id	author	title	date	pages	extension	mime	words	sentences	flesch	summary	cache	txt
cord-352016-d2dvdzb1	Zhang, Xiaoqian	Marketization vs. market chase: Insights from implicit government guarantees	2020-06-27		.txt	text/plain	7414	532	62	Abstract Local Government Financing Vehicles (LGFVs) and state-owned enterprises (SOEs) provide implicit guarantee during the issuing of bonds, thereby reducing their funding cost. This paper provides strong evidence that the implicit government guarantee does exist and -3-reduces the funding costs by exploring bonds' credit spreads. In this period, the government tightened the regulations on LGFVs. Figure 2 shows the revolution of the tightening regulation on China's LGFVs. As the non-standard municipal corporate crisis happened in 2011, and the first SOE bond Baoding Tianwei defaulted in April 2015, the market began to explore the value of implicit government guarantee (Jin et al. Column (3) shows that the coefficient of ImGovGuarantee is significantly negative, which proves that the spread of state-owned corporate bonds with implicit government guarantees is averagely 1.074% lower. We find strong evidence that government guarantee reduces the funding cost by examining the credit spread of corporate bonds in China.	./cache/cord-352016-d2dvdzb1.txt	./txt/cord-352016-d2dvdzb1.txt