Does Government Ownership Affect the Cost of Debt? Evidence from Privatization

By Ginka Borisova, W. Megginson. 2011

301 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/90f4f8f0dec0c915508fa5861fc48bf895a3d507

How researchers see this paper

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In Accounting

1. Walid Saffar
2. Narjess Boubakri
3. J. Cosset
4. B. Boyd
5. A. Solarino
6. Mascia Bedendo
7. M. Deloof
8. Xinping Xia

In Finance

1. Walid Saffar
2. Narjess Boubakri
3. J. Cosset
4. B. Boyd
5. A. Solarino
6. Mascia Bedendo
7. M. Deloof
8. Xinping Xia

Citations in the corpus

• State ownership reinvented? Explaining performance differences between state‐owned and private firms (2018, unknown): “…finds that post-privatization residual ownership affects corporate governance (Borisova et al., 2012; Omrane Guedhami et al., 2009), the cost of capital (Borisova & Megginson, 2011), . valuation (Boubakri et al., 2017), and innovation (Cao et al., 2016; Lazzarini et al., 2016; Zhou et al., 2017).”
• The Role of State and Foreign Owners in Corporate Risk-Taking: Evidence from Privatization (2013, background): “10 This approach to addressing endogeneity of state and foreign ownership is common in research on privatization (e.g., Guedhami et al., 2009; Borisova and Megginson, 2010).”
• Government ownership and corporate governance: Evidence from the EU. (2012, unknown): “(1996) suggests that privatized firms can improve their performance only if control rights are transferred from the government to private investors, and Borisova and Megginson (2009) find that certain benefits accrue only when the state”
• The value of government ownership during the global financial crisis (2017, background): “Borisova and Megginson (2011) find that high government ownership decreases the cost of debt, as the government’s presence could provide implicit guarantees for repayment and protection against bankruptcy. This may be particularly true in transitional economies. Tian and Estrin (2008), for instance,”
• Sovereign and corporate credit risk: Evidence from the Eurozone (2015, methodology): “Borisova and Megginson (2011) find that, as a result of privatization, a 1% decrease in government ownership is associated with a 0.75 bps increase in a firm’s credit spread.”
• China's 'Mercantilist' Government Subsidies, the Cost of Debt and Firm Performance (2018, unknown): “…between cost of debt and various political factors, including political connections (Li et al., 2008), political rights (Qi et al., 2010), state ownership (Borisova and Megginson, 2011; Borisova et al., 2012), policy risk (Bradley et al., 2012) and national five-year plans (Chen et al., 2013).”
• Ownership of Corporations (2016, background): “Interestingly, not all interactions have a positive outcome: Borisova and Megginson (2011) examined how state firms benefit from the linkage with the governed in terms of low cost of debt financing, advantage that decreases as the amount of institutional investors in the SOE increases, suggesting…”