In recent years, China has been trying to promote the development of the bond market. The report on the Party's 20th National Congress clearly states that we would improve the function of the capital market and increase the proportion of direct financing. As an important direct financing channel, China's corporate bond market has developed gradually after the continuous reform and improvement of the issuance and trading system. Wind bond data shows that since 2018, the amount of corporate bond issuance has surpassed the amount of stock financing and become one of the most important financing methods in China's securities market. However, the problem of information asymmetry between the borrowing parties still affects the corporate bond financing. High-speed rail (HSR) can improve the information environment by compressing time-space distance, alleviating the information asymmetry between bond issuers and stakeholders (e.g., investors), which may impact the issuance of corporate bonds. Using the introduction of HSR as an exogenous shock to the information environment and information-acquisition costs, this study systematically investigates the impact of HSR introduction on corporate bond issuance decision, issuance pricing, and issuance efficiency. The main research conclusions are as follows:

Firstly, after the introduction of HSR, there are fewer corporate bonds issued by local companies. Specifically, non-listed companies issue more corporate bonds, while listed companies issue fewer. The impact of HSR on the issuance of corporate bonds may be attributed to the information improvement effect. Investors identify the quality of bond issuance after obtaining sufficient information and improve the efficiency of their investment decisions. Consistent with this logic, this thesis finds that after the introduction of HSR, corporate bonds issued by large companies and companies with high credit ratings among non-listed companies have increased significantly, while those issued by small companies and companies with low credit ratings have not. In addition, non-listed companies with opaque financial information and non-state-owned enterprises (non-SOEs) have also increased corporate bond issuance. The financing preference effect also affects corporate bond issuance. This thesis finds that listed companies and SOEs with more financing channels have significantly fewer corporate bond issuance after the introduction of HSR. Some companies chose bank loans following HSR introduction. Further analysis reveals that HSR-connected cities issue more corporate bonds, and information environment improvement can promote regional corporate bond issuance. The evidence presented above demonstrates that by improving the information environment, HSR alleviates the problem of information asymmetry between corporate bond issuers and investors, which helps improve the efficiency of investment decision-making, optimize the choice of financing methods, and promote regional corporate bond issuance.

Secondly, after the introduction of HSR, the issuance costs and issuance efficiency of corporate bonds are improved significantly. Theoretically, HSR introduction can improve the information environment and reduce the information-acquisition costs for stakeholders such as investors, and thus reducing the information risks and credit risks associated with corporate bond issuance. The introduction of HSR may reduce the issuance costs of corporate bonds and improve their issuance efficiency. Consistent with this logic, this thesis finds that the yield spread of corporate bond issuance is significantly lower following HSR introduction, indicating that HSR significantly reduces the financing costs of corporate bonds in these regions. Further analysis reveals that the yield-spread reduction effect of the HSR introduction is more significant when corporate bonds are issued by private-placement type, non-listed companies, non-listed SOEs, small-size companies, and low-reputation issuers and underwriters. Due to the sample structure encompassing a wide range of private-placement bonds and non-listed companies, this thesis reveals for the first time that the issuance costs of private-placement bonds, non-listed companies, and non-listed SOEs are significantly lower after HSR introduction. The introduction of HSR also affects the issuance efficiency of corporate bonds. This thesis finds that the issuance lag of corporate bonds is significantly shorter following HSR introduction, indicating that the issuance efficiency of corporate bonds has been significantly improved. This effect is significantly stronger among SOEs.

This is the first paper that systematically studies the impact of HSR introduction on corporate bond issuance behavior, issuance costs, and issuance efficiency. The results show that the improvement of information environment and the reduction of information-acquisition costs can help alleviate the degree of information asymmetry between investors and issuers, thereby improving the efficiency of investment decision-making, optimizing the choice of financing methods, promoting regional corporate bond issuance, and improving the issuance costs and efficiency of corporate bonds. The study provides further supplement and development for the theory of information asymmetry of corporate bond issuance. The research conclusions have strong theoretical, political, and practical implications for understanding the economic effects of transportation infrastructure and the influencing factors of corporate bond issuance decision, issuance pricing, and issuance efficiency.