Corporate boards and performance pricing in private debt contracts
This paper investigates the effects of corporate governance on the use of performance pricing in debt contracts on a sample of newly syndicated loans in the U.S. private debt market. While cross-sectional results provide no evidence for the predicted relation between corporate governance quality and...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English English English |
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Elsevier B.V.
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/50656/ http://irep.iium.edu.my/50656/2/50656_Corporate%20Boards%20and%20Performance%20Pricing_scopus.pdf http://irep.iium.edu.my/50656/14/50656_Corporate%20boards%20and%20performance%20pricing%20in%20private%20debt%20contracts_WOS.pdf http://irep.iium.edu.my/50656/20/50656_Corporate%20boards%20and%20performance%20pricing.pdf |
| _version_ | 1848783687268696064 |
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| author | Abu Bakar, Intan Suryani Khan, Arifur Mather, Paul R. Tanewski, George A. |
| author_facet | Abu Bakar, Intan Suryani Khan, Arifur Mather, Paul R. Tanewski, George A. |
| author_sort | Abu Bakar, Intan Suryani |
| building | IIUM Repository |
| collection | Online Access |
| description | This paper investigates the effects of corporate governance on the use of performance pricing in debt contracts on a sample of newly syndicated loans in the U.S. private debt market. While cross-sectional results provide no evidence for the predicted relation between corporate governance quality and the likelihood of using performance pricing in debt contracts, there is evidence for the predicted positive relation between corporate governance quality and the use of interest-increasing performance pricing provisions. Evidence also provides support for the predicted negative relation between corporate governance quality and the use of financial ratio as the measure of performance underlying the provisions. Overall, empirical evidence supports the hypothesis that debt-holders perceive aspects of corporate governance to be beneficial and factor them in their contracting decisions. |
| first_indexed | 2025-11-14T16:25:19Z |
| format | Article |
| id | iium-50656 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T16:25:19Z |
| publishDate | 2018 |
| publisher | Elsevier B.V. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-506562019-07-15T01:43:26Z http://irep.iium.edu.my/50656/ Corporate boards and performance pricing in private debt contracts Abu Bakar, Intan Suryani Khan, Arifur Mather, Paul R. Tanewski, George A. HG4001 Financial management. Business finance. Corporation finance. This paper investigates the effects of corporate governance on the use of performance pricing in debt contracts on a sample of newly syndicated loans in the U.S. private debt market. While cross-sectional results provide no evidence for the predicted relation between corporate governance quality and the likelihood of using performance pricing in debt contracts, there is evidence for the predicted positive relation between corporate governance quality and the use of interest-increasing performance pricing provisions. Evidence also provides support for the predicted negative relation between corporate governance quality and the use of financial ratio as the measure of performance underlying the provisions. Overall, empirical evidence supports the hypothesis that debt-holders perceive aspects of corporate governance to be beneficial and factor them in their contracting decisions. Elsevier B.V. 2018-09 Article NonPeerReviewed application/pdf en http://irep.iium.edu.my/50656/2/50656_Corporate%20Boards%20and%20Performance%20Pricing_scopus.pdf application/pdf en http://irep.iium.edu.my/50656/14/50656_Corporate%20boards%20and%20performance%20pricing%20in%20private%20debt%20contracts_WOS.pdf application/pdf en http://irep.iium.edu.my/50656/20/50656_Corporate%20boards%20and%20performance%20pricing.pdf Abu Bakar, Intan Suryani and Khan, Arifur and Mather, Paul R. and Tanewski, George A. (2018) Corporate boards and performance pricing in private debt contracts. Pacific Basin Finance Journal, 50 (Special issue). pp. 144-162. ISSN 0927-538X https://poseidon01.ssrn.com/delivery.php?ID=398002017094087095118072029021127006024081090052024004069113069026081101004093126023016123121059011102019019106117000092127097114082027065044013116065070021088075031051010112116099084080107064070103082104004004074027070030127099107107075117071096083&EXT=pdf 10.1016/j.pacfin.2017.02.007 |
| spellingShingle | HG4001 Financial management. Business finance. Corporation finance. Abu Bakar, Intan Suryani Khan, Arifur Mather, Paul R. Tanewski, George A. Corporate boards and performance pricing in private debt contracts |
| title | Corporate boards and performance pricing in private debt contracts |
| title_full | Corporate boards and performance pricing in private debt contracts |
| title_fullStr | Corporate boards and performance pricing in private debt contracts |
| title_full_unstemmed | Corporate boards and performance pricing in private debt contracts |
| title_short | Corporate boards and performance pricing in private debt contracts |
| title_sort | corporate boards and performance pricing in private debt contracts |
| topic | HG4001 Financial management. Business finance. Corporation finance. |
| url | http://irep.iium.edu.my/50656/ http://irep.iium.edu.my/50656/ http://irep.iium.edu.my/50656/ http://irep.iium.edu.my/50656/2/50656_Corporate%20Boards%20and%20Performance%20Pricing_scopus.pdf http://irep.iium.edu.my/50656/14/50656_Corporate%20boards%20and%20performance%20pricing%20in%20private%20debt%20contracts_WOS.pdf http://irep.iium.edu.my/50656/20/50656_Corporate%20boards%20and%20performance%20pricing.pdf |