Suppliers’ and Customers’ Takeover Probability and Corporate Bond Yield Spreads
Date Issued
2015
Date
2015
Author(s)
Chen, Shih-Hang
Abstract
This study investigates the effects of suppliers’/ customers’ takeover probability on firm’s bond yield spreads by employing the data of American corporate bond from 2001 to 2011. The empirical results show that the suppliers’ takeover probability effects significantly explain a firm’s bond yield spreads. In addition, this result is robust when controlling for other well-known firm specific variables. However, the result of customer side is not always significant although the relationships between firm’s bond yield spread and customers’ takeover probability are positive both in empirical analysis or robustness check.
Subjects
Credit risk
Yield spread
Takeover probability
Type
thesis
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ntu-104-R02723031-1.pdf
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