讲座内容：Do insiders’ shares pledges affect the cost of issuing new bonds?
Evidence from an emerging market
讲座教师：Johnny Chan美国西肯塔基大学讲座教授
中南财经政法大学富布赖特访问学者
讲座时间：2017年11月30日（周四）下午3点
讲座地点：文泉楼南306银河会议室
讲座专家简介
Johnny Chan（陈锦全）美国西肯塔基大学（Western Kentucky University）讲座教授，阿拉巴马大学取得财务金融博士（Ph.D. in Finance, University of Alabama），并于2000年获得特许财务分析师（Chartered Financial Analyst）执照。中南财经政法大学的富布赖特学者(2017)。
陈教授致力于学术研究，已发表180 篇的期刊论文，主要包括Accounting, Organizations, and Society, European Accounting Review, European Financial Management, Family Business Review,Financial Management, International Business Review, Journal of Accounting, Auditing, and Finance, Journal of Banking and Finance, Journal of Business Ethics, Journal of Business Finance and Accounting, Journal of Corporate Finance, Journal of Empirical Finance, Journal of Financial Markets, Journal of Futures Markets, Journal of International Business Studies, Journal of Small Business Management, Management International Review, Real Estate Economics。
Do insiders’ shares pledges affect the cost of issuing new bonds?
Evidence from an emerging market
Abstract: We study the impact of a firm’s insider shares pledge on the yield spread of a bond issued by his firm in China. We hypothesize that when an insider pledges his shares, the operation risk of the firm increases due to a contingent change of ownership and control. Accordingly, bond investors expect a high bond yield issued by a firm with shares pledged by an insider. Consistent with our hypothesis, our findings indicate that the shares pledge increases its firm’s bond yield spread, suggesting that bond investors are able to recognize the contingent operation risk associated with the pledge. The findings are robust to a battery of robustness checks. Our additional analyses show that when a firm is in a high marketization region, it is prone to crash risk, and has a high risk of losing managerial talents, the impact of the insiders’ shares pledge on the yield spread is more pronounced. Our results show that insiders’ shares pledge destroys firm value by raising the yield of bonds issued by the insiders’ firms. In addition to firm and issue characteristics, the bond yield depends on insiders’ personal activities, such as their shares pledging. The Chinese corporate bond market becomes more mature as bond investors, on average, are able to recognize the contingent operation risk associated with shares pledge.
Keywords: shares pledge; operation risk; credit spread
