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The Determinants of Corporate Yield Spreads : Before and After the Global Financial Crisis

초록

영어

We study the impact of the recent global financial crisis on the determinants of corporate bond spreads, in particular, focusing on the impact of liquidity and credit risk on yield spreads using data regarding financial and non-financial bond issuers listed on the Korea Exchange (KRX). Our main findings reveal that the selected liquidity variables explain a relatively larger portion of the variation in yield spreads before the crisis, whereas the credit risk component has become a more influential determinant of yield spreads after the crisis. This observation implies that Korean bond investors, who have not suffered from severe liquidity problems, are concerned about increased economic vulnerability in response to the liquidity dry-up in the U.S. financial market and, as a result, require more default risk premium in the post-crisis period.

목차

ABSTRACT
 1. Introduction
 2. Methodology
  2. 1 Model Specification
  2. 2 Selected Variables
 3. Data and Sample
  3. 1 Sample Period
  3. 2 Data Description
  3. 3 Summary Statistics
 4. Empirical Analysis
  4. 1 Determinants of Corporate Yield Spreads
  4. 2 Incremental Importance of Each Variable
  4. 3 Robustness Check with Alternative Liquidity Measures
 5. Summary and Concluding Remarks
 References
 Figure
 Table
 Appendix

저자정보

  • Dongheon Shin Korea University Business School
  • Baeho Kim Korea University Business School

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