Refine
Year of publication
Institute
- Fachbereich Wirtschaftswissenschaften (222) (remove)
Language
- English (222) (remove)
Document Type
- Article (116)
- Conference Proceeding (55)
- Book (32)
- Part of a Book (15)
- Working Paper (3)
- Doctoral Thesis (1)
Keywords
- Telekommunikationsmarkt (4)
- Führung (3)
- Leadership (3)
- rebound-effect (2)
- regulation (2)
- sustainability (2)
- Active learning (1)
- Bank-issued Warrants (1)
- Brands (1)
- Breitband Markt (1)
This paper investigates the extent to which corporate governance affects the cost of debt and equity capital of German exchange-listed companies. I examine corporate governance along three dimensions: financial information quality, ownership structure and board structure. The results suggest that firms with high levels of financial transparency and bonus compensations face lower cost of equity. In addition, block ownership is negatively related to firms' cost of equity when the blockholders are other firms, managers or founding-family members. Consistent with the conjecture that agency costs increase with firm size, I find significant cost of debt effects only in the largest German companies. Here, the creditors demand lower cost of debt from firms with block ownerships held by corporations or banks. My findings demonstrate that a uniform set of governance attributes is unlikely to satisfy suppliers of debt and equity capital equally.
The construction of a statistical test is investigated which is based only on “reliability” and “precision” as quality criteria. The reliability of a statistical test is quantifiedin a straightforward way by the probability that the decision of the test is correct. However, the quantification of the precision of a statistical test is not at all evident. Thereforethe paper presents and discusses several approaches. Moreover the distinction of “nullhypothesis” and “alternative hypothesis” is not necessary any longer.