A profile of needed research in corporate finance is developed based on a survey of financial managers. Research needs are perceived to be the greatest in the areas of regulation and ownership. The area of long-term financing represents the third most important category. Alternatively, financial...

Prior research uses the basic one-period European call-option pricing model to compute default measures for individual firms and concludes that both the size and book-to-market effects are related to default risk. For example, small firms earn higher return than big firms only if they have...

Drawing upon evidence from the Chinese corporate bond market, we study how ownership structure affects the cost of debt for firms. Our results show that state, institutional and foreign ownership formats reduce the cost of debt for firms. The benefits of state ownership are accentuated when the...