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Institutional ownership and bond pricing: Evidence from China

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  • Wang, Yulin
  • Zhang, Xueying
  • Walker, Thomas
  • Liedtke, Gerrit

Abstract

This paper examines the impact of institutional ownership on the bond yield spreads of publicly traded Chinese firms. Our research results show the presence of a U-shaped, non-linear relationship between the shareholdings of institutional investors and bond yield spreads. Heterogeneity tests reveal differences in the impact of institutional ownership on yield spreads among different types of institutional investors and for firms in which members of the central government stabilization fund, commonly referred to as “national team” institutions, hold shares. Further tests indicate that corporate governance levels and firm performance serve as channels through which institutional shareholders affect bond yield spreads.

Suggested Citation

  • Wang, Yulin & Zhang, Xueying & Walker, Thomas & Liedtke, Gerrit, 2026. "Institutional ownership and bond pricing: Evidence from China," Emerging Markets Review, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:ememar:v:70:y:2026:i:c:s1566014125001451
    DOI: 10.1016/j.ememar.2025.101396
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    Keywords

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    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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