Open AccessThe relationship between management changes and corporate debt costs based on engineering management
Author(s) -
Hui Wu,
Jiewu Hu
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/688/5/055039
Subject(s) - business , debt , sample (material) , cost accounting , accounting , finance , chemistry , chromatography
This paper takes the companies with management changes in the construction industry of Shanghai and Shenzhen in 2013-2017 as a sample, and uses the PSM-DID method to explore the impact of management changes on debt costs. The results show that the corporates’ debt costs for management changes are significantly higher than companies that have not experienced management changes. Further research found that when management change types are abnormal changes and management successors are external successors, management changes result in higher debt costs. This research provides a basis for the management decision-making of engineering management and gives useful suggestions for its engineering management.