Corporate strategy aggressiveness and bond credit spreads

Shuguang Wang and Qiqi Hou

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

Abstract: This paper investigates the impact of corporate strategy on corporate bond credit spreads and the mechanism of action, using corporate bonds issued by A-share companies during 2004–2021 as the research sample for empirical analysis. It is found that the degree of aggressiveness of corporate strategy has a significant positive impact on bond credit spreads; corporate firms with aggressive strategies take higher levels of risk and have greater credit risk, thus making bond credit spreads more extensive; the improvement of accounting information quality can significantly mitigate the impact of aggressive strategies on credit spreads.

Keywords: Corporate strategy; Credit spreads; Risk-taking; Accounting information quality (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323005317

DOI: 10.1016/j.frl.2023.104159

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