기업지배구조가 신용등급과 자본비용에 미치는 영향에 관한 실증적 연구－지배구조 평가점수를 중심으로－

This study examines the effects of Corporate Governance on Credit Ratings and Cost of capital. Prior research suggests that good governance helps reduce firm's agency costs arising from conflict of interests between management and ownership. These suggest that corporate governance is likely to affect credit ratings and cost of capital of firms. We find that the corporate governance has a positive effect on the credit ratings. The results reveal that good governance and foreign investors is positively associated with the credit ratings. This indicates that good governance and foreign investors positively affect the credit quality of firms by enhancing the transparency of firms. We also find that both good governance and credit ratings are associated with a lower cost of capital. This indicates that good governance and credit rankings are reducing information risk for users of financial statements so that reduce firm's cost of capital in the market. This study contributes to suggest an empirical model to analyze the Corporate Governance with Credit ratings and Cost of capital. In sum, the results show that good corporate governance has positive effect on the credit ratings but negative effect on the cost of capital.