Do investors' site visits affect the price of bond issues?

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2025-01-27 DOI:10.1016/j.pacfin.2025.102685

Haoyang Li , Yanqi Sun , Wei Cai , Jingwei Chen

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Abstract

Taking the bonds issued by A-share listed companies on the Shenzhen Security Exchange from 2014 to 2020 as a sample, this paper explores how investors' site visits to listed companies affect the price of bond issues. We find that when more investors site visits a particular listed company, the bond spread for that company is lower. This phenomenon is more pronounced in firms that supply less information. Securities companies, mutual funds, and trust companies gain more information from site visits than banks or insurance companies. Further research shows that investors make decisions more rationally and evaluate companies' investment efficiency or financial constraints more accurately after site visits, which can reduce additional financing costs caused by information investors may have otherwise received from intermediaries with poor reputations. The results show that investors' site visits to listed companies can provide effective information for bond investors and reduce their information risk. Therefore, site visits are important to improving firms' information disclosure in the bond market and helping investors make more-rational decisions.

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来源期刊

Pacific-Basin Finance Journal BUSINESS, FINANCE-

CiteScore

6.80

自引率

6.50%

发文量

157

期刊介绍： The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.