Digital technology risk disclosures and corporate bond risk premium

Digital technology is one of the core driving forces of high-quality economic development, and technology application has a dual nature, making the identification and management of digital technology risks increasingly critical. Based on the annual report texts of A-share listed firms from 2010 to 2024, this paper investigates the impact of digital technology risk disclosures in MD&A on bond risk premiums. The results show that digital technology risk disclosures in MD&A have a significantly positive effect on risk premiums in the secondary market for corporate bonds, primarily by increasing bond default risk and strengthening investors’ risk perceptions. Heterogeneity analysis indicates that the positive effect of such disclosures on bond yield spreads is stronger when firms have weaker corporate governance, lower innovation levels, and lower information transparency. Further analysis finds that such disclosures also have a significantly positive effect on issuance yield spreads in the primary market. Moreover, when fewer risk prevention and management measures are disclosed alongside digital technology risk information in the MD&A, the positive effect on bond yield spreads is stronger. This study has important policy implications for promoting the coordinated and healthy development of the digital economy and capital markets.