TITLE:
Are Participants in Bond Market Concerned about the Quality of Information Disclosure: Evidence from Chinese Listed Companies
AUTHORS:
Huan Luo, Changhai Yu, Ran Su
KEYWORDS:
Information Disclosure Quality, China’s Bond Market, Credit Rating, Bond Financing Cost
JOURNAL NAME:
Modern Economy,
Vol.5 No.11,
October
14,
2014
ABSTRACT: High
quality of information disclosure can reduce the information asymmetry, which
is very important to the effective operation of the capital market. This
article studies whether participants in bond market are concerned about the
quality of information disclosure based on a sample of listed companies in
China’s bond market from 2007 to 2013. We find that there is no significant
relationship between information disclosure quality and credit rating,
indicating the credit rating agencies are not concerned about information
disclosure quality. However, we find information disclosure quality can
significantly reduce the bond financing cost, which indicates that bond
investors are concerned about information disclosure quality.