Investor-Driven Corporate Finance: Evidence from Insurance Markets

• 成果类型: Article; Early Access
• 署名作者: Kubitza, Christian
• 署名单位: European Central Bank
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454; 1465-7368
• DOI: 10.1093/rfs/hhag003
• 发表日期: 2026-03-12
• 关键词: G22; G30; G12; E22; Debt maturity; IMPACT; FIRMS; FLOW; certification; INFORMATION; liquidity; decisions; funds; cash

摘要

I study the effect of bond investor demand on the financing and investment decisions of nonfinancial firms using granular data on the bond transactions of insurance companies. Liquidity inflows from insurance premiums combined with insurers' persistent investment preferences identify bond demand shifts in the secondary market. These raise bond prices and reduce firms' financing costs. In response, firms issue more bonds, especially when they have well-connected bond underwriters. The proceeds are used for investment activities, particularly by financially constrained firms. My findings emphasize that bond investors significantly affect corporate decisions through their price impact.