A novel investigation of the influence of corporate governance on firms' credit ratings.
| Autor: | Alkhawaldeh AAK; Department of Accounting, Faculty of Economics and Administrative Sciences, The Hashemite University, Zarqa, Jordan., Jaber JJ; Department of Risk Management and Insurance, The University of Jordan, Aqaba Branch, Aqaba, Jordan.; National University of Malaysia, School of Mathematical Sciences, Bangi, Malaysia., Boughaci D; Computer Science Department, University of Science and Technology Houari Boumediene, FEI, Algiers, Algeria., Ismail N; National University of Malaysia, School of Mathematical Sciences, Bangi, Malaysia. |
|---|---|
| Jazyk: | angličtina |
| Zdroj: | PloS one [PLoS One] 2021 May 04; Vol. 16 (5), pp. e0250242. Date of Electronic Publication: 2021 May 04 (Print Publication: 2021). |
| DOI: | 10.1371/journal.pone.0250242 |
| Abstrakt: | 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. Competing Interests: The authors have declared that no competing interests exist. |
| Databáze: | MEDLINE |
| Externí odkaz: |
|