Nakashima, Kiyotaka; Saito, Makoto - In: Journal of the Japanese and International Economies 23 (2009) 3, pp. 309-331
Using secondary market data on corporate bonds issued in Japan between 1997 and 2005, this paper explores the determinants of the credit spread of corporate bond rates over interest swap rates. We find that the credit spreads properly reflect financial factors at the firm level, including...