Artikel
Accruals quality, underwriter reputation, and corporate bond underpricing: Evidence from China
This study examines the relationship between accruals quality and the underpricing of corporate bonds in China and how underwriter reputation affects this relationship. We find that (1) accruals quality is negatively associated with the magnitude of bond underpricing and (2) the impact of low accruals quality on underpricing is partially offset by hiring reputable underwriters. A path analysis shows that approximately 11% of the effect of accruals quality on underpricing is attributable to the indirect path through reputable underwriters, suggesting that accruals quality is more effective than reputable underwriters in lowering bond underpricing. These findings are significant for initial bond offerings, but not for secondary bond offerings. We also find that low accruals quality is associated with more restrictive non-price contract terms such as greater collateral requirements and stricter covenants.
- Language
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Englisch
- Bibliographic citation
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Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 10 ; Year: 2017 ; Issue: 4 ; Pages: 317-339 ; Amsterdam: Elsevier
- Classification
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Management
General Financial Markets: General (includes Measurement and Data)
Accounting
- Subject
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Bond underpricing
Accruals quality
Reputable underwriters
Information asymmetry
- Event
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Geistige Schöpfung
- (who)
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Xu, Si
Gong Guangming
Gong, Xun
- Event
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Veröffentlichung
- (who)
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Elsevier
- (where)
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Amsterdam
- (when)
-
2017
- DOI
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doi:10.1016/j.cjar.2017.04.001
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Xu, Si
- Gong Guangming
- Gong, Xun
- Elsevier
Time of origin
- 2017
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