| Title | Bond liquidity and investment |
| Author | |
| Corresponding Author | Mkrtchyan，Anahit |
| Publication Years | 2022-12-01
|
| DOI | |
| Source Title | |
| ISSN | 0378-4266
|
| EISSN | 1872-6372
|
| Volume | 145 |
| Abstract | This paper examines the effects of bond liquidity on firms’ investments. We postulate that bond liquidity increases firms’ investment opportunities by reducing the cost of capital and improving access to financing. Using the variation in liquidity generated by several – both positive and negative – exogenous shocks, we find that firms respond to positive (negative) shocks by expanding (contracting) capital expenditures and acquisition activity. Further, by enhancing access to funding, bond liquidity facilitates acquisition financing and reduces the likelihood of investment delays. We also find a positive impact of bond liquidity on market valuations and profitability, suggesting that these investments are value-increasing. |
| Keywords | |
| URL | [Source Record] |
| Indexed By | |
| Language | English
|
| SUSTech Authorship | Others
|
| WOS Research Area | Business & Economics
|
| WOS Subject | Business, Finance
; Economics
|
| WOS Accession No | WOS:000863131100005
|
| Publisher | |
| ESI Research Field | ECONOMICS BUSINESS
|
| Scopus EID | 2-s2.0-85137278434
|
| Data Source | Scopus
|
| Citation statistics |
Cited Times [WOS]:0
|
| Document Type | Journal Article |
| Identifier | http://kc.sustech.edu.cn/handle/2SGJ60CL/401590 |
| Department | Southern University of Science and Technology |
| Affiliation | 1.Alfred Lerner College of Business & Economics,University of Delaware,United States 2.Isenberg School of Management,University of Massachusetts-Amherst,United States 3.Southern University of Science and Technology,China |
| Recommended Citation GB/T 7714 |
Field，Laura Casares,Mkrtchyan，Anahit,Wang，Yuan. Bond liquidity and investment[J]. JOURNAL OF BANKING & FINANCE,2022,145.
|
| APA |
Field，Laura Casares,Mkrtchyan，Anahit,&Wang，Yuan.(2022).Bond liquidity and investment.JOURNAL OF BANKING & FINANCE,145.
|
| MLA |
Field，Laura Casares,et al."Bond liquidity and investment".JOURNAL OF BANKING & FINANCE 145(2022).
|
| Files in This Item: | There are no files associated with this item. | |||||
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