Corporate strategy aggressiveness and bond credit spreads

Abstract

This paper investigates the impact of corporate strategy on corporate bond credit spreads and the mechanism of action, using corporate bonds issued by A-share companies during 2004–2021 as the research sample for empirical analysis. It is found that the degree of aggressiveness of corporate strategy has a significant positive impact on bond credit spreads; corporate firms with aggressive strategies take higher levels of risk and have greater credit risk, thus making bond credit spreads more extensive; the improvement of accounting information quality can significantly mitigate the impact of aggressive strategies on credit spreads.