Recently, a research paper co-authored by Associate Professor Yanhui WANG from the School of Accounting, Associate Professor Renhui FU from Shanghai Jiao Tong University, Associate Professor Fang GAO from Donghua University, and Professor Bohui ZHANG from the School of Management and Economics at The Chinese University of Hong Kong, Shenzhen, titled “Bond market liberalization and corporate investment”, has been published online in  Journal of International Business Studies, the the top-tier international journal.

This paper explores the impact of bond market liberalization on corporate investment. The study finds bond market liberalization constrains corporate investment. Channel analyses reveal that this effect operates through tighter bond covenants, higher reputation costs, and increased litigation risk imposed by foreign bondholders. Consistent with a governance-based interpretation, the investment-reducing effect is more pronounced among firms with weaker governance structures, including fewer independent directors and less effective internal control systems. Importantly, the decline in investment is concentrated in overinvestment rather than value-enhancing projects, indicating that foreign bondholders discipline managerial empire-building without inducing excessive conservatism. Correspondingly, firms experience lower default risk, reduced credit spreads, and higher firm value following liberalization. Overall, our findings highlight the distinct, non–ownership-based governance role of foreign debtholders and suggest that bond market liberalization can foster efficiency and financial stability in emerging markets characterized by relatively weak domestic institutions. Overall, the paper highlights the non-ownership governance role of foreign creditors, demonstrating that bond market opening helps improve resource allocation efficiency and financial stability in emerging markets.

Journal of International Business Studies is widely recognized as a premier academic journal in the field of international business (a UTD24 journal), with high academic reputation and influence. This achievement marks the 11th research publication by the School of Accounting in top-tier international journals in recent years, significantly contributing to enhancing the international academic visibility and voice of the university and its accounting discipline.

【Faculty Profile】

Yanhui WANG is an Associate Professor at the School of Accounting, Dongbei University of Finance and Economics. She earned her Ph.D. from Shanghai Jiao Tong University. Her research interests include accounting and capital markets. Her work has been published in Journal of International Business Studies, Journal of Business, Finance & Accounting, Accounting Research.