Has shareholder background been priced?–Evidence from the issuance of financial bonds by financial leasing companies

Xia Chen, Lili Wang, Yinghuan Zhu and Yue Shang

Finance Research Letters, 2023, vol. 56, issue C

Abstract: This paper analyzes the influence of sponsors and major shareholders on the financing costs of financial leasing companies. Based on the natural experiment of financial leasing companies issuing financial bonds, we find that the financing cost of financial leasing companies controlled by non-banks is significantly higher than that controlled by banks, and the cost of financing for financial leasing companies is generally cheap when the largest shareholder is larger and more profitable. Further, the financing cost of the financial leasing companies controlled by banks is mainly affected by its factors, while the other is significantly affected by the basic characteristics of major shareholders.

Keywords: Financial leasing; Financial bonds; Shareholder background; Credit spreads; Excess cost (search for similar items in EconPapers)
JEL-codes: E43 G32 M40 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323005275

DOI: 10.1016/j.frl.2023.104155

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