Corporate Governance And Corporate Bond Credit Spreads

Since the issuance of corporate bonds in 2007,the market has expanded rapidly.In particular,in 2015,China securities regulatory commission issued the "measures for the administration of corporate bond issuance and transaction",which extended the bond issuers of corporate bonds from listed companies to corporate legal persons(except platform companies),and relaxed the approval system,issuance mode and circulation place,etc.,which stimulated the further expansion of corporate bond market.But the resulting problem is more serious,since the 2014 "super JGBS" event of default,after a barrage of bond default event,in 2016 and defaults event happened in 2018,the default subject has spread from private enterprises to the state-owned enterprises,from private companies to spread to the listed company,the bond credit risk problem increasingly serious.Domestic scholars have studied the factors affecting corporate bond credit spreads,but there are still few studies on corporate governance and corporate bond credit spreads.In this context,this paper studies the relationship between the credit spread of corporate bonds and corporate governance in China.This paper first sorts out the relevant literature on bond credit spreads and corporate governance,then theoretically analyzes the mechanism of corporate governance affecting corporate bond credit spreads,and makes reasonable expectations and assumptions.Then,combined with the previous research results,this paper takes the corporate bonds issued and circulated in Shanghai and shenzhen stock exchanges from 2010 to 2017 as the research sample,removes the individual bonds that are not available with relevant data,and selects indicators.The comprehensive index of corporate governance is generated by using the principal component analysis method.It and the original index are used as explanatory variables,the influencing factor index at the micro level of enterprises is used as control variables,and the nature of enterprises(state-owned enterprises or private enterprises)is used as dummy variables.The multiple regression model and the mediating effect model were used to conduct the regression of the sample data.The regression results showed that a higher level of corporate governance could reduce the credit spreads of the creditor's rights,and the influence of different indicators on the bond spreads of enterprises with different property rights was significantly different.The increase of equity concentration ratio(the proportion of the first shareholder and the proportion of the top ten shareholders)can effectively improve the performance of private enterprises and thus reduce the bond spread,but has no significant effect on state-owned enterprises.The independent director system of private enterprises has no significant effect on bond spreads either indirectly or directly through corporate performance and information asymmetry,while the independent director system of state-owned enterprises can effectively reduce the degree of information asymmetry.Executive incentive mechanism only influences bond spreads indirectly,but the effect is not significant.