The impact of corporate governance on debt service obligations: evidence from automobile companies listed on the Tokyo stock exchange

IF 2.9 Q2 MANAGEMENT International Journal of Disclosure and Governance Pub Date : 2023-12-03 DOI:10.1057/s41310-023-00215-2

Richard Arhinful, Leviticus Mensah, Jerry Seth Owusu-Sarfo

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Abstract

This study investigates the influence of corporate governance mechanisms on debt service obligations within the context of 34 automobile companies listed on the Tokyo Stock Exchange from 2006 to 2021, utilizing a purposive sampling approach. Employing a range of statistical models including the random effect model, fixed effect model, and the generalized method of moments (GMM), the study yields several key findings. Firstly, it reveals a significant and positive correlation between the presence of independent board members and the debt service obligations of Japanese automobile firms. Secondly, a noteworthy negative association is uncovered when the CEO holds a dual role, impacting debt service obligations negatively. Thirdly, the inclusion of non-executive board members on corporate boards is found to be linked to a significant and adverse effect on debt service obligations among these firms. Finally, the study underscores the positive impact of board members' knowledge, skills, and the frequency of meetings on the debt service obligations of automobile companies in Japan.

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公司治理对偿债义务的影响:来自东京证券交易所上市汽车公司的证据

本研究以2006年至2021年在东京证券交易所上市的34家汽车公司为研究对象，采用有目的的抽样方法，考察了公司治理机制对偿债义务的影响。采用随机效应模型、固定效应模型和广义矩量法(GMM)等一系列统计模型，研究得出了几个关键发现。首先，它揭示了独立董事会成员的存在与日本汽车公司偿债义务之间存在显著的正相关关系。其次，当首席执行官担任双重角色时，发现了一个值得注意的负面关联，对偿债义务产生负面影响。第三，研究发现，将非执行董事会成员纳入公司董事会，会对这些公司的偿债义务产生重大不利影响。最后，该研究强调了董事会成员的知识、技能和会议频率对日本汽车公司偿债义务的积极影响。

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来源期刊

International Journal of Disclosure and Governance MANAGEMENT-

CiteScore

4.80

自引率

11.10%

发文量

期刊介绍： The International Journal of Disclosure and Governance publishes a balance between academic and practitioner perspectives in law and accounting on subjects related to corporate governance and disclosure. In its emphasis on practical issues, it is the only such journal in these fields. All rigorous and thoughtful conceptual papers are encouraged. To date, International Journal of Disclosure and Governance has published articles by a former general counsel and a former commissioner of the SEC, practitioners from Cleary Gottlieb, Skadden Arps, Wachtell Lipton, and Latham & Watkins as well as articles by academics from Harvard, Yale and NYU. The readership of the journal includes lawyers, accountants, and corporate directors and managers.