Title: INFLUENCE 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 shows significant movements. This should increase demand for bonds from investors, but based on surveys it turns out that there was a decline in demand for bonds in 2012. This research uses the yield spread as an indicator used to measure bond risk because the yield spread can reflect the risk of company failure. Therefore, the yield spread is highly considered by investors when investing in a company. This research 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 research results show that the variables company liquidity and age do not have a significant effect on the yield spread, while the variables leverage, maturity, coupon, issue size, maturity and company performance have a significant effect on the yield spread.
Keywords: corporate internal liquidity, yield spread, controlled well-known variables
Sources: http://repository.unair.ac.id/37034/
