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Corporate strategy aggressiveness and bond credit spreads

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  • Wang, Shuguang
  • Hou, Qiqi

Abstract

This paper investigates the impact of corporate strategy on corporate bond credit spreads and the mechanism of action, using corporate bonds issued by A-share companies during 2004–2021 as the research sample for empirical analysis. It is found that the degree of aggressiveness of corporate strategy has a significant positive impact on bond credit spreads; corporate firms with aggressive strategies take higher levels of risk and have greater credit risk, thus making bond credit spreads more extensive; the improvement of accounting information quality can significantly mitigate the impact of aggressive strategies on credit spreads.

Suggested Citation

  • Wang, Shuguang & Hou, Qiqi, 2023. "Corporate strategy aggressiveness and bond credit spreads," Finance Research Letters, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323005317
    DOI: 10.1016/j.frl.2023.104159
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    3. Dai, Haiyan & Dong, Xueqin & Xue, Fang, 2024. "Corporate credit risk and bond yield spreads: Market reactions to the spreads," Finance Research Letters, Elsevier, vol. 67(PB).

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