Rule of Law and Bond Credit Risk: A Perspective Based on Debt Structure

DOI

10.2991/978-94-6463-770-0_72How to use a DOI?

Keywords

Rule of Law; Bond Market; Creditor Protection; Information Asymmetry; Debt Structure

Abstract

Building a good legal environment is of great significance to the high-quality development of China’s bond market. This article uses quasi natural experiments on the establishment of bankruptcy courts in various regions of China and uses the difference in differences method to identify the impact of legal strengthening on bond credit risk under different debt structures of enterprises. Research has found that the establishment of bankruptcy courts can significantly reduce the secondary market spread of local corporate bonds, and in the case of increased corporate bank debt, the establishment of bankruptcy courts will significantly increase the credit spread of bonds. The research conclusion of this article indicates that the construction of the rule of law environment should be combined with the reasonable adjustment of the debt structure of the issuing enterprises themselves in order to better play the role of institutional construction and promote the high-quality development of China’s finance.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Wentao Peng
PY  - 2025
DA  - 2025/06/26
TI  - Rule of Law and Bond Credit Risk: A Perspective Based on Debt Structure
BT  - Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025)
PB  - Atlantis Press
SP  - 629
EP  - 633
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-770-0_72
DO  - 10.2991/978-94-6463-770-0_72
ID  - Peng2025
ER  -