Geopolitical Risk and Chinese Firm's Bond Financing Cost—Sentiment Transmission and Flight-to-Safety Effect
China is a global systemic country,external environment changes will definitely impact domestic bond market,and the transmission of investor sentiment spreads financial risks.This paper selects the data of bond issuance by China's non-financial listed companies from 2007 to 2022 to verify the impact of geopolitical risks on corporate financing costs.The results show that the shocks from this risk widen corporate bond credit spreads,investor optimism and low default hedging effect alleviate the shock,state-owned enterprise bond defaults strengthen negative message,and the response from corporate varies fitting their own nature and different monetary and financial conditions.The good economic fundamentals are the most effective smoother to geopolitical shocks.In order to increase the financial resilience of enterprises,the paper proposes that both risk early-warning mechanism and capital market system should be improved,and the expectations should be reasonably guided,while the information disclosure mechanism for the enterprises should be enhanced and then establish a long-term mechanism for reputation accumulation.
万方数据
