2019 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 |
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 / corporate governance / loan spread / risk reduction / debt pricing |
Outline of Annual Research Achievements |
The project has been progressing well. As planned, the data collection from a variety of databases has been done. For example, loan data from DealScan and non-executive ownership data from Retirement Summary Reports. As a result, most variables have been constructed and consequently analyses could be conducted in an effective way. Based on the analyses, the results have been summarized and a paper draft was completed to be presented in the academic conferences. The paper was selected as the semi-finalist for best paper awards.
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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
All the analyses are completed and well-established results have been organized. The analysis results do show that non-executive ownership can significantly reduce the cost of debt financing. In addition, non-executive ownership can serve as alternative governance mechanism to further reduce the cost of debt. Based on these significant results, a complete paper draft has been submitted to the Journal of Corporate Finance for review. The paper has received a revision-and-resubmit decision.
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Strategy for Future Research Activity |
The paper currently is under revision by following all the comments provided by the reviewers and journal editor. The referees and editor have provided valuable comments on enhancing the models identification. For example, the referees suggest that the inclusion of non-executive stock options holding can further expand the scope of this research. Currently, data collection on stock options is done and the variables related to this are under construction. Once the revision is finished, the revised paper will be re-submitted to the Journal of Corporate Finance for its second review.
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Causes of Carryover |
The incurring amount is planned to purchase a laptop with the amount of \160,000 to enhance the data processing. Insufficient amount will be using the budget amount from the following year.
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Research Products
(3 results)