Abstract:
This paper uses corporate bond data issued on the exchange bond market from 2008 to 2015 to examine the effect of the senior management experience on bond issuance success rates and credit spreads. The study finds that compared to companies without senior executives serving as deputies to the National People's Congress or members of the Chinese People's Political Consultative Conference, the companies whose executives have served as deputies to the National People's Congress or members of the Chinese People's Political Consultative Conference have higher success rates for issuing bonds, but at the same time, their issuing costs are also greater. After considering possible endogenous issues, the above results remain robust. Our further study finds that for companies with senior management experience mentioned above, they perform more earnings management before the bonds were issued, making subsequent performance “changing face,” so investors would demand a higher risk premium. The research in this paper shows that although the experience of senior executives will help companies successfully issue bonds, the bond market also requires companies to pay higher costs.
林晚发, 钟辉勇, 李青原. 高管任职经历的得与失？——来自债券市场的经验证据[J]. 金融研究, 2018, 456(6): 171-188.
LIN Wanfa, ZHONG Huiyong, LI Qingyuan. The Gains and Losses of Senior Management Experience？Evidence from the Bond Market. Journal of Financial Research, 2018, 456(6): 171-188.
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