-term bonds stimulates firms to issue more such bonds and helps boost bond prices. Analysis exploiting a quasi-experiment on the … impact of security lending on corporate financing policies and bond pricing …

types – in particular Autonomy and Embeddedness – and the corporate debt choice of either bank or bond financing. We derive … show that firms in Autonomy cultures tend toward bank finance, whereas firms in Embeddedness cultures show a preference for …

We study how the relative availability of bond and bank financing supply affects the firm's ability to borrow and to … availability of bank and bond financing: “debt inflexibility”. Debt inflexibility tilts the financial structure towards equity …

I study the causal effect of bond investor demand on the financing and investment decisions of nonfinancial firms using … granular data on the bond transactions of U.S. insurance companies. Liquidity inflows from insurance premiums combined with … insurers' persistent investment preferences identify bond demand shifts, which raise bond prices and reduce firms’ financing …

We study how optimal bank capital and bond risk are influenced by deposit insurance, implicit guarantees, depositor … optimal amount of bank capital. The net effect on bond debt risk and valuation is small, while the effects on shareholder … preference, asset encumbrance, and bail-in resolution frameworks. We find that these features of bank financing change the …

in bond contracts. Using a unique Moody's dataset on the quality of bond covenants, we develop measures that capture … similarity in bond covenant terms by comparing the restrictiveness of a bond's covenants with the covenant restrictiveness of … bonds are also characterized by greater liquidity in the secondary market and are more likely to be held by long-term bond …

, as trading noise, dampens firm-specific information incorporated into bond prices. We find a negative relation between … bond illiquidity and synchronicity, and this empirical relation remains after applying robustness checks and endogeneity … controls. Consistent with theoretical model implications, the effect of bond illiquidity as information friction is more …

We provide robust empirical evidence that uncovers the reason for the observed closer relationship between the bond … market versus the equity market and the macroeconomy. Our results indicate that the tight bond market-macroeconomy link is …

Taking the first bond defaults in each province in China as credit events, we adopt a difference-in-difference model … event day, suggesting a spillover effect. The spillover effect is stronger for local state-owned-enterprise bond defaults … rates and higher general public budget revenue are less affected by the first bond defaults. Overall, our paper provides new …

Using large panel data of public and private firms, this paper dissects the aggregate growth of bond financing in the … Euro Area. It considerably broadened firms' access to funding, but can also lead to new risks. The composition of bond … to higher leverage and interest rates. Moreover, holdings of stable `buy-and-hold' bond investors are large in aggregate …