Title: THE EFFECT OF COMPANY LIQUIDITY RISK ON BOND YIELD SPREAD
Author: EKA LESTARI HAFQI PUTRI
Affiliations : Master of Management Science Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
The development of the Indonesian bond market has shown significant movement. This should increase investor demand for bonds, but a survey revealed a decline in bond demand in 2012. This study uses the yield spread as an indicator to measure bond risk because it can reflect the risk of corporate failure. Therefore, the yield spread is a significant consideration for investors when investing in a company. This study aims to analyze the effect of liquidity on the yield spread during the 2008-2010 period using control variables such as leverage, maturity, coupon, issue size, age, maturity, and company performance. The results show that company liquidity and age variables do not significantly influence the yield spread, while the variables of leverage, maturity, coupon, issue size, maturity, and company performance significantly influence the yield spread.
Keywords: corporate internal liquidity, yield spread, controlled well-known variables
Sources: http://repository.unair.ac.id/37034/