Company Group Affiliations and Corporate Bond Yield Spread: Study Non-financial Companies
Keywords:
Corporate Bonds, Business Groups, Bond Yields, Yield Determinants, Bond Costs
Abstract
This study examines the impact of corporate groups on corporate bond yield. The results of the study indicate whether related groups issue bonds with higher yield spreads than independent companies. In Indonesia, research is still limited to further analyse the impact of corporate groups, in particular, on bond yields. In this study, the study period was taken from non-financial services corporate bond issuances from 2013 to 2022, and a total of 328 series of conventional bonds from 48 non-financial services corporate and bank issuers were used.
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References
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Azhgaliyeva, D., Kapoor, A., & Liu, Y. (2020). Green bonds for financing renewable energy and energy efficiency in South-East Asia: a review of policies. Journal of Sustainable Finance & Investment, 10(2), 113–140.
Bhutta, U. S., Tariq, A., Farrukh, M., Raza, A., & Iqbal, M. K. (2022). Green bonds for sustainable development: Review of literature on development and impact of green bonds. Technological Forecasting and Social Change, 175, 121378.
Bodie, M. T., Cherry, M. A., McCormick, M. L., & Tang, J. (2017). The law and policy of people analytics. U. Colo. L. Rev., 88, 961.
Boubakri, N., & Ghouma, H. (2010). Control/ownership structure, creditor rights protection, and the cost of debt financing: International evidence. Journal of Banking & Finance, 34(10), 2481–2499.
Byun, I., Coleman, A. W., & Kim, B. (2013). Transfer of thin Au films to polydimethylsiloxane (PDMS) with reliable bonding using (3-mercaptopropyl) trimethoxysilane (MPTMS) as a molecular adhesive. Journal of Micromechanics and Microengineering, 23(8), 85016.
Cheng, S. M. S., Mok, C. K. P., Leung, Y. W. Y., Ng, S. S., Chan, K. C. K., Ko, F. W., Chen, C., Yiu, K., Lam, B. H. S., & Lau, E. H. Y. (2022). Neutralizing antibodies against the SARS-CoV-2 Omicron variant BA. 1 following homologous and heterologous CoronaVac or BNT162b2 vaccination. Nature Medicine, 28(3), 486–489.
Chiesa, M., & Barua, S. (2019). The surge of impact borrowing: The magnitude and determinants of green bond supply and its heterogeneity across markets. Journal of Sustainable Finance & Investment, 9(2), 138–161.
Claessens, S., Fan, J. P. H., & Lang, L. H. P. (2006). The benefits and costs of group affiliation: Evidence from East Asia. Emerging Markets Review, 7(1), 1–26.
De Faccio Carvalho, P. C., Savian, J. V., Della Chiesa, T., De Souza Filho, W., Terra, J. A., Pinto, P., Posselt Martins, A., Villarino, S. H., Da Trindade, J. K., & De Albuquerque Nunes, P. A. (2021). Land-use intensification trends in the Rio de la Plata region of South America: toward specialization or recoupling crop and livestock production.
Eryilmaz, F., & Mercan, M. (2015). Political Budget Cycles: Evidence From Turkey. In Annals of’Constantin Brancusi’University of Targu-Jiu. Economy Series, (Vol. 2).
Falato, A., Goldstein, I., & Hortaçsu, A. (2021). Financial fragility in the COVID-19 crisis: The case of investment funds in corporate bond markets. Journal of Monetary Economics, 123, 35–52.
Farber, A., Imrey, P. B., Huber, T. S., Kaufman, J. M., Kraiss, L. W., Larive, B., Li, L., Feldman, H. I., Feldman, H., & Dember, L. (2016). Multiple preoperative and intraoperative factors predict early fistula thrombosis in the Hemodialysis Fistula Maturation Study. Journal of Vascular Surgery, 63(1), 163–170.
Gagnon, J., Raskin, M., Remache, J., & Sack, B. (2018). The financial market effects of the Federal Reserve’s large-scale asset purchases. 24th Issue (Mar 2011) of the International Journal of Central Banking.
Graham, J., Leary, M. T., & Roberts, M. R. (2014). How does government borrowing affect corporate financing and investment? National Bureau of Economic Research.
He, H., Pham-Huy, L. A., Dramou, P., Xiao, D., Zuo, P., & Pham-Huy, C. (2013). Carbon nanotubes: applications in pharmacy and medicine. BioMed Research International, 2013.
