Abstract

Corporate governance is a well-researched concept. The primary focus of the extant literature hasbeen on the relationship of corporate governance with the cost of equity, firm's performance, capitalstructure and cost of debt. There is negligible research dedicated to its association with credit ratings. An entity with higher ratings is expected to have satisfactory corporate governance practices. Thepresent study examines the impact of compliance of corporate governance provisions by Indiancompanies on their long-term credit ratings using the ordinal logit regression model. The resultssuggest that corporate governance is an important determinant of credit ratings. It also documentsthat the companies with favorable disclosure policies and practices are more likely to get higher ratings.

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