Creditor rights and the corporate bond market

Gu, Xian; Kowalewski, Oskar

Abstract

This study examines whether investor protection affects capital markets, specifically the development of corporate bond markets versus equity markets. Using a dataset of 42 countries, we show that countries with strong creditor rights have more developed corporate bond markets than equity markets. However, we find only weak evidence that countries with stronger shareholder protection have more developed equity markets than corporate bond markets. Additionally, we find that the effect of financial reforms on capital markets is strongly dependent on the strength of investor protection and on the associated information disclosure in a given country.

Citation

Gu, X., & Kowalewski, O. (2016). Creditor rights and the corporate bond market. Journal of International Money and Finance, 67, 215-238. https://doi.org/10.1016/j.jimonfin.2016.05.002

• Journal Article Type: Article
• Acceptance Date: May 13, 2016
• Online Publication Date: May 17, 2016
• Publication Date: 2016-10
• Deposit Date: Aug 4, 2020
• Publicly Available Date: Aug 5, 2020
• Journal: Journal of International Money and Finance
• Print ISSN: 0261-5606
• Electronic ISSN: 1873-0639
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 67
• Pages: 215-238
• DOI: https://doi.org/10.1016/j.jimonfin.2016.05.002
• Public URL: https://durham-repository.worktribe.com/output/1259031