Welcome to Francis Academic Press

Academic Journal of Business & Management, 2021, 3(4); doi: 10.25236/AJBM.2021.030409.

Literature Review on the Influencing Factors of Bond Financing Cost


Wenjing Liang

Corresponding Author:
Wenjing Liang

School of Management, Shanghai University, Shanghai, China


This paper reviews the relevant literature on the cost of bond financing, and finds that scholars at home and abroad have done a lot of research on the influencing factors of the cost of bond financing mainly from the macro level and micro level, among which the micro level is from the perspective of the characteristics of bonds and the issuers. In addition, there are also a few scholars who consider the social and executive influences. However, with the vigorous development of the bond market and the increasing competition in the product market, the future research can turn to the influencing factors of the medium level such as the product market. 


cost of bond financing, macro level, micro level

Cite This Paper

Wenjing Liang. Literature Review on the Influencing Factors of Bond Financing Cost. Academic Journal of Business & Management (2021) Vol. 3, Issue 4: 37-41. https://doi.org/10.25236/AJBM.2021.030409.


[1] Longstaff F.A., Schwartz, E.S. A Simple Approach to Valuing Aisky Fixed and Floating Rate Debt [J]. The Journal of Finance, 1995, 50 (3): 789-819.

[2] Zhang Maojun, Li Tingting, Ye Zhifeng.Research on the Influence Mechanism of Chinese Corporate Bond Credit Spread [J]. Finance Theory & Practice, 2015 (06): 17-21. 

[3] Wu, L., Zhang, F.X.. A No-Arbitrage Analysis of Macroeconomic Determinants of the Credit Spread Term Structure [J]. Management Science, 2008, 54(6): 1160-1175.

[4] Wang Xiongyuan, Zhang Chunqiang, He Jie. Macroeconomic Volatility and Risk Premium of Short Term Financing Bonds [J]. Financial Research, 2015, (1): 68-83.

[5] Guo Ye, Huang Zhen, Wang Yun. Unexpected Monetary Policy and Corporate Bond Credit Spread: A Study Based on the Decomposition of Fixed and Floating Spread [J]. Financial Research, 2016, (06): 67-80 

[6] Wang Xiongyuan,Gao Kaijuan.Underwriters,Key Customers and Corporate Bond Pricing [J].Management World, 2017, (9): 42-59.

[7] Wang Boying.Monetary Policy Impact, Macroeconomic Changes and Credit Spreads Adjustment [J]. Southern Finance, 2018, (12): 32-40. 

[8] Dai Guoqiang, Sun Xinbao. Research on Macro Determinants of Credit Spread of Corporate Bonds in China [J]. Journal of Finance and Economics, 2011, 37 (12): 61-71. 

[9] Tang Yizhou, Wang Jingwen, Wang Shujing.Capital Market Opening and Corporate Bond Financing Costs: Evidence From the Shanghai-Shenzhen-Hong Kong Stock Connect [J]. Securities Market Herald, 2020, (07): 52-60.

[10] Guo Fei, Li Qinghua, Liu Kunpeng.Does Derivative Hedging Lower the Cost of Bonds? [J]. International Journal of Finance, 2010, (05): 87-96. 

[11] Campbell, J.Y., G. B. Taskler.Equity Volatility and Corporate Bond Yields [J]. The Journal of Fiance, 2003, 58 (6): 2321-2350.

[12] Helwege, J., C.M.Turner. The Slope of the Credit Yield Curve for Speculative—Grade Issuers [J]. The Journal of Finance, 1999, 54 (5): 1869-1884.

[13] Besanko D, Thakor A V. Competitive Equilibrium in the Credit Market under Asymmetric Information [J]. Journal of Economic Theory, 1987, 42 (1): 167-482. 

[14] Han Pengfei, Hu Yiming.Can Government Implicit Guarantee Reduce the Financing Cost of Bonds? Empirical Study on State-owned Enterprises and Local Financing Platform Bonds [J]. Financial Research, 2015, (3): 117-130.

[15] Li Xin.Corporate Governance, Bond Credit Rating and Bond Financing Cost [J]. Journal of Finance and Accounting, 2016, (06): 92-95.

[16] Qi Yue, Chu Jinhui, Feng Xiaoyi.Enterprise Nature, Credit Rating and Bond Cost Under the 13th Five-Year Plan [J]. Journal of Finance and Accounting, 2018, (17): 48-54+129.

[17] Chang Yingying, Zeng Quan.Environmental Information Transparency and Corporate Credit Rating: Empirical Evidence Based on Bond Rating Market [J]. Financial Research, 2019, (05): 132-151.

[18] Fang Hongxing, Shi Jikun, Zhang Guangbao. Property Rights, Information Quality and Corporate Bond Pricing: Evidence from China's Capital Market [J]. Financial Research, 2013, (4): 170-182.

[19] Chen Jin, Liu Fangbei. Audit Opinion, Property Rights and Debt Financing Costs [J]. Journal of Jilin Industrial and Commercial University, 2019, 35 (04): 12-19.

[20] Chen Maoni.Credit Rating, Property Right Nature and Corporate Bond Pricing [J]. Journal of Finance and Accounting, 2018, (24): 88-90+101. 

[21] Ginka Borisova, Veljko Fotak, Kateryna Holland, William L.Megginson. Government Ownership and the Cost of Debt: Evidence from Government Investments in Publicly Traded Firms [J]. Journal of Financial Economics, 2015, 118 (1): 168-191.

[22] Yang Dakai, Wang Peng. Earnings Management and Corporate Bond Pricing: Empirical Evidence from China's Bond Market [J]. Financial Markets, 2014, 4: 86-95.

[23] Zhao Xiaoqin, Wan Difang. Research on the Influencing Factors of the Formation of Bond Coupon Spreads of Listed Companies [J]. Securities Market Herald, 2011 (8): 46-50. 

[24] Baxter N D and Gragg J G.Corporate Choice among Long-term Financing Instruments [J]. The Review of Economics and Statistics, 1970, (52): 225-235.

[25] Yan Yanyang, Liu Pengfei. Macro Factors, Corporate Characteristics and Credit Spread [J]. Financial and Economy, 2014, 297 (10): 70-95.

[26] Zhou Hong, Jian Lei, Li Guoping.The Relationship between Corporate Social Responsibility and Bond Credit Spreads and Their Influencing Mechanism: An Empirical Study Based on Shanghai and Shenzhen Listed Companies [J]. Accounting Research, 2016, (5): 18-25 + 95.

[27] Yu Jing, Xu Xiaoqing. Research on the Impact of Executive Power on Bond Financing Costs [J]. Journal of Nanjing Audit University, 2019, 16 (05): 84-93.

[28] Liu Ying. Executive Compensation Incentive and Bond Financing Cost [J]. Journal of Finance and Accounting, 2020, (02): 55-60.