2,936
Views
42
CrossRef citations to date
0
Altmetric
Original Articles

Corporate Opacity and Cost of Debt for Family Firms

, &
Pages 27-59 | Received 23 Oct 2014, Accepted 06 Aug 2015, Published online: 05 Oct 2015

References

  • Achleitner, A., Gunther, N., Kaserer, C., & Siciliano, G. (2014). Real earnings management and accrual-based earnings management in family firm. European Accounting Review, 23, 431–461. doi: 10.1080/09638180.2014.895620
  • Adams, R. B., Almeida, H., & Ferreira, D. (2009). Understanding the relationship between founder-CEOs and firm performance. Journal of Empirical Finance, 16, 136–150. doi: 10.1016/j.jempfin.2008.05.002
  • Anderson, R., Duru, A., & Reeb, D. (2009). Founders, heirs, and corporate opacity in the United States. Journal of Financial Economics, 92, 205–222. doi: 10.1016/j.jfineco.2008.04.006
  • Anderson, R., Mansi, S., & Reeb, D. (2003). Founding family ownership and the agency cost of debt. Journal of Financial Economics, 68, 263–285. doi: 10.1016/S0304-405X(03)00067-9
  • Angrist, J. D., & Pischke, J. (2009). Most harmless econometrics: An empiricist's companion. Princeton, NJ: Princeton University Press.
  • Armstrong, C. S., Guay, W. R., & Weber, J. P. (2010). The role of information and financial reporting in corporate governance and debt contracting. Journal of Accounting and Economics, 50, 179–234. doi: 10.1016/j.jacceco.2010.10.001
  • Bekaert, G., Harvey, C. R., & Lundblad, C. (2007). Liquidity and expected returns: Lessons from emerging markets. Review of Financial Studies, 20, 1783–1831. doi: 10.1093/rfs/hhm030
  • Boubakri, N., & Ghouma, H. (2010). Control/ownership structure, creditor rights protection, and the cost of debt financing: International evidence. Journal of Banking and Finance, 34, 2481–2499. doi: 10.1016/j.jbankfin.2010.04.006
  • Burkart, M., Panunzi, F., & Shleifer, A. (2003). Family firms. The Journal of Finance, 58, 2167–2202. doi: 10.1111/1540-6261.00601
  • Bushman, R. M., Piotroski, J., & Smith, A. (2004). What determines corporate transparency? Journal of Accounting Research, 42, 207–252. doi: 10.1111/j.1475-679X.2004.00136.x
  • Bushman, R. M., & Smith, A. (2001). Financial accounting information and corporate governance. Journal of Accounting and Economics, 32, 237–333. doi: 10.1016/S0165-4101(01)00027-1
  • Chen, C., Li, Z., Su, X., & Sun, Z. (2011). Rent-seeking incentives, corporate political connections, and the control structure of private firms: Chinese evidence. Journal of Corporate Finance, 17, 229–243. doi: 10.1016/j.jcorpfin.2010.09.009
  • Cheng, Q. (2014). Family firm research – A review (Working Paper). Singapore Management University.
  • Claessens, S., Djankov, S., Fan, J. P. H., & Lang, L. H. P. (2002). Disentangling the incentive and entrenchment effects of large shareholdings. The Journal of Finance, 57, 2741–2771. doi: 10.1111/1540-6261.00511
  • Claessens, S., Djankov, S., & Lang, L. (2000). The separation of ownership and control in East Asian corporations. Journal of Financial Economics, 58, 81–112. doi: 10.1016/S0304-405X(00)00067-2
  • Cliff, M. T., & Denis, D. J. (2004). Do initial public offering firms purchase analyst coverage with underpricing? The Journal of Finance, 59, 2871–2901. doi: 10.1111/j.1540-6261.2004.00719.x
  • Dechow, P., Sloan, R., & Sweeney, A. (1995). Detecting earnings management. The Accounting Review, 70, 193–225.
  • Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership. Journal of Political Economy, 93, 1155–1177. doi: 10.1086/261354
  • Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2008). The law and economics of self-dealing. Journal of Financial Economics, 88, 430–465. doi: 10.1016/j.jfineco.2007.02.007
  • Dyck, A., & Zingales, L. (2004). Private benefits of control: An international comparison. The Journal of Finance, 59, 537–600. doi: 10.1111/j.1540-6261.2004.00642.x
