CEO Incentives, Relationship Lending, and the Cost of Corporate Borrowing. Issue 3 (1st November 2016)
- Record Type:
- Journal Article
- Title:
- CEO Incentives, Relationship Lending, and the Cost of Corporate Borrowing. Issue 3 (1st November 2016)
- Main Title:
- CEO Incentives, Relationship Lending, and the Cost of Corporate Borrowing
- Authors:
- Chen, Liqiang
Qiu, Jiaping - Abstract:
- Abstract : We investigate how lending relationships attenuate the conflict of interest between creditors and shareholders that arises from chief executive officer (CEO) compensation contracts. We find that lending relationships mitigate the influence of CEO risk‐taking incentives on loan spreads, especially for informationally opaque firms. In addition, lending relationships attenuate the impact of CEO risk‐taking incentives on maturity and collateral requirements. This article highlights the importance of bank monitoring through lending relationships to mitigate managerial risk‐shifting activities that arise from equity incentives.
- Is Part Of:
- Financial management. Volume 46:Issue 3(2017:Autumn)
- Journal:
- Financial management
- Issue:
- Volume 46:Issue 3(2017:Autumn)
- Issue Display:
- Volume 46, Issue 3 (2017)
- Year:
- 2017
- Volume:
- 46
- Issue:
- 3
- Issue Sort Value:
- 2017-0046-0003-0000
- Page Start:
- 627
- Page End:
- 654
- Publication Date:
- 2016-11-01
- Subjects:
- Corporations -- Finance -- Periodicals
658.1505 - Journal URLs:
- http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1755-053X ↗
http://www.blackwellpublishing.com/journal.asp?ref=0046-3892&site=1 ↗
http://www.jstor.org/journals/00463892.html ↗
http://www3.interscience.wiley.com/journal/118902563/home ↗
http://onlinelibrary.wiley.com/ ↗
http://infotrac.galegroup.com/itw/infomark/1/1/1/purl=rc18%5fITOF%5F0%5F%5Fjn+%22Financial+Management%22 ↗ - DOI:
- 10.1111/fima.12156 ↗
- Languages:
- English
- ISSNs:
- 0046-3892
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 3926.961000
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 4592.xml