Back to Search
Start Over
A novel investigation of the influence of corporate governance on firms’ credit ratings
- Source :
- PLoS ONE, Vol 16, Iss 5, p e0250242 (2021), PLoS ONE
- Publication Year :
- 2021
- Publisher :
- Public Library of Science (PLoS), 2021.
-
Abstract
- Corporate governance is the way of governing a firm in order to increase its accountability and to avoid any massive damage before it occurs. The aim of this paper is to investigate the impact of capital structure, firms’ size, and competitive advantages of firms as control variables on credit ratings. We investigate the role of corporate governance in improving the firms’ credit rating using a sample of Jordanian listed firms. We split firms into four categories according to WVB credit rating. We use both the binary logistic regression (LR) and the ordinal logistic regression (OLR) to model credit ratings in Jordanian environment. The empirical results show that the control variables are strong determinants of credit ratings. When we evaluate the relationship between the governance variables and credit ratings, we found interesting results. The board stockholders and board expertise are moderately significant. The board independence and role duality are weakly significant, while board size is insignificant.
- Subjects :
- Economics
Social Sciences
Cognition
Shareholder
Psychology
Capital Markets
Payment
Financial Markets
media_common
Professional Corporations
050208 finance
Multidisciplinary
Corporate governance
05 social sciences
Commerce
Models, Economic
Research Design
Physical Sciences
Accountability
Engineering and Technology
Medicine
Management Engineering
Capital market
Research Article
Executives
Capital structure
Science
media_common.quotation_subject
Decision Making
Accounting
Research and Analysis Methods
Skewness
Credit rating
0502 economics and business
Jordan
business.industry
Cognitive Psychology
Biology and Life Sciences
Probability Theory
Probability Distribution
Organizational Culture
Economic Analysis
Cognitive Science
Ordered logit
business
Finance
Mathematics
050203 business & management
Neuroscience
Subjects
Details
- ISSN :
- 19326203
- Volume :
- 16
- Database :
- OpenAIRE
- Journal :
- PLOS ONE
- Accession number :
- edsair.doi.dedup.....ae4f18c4cd134f30e2b96d70340d00a8