Deng, L., Jiang, P., Li, P. et al. (1 more author) (2023) Media Coverage and Bond Covenants: Evidence from China. British Journal of Management. ISSN 1045-3172
Abstract
Existing studies on bond covenants have focused primarily on firm-level factors and have largely overlooked the influence of the external environment, including the media. Furthermore, previous research on media coverage has failed to consider its impact on the bond market. This study attempts to fill these gaps by examining the impact of media coverage on bond covenants for a sample of Chinese corporate bonds from 2007 to 2017. Our findings reveal a negative relationship between media coverage and the number of bond covenants. Further analysis demonstrates that this negative impact is more pronounced for non-state-owned firms, in highly competitive industries, and in regions with a weak legal environment. Additionally, media coverage with a non-negative tone leads to a reduction in the number of bond covenants. Notably, government-controlled media exerts a more significant influence than market-oriented media on bond covenants. Furthermore, both media coverage and bond covenants contribute to lower debt costs and are found to be interchangeable in their effects. Our analysis is robust to corrections for the endogeneity of the relationship between media coverage and bond covenants.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 British Academy of Management. This is the peer reviewed version of the following article: Deng, L., Jiang, P., Li, P. and Zhu, W. (2024), Media Coverage and Bond Covenants: Evidence from China. Br. J. Manag., which has been published in final form at https://doi.org/10.1111/1467-8551.12790. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 10 Jan 2024 10:33 |
Last Modified: | 10 Jan 2024 10:33 |
Status: | Published online |
Publisher: | Wiley-Blackwell |
Identification Number: | 10.1111/1467-8551.12790 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:207363 |
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