatorName.fl_str_mv Ferreira, Daniel
Ferreira, Miguel A.
Mariano, Beatriz
datacite.date.Accepted.fl_str_mv 2018-10-01T00:00:00Z
datacite.date.available.fl_str_mv 2023-06-01T00:32:01Z
datacite.date.embargoed.fl_str_mv 2023-06-01T00:32:01Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Accounting
Finance
Economics and Econometrics
datacite.titles.title.fl_str_mv Creditor control rights and board independence
dc.contributor.none.fl_str_mv NOVA School of Business and Economics (NOVA SBE)
Wiley
RUN
dc.creator.none.fl_str_mv Ferreira, Daniel
Ferreira, Miguel A.
Mariano, Beatriz
dc.date.Accepted.fl_str_mv 2018-10-01T00:00:00Z
dc.date.available.fl_str_mv 2023-06-01T00:32:01Z
dc.date.embargoed.fl_str_mv 2023-06-01T00:32:01Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://www.scopus.com/inward/record.url?scp=85050400216&partnerID=8YFLogxK
dc.language.none.fl_str_mv eng
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Accounting
Finance
Economics and Econometrics
dc.title.fl_str_mv Creditor control rights and board independence
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_6501
description We find that the number of independent directors on corporate boards increases by approximately 24% following financial covenant violations in credit agreements. Most of these new directors have links to creditors. Firms that appoint new directors after violations are more likely to issue new equity, and to decrease payout, operational risk, and CEO cash compensation, than firms without such appointments. We conclude that a firm's board composition, governance, and policies are shaped by current and past credit agreements.
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eu_rights_str_mv openAccess
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institution Universidade Nova de Lisboa
instname_str Universidade Nova de Lisboa
language eng
network_acronym_str run
network_name_str Repositório Institucional da UNL
oai_identifier_str oai:run.unl.pt:10362/83732
organization_str_mv urn:organizationAcronym:unl
person_str_mv Ferreira, Daniel
Ferreira, Miguel A.
Mariano, Beatriz
publishDate 2018
reponame_str Repositório Institucional da UNL
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spelling engenWe find that the number of independent directors on corporate boards increases by approximately 24% following financial covenant violations in credit agreements. Most of these new directors have links to creditors. Firms that appoint new directors after violations are more likely to issue new equity, and to decrease payout, operational risk, and CEO cash compensation, than firms without such appointments. We conclude that a firm's board composition, governance, and policies are shaped by current and past credit agreements.application/pdfenCreditor control rights and board independenceFerreira, DanielFerreira, Miguel A.Mariano, BeatrizNOVA School of Business and Economics (NOVA SBE)WileyHostingInstitutionOrganizationalRUNe-mailmailto:run@unl.ptrun@unl.ptISSNIsPartOf0022-1082URNIsPartOfPURE: 5667344URNIsPartOfPURE UUID: 10e94603-42fa-48cd-aa0a-7ae978f39ea3URNIsPartOfScopus: 85050400216URNIsPartOfWOS: 000447674600011DOIIsPartOf10.1111/jofi.126922023-06-01T00:32:01Z2018-102018-10-01T00:00:00ZURLhttp://www.scopus.com/inward/record.url?scp=85050400216&partnerID=8YFLogxKhttp://purl.org/coar/access_right/c_abf2open accessAccountingFinanceEconomics and Econometrics566445 bytesliteraturehttp://purl.org/coar/resource_type/c_6501journal articlehttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://run.unl.pt/bitstreams/02362ae3-7ebf-4210-bdcf-a257a51a26c3/download
spellingShingle Creditor control rights and board independence
Ferreira, Daniel
Accounting
Finance
Economics and Econometrics
status SINGLETON
subject.fl_str_mv Accounting
Finance
Economics and Econometrics
title Creditor control rights and board independence
title_full Creditor control rights and board independence
title_fullStr Creditor control rights and board independence
title_full_unstemmed Creditor control rights and board independence
title_short Creditor control rights and board independence
title_sort Creditor control rights and board independence
topic Accounting
Finance
Economics and Econometrics
topic_facet Accounting
Finance
Economics and Econometrics
url http://www.scopus.com/inward/record.url?scp=85050400216&partnerID=8YFLogxK
visible 1