Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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The Effect of Debt Characteristics on the Relationship between Anti-Takeover Provision and the Cost of Debt

부채특성이 경영권방어수단과 타인자본비용 간의 관계에 미치는 영향

  • A-Young Lee (Department of Business Administration & Accounting, Kangwon National University) ;
  • Sung-Hye Kim (Department of Tax and Accounting, Bucheon University)
  • 이아영 (강원대학교 경영회계학부) ;
  • 김성혜 (부천대학교 세무회계학과)
  • Received : 2023.08.31
  • Accepted : 2023.09.21
  • Published : 2023.09.30
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Abstract

Purpose - This study examines the effect of corporate debt characteristics on the relationship between anti-takeover provision and the cost of debt. Design/methodology/approach - The study analyzes a sample of non-financial firms listed on the stock market with December fiscal year-end from 2011 to 2018. Debt default risk (debt size, liquidity ratio, interest coverage ratio, loss occurrence) and the issuance of bonds are utilized as measures of corporate debt characteristics. Findings - First, it is observed that creditors of firms with anti-takeover provision demand higher returns as the debt default risk of these firms increases. Second, for firms issuing bonds, it is found that bondholders in companies with anti-takeover provision also seek higher returns. Research implications or Originality - This study contributes by demonstrating that the effect of anti-takeover provision on creditors can vary depending on corporate debt characteristics. Particularly, the study highlights the importance of a firm's debt default risk and creditor distinction (bondholders vs. regular creditors) as significant factors that may influence perceptions of anti-takeover provision.

Keywords

Acknowledgement

이 논문은 2023년도 부천대학교 교내연구비를 지원받아 수행된 연구임.

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