An Empirical Study On Lead Credit Underwriters' Qualifications On Corporate Bond Credit Spreads

At present,the direct financing channels of China's capital market include equity financing and debt financing.Compared with equity financing,IPOs need to be strictly examined by the China Securities Regulatory Commission.The bond financing procedures are simple,and enterprises that meet the conditions can be issued.In recent years,the regulation of creditor's rights has been relaxed,and the market has developed rapidly.The issuance of corporate bonds has been favored by enterprises.Since the launch of the "07 Long-Term Debt" in 2007,the development of corporate bonds has experienced many changes.In 2009,it was terminated,and corporate bonds were banned.After the implementation of the Measures for the Issuance and Management of Corporate Bonds in 2014,the issuance of corporate bonds was lifted from various aspects.From the macroscopic point of view,the development of corporate bonds is to further improve China's capital system and structure,to facilitate the orderly development of the capital market,to promote the circulation of capital and the development of enterprises.From a micro perspective,it is to broaden the financing channels of issuers,optimize the company's asset and debt allocation,and reduce the dependence on banks.In the orderly development of the bond market,issuers issue corporate bonds with a very clear understanding of their qualifications and hope to reduce financing costs through bond financing.Institutional investors in the market evaluate the subject and issuer's subject qualifications,whether they can vote,how much they can earn,and how much they can invest.Among them,the underwriters play the role of information transmission,through the underwriting of their own underwriting bonds,through the company's regular disclosure to the company's information to reduce the degree of information asymmetry,and provide a kind of"hidden"to the issuer through its own resources.Sexual guarantees to reduce financing costs as much as possible.In November 2014,the implementation of the"Corporate Bond Issuance and Management Measures"had a greater impact on the issuance of corporate bonds.The sponsor and the audit committee system were abolished,and the issuer was broadened from the original listed entity to the company,including listing and non-listing.The implementation of this system has stimulated the development of corporate bonds.So this article wants to explore two points.First,the qualification of the lead underwriter will have a significant impact on the credit spread of corporate bonds,and whether the impact will be more severe or weaker under different ways and subjects.Second,whether the implementation of the"Corporate Bond Issuance and Management Measures" will have any impact on the mechanism between the lead underwriter qualification and the credit spread of corporate bond issuance.This paper studies the situation of corporate bond issuance in 2010 and 2018,and draws the following conclusions.First,the higher the qualification of the lead underwriter,the greater the negative impact on the credit spread of the first-tier issuance of corporate bonds.At the same time,in the use of competitive joint underwriting,the negative correlation between the qualifications of lead underwriters and credit spreads is more obvious.In the context of the issuer being a state-owned enterprise,this negative correlation mechanism has a more significant impact.Second,through the grouping around 2015,it is found that after the implementation of the new system,the qualification of the lead underwriter has a more significant impact on the credit spread of the first-level issuance of corporate bonds.In competitive sales,the qualification of the lead underwriter is higher.The greater the reduced information asymmetry,the more likely it is to reduce financing costs.