We examine the effect of managerial ownership on the cost of debt as measured by the interest rate spread on corporate bonds for Japanese firms. First, we find that the managerial ownership is positively associated with interest rate spread after controlling for the other Japanese ownership...

This study investigates the relationship between dirty surplus items on the balance sheet and the cost of debt for Japanese firms. We focus on three dirty surplus items — unrealized gains and losses on available-for-sale securities (SEC), foreign currency translation adjustment (FOC), and land...

Prior studies have indicated that earnings are useful for bond market investors and that beating earnings benchmarks is related to a firm's lower cost of debt (Jiang, 2008). This study examines whether management earnings forecasts are related to a firm's cost of debt. Our results indicate that...