CEO Duality and Bank Loan Contracting: Evidence from China

被引：2
|
作者：
Chen, Chong [1 ]
Cui, Huijie [2 ]
Zhang, Yanan [3 ]
机构：
[1] Cent Univ Finance & Econ, Chinese Acad Finance & Dev, Beijing, Peoples R China
[2] Beijing Foreign Studies Univ, Int Business Sch, Beijing, Haidian, Peoples R China
[3] Cent Univ Finance & Econ, Sch Accountancy, Beijing, Haidian, Peoples R China
来源：
EMERGING MARKETS FINANCE AND TRADE | 2022年 / 58卷 / 12期
基金：
中国国家自然科学基金;
关键词：
CEO duality; bank loan contracting; agency theory view; stewardship theory view; CORPORATE GOVERNANCE; FIRM PERFORMANCE; CREDITOR RIGHTS; INFORMATION; DISCLOSURE; RISK; COST; INSTITUTIONS; INVESTMENT; OWNERSHIP;
D O I：
10.1080/1540496X.2022.2057219
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This paper investigates the impact of CEO duality on bank loan contracting costs. Using hand-collected data of China's loan contracting terms throughout 2004-2020, we find that CEO duality leads to stricter loan contracting terms, shown as higher adjusted loan rates and shorter loan maturity. The results hold after we perform robustness tests including change analyses, propensity score matching analyses, as well as tests based on exogenous CEO turnovers. The positive relationship between duality and loan costs is more pronounced among firms with higher internal and external uncertainties. We further find that information asymmetry and CEO entrenchment are possible channels through which CEO duality increases bank loan contracting costs. Overall, the evidence supports the agency theory view that CEO duality increases firm's credit risk, thus leading to stricter bank loan contracting terms.
引用
收藏
页码：3526 / 3540
页数：15
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