Governance-Default Risk Relationship and the Demand for Intermediated and Non-Intermediated Debt

Aldamen, Husam, Duncan, Keith, Khan, Safdar, Australasian Accounting Business & Finance Journal

Abstract

This paper explores the impact of corporate governance on the demand for intermediated debt (asset finance, bank debt, non-bank private debt) and non-intermediated debt (public debt) in the Australian debt market. Relative to other countries the Australian debt market is characterised by higher proportions of intermediated or private debt with a lower inherent level of information asymmetry in that private lenders have greater access to financial information (Gray, Koh & Tong 2009). Our firm level, cross-sectional evidence suggests that higher corporate governance impacts demand for debt via the mitigation of default risk. However, this relationship is not uniform …

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Publication information: Article title: Governance-Default Risk Relationship and the Demand for Intermediated and Non-Intermediated Debt. Contributors: Aldamen, Husam - Author, Duncan, Keith - Author, Khan, Safdar - Author. Journal title: Australasian Accounting Business & Finance Journal. Volume: 6. Issue: 3 Publication date: September 1, 2012. Page number: 25+. © University of Wollongong Dec 2008. Provided by ProQuest LLC. All Rights Reserved.

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