The Role of Managers' Ability to Modify Credit Conditions and Reduce Share Returns spread

Journal of Asset Management and Financing

Mohsen Rashidi¹ 

[1] Assistant Prof. in accounting, Faculty of Economics and Administrative Sciences, Lorestan University, Iran;

关键词: managers' ability;    credit conditions;    return spread;   

DOI  :  10.22108/amf.2020.119807.1480

来源: DOAJ

【 摘 要 】

Objective: Managers' ability can be considered as an influential factor that can balance the information content of debt agreements between companies and creditors. Method: The purpose of this study is to investigate the role of managers' ability to moderate credit conditions and reduce the spread of bond yields. For this purpose, the data of 120 companies, listed in the Tehran Stock Exchange from 2008 to 2018, was extracted and a combined data regression model was used to test the research hypotheses. Results: The results of this study confirm the research hypotheses. In other words, the results of this research indicate that the impact of managers' ability on the use of performance-based terms in credit agreements is significant. Additionally, the second research hypothesis confirms the impact of the managers' ability on corporate debt maturity. Finally, the third hypothesis of the study reveals that financial crisis risk does not have a significant impact on the relationship between managers' ability and return spread.

【 授权许可】

Unknown