Empirical Research On The Influence Factors Of Corporate Bonds Issuing Spreads Under The New Rule

On January 15 of the year 2015,China Securities Regulatory Commission issued and implemented a new rule called Management Measures of Corporate Bonds Issuance and Trading.The new rule enlarged the issuers of corporate bonds from listed companies in China and overseas and securities companies to all of the corporate companies,excluding Local Government Financing Vehicles.So far the market of China corporate bonds is increasing and the stock exchange has very big potential of development.The issuing spreads of corporate bonds reflect the price and risk of the bonds,and is influenced by many factors.For investors,deeply understanding the issuing spreads is helpful to make investment decisions and effectively reduce the investment losses.For regulators,new regulatory thinking can be discovered by researching the issuing spreads of corporate bonds.For issuers,corporate bonds can be issued at the lowest financing cost by studying the factors affecting issuing spreads.Therefore,doing research on the influence factors of corporate bonds issuing spreads has important theory value and practical significance.On the basis of existing related research from domestic and abroad,this paper takes the corporate bonds under the new rule(hereinafter referred to as New Corporate Bonds)as the research object,and makes an empirical research with the software Stata.Macroeconomic factors mainly include the consumer price index,GDP,money supply,stock price index and the exchange rate.Individual factors mainly include the nature of property right of the issuer,the issuer listed or not,credit rating,the issuing way and guaranteed or not.Besides,this paper also introduces the issuing size and age of the corporate bonds as control variables.First of all,synthesize macroeconomic factors and individual factors and make a regression analysis.This paper finds that four of the five macroeconomic factors have no significant correlation with the issuing spreads,while all the five individual factors have significant correlation with the issuing spreads.The first regression model has no multicollinearity problem but has heteroscedasticity problem.Then this paper modifies the model and establishes a regression model of the influence factors.Second,given that the difference between the influence of macroeconomic factors and individual factors is material,this paper makes another regression analysis and finds that the interpretation of the macroeconomic factors to the issuing spreads is poor.The possible reason is that issuing spreads of corporate bonds is equal to its coupon rate minus the yields on government bonds,which is already influenced by macroeconomic factors such as the consumer price index,GDP,money supply,stock price index and the exchange rate.Finally,this paper puts forward corresponding policy recommendations respectively from the perspective of corporate bonds issuers,investors and regulators according to the empirical analysis.