  • Ellis, K. (2006). Who trades IPOs? A close look at the first days of trading. Journal of Financial Economics, 79, 339–363. doi: 10.1016/j.jfineco.2004.09.006
  • Ellul, A., Guntay, L., & Lel, U. (2007). External governance and debt agency costs of family firms (Federal Reserve International Finance Discussion Paper No. 908).
  • Faccio, M., & Lang, L. H. P. (2002). The ultimate ownership of Western European corporations. Journal of Financial Economics, 65, 365–395. doi: 10.1016/S0304-405X(02)00146-0
  • Faccio, M., Masulis, R., & McConnell, J. (2006). Political connections and corporate bailouts. The Journal of Finance, 61, 2597–2635. doi: 10.1111/j.1540-6261.2006.01000.x
  • Fahlenbrach, R. (2009). Founder–CEOs, investment decisions, and stock market performance. Journal of Financial and Quantitative Analysis, 44, 439–466. doi: 10.1017/S0022109009090139
  • Fan, G., Wang, X., & Zhu, H. (2011). NERI index of marketization of China's provinces 2011 report. Beijing: Economic Science Press (in Chinese).
  • Fan, J., & Wong, T. J. (2002). Corporate ownership structure and the informativeness of accounting earnings in East Asia. Journal of Accounting and Finance, 33, 401–425.
  • Fan, J., Wong, T. J., & Zhang, T. (2007). Politically-connected CEOs, corporate governance and post-IPO performance of China's partially privatized firms. Journal of Financial Economics, 84, 330–357. doi: 10.1016/j.jfineco.2006.03.008
  • Fan, J., Wong, T. J., & Zhang, T. (2012). Founder succession and accounting properties. Contemporary Accounting Research, 29, 283–311. doi: 10.1111/j.1911-3846.2011.01099.x
  • Francis, J., Lafond, R., Olsson, P., & Schipper, K. (2004). Costs of equity and earnings attributes. The Accounting Review, 79, 967–1010. doi: 10.2308/accr.2004.79.4.967
  • Francis, J., Lafond, R., Olsson, P., & Schipper, K. (2005). The market pricing of accrual quality. Journal of Accounting and Economics, 39, 295–327. doi: 10.1016/j.jacceco.2004.06.003
  • Francis, J., Schipper, K., & Vincent, L. (2005). Earnings and dividends informativeness when cash flow rights are separated from voting rights. Journal of Accounting and Economics, 39, 329–360. doi: 10.1016/j.jacceco.2005.01.001
  • Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360. doi: 10.1016/0304-405X(76)90026-X
  • Johnson, S., La Porta, R., Shleifer, A., & Lopez-de-Silanes, F. (2000). Tunneling. American Economic Review Papers and Proceedings, 90, 22–27.
  • Kelejian, H. H. (1971). Two-stage least squares and econometric systems linear in parameters but nonlinear in the endogenous variables. Journal of the American Statistical Association, 66, 373–374. doi: 10.1080/01621459.1971.10482270
  • Kim, J. B., Simunic, D. A., Stein, M. T., & Yi, C. H. (2011). Voluntary audits and the cost of debt capital for privately held firms: Korean evidence. Contemporary Accounting Research, 28, 585–615. doi: 10.1111/j.1911-3846.2010.01054.x
  • Kim, E. H., & Lu, Y. (2011). CEO ownership, external governance, and risk-taking. Journal of Financial Economics, 102, 272–292. doi: 10.1016/j.jfineco.2011.07.002
  • Lang, M., Lins, K., & Miller, D. (2004). Concentrated control, analyst following, and valuation: Do analysts matter most when investors are protected least? Journal of Accounting Research, 42, 589–623. doi: 10.1111/j.1475-679X.2004.t01-1-00142.x
  • Lang, M., & Lundholm, R. (1993). Cross-sectional determinants of analyst ratings of corporate disclosures. Journal of Accounting Research, 31, 246–271. doi: 10.2307/2491273
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58, 3–27. doi: 10.1016/S0304-405X(00)00065-9
  • Lesmond, D., Ogden, J., & Trzcinka, C. (1999). A new estimate of transaction costs. Review of Financial Studies, 12, 1113–1141. doi: 10.1093/rfs/12.5.1113
