Research seminars

Stakeholder Orientation and the Cost of Debt: Evidence from a Natural Experiment

Finance

Speaker: Kai Li
The University of British Columbia

18 May 2017 - T025 - From 2:00 pm to 3:15 pm


We examine the causal effect of stakeholder orientation on firms’ costs of debt. Our test exploits the staggered adoption of state-level constituency statutes, which allow directors to consider stakeholders’ interests when making business decisions. We find a significant drop in loan spreads for firms incorporated in states that adopted such statutes relative to firms incorporated elsewhere, and the effect is stronger when stakeholders’ interests are more likely to be ignored.
Our results are consistent with the view that incorporating stakeholders’ interests into corporate decision-making mitigates uncertainties in dealing with creditors, employees, customers, and suppliers, and thus lowering cost of debt.

Finance

Speaker: Adriano Rampini

23 May 2019 - T105 - From 2:00 pm to 3:15 pm


Finance

Speaker: Luke Taylor

16 May 2019 - T105 - From 2:00 pm to 3:15 pm


Finance

Speaker: Jessica Jeffers

18 April 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Emil Verner

4 April 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Ramona Dagostino

14 March 2019 - T104 - From 2:00 pm to 3:15 pm



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