The 18th Academic Luncheon of the Digital Technology and Finance

Abstract：

This paper selects the transaction data of corporate bonds, medium-term notes and corporate bonds issued by Shanghai and Shenzhen listed companies from 2015 to 2021 to study the influence of "national team" shareholding, a typical direct government intervention in the stock market, on the credit spread of the underlying bonds. The results show that: (1) the shareholding of "national team" can significantly reduce the credit spread in the secondary market; (2) The shareholding of "national team" reduces the bond credit spread by alleviating the information asymmetry between enterprises and investors and improving the corporate value, while the effect of corporate governance on the credit spread is very small; (3) Heterogeneity analysis shows that the "national team" shareholding in the bond credit rating is low, the property nature of non-state-owned enterprises and the regional marketization degree is low in the region has a greater impact on the reduction of credit spread. This study not only enriches the literature on the economic consequences of direct government intervention in the capital market, the determinants of credit spread and the linkage between stocks and bonds, but also has implications for the formulation of relevant policies to maintain market stability in times of crisis and its potential economic consequences.

Speaker Introduction：

Zhang Chuanhai, PhD, Associate Professor, School of Finance, Zhongnan University of Economics and Law. His research interests include financial markets, financial measurement and financial risk, as well as Fintech and big data. His research papers have been published in: Economic Research, Systems Engineering Theory and Practice, Journal of Management Engineering, Mathematical Statistics and Management, Journal of Econometrics, Quantitative Finance, Pacific-Basin Finance Journal, Finance Research Letters, International Review of Financial Analysis and Economic Modelling and other domestic and foreign journals.