Uncertainty in Information Asymmetry and Corporate Bond Yield Spreads

• Main Authors: Hui-Ju Kuo, 郭慧如
• Other Authors: Hsien-Hsing Liao
• Format: Others
• Language: en_US
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/19636103665714658508

博士 === 國立臺灣大學 === 財務金融學研究所 === 103 === The study examines how uncertainty in information asymmetry influences corporate bond yield spreads using American data from 1997 to 2010, and considers the effects of term structure and macroeconomic conditions on that. Empirical results show that the effect of uncertainty in information asymmetry significantly explains corporate bond yield spreads when controlling for variables well known in the literature. Bonds with higher uncertainty in information asymmetry tend to have higher yield spreads. In addition, this uncertainty in information asymmetry effect is especially noticeable among short-term bonds. Macroeconomic conditions also affect the uncertainty in information asymmetry effect on bond yield spreads. The positive relationship between a firm’s bond yield spreads and uncertainty in information asymmetry becomes weaker when economic growth rate is higher.