Monetary policy, differences among issuing agencies, and the pricing of local government bonds

Jun Pan, Yipin Yu, Liangliang Wang and Xuefeng Jing

China Journal of Accounting Studies, 2019, vol. 7, issue 4, 524-541

Abstract: Based on a sample of local government bonds from 2015 to 2018, this paper examines the impact of monetary policy on the pricing of local government bonds. Furthermore, this paper explores how the differences among issuing agencies affect this relationship. The empirical results show that loose monetary policy can reduce the spread of local government bonds. The degree of fiscal decentralisation and the governance ability of the government could moderate the impact of monetary policy on the spread of local government bond issuance, the debt risk of local government might increase the impact of monetary policy on the spread of local government bond issuance. In addition, tests on the intermediary mechanism by which monetary policy affects local government bond pricing show that loose monetary policy can reduce the spread of local government bond issuance by increasing the supply of market capital and improving the financial status of local governments.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/21697213.2019.1748837 (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:taf:rcjaxx:v:7:y:2019:i:4:p:524-541

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcja20

DOI: 10.1080/21697213.2019.1748837

Access Statistics for this article

China Journal of Accounting Studies is currently edited by Xiaochen Dou

More articles in China Journal of Accounting Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().