Beschreibung:
This paper documents a negative association between firms' corporate governance measures and bond default risk in China, based on a substantial bond issuance sample and default information. The results show that corporate governance characteristics have more pronounced effect on default risk for unlisted firms. By analyzing detailed corporate governance measures, empirical results support three channels for corporate governance’s impact. That is, potential expropriation of large equity holder at the cost of debt holders, misalignment of managers with debt holders due to management equity holding, and lack of disclosure quality