2018 Fiscal Year Research-status Report
Non-executive Employee Stock Ownership, Corporate Governance, and Debt Pricing
| Project/Area Number |
18K01676
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| Research Institution | Hitotsubashi University |
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Principal Investigator |
文 敏鳴 一橋大学, 大学院経営管理研究科, 教授 (30792931)
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| Project Period (FY) |
2018-04-01 – 2021-03-31
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| Keywords | Non-executive ownership / debt pricing |
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| Outline of Annual Research Achievements |
For year 2018-2019, the project has successfully established three major hypotheses to be tested in the paper. The hypotheses are: (H1) There exists a negative association between non-executive ownership and the cost of debt due to the risk-reduction function of the non-executive employees’ incentives. (H2)The reduction impact of non-executive ownership on loan spread is due to its attenuating effects of the managerial risk-taking incentives. (H3) The reduction impact of non-executive ownership on loan spread is due to the improvement of information disclosure and quality. In addition, the project has applied multivariate regression models and the following models to ease the endogeneity concern such as (1) the lagged variables regression and (2) instrumental variables (IV) regressions.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
Some preliminary results have been summarized from the analyses. One draft of the paper has been finished. The project is progressing rather smoothly. The draft of the paper has been presented in 2018 Annual Meeting of Financial Management Association (FMA) in San Diego, USA. I was also invited to give a talk at Department of Quantitative Finance, National Tsing-Hua University, Taiwan.
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| Strategy for Future Research Activity |
I plan to deliver several talks in academic institutions and also in academic conferences to receive more feedback from the conference participants and the audiences to revise the paper. The project at this point plans collect more data for additional analyses, such as considering industry effects and testing for the model efficiency. I expect the project will continue to make progress.
I plan to present the paper in international conferences and in international institutes.
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Research Products
(5 results)
