Why does Corporate Governance Matter? Evidence from Seasoned Bond Offerings

• Main Author: WANG, Fang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: corporate governance; earnings management; seasoned bond offerings; Business Law, Public Responsibility, and Ethics; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/etd_coll/55; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1054&context=etd_coll
• Institution: Singapore Management University

To examine the importance of corporate governance, I look at how management and investors behave in the event of seasoned bond offerings, controlling for the corporate governance structure of issuing firms. I find that companies with the weakest governance structure aggressively manipulate their ear...