ScholarLens Back to search
2010•The Journal of Financial ResearchRequires access

On the Impact of Credit Rating on Bond Market of China

Jing Men

Open publisher page 3 citations

Abstract

Credit rating plays an important role in the capital market.It provides the market with risk related information, thus helps the market to discipline the corporations.In China,however,the credit rating industry is under-developed.This paper,using the data from 2007 to 2009,empirically studies the impact of domestic credit rating on bond pricing.The authors build aTrue Interest Cost(TIC)regression model,and study the influence of credit ratings on issue cost in the primary market.The authors finally find that bond rating has more explanatory power than firm rating.

About this research paper

What this paper is about

Credit rating plays an important role in the capital market.It provides the market with risk related information, thus helps the market to discipline the corporations.In China,however,the credit rating industry is under-developed.This paper,using the data from 2007 to 2009,empirically studies the impact of domestic credit rating on bond pricing.The authors build aTrue Interest Cost(TIC)regression model,and study the influence of credit ratings on issue cost in the primary market.The authors finally find that bond rating has more explanatory power than firm rating.

Why it matters

OpenAlex reports 3 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Credit rating plays an important role in the capital market.It provides the market with risk related information, thus helps the market to discipline the corporations.In China,however,the credit rating industry is under-developed.This paper,using the data from 2007 to 2009,empirically studies the impact of domestic credit rating on bond pricing.The authors build aTrue Interest Cost(TIC)regression model,and study the influence of credit ratings on issue cost in the primary market.The authors finally find that bond rating has more explanatory power than firm rating.

Key concepts: Credit rating, Bond credit rating, Bond market, Explanatory power, Credit enhancement, Credit risk, Business, Bond

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
On the Impact of Credit Rating on Bond Market of China — Research Paper | ScholarLens