Underwriter Reputation,Underwriter Regional Cooperation And Cost Of Corporate Bonds

In January 2015,with the Commission expanding the range on corporate bond issuance,Chinese corporate bond market has seen a significant growth trend.This paper focuses on the study of the impact of the underwriter on the corporate bond financing costs,including the influence of the underwriter reputation and the regional cooperation factors on the corporate bond financing costs.Firstly,this paper makes a brief introduction of corporate bonds,followed by the introduction of the bond market,the comparison between corporate bonds and the medium and short notes.The difference between the corporate bond coupon rate and bond interest rate is as a measure of the cost of bond financing companies.The three aspects of nature,the quality of issuing company and bond underwriter reputation are selected as some indicators for regression analysis.Because there are many variables,there may be some self-correlation,and the variables are analyzed by stepwise regression analysis.Finally,the underwriter reputation and corporate bond financing costs have a certain correlation,but the results are not significant.Although the regional cooperation factor is often taken into account by the issuing company,there is not much correlation between them in this analysis.Bond rating and the duration are the most significant indicators related,which are most apparent to investors.Company's asset liability ratio,bond guarantee and the nature of the company are also significant factors.Referring to the previous literature on IPO Underpricing and underwriter reputation research,this paper put forward with the corporate bond market.This paper supposed that underwriter reputation influences the cost of financing,with adding a new index-underwriter regional cooperation.