John, Kose; Litov, Lubomir P. - 2023
Prior research has often taken the view that entrenched managers tend to avoid debt. Contrary to this view, we find … that firms with entrenched managers, as measured by the Gompers et al. (2003) governance index, use more debt finance and … financing. Our evidence is consistent with entrenched managers receiving better access to debt markets (better credit ratings …
