News Column

New Data from S.S. Cho et al Illuminate Findings in Corporate Finance

May 24, 2014

By a News Reporter-Staff News Editor at Investment Weekly News -- Investigators publish new report on Corporate Finance. According to news originating from Seoul, South Korea, by VerticalNews correspondents, research stated, "For a large sample of 48 countries, we find robust evidence that strong creditor rights are associated with low long-term leverage across countries."

Our news journalists obtained a quote from the research, "We further find that strong creditor protection lowers long-term debt issuance, the extent to which investments are financed with long-term debt, and target leverage ratios. Finally, we find that firm and country characteristics influence the link between creditor protection and long-term leverage."

According to the news editors, the research concluded: "Our results support the demand-side view that strong creditor protection discourages firms from making long-term cash flow commitments to service debt because managers and shareholders avoid the risk of losing control in the case of financial distress."

For more information on this research see: Creditor rights and capital structure: Evidence from international data. Journal of Corporate Finance, 2014;25():40-60. Journal of Corporate Finance can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier -; Journal of Corporate Finance -

The news correspondents report that additional information may be obtained from S.S. Cho, Sungkyunkwan UniversitySKKU Business Sch, Seoul 110745, South Korea. Additional authors for this research include S. El Ghoul, O. Guedhami and J. Suh.

Keywords for this news article include: Asia, Seoul, South Korea, Corporate Finance

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Source: Investment Weekly News

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