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Impact of Ownership Structure on Agency Cost of Debt in India

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  • Sakina Kachwala
  • Chitra Singla

Abstract

The paper attempts to answer the question namely the management-principal or the principal-principal is given more significance by the debt holders in the Indian context. It also examines the relationship between the ownership structure of the firm and the agency cost of debt in the context of an emerging economy. [W.P. No. 2016-03-59]

Suggested Citation

  • Sakina Kachwala & Chitra Singla, 2016. "Impact of Ownership Structure on Agency Cost of Debt in India," Working Papers id:11004, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11004
    Note: Institutional Papers
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    References listed on IDEAS

    as
    1. Anderson, Ronald C. & Mansi, Sattar A. & Reeb, David M., 2003. "Founding family ownership and the agency cost of debt," Journal of Financial Economics, Elsevier, vol. 68(2), pages 263-285, May.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1155-1177, December.
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    6. Faccio, Mara & Lang, Larry H. P., 2002. "The ultimate ownership of Western European corporations," Journal of Financial Economics, Elsevier, vol. 65(3), pages 365-395, September.
    7. Michael N. Young & Mike W. Peng & David Ahlstrom & Garry D. Bruton & Yi Jiang, 2008. "Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 196-220, January.
    8. Hadiye Aslan & Praveen Kumar, 2012. "Strategic Ownership Structure and the Cost of Debt," The Review of Financial Studies, Society for Financial Studies, vol. 25(7), pages 2257-2299.
    9. Juan Pedro Sanchez-Ballesta & Emma Garcia-Meca, 2011. "Ownership Structure and the Cost of Debt," European Accounting Review, Taylor & Francis Journals, vol. 20(2), pages 389-416.
    10. Akinobu Shuto & Norio Kitagawa, 2010. "The effect of managerial ownership on the cost of debt: Evidence from Japan," Discussion Paper Series DP2010-05, Research Institute for Economics & Business Administration, Kobe University.
    Full references (including those not matched with items on IDEAS)

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