Academic Journal of Business & Management, 2025, 7(6); doi: 10.25236/AJBM.2025.070606.
Chengrun Zhang
Business School, University of Shanghai for Science and Technology, Shanghai, China
Does rating divergence impact corporate bond yields? This is a question worth exploring. Based on the bond data of 3,294 listed companies on the Shanghai and Shenzhen stock exchanges from 2022 to 2024, this paper analyzes bonds of different risk levels. Using a two-sample t-test, it verifies whether rating divergence affects corporate bond yields and the extent of that impact. The study reveals that bonds with rating divergence have higher yields. Due to information asymmetry and lack of transparency, such bonds carry uncertainty and associated risks. Investors demand extra compensation for the risks arising from rating divergence. It’s also found that the degree of rating divergence impacts bond yields and is positively correlated with them. In other words, the greater the divergence, the higher the yields. By clarifying the relationship between rating divergence and bond yields, the study stresses the importance of properly addressing divergent bonds and credit rating consistency. It offers vital insights for bond issuers, investors, and the entire capital market. Additionally, it helps enhance the transparency of corporate bond markets and provides significant reference value for intended users of related information.
Rating Divergence; Credit Rating Agency (CRA); Bond Yield; Capital Market
Chengrun Zhang. A Study on the Impact of Rating Divergence on Corporate Bond Yields —— Evidence from China's Capital Market. Academic Journal of Business & Management (2025), Vol. 7, Issue 6: 37-44. https://doi.org/10.25236/AJBM.2025.070606.
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