Using a sample of listed Chinese firms from 2007 to 2020,we investigate the governance implications of cross-ownership in corporate bond markets.We find that cross-ownership significantly reduces bond issuance spreads...Using a sample of listed Chinese firms from 2007 to 2020,we investigate the governance implications of cross-ownership in corporate bond markets.We find that cross-ownership significantly reduces bond issuance spreads,suggesting that synergistic governance effects outweigh potential collusion risks.This effect operates through two channels:reducing information asymmetry between shareholders and creditors and lowering firm risk.The effect is stronger when cross-owners hold shares in more peer firms and retain shares longer but weaker for state-owned enterprises,long-term bonds and firms with robust information intermediaries.Our findings contribute to the corporate governance literature by demonstrating how cross-ownership enhances creditor protection,providing insights into optimizing ownership structures for debt financing,particularly in emerging markets with inadequate institutional monitoring.展开更多
Using a quasi-natural experiment, this study examines the effects of margin trading and short selling on bond yield spread in China. It finds that both margin trading and short selling can reduce bond yield spread. Ad...Using a quasi-natural experiment, this study examines the effects of margin trading and short selling on bond yield spread in China. It finds that both margin trading and short selling can reduce bond yield spread. Additionally, it finds that margin trading lowers firms' debt ratios and increases their credit ratings, which explains the reduced spread. In other words, margin trading can impact investors' decisions by revealing positive information about a firm.Another finding is that short selling lowers the bond yield spread by decreasing earnings management, suggesting that short selling has an impact on investors' decisions through its effect on corporate governance. Our results suggest that margin trading transmits positive information and short selling impacts firms' policies. These results provide support for future regulations of margin trading and short selling.展开更多
Short selling may accelerate stock price adjustment to negative news.However,the literature provides mixed evidence for this prediction.Using short-sale refinancing and a staggered difference-in-differences(DID)model,...Short selling may accelerate stock price adjustment to negative news.However,the literature provides mixed evidence for this prediction.Using short-sale refinancing and a staggered difference-in-differences(DID)model,this paper explores the effect of short selling on stock price adjustment.Our results show that(1)short-sale refinancing improves the speed of stock price adjustment to negative news.This result holds after we control for endogeneity.(2)The positive relationship between short-sale refinancing and stock price adjustment speed is significant in subsamples of stocks with higher earnings management or lower accuracy of analyst forecasts,indicating that firms with more opaque information are more likely to be targeted by short sellers.In subsamples of stocks with a higher ownership concentration or lower ownership by institutional investors,short selling is more likely to increase the speed of stock price adjustment,indicating that ownership structure may influence negative news mining.(3)As short-sale refinancing exacerbates the absorption of bad news by stock prices,it increases crash risk.This study enriches the research on the economic consequences of short selling and provides empirical evidence supporting regulations on short selling in China.展开更多
基金financial support from the National Natural Science Foundation of China(72272164 and 71872196)the National Social Science Foundation of China(23&ZD060,21&ZD145 and 19ZDA098).
文摘Using a sample of listed Chinese firms from 2007 to 2020,we investigate the governance implications of cross-ownership in corporate bond markets.We find that cross-ownership significantly reduces bond issuance spreads,suggesting that synergistic governance effects outweigh potential collusion risks.This effect operates through two channels:reducing information asymmetry between shareholders and creditors and lowering firm risk.The effect is stronger when cross-owners hold shares in more peer firms and retain shares longer but weaker for state-owned enterprises,long-term bonds and firms with robust information intermediaries.Our findings contribute to the corporate governance literature by demonstrating how cross-ownership enhances creditor protection,providing insights into optimizing ownership structures for debt financing,particularly in emerging markets with inadequate institutional monitoring.
基金financial support from the National Science Foundation of China (Project No. 71602148)the MOE (Ministry of Education, China) Project of Humanities and Social Sciences (Project No. 16YJC630065)the Fundamental Research Funds for the Central Universities (Project No. 531107051035)
文摘Using a quasi-natural experiment, this study examines the effects of margin trading and short selling on bond yield spread in China. It finds that both margin trading and short selling can reduce bond yield spread. Additionally, it finds that margin trading lowers firms' debt ratios and increases their credit ratings, which explains the reduced spread. In other words, margin trading can impact investors' decisions by revealing positive information about a firm.Another finding is that short selling lowers the bond yield spread by decreasing earnings management, suggesting that short selling has an impact on investors' decisions through its effect on corporate governance. Our results suggest that margin trading transmits positive information and short selling impacts firms' policies. These results provide support for future regulations of margin trading and short selling.
基金the financial support from the National Natural Science Foundation of China(No.71802078)the Fundamental Funds for the Central Universities(No.531107051035).
文摘Short selling may accelerate stock price adjustment to negative news.However,the literature provides mixed evidence for this prediction.Using short-sale refinancing and a staggered difference-in-differences(DID)model,this paper explores the effect of short selling on stock price adjustment.Our results show that(1)short-sale refinancing improves the speed of stock price adjustment to negative news.This result holds after we control for endogeneity.(2)The positive relationship between short-sale refinancing and stock price adjustment speed is significant in subsamples of stocks with higher earnings management or lower accuracy of analyst forecasts,indicating that firms with more opaque information are more likely to be targeted by short sellers.In subsamples of stocks with a higher ownership concentration or lower ownership by institutional investors,short selling is more likely to increase the speed of stock price adjustment,indicating that ownership structure may influence negative news mining.(3)As short-sale refinancing exacerbates the absorption of bad news by stock prices,it increases crash risk.This study enriches the research on the economic consequences of short selling and provides empirical evidence supporting regulations on short selling in China.
