Environmental Uncertainty,Credit Rating And Corporate Bond Issue Pricing

In recent years,our government has vigorously advocated direct financing.As an important way of direct financing,corporate bonds plays a decisive role in the capital market.Since the issuance and trading of corporate bonds on the stock exchange in 2007,it has been developing vigorously.The promulgation of the Regulations on the Issuance and Transaction of Corporate Bonds in 2015 has brought China’s corporate bond market to a high-speed development path.However,with the rapid development of corporate bonds,corporate bond default incidents began to occur frequently.How to scientifically understand the default risk of corporate bonds and reasonably determine the issuance pricing of corporate bonds need our in-depth study.With the deepening of economic restructuring in China,the external environment of enterprises is more unpredictable,and the environmental uncertainty and information asymmetry increase make it difficult for investors to judge the risk of corporate default,which not only influences the rational pricing of corporate bonds,but also affects the healthy development of the bond market.As an important participant in the financial market,credit rating agencies can provide investors with objective and true credit information,help bond investors to accurately grasp the risk and return situation,reduce the default risk faced by investors,and play an important role in the healthy and stable development of financial markets.Therefore,it is of great practical significance to explore the issue pricing of corporate bonds under environment uncertainty with credit rating as the entry point.Choosing data of 789 corporate bonds issued by non-financial listed companies in Shanghai and Shenzhen A shares from 2007 to 2017 as samples,the thesis studies the impact of environmental uncertainty on the pricing of corporate bonds and takes credit rating into the research framework to examine whether high credit rating can play a regulating effect on the relationship between the two variables.In addition,considering the unique institutional background of China,and compare the different regulatory effects of credit rating on environmental uncertainty and corporate bond issuance pricing under different property rights.This thesis includes seven parts:The first part,introduction.This paper expounds the research background,significance,ideas and innovation points of this paper.The second part,literature review.Literature review was conducted from three aspects,including influencing factors of corporate bond issuance pricing,economic consequences of environmental uncertainty,credit rating and corporate bond issuance pricing,and a comprehensive review was conducted to point out the direction of this study on the basis of clarifying existing research deficiencies.The third part,the definition of relevant concepts and theoretical basis.lt includes the concept definition of environmental uncertainty,credit rating,corporate bond issuance pricing,and summarizes the relevant theoretical basis of stakeholder theory,information asymmetry theory,signal transmission theory,principal-agent theory and so on.The fourth part,theoretical analysis and research hypothesis.Based on theoretical basis,this paper conducts argumentation and analysis,and explores the relationship between environmental uncertainty and corporate bond issuance pricing by combining existing studies.On this basis,credit rating factors are added to analyze the regulatory effects of credit rating and the differences of regulatory effects under different property rights,and research hypotheses are proposed.The fifth part,research design.This part discusses the basis of sample selection and data sources in detail,and defines the definition of variables and model design.The sixth part,empirical analysis.Descriptive statistics,correlation analysis and multiple regression analysis were carried out on sample data to investigate the impact of environmental uncertainty and credit rating on the pricing of corporate bond issuance,and grouping regression was conducted based on the differences in property rights.Finally,robustness test is carried out to provide data support for the hypothesis in this paper.The seventh part,summary and countermeasures.This part draws research conclusions and puts forward countermeasures and Suggestions.At the same time,analysis of the shortcomings of this paper,as well as the future to improve the content.Through empirical research,this thesis finds that there is a significant positive correlation between environmental uncertainty and corporate bond issuance pricing.High credit rating can alleviate the risk effect of environmental uncertainty on corporate bond issuance pricing.After considering the impact of property rights,it is found that the impact of credit rating on the relationship between environmental uncertainty and corporate bond issuance pricing is greater in non-state-owned enterprises.The innovation of this thesis lies in the analysis of the impact of environmental uncertainty on corporate bond issuance pricing from the perspective of external environment,which provides a new research perspective for corporate bond issuance pricing.From the perspective of credit rating,it adds supportive evidence for the effectiveness of credit rating in the bond market.In addition,combined with the unique institutional environment of our country,it is found that the government implicit guarantee will have a certain impact on our credit rating mechanism and corporate bond issuance pricing,expanding the research field of the bond market.