Gao, Kaijuan; Lin, Wanfa - In: China Journal of Accounting Research 11 (2018) 1, pp. 51-70
Using a quasi-natural experiment, this study examines the effects of margin trading and short selling on bond yield … spread in China. It finds that both margin trading and short selling can reduce bond yield spread. Additionally, it finds … that margin trading lowers firms' debt ratios and increases their credit ratings, which explains the reduced spread. In …