Capital supply and corporate bond issuances: Evidence from mutual fund flows

• 成果类型: Article
• 署名作者: Zhu, Qifei
• 署名单位: Nanyang Technological University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.03.012
• 发表日期: 2021
• 页码: 551-572
• 关键词: Bond mutual funds; Corporate bond issuance; capital structure

摘要

I examine how the investment behavior of bond mutual funds affects corporate financing decisions. Mutual funds that hold a firm's existing bonds have a high propensity to acquire additional new issuances from the same firm. I utilize this stylized fact to construct a firm specific bond capital supply measure by aggregating flows from a firm's existing bondholders. Firms with a higher flow-driven capital supply are more likely to issue bonds, enjoy lower yields, and substitute away from equity financing and bank loans. Information acquisition costs and underwriter relationship likely contribute to the impact of flow-driven capital supply. (c) 2021 Elsevier B.V. All rights reserved.