Abstract
This paper investigates the relationship between underwriter strength and bond issue credit spreads in China. We find that: underwriter strength affects bond issuance credit spreads. The stronger the underwriter, the smaller the bond issuance credit spreads and the lower the bond issuance cost; in terms of the mechanism of action, the underwriters can influence bond issuance credit spreads by influencing the bond credit ratings, i.e., the bond credit ratings play the role of the intermediary variable; the underwriter's strength reduces the bond issuance credit spread to a greater extent when the nature of the bond's ownership is a non-state-owned enterprise.
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