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The study investigated effect of corporate bonds on financial performance of quoted manufacturing firms in Nigeria. Explanatory research design was used. The study obtained secondary data from 60 firms which were sampled out of 70 quoted firms the manufacturing sector of Nigerian exchange. Return on Assets (ROA) was used to proxy performance. Findings from the study showed that the effect of independent variable was statistically significant in expounding the variation in return on assets (Hausman's test = 89.464999, p = 0.0000 < 0.05). The study thus concluded by pointing out that corporate bonds have significant impact on the financial performance of quoted manufacturing firms in Nigeria. The study recommended that managements of Nigerian quoted manufacturing firms should give attention to issuance of corporate bonds as a way to increase their financial performance. [ABSTRACT FROM AUTHOR]

Most existing research on multi-class imbalanced enterprise credit evaluation modeling has been built on data-level imbalance processing methods and single classifier approaches. Using the one-versus-one (OVO) decomposition and fusion method to dispose multi-class classification, this paper proposes two new credit evaluation ensemble models by combining the asymmetric bagging (AB) and the light gradient boosting machine (LightGBM). Based on a multi-class imbalanced dataset of Chinese enterprises that issue corporate bonds from 2014 through 2020, this study conducts a series of empirical experiments for multi-class imbalanced enterprise credit evaluation. The experimental results demonstrate that our proposed models can significantly outperform the benchmark models, which integrate the OVO and one-versus-all decomposition and fusion method respectively with the random under sampling LightGBM, random over sampling LightGBM, synthetic minority over sampling technique LightGBM and the AB decision tree. In addition, the proposed models can carry out analysis on feature importance, which provides decision-making basis for enterprise stakeholders. • Solve multi-class imbalanced enterprise credit evaluation using ensemble methods. • Design two ensemble models by combined asymmetric bagging with LightGBM. • Performance comparison between the proposed models and the benchmark models. • Provide feature importance analysis for multi-class enterprise credit evaluation. [ABSTRACT FROM AUTHOR]

There has been a considerable expansion of corporate bond markets in China in the recent years. The objective of this study is to examine the stock market reaction following bond issuance by Chinese companies. In addition to analyzing for positive or negative reactions to bond issues, we consider the influences of ownership and management characteristics on the stock market reaction. Applying an event-study methodology to a sample of 481 bond issues of 347 Chinese companies over the period 2009-2013, the univariate results show that Chinese bond issues typically generate a positive stock market reaction. The reaction is only significantly positive, however, in the case of central state-owned companies (as opposed to those owned by local or provincial governments). The multivariate results indicate that insider ownership influences stock market reaction to a bond issue, while management characteristics have no discernable impact. [ABSTRACT FROM AUTHOR]

This paper investigates bond market development in Asia by exploring the determinants of firms’ decisions to issue public debt in a range of Asian economies. Using a novel database covering the period 1995 to 2007, we use comparable micro level panel of nine countries—China, Hong Kong SAR, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand—to explore factors that promote bond issuance by firms. We control for firm characteristics and market features such as bond market depth and liquidity; we also consider supra-national policy initiatives to improve bond market function. Our paper demonstrates that regional initiatives have been an important step towards greater bond issuance by firms in Asia, mostly by fostering market deepening and improving liquidity. [ABSTRACT FROM PUBLISHER]

ABSTRACT Our model shows that deterioration in debt market liquidity leads to an increase in not only the liquidity premium of corporate bonds but also credit risk. The latter effect originates from firms' debt rollover. When liquidity deterioration causes a firm to suffer losses in rolling over its maturing debt, equity holders bear the losses while maturing debt holders are paid in full. This conflict leads the firm to default at a higher fundamental threshold. Our model demonstrates an intricate interaction between the liquidity premium and default premium and highlights the role of short-term debt in exacerbating rollover risk. [ABSTRACT FROM AUTHOR]

This paper investigates the determinants of credit spreads (levels and changes) via credit derivatives, using an Australian sample. We incorporate a number of different relationships to assess the contributions of various market-wide and firm-specific factors in determining levels, and changes in credit spreads, of corporate bonds. Using over-the-counter credit default swap (CDS) premium data as a proxy for the default risk of the entity, we find that both CDS and liquidity are priced into credit spreads, with liquidity explaining more credit spreads than credit risk (proxied using CDS premia) itself. We also find that a number of firm-specific and market-wide variables, namely, firm leverage, market-to-book ratio, market value, volatility, liquidity, the spot rate, the slope of the yield curve, the time to maturity of the underlying bond and the level and return on the All Ordinaries Index, are in many cases significant determinants of credit spreads. Finally, in additional robustness testing, a potential sample selection bias is accommodated via the Heckman ((1979) Sample selection bias as a specification error. Econometrica 47: 153–162) procedure. [ABSTRACT FROM PUBLISHER]

The objective of this paper is to examine the association between the Corporate Leverage (cl) and the Dividend Policy (dp) of firms across industries in India in respect of Size of Corporate Firms. The investigation is conducted on a panel sample of 73 firms across industries [Cement, Chemical and Fertilizer, it, Oil and Gas, Pharmaceutical, Shipping, and Textiles], which listed their shares in National Stock Exchange (nse) in India for the period 1996-2007. The impacts of Capital Structure (cs) variables (leverage) on dp measures - dividend payout (Net dividend paid/net income) in the presence of some basic fundamental variables are considered to be the determinants of dp, using the Multiple Regression Technique (ols method). The results of the cross-sectional ols Model for the selected sample firms under various sectors show that there is a significant effect of selected independent variables, dpoα+β1dpot-1 +β2pat+β3tde+β4cf+β5size+β6inv+ β1ltd + β8std + e. Therefore, this study proves that the dp of Small Size, Medium Size, Large Size, and Overall Corporate Firms across industries in India is dependent on the level of debt in cs. [ABSTRACT FROM AUTHOR]

This paper examines the hypothesis that the timing of lockup expiration is crucial to earnings management (EM) behavior in the period after an initial public offering (IPO). Taiwan's unique two-stage lockup regulations make the Taiwanese sample an excellent candidate for examining this hypothesis. Three main results are reached. First, we find positive discretionary accruals (DAs) from the IPO quarter to the quarter after the expiration of the first-stage lockup. The DA in the quarter of the second-stage lockup expiration is significantly positive. The evidence shows that the lockup provision is key in the findings of significant EM in the IPO year and the following year. We also find a positive association between DAs in first-stage lockups and subsequent insider selling activity, indicating that insiders' selling after lockup expiration accounts for EM in the lockup period. Third, the extent of EM in first-stage lockup is negatively related to that around the IPO, consistent with the reversal nature of DAs. [ABSTRACT FROM AUTHOR]