| The scale of the corporate bond market has expanded rapidly due to the policy relaxation since 2015.To meet the financing needs of enterprises,a variety of bond products were launched,which provides lots of observations for the research.As an important intermediary in bond financing,underwriter’s function has received close attention from economists home and abroad.If underwriters fail to perform their role correctly,there will be crises of confidence.So it is significant to study the reputation mechanism of underwriters to restrain opportunistic behaviors and advance the development of the bond market.This paper studies the influence of underwriter reputation on bond credit and analyzes the mechanism.This study mainly includes the following three parts.First,from the perspective of reputation accumulation,this paper collects the relevant news reports to construct a dynamic indicator of underwriter reputation.Considering endogenous problems,this paper uses PSM to avoid the interference caused by issuer’s selection.Second,from the perspective of reputational attacks,using the multi-period DID model,this paper studies punishments by the CSRC.This perspective provides a new research scenario and more evidence.Third,this paper verifies the mechanism through interaction term and regression by group,which is mainly about the information effect and the collateral effect.The information effect refers to credibility of the information which is disclosed by underwritter,while the collateral effect refers to the underwriter’s own reputation to provide the implicit collateral for the redemption.The findings suggest that high-reputation underwriters help to reduce credit spread.When the underwriter’s reputation is impacted,the market responds by demanding more compensation.The information effect and the collateral effect are the main channels.The marginal contribution of this paper is to construct a daily reputation indicator and use exogenous shock which to some extent avoids the interference of endogenous problems. |
