Suppliers’ and Customers’ Information Asymmetry and Corporate Bond Yield Spreads
Journal
Journal of Banking and Finance
Journal Issue
37
Pages
3181-3191
Date Issued
2013-08
Author(s)
Abstract
This study investigates the information asymmetry effects of suppliers and customers on a firm's bond yield spreads by employing American bond market data from 2001 to 2008. This study finds that both suppliers' and customers' information asymmetry effects significantly explain a firm's bond yield spreads. Besides, the information asymmetry effects of more important suppliers and customers are more significant than those of less important ones. The results are robust even after controlling for other well-known firm specific and economic variables. © 2013 Elsevier B.V.
Type
journal article