Using hand-collected data on purchases of D&O insurance by Chinese listed firms for the period from 2008 to 2019, we empirically find that D&O insurance negatively associates with credit spreads. The negative relationship still holds after conducting a series of robustness tests and is not...

We propose a unified framework to model the effects of implicit government guarantees on bond value. Implicit guarantees improve the value of highly rated corporate bonds through lowering the default probability of such bonds, serving the role of solvency protection. Additionally, guarantees...