arXiv Open Access 2022

The financial value of the within-government political network: Evidence from Chinese municipal corporate bonds

Jaehyuk Choi Lei Lu Heungju Park Sungbin Sohn

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Abstrak

This paper examines the effect of the political network of Chinese municipal leaders on the pricing of municipal corporate bonds. Using municipal leaders' working experience to measure the political network, we find that this network reduces the bond issuance yield spreads by improving the credit ratings of the issuer, the local government financing vehicle. The relationship between political networks and issuance yield spreads is strengthened in areas where financial markets and legal systems are less developed.

Topik & Kata Kunci

q-fin.GN econ.GN

Penulis (4)

Jaehyuk Choi

Lei Lu

Heungju Park

Sungbin Sohn

Format Sitasi

APA MLA BibTeX

Choi, J., Lu, L., Park, H., Sohn, S. (2022). The financial value of the within-government political network: Evidence from Chinese municipal corporate bonds. https://arxiv.org/abs/2201.01160

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Informasi Jurnal

Tahun Terbit: 2022
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