Seminar (Dept. of Finance)

Title: Regulatory Enforcement of Public Disclosure and Connected Investors in Corporate Bond Issuance

Speaker: Ding Yi, Assistant Professor, SME, CUHK(Shenzhen)

Time: 10:00-11:30, March 29, 2024(Friday)

Venue: Room 1008, Mingde Business Building

Language: Chinese / English

ABSTRACT:

Using a proprietary dataset of bond allotment in China, we find that bond regulators’ comment letters (CLs) on the issuers’ public disclosures negatively affect the completion of the issuance. However, among the bonds that are issued successfully, we find that connected investors—financial institutions with a prior business relationship with the issuers—increase their bond purchases, which mitigates the CLs’ negative effect on the bond issuance. Further analyses show that the connected investors’ increase in bond purchases is motivated by both their superior private information about the CL recipients and a quid pro quo relationship with the CL recipients.

SHORT BIOGRAPHY:

Yi Ding is Assistant Professor of Finance in the School of Management and Economics, The Chinese University of Hong Kong, Shenzhen. He joined the university in 2015. His research interests center on China's bond market, international capital market, and corporate disclosure. He has published papers in Journal of Financial Economics, Journal of Banking and Finance and etc.