Do political connections matter to bondholders? Evidence from China

Po Hsin Ho, Yu Chun Wang, Chih Yung Lin

研究成果: 雜誌貢獻期刊論文同行評審

2 引文 斯高帕斯(Scopus)

摘要

This article examines the association between political connections and the pricing of bonds in China. Political connections are associated with higher at-issue spreads on corporate bonds, implying that political connections do not ensure the alignment of interests between managers and bondholders. The adverse effects of political connections on borrowing costs are eliminated when the chairman and the CEO are politically connected. Evidence suggests that bondholders price new debt issuances by using the information about the political backgrounds of top managers. Moreover, the costs and benefits of political connections for bondholders vary with the extent of the connectedness of a firm.

原文???core.languages.en_GB???
頁(從 - 到)1240-1245
頁數6
期刊Applied Economics Letters
22
發行號15
DOIs
出版狀態已出版 - 13 10月 2015

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