Do political connections matter to bondholders? Evidence from China

被引：3

作者：

Ho, Po-Hsin ^{[1
]}

Wang, Yu-Chun ^{[2
]}

Lin, Chih-Yung ^{[3
]}

机构：

[1] Natl Taipei Univ, Dept Business Adm, Taipei, Taiwan

[2] Ming Chuan Univ, Dept Finance, Taipei, Taiwan

[3] Yuan Ze Univ, Coll Management & Innovat, Ctr Big Data & Digital Convergence, Taoyuan, Taiwan

来源：

APPLIED ECONOMICS LETTERS | 2015年 / 22卷 / 15期

关键词：

political connections; bond spreads; China; bondholders; FIRM PERFORMANCE;

D O I：

10.1080/13504851.2015.1021452

中图分类号：

F [经济];

学科分类号：

02 ;

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.

引用

页码：1240 / 1245

页数：6

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