Internal pyramid structure, judicial efficiency, firm-level governance and dividend policy

Shah, Muhammad Hashim; Xiao, Zuoping; Abdullah,

doi:10.1016/j.iref.2022.10.019

Cited by 4 publications

(1 citation statement)

References 80 publications

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“…Fifthly, to address one of the possible sources of endogeneity related to the year‐to‐year dependence on the cost of debt, we include the 1‐year lagged dependent variable as the explanatory variable. In order to estimate this dynamic panel data, we use the generalized moments (GMM) proposed by Arellano and Bond (1991), which are the most commonly used techniques (Shah & Xiao, 2023). The results shown in Column E of Table 5 (cont.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

Judicial efficiency, debt structure, and cost of debt

Aguiar‐Díaz,

Mruk,

Ruiz‐Mallorquí

2024

Manage Decis Econ

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In the framework of law and finance literature, this study investigates the link between judicial efficiency and financial debt cost in 1487 non‐financial firms across the euro zone from 2010 to 2021. Utilizing qualitative (rule of law) and quantitative (judicial proceeding length) indicators from the Worldwide Governance Indicators and Doing Business databases, our findings support the hypothesis that efficient justice lowers financial debt cost. Additionally, we observe a moderating effect of debt structure, specifically that private non‐bank debt enhances the reduction impact of judicial efficiency on debt cost, unlike bank and corporate bonds debt.

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Section: Empirical Results and Discussionmentioning

confidence: 99%