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Corporate financialization and the spread of issuing bonds

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  • Yu, Zhiyang
  • Yu, Kaibin
  • Ye, Ying
  • Wang, Canghong

Abstract

This paper analyzes the relationship between corporate financialization and credit spreads of bond issuance. We find that the increase of corporate financialization can significantly reduce the issuance credit spreads of bond-issuing enterprises; the increase of corporate financialization reduces the credit spreads of corporate bond issuance through the improvement of corporate business performance. There is a positive U-shaped relationship between the financialization of private and listed enterprises and the development of credit spreads. Our findings provide policy implication for regulators focusing corporate financing and bond market.

Suggested Citation

  • Yu, Zhiyang & Yu, Kaibin & Ye, Ying & Wang, Canghong, 2024. "Corporate financialization and the spread of issuing bonds," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011704
    DOI: 10.1016/j.frl.2023.104798
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    References listed on IDEAS

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    7. Wenwen Li & Shuo Fang & Chenran Yan & Qian Li & Weifeng Gong & Chuanhui Wang, 2026. "Impact of corporate financialization on carbon cost efficiency of thermal power enterprises in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(1), pages 2595-2630, January.
    8. 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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