How do board characteristics influence bond ratings?

This paper investigates how board characteristics have an influence on corporate bond ratings. Two theories, the agency- and the resource dependency theory, are used to explain the behavior of board characteristics on bond ratings. The empirical research provides significant evidence that larger boards lead to a higher bond rating at issuance date. Furthermore, the size of the audit committee has a positive impact on bond ratings. Contradicting to previous research in the field of corporate governance, board independence fails to have a meaningful influence on bond ratings neither equity ownership of board members.