Proceedings of the 2018 International Conference on Economy, Management and Entrepreneurship (ICOEME 2018)

Research on the Impact of Corporate Bond Liquidity on Credit Spread

Authors
Chen Tingting, He Hongwei
Corresponding Author
Chen Tingting
Available Online November 2018.
DOI
10.2991/icoeme-18.2018.3How to use a DOI?
Keywords
corporate bonds; liquidity; credit spread
Abstract

Based on the credit risk pricing theory system of Merton (1974), this paper selects the monthly transaction data of the corporate bond market of listed companies from January 2008 to June 2017, and studies the impact of corporate bond liquidity of listed companies in China on credit spreads. Through empirical research, it is found that corporate bond liquidity of listed companies in China has a significant impact on credit spreads. The better the liquidity of bonds is, the smaller the risk compensation required by investors and the credit spread will be. During the period of insufficient liquidity, the impact is more significant. And it is proposed that measures such as improving the transaction final settlement system, reducing taxes and exempting restrictions on investment entities, etc., can be adopted.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2018 International Conference on Economy, Management and Entrepreneurship (ICOEME 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
November 2018
ISBN
978-94-6252-618-1
ISSN
2352-5428
DOI
10.2991/icoeme-18.2018.3How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Chen Tingting
AU  - He Hongwei
PY  - 2018/11
DA  - 2018/11
TI  - Research on the Impact of Corporate Bond Liquidity on Credit Spread
BT  - Proceedings of the 2018 International Conference on Economy, Management and Entrepreneurship (ICOEME 2018)
PB  - Atlantis Press
SP  - 17
EP  - 21
SN  - 2352-5428
UR  - https://doi.org/10.2991/icoeme-18.2018.3
DO  - 10.2991/icoeme-18.2018.3
ID  - Tingting2018/11
ER  -