The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Tue, 09 Jun 2026 15:31:41 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Ownership Structure and the Cost of Corporate Borrowing – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Ownership Structure and the Cost of Corporate Borrowing https://corpgov.law.harvard.edu/2010/11/26/ownership-structure-and-the-cost-of-corporate-borrowing/?utm_source=rss&utm_medium=rss&utm_campaign=ownership-structure-and-the-cost-of-corporate-borrowing https://corpgov.law.harvard.edu/2010/11/26/ownership-structure-and-the-cost-of-corporate-borrowing/#comments Fri, 26 Nov 2010 13:08:23 +0000 http://blogs.law.harvard.edu/corpgov/?p=14041?d=20150106101744EST Posted by R. Christopher Small, Co-editor, HLS Forum on Corporate Governance and Financial Regulation, on Friday, November 26, 2010
Editor's Note:

The following post comes to us from Chen Lin, Professor of Finance at the Chinese University of Hong Kong; Yue Ma, Professor of Economics at Lingnan University, Hong Kong; Paul Malatesta, Professor of Finance at the University of Washington; and Yuhai Xuan, Assistant Professor of Business Administration at the Finance Unit of Harvard Business School.

In the paper, Ownership Structure and the Cost of Corporate Borrowing, forthcoming in the Journal of Financial Economics, we study the financial consequences of the divergence between control rights and cash-flow rights in a large sample of companies across 22 East Asian and Western European countries during the period from 1996 to 2008. Specifically, we analyze the effects of control rights-cash-flow rights divergence on firms’ cost of borrowing and provide new insights into the link between the separation of ownership and control and corporate value.

(more…)

]]> https://corpgov.law.harvard.edu/2010/11/26/ownership-structure-and-the-cost-of-corporate-borrowing/feed/ 1