EconPapers    
Economics at your fingertips  
 

Distress risk, product market competition, and corporate bond yield spreads

Han-Hsing Lee ()
Additional contact information
Han-Hsing Lee: National Chiao Tung University

Review of Quantitative Finance and Accounting, 2020, vol. 55, issue 3, No 10, 1093-1135

Abstract: Abstract The purpose of this paper is to examine whether industry-level risk affects corporate bond yield spreads. We use three types of industry risk variables in our empirical analysis: distress exposure measure, industry condition, and product market competition. After controlling for common bond-level, firm-level, and macroeconomic variables, the empirical results reveal significant relationships between these industry-level risk measures and bond yield spreads. Our evidence supports that industry-related risk does play an important role in explaining bond yield spreads.

Keywords: Distress exposure measure; Distress risk; Product market competition; Industry risk; Exposure CoVaR (search for similar items in EconPapers)
JEL-codes: G12 G32 G33 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11156-019-00869-6 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:rqfnac:v:55:y:2020:i:3:d:10.1007_s11156-019-00869-6

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/11156/PS2

DOI: 10.1007/s11156-019-00869-6

Access Statistics for this article

Review of Quantitative Finance and Accounting is currently edited by Cheng-Few Lee

More articles in Review of Quantitative Finance and Accounting from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2020-09-26
Handle: RePEc:kap:rqfnac:v:55:y:2020:i:3:d:10.1007_s11156-019-00869-6