Effect of corporate governance on bond yield and bond ratings : a study in Malaysia listed companies
This study examines the relationship between the corporate governance, bond yields and bond ratings in Malaysia’s listed companies for nine time period starting year 2001 until 2009. Data are collected from annual report for each of the firms. Correlation, descriptive statistics, Ordinary Least S...
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| Format: | Final Year Project Report / IMRAD |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak, (UNIMAS)
2011
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/6409/ http://ir.unimas.my/id/eprint/6409/8/EFFECT%20OF%20CORPORATE%20GOVERNANCE%20ON%20BOND%20YIELDS%20%28OCR%29.pdf |
| Summary: | This study examines the relationship between the corporate governance, bond yields
and bond ratings in Malaysia’s listed companies for nine time period starting year
2001 until 2009. Data are collected from annual report for each of the firms.
Correlation, descriptive statistics, Ordinary Least Square, and Ordered Probit Model
are the technique used to determine the relationship and significant linear
relationship between the variables. The variables used includes dividend yield,
institutional ownership, top five institutional ownership, outside directorship, debtto-equity
ratio, maturity, margin, above five percent institutional ownership, ratings,
bond issues size and total asset. There are 142 firms together for this study and 162
firms which include the firms that issues bond for several years are reported in the
appendix. Bond ratings are gathering from Rating Agency Malaysia (RAM) and
Malaysia Rating Corporation (MARC). Empirical results shows that ratings are
significant with bond yields and are inversely correlated which followed Bhojraj and
Sengupta (2003). |
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