Using a comprehensive corporate governance data set and machine learning techniques, specifically Neural Networks, I validate a significant effect and out of sample predictability of governance for corporate bond yield to maturity, which is the most important discount factor for bond valuations....

Using a comprehensive panel data set by ISS, we construct a multi-dimensional governance measure and investigate the effect on corporate bond liquidity. We find that governance has a significant impact on bond liquidity, which works through improved firms’ information disclosure and interest...