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The impact of financial report comment letters on bond pricing: Evidence from China

Author

Listed:
  • Zhang, Xueying
  • Bian, Haodong
  • Walker, Thomas
  • Barabanov, Sergey

Abstract

We examine the impact of financial report comment letters on corporate bond pricing. Using 2015-2023 bond trading data for Chinese listed companies, we find that the receipt of comment letters significantly adversely affects bond pricing. The effect is more pronounced in firms with greater information transparency and more pronounced shareholder-creditor conflicts, where bondholders may be more sensitive to disclosure-related signals. Our findings highlight the role of comment letters as an important regulatory tool influencing debt markets in developing economies.

Suggested Citation

  • Zhang, Xueying & Bian, Haodong & Walker, Thomas & Barabanov, Sergey, 2025. "The impact of financial report comment letters on bond pricing: Evidence from China," Finance Research Letters, Elsevier, vol. 85(PC).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pc:s1544612325013959
    DOI: 10.1016/j.frl.2025.108140
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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