The Analysis Of The Impact Between Government Ownership And The Cost Of Debt In The Secondary Market

Since the issuance of corporate bonds in China in 2007,corporate bonds have become larger in scale.The booming bond market provides an opportunity to study corporate bonds,and at the same time it also provides theoretical requirements for the research on bond-related factors.Under this background,the domestic research on the credit spread of corporate bonds has started,and the scope of investigation is getting wider and wider.But for the micro-level factor researched in this paper,government ownership,few domestic literature study its impact on the credit spread of corporate bond.In only a few domestic articles,there is only qualitative analysis of the impact between the two,and there is barely quantitative analysis.Based on the sample of corporate bonds issued by publicly traded firms from 2011 to 2016,the paper analyzes the impact of government ownership on the credit spread of corporate bonds in the secondary market.The research of this paper mainly focuses on several aspects:first,analyze the impact of government ownership on the credit spread of corporate bonds by qualitative and quantitative methods;then,set the bond rating to AA level as a boundary and classify bond samples according to bond rating,by comparing the empirical results of two-component samples and testing whether there is a significant difference in the regression coefficient of the explanatory variables,research for different corporate bond ratings whether there is a significant difference for the effect of government ownership and the credit spread of corporate bonds.The main conclusions drawn in this paper are mainly divided into the following aspects:First,the impact of government ownership on credit spread of corporate bonds is significantly negative;secondly,the negative effect of government ownership on credit spread of corporate bonds is more pronounced for corporate bonds with rating below AA level(including AA level),relative to corporate bonds with bonds rated at higher than AA.