@inbook{b6a061f5fbf045679a48ed184b312cc3,
title = "Ride on Past? Evidence from Corporate Bond Offering Price Persistence",
abstract = "This chapter presents evidence of persistence in pricing new corporate bond issues. Both transition matrix and regression analyses show that cross-sectional differences in the yields of initial public bond offerings across issuers persist over time, and the persistence effect is stronger for firms with no rating changes, less frequent bond issuance, and higher information asymmetry. Our findings support the hypothesis of the “ride on past” behavior and confirm the value of information production accumulated from the past bond issuances for the pricing of newly issued bonds.",
keywords = "Transition matrix, persistence, bond offering, information production, yield spread, information asymmetry",
author = "Haoyu Gao and Ruixiang Jiang and Chunchi Wu and Xiaoguang Yang",
note = "Research Unit(s) information for this publication is provided by the author(s) concerned.",
year = "2021",
doi = "10.1108/S2514-465020210000009004",
language = "English",
isbn = "978-1-80043-871-2",
series = "Advances in Pacific Basin Business, Economics and Finance",
publisher = "Emerald Publishing Limited",
pages = "107--135",
editor = "CHENG-FEW LEE and MIN-TEH YU",
booktitle = "ADVANCES IN PACIFIC BASIN BUSINESS, ECONOMICS AND FINANCE",
address = "United Kingdom",
}