He, J., Mao, X., Rui, O. M., & Zha, X. (2013). Business groups in China. Journal of Corporate Finance, 22, 166–192.
Joni, J., Ahmed, K., & Hamilton, J. (2020). Politically connected boards, family and business group affiliations, and cost of capital: Evidence from Indonesia. The British Accounting Review, 52(3), 100878.
Liu, C., Wang, S., Wei, K. C. J., & Zhong, N. (2019). The demand effect of yield-chasing retail investors: Evidence from the Chinese enterprise bond market. Journal of Empirical Finance, 50, 57–77.
Ng, T. H., & Tao, J. Y. (2016). Bond financing for renewable energy in Asia. Energy Policy, 95, 509–517.
Ni’mah, A., Laila, N., Rusmita, S. A., & Cahyono, E. F. (2020). Determinants of corporate bond and sukuk ratings in Indonesia. Journal of Islamic Monetary Economics and Finance, 6(3), 689–712.
Petitt, A., & Brandt-Off, K. (2022). Zoocialization: Learning Together, Becoming Together in a Multispecies Triad. Society & Animals, 1(aop), 1–18.
Pettit, R. K., McCoy, L., Kinney, M., & Schwartz, F. N. (2015). Student perceptions of gamified audience response system interactions in large group lectures and via lecture capture technology. BMC Medical Education, 15, 1–15.
Post, P. (2021). Profitable partnerships: The Chinese business elite and Dutch lawyers in the making of Semarang. Journal of Southeast Asian Studies, 52(2), 214–245.
Rachmany, H., & Tajudin, T. (2022). The Effect Of Deferred Tax Expense On Earnings Management:(Empirical Study on PT. Matahari Department Store, Tbk Listed on The Indonesia Stock Exchange in 2015 to 2019). Jurnal Pajak Dan Bisnis (Journal of Tax and Business), 3(1), 1–11.
Rahayuningsih, E., & Ghozali, M. L. (2021). Sertifikasi Produk Halal dalam Perspektif Mashlahah Mursalah. Jurnal Ilmiah Ekonomi Islam, 7(1), 135–145.
Rudiyanto, E. D. A., & Rani Diana Balqis, Y. (2022). Spiritualitas dan Kecemasan Pada Lansia Yang Tidak Mempunyai Pasangan Hidup. Nursing News: Jurnal Ilmiah Keperawatan, 6(2), 76–84.
Saed, H. A., Haider, A. S., Al-Salman, S., & Hussein, R. F. (2021). The use of YouTube in developing the speaking skills of Jordanian EFL university students. Heliyon, 7(7), e07543.
Sulistiowati, N., Yuanita, L., & Wasis, W. (2013). Perbedaan penggunaan laboratorium real dan laboratorium virtual pada keterampilan proses dan hasil belajar siswa materi titrasi asam basa. JPPS (Jurnal Penelitian Pendidikan Sains), 2(2), 191–197.
Tolliver, C., Keeley, A. R., & Managi, S. (2020). Drivers of green bond market growth: The importance of Nationally Determined Contributions to the Paris Agreement and implications for sustainability. Journal of Cleaner Production, 244, 118643.
Varkkey, H., Tyson, A., & Choiruzzad, S. A. B. (2018). Palm oil intensification and expansion in Indonesia and Malaysia: Environmental and socio-political factors influencing policy. Forest Policy and Economics, 92, 148–159.
Wang, X., Tan, L., Wang, X., Liu, W., Lu, Y., Cheng, L., & Sun, Z. (2020). Comparison of nasopharyngeal and oropharyngeal swabs for SARS-CoV-2 detection in 353 patients received tests with both specimens simultaneously. International Journal of Infectious Diseases, 94, 107–109.
Yeh, C.-C., Lin, F., Wang, T.-S., & Wu, C.-M. (2020). Does corporate social responsibility affect cost of capital in China? Asia Pacific Management Review, 25(1), 1–12.
Zhao, L., Chau, K. Y., Tran, T. K., Sadiq, M., Xuyen, N. T. M., & Phan, T. T. H. (2022). Enhancing green economic recovery through green bonds financing and energy efficiency investments. Economic Analysis and Policy, 76, 488–501.
Published
2023-11-18
Section
Original Articles
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