The Impact Of Senior Management Change On Bond Financing Costs

The executive is the core of corporate governance,and his turnover will undoubtedly bring significant impact to the internal and external of the company.In recent years,with frequent turnovers of the executive and rapid development of the bond market,it is tempting to wonder what impact a change in executive leadership might have on bond financing.In this paper,the data are collected from companies listed in Shanghai and Shenzhen stock exchanges which have bond issuing record during 2011 to2019.After processed by stripping out the financial industry,ST companies and companies which have missing financial data and 1% for continuous variables shrink,and based on the theory of asymmetric information theory,signal transmission theory,the managerial myopic theory and exciting document literature,this paper has several conclusion:(1)executive turnover will raise the cost of bond financing;(2)Compared to voluntary changes,the forced change has a more significant positive correlation between executive turnover and bond financing costs.(3)There is no significant difference between internal and external succession for senior executives in terms of the impact on bond financing costs.Finally,this paper puts forward some suggestions for related departments and corporate governance.