재무연구 제 권 호 (2022년 11월)
Asian Review of Financial Research, Vol., No..
pp.84~114
pp.84~114
Refinancing Risk, Liquidity, and the Underpricing of Newly Issued Bonds
Ju Hyun Kim School of Business Ajou University Suwon, Korea
Heungju Park SKK Business School Sungkyunkwan University Seoul, Korea
Kyojik Song SKK Business School Sungkyunkwan University Seoul, Korea
This study examines the effect of refinancing risk and liquidity before bond offering date on the underpricing of newly issued corporate bonds. Using a sample of U.S. corporate bond seasoned offerings, we find that the refinancing risk increases the initial returns of corporate bond offerings, while the liquidity before bond offering date decreases the underpricing of corporate bonds. The relationship between pre-liquidity and the initial returns is pronounced for firms with high refinancing risk and costly external financing.
Ju Hyun Kim
Heungju Park
Kyojik Song
This study examines the effect of refinancing risk and liquidity before bond offering date on the underpricing of newly issued corporate bonds. Using a sample of U.S. corporate bond seasoned offerings, we find that the refinancing risk increases the initial returns of corporate bond offerings, while the liquidity before bond offering date decreases the underpricing of corporate bonds. The relationship between pre-liquidity and the initial returns is pronounced for firms with high refinancing risk and costly external financing.
Corporate bond market,underpricing,refinancing risk,liquidity
