Please use this identifier to cite or link to this item:
http://repository.kln.ac.lk/handle/123456789/20432
Title: | Corporate governance and default prediction: a reality test |
Authors: | Fernando, J.M.R. Li, Leon Hou, Yang (Greg) |
Keywords: | Corporate governance default prediction accounting information market information |
Issue Date: | 2019 |
Publisher: | Applied Economics |
Citation: | Fernando,J.M.R., Leon Li & Yang (Greg) Hou. (2019) Corporate governance and default prediction: a reality test, Applied Economics, P:51:24,ISSN:2669-2686, DOI: 10.1080/00036846.2018.1558351 |
Abstract: | Default prediction has commanded the attention of researchers for at least 50 years. This paper addresses several testable hypotheses regarding the relations between corporate governance and default prediction. We employ the conventional logistic regression to provide empirical evidence from U.S. default data over the period of 2000 to 2015. Empirical results are consistent with the following notions: First, default firms are associated with high ownership concentration, low shareholder rights, low financial transparency and disclosures, and less board effectiveness. Second, in-sample and out-of-sample tests support the incremental contribution of corporate governance information on default prediction, when compared with the models involving just financial information. |
URI: | http://repository.kln.ac.lk/handle/123456789/20432 |
ISSN: | 2669-2686 |
Appears in Collections: | Finance |
Files in This Item:
File | Description | Size | Format | |
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Corporate governance and default prediction a reality test-2.pdf | 231.94 kB | Adobe PDF | View/Open |
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