  • Leuz, C., Nanda, D., & Wysocki, P. (2003). Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69, 505–527. doi: 10.1016/S0304-405X(03)00121-1
  • Leuz, C., & Oberholzer-Gee, F. (2006). Political relationships, global financing, and corporate transparency: Evidence from Indonesia. Journal of Financial Economics, 81, 411–439. doi: 10.1016/j.jfineco.2005.06.006
  • Leuz, C., & Verrecchia, R. (2000). The economic consequences of increased disclosure. Journal of Accounting Research, 38, 91–124. doi: 10.2307/2672910
  • Li, H., Meng, L., & Zhang, J. (2006). Why do entrepreneurs entre politics? Evidence from China. Economic Inquiry, 44, 559–578. doi: 10.1093/ei/cbj031
  • Lin, C., Ma, Y., Malatesta, P., & Xuan, Y. (2011). Ownership structure and the cost of corporate borrowing. Journal of Financial Economics, 100, 1–23. doi: 10.1016/j.jfineco.2010.10.012
  • Lins, K., Volpin, P., & Wagner, H. (2013). Does family control matter? International evidence from the 2008–2009 financial crisis. Review of Financial Studies, 26, 2583–2619. doi: 10.1093/rfs/hht044
  • Ma, L., Ma, S., & Tian, G. (2013). Political connection, founder managers, and their impact on tunneling in China's listed firms. Pacific Basin Finance Journal, 24, 312–339. doi: 10.1016/j.pacfin.2013.07.001
  • Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13, 187–221. doi: 10.1016/0304-405X(84)90023-0
  • Nikolaev, V., & van Lent, L. (2005). The endogeneity bias in the relation between cost-of-debt capital and corporate disclosure policy. European Accounting Review, 14, 677–724. doi: 10.1080/09638180500204624
  • Petersen, M. A., & Rajan, R. G. (1994). The benefits of lending relationships: Evidence from small business data. The Journal of Finance, 49, 3–37. doi: 10.1111/j.1540-6261.1994.tb04418.x
  • Pittman, J. A., & Fortin, S. (2004). Auditor choice and the cost of debt capital for newly public firms. Journal of Accounting and Economics, 37, 113–136. doi: 10.1016/j.jacceco.2003.06.005
  • Prencipe, A., Bar-Yosef, S., & Dekker, H. C. (2014). Accounting research in family firms: Theoretical and empirical challenges. European Accounting Review, 23, 361–385. doi: 10.1080/09638180.2014.895621
  • Qi, Y., Roth, L., & Wald, J. K. (2010). Political rights and the cost of debt. Journal of Financial Economics, 95, 202–226. doi: 10.1016/j.jfineco.2009.10.004
  • Rajan, R., & Servaes, H. (1997). Analyst following of initial public offerings. The Journal of Finance, 52, 507–529. doi: 10.1111/j.1540-6261.1997.tb04811.x
  • Sanchez-Ballesta, J. P., & Garcia-Meca, E. (2011). Ownership structure and the cost of debt. European Accounting Review, 20, 389–416. doi: 10.1080/09638180903487834
  • Sengupta, P. (1998). Corporate disclosure quality and the cost of debt. The Accounting Review, 73, 459–474.
  • Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, 52, 737–783. doi: 10.1111/j.1540-6261.1997.tb04820.x
  • Smith, C. W., & Warner, J. (1979). On financial contracting: An analysis of bond covenants. Journal of Financial Economics, 7, 117–161. doi: 10.1016/0304-405X(79)90011-4
  • Villalonga, B., & Amit, R. (2006). How do family ownership, control, and management affect firm value? Journal of Financial Economics, 80, 385–417. doi: 10.1016/j.jfineco.2004.12.005
  • Villalonga, B., & Amit, R. (2009). How are U.S. family firms controlled? Review of Financial Studies, 22, 3047–3091. doi: 10.1093/rfs/hhn080
  • Wang, D. (2006). Founding family ownership and earnings quality. Journal of Accounting Research, 44, 619–656. doi: 10.1111/j.1475-679X.2006.00213.x
  • Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. Upper Saddle River, NJ: Prentice Hall.
  • World Bank. (2006). China governance, investment climate, and harmonious society: Competitiveness enhancements for 120 cities in China (World Bank Report No. 37759-CN).

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.