Uji Empirik Crowding Out Surat Utang Pemerintah dan Korporasi di Pasar Modal Indonesia

Financing government budget deficit through emission of government bonds may create a crowding out in corporate bond market. Crowding out caused the cost of funds incurred by the corporation to be expensive so the corporate bond market is stagnant and banks become the only major source of funding. Sources of funding that are so dependent on the banking sector could threaten financial stability and the country's economy as a whole because of the banks’ systemic risk. Default of a bank not only can influence other banks but also can have a serious impact on the national economy. This research empirically examine the phenomenon of crowding out in Indonesia with a fixed effect model of panel data FGLS and show existence of crowding out, where the yield spread tends to rise when the government issued new debt securities. But the rise in the yield spread was more due to the increase in Credit Default Swaps (CDS) spreads which reflect the default risk of Indonesia, as well as showing the influence of foreign investors in the Indonesian capital market which is strongly influenced by CDS.

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An Empirical Investigation Of The Persistence Of Stock And Bond Return Seasonality

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v16i2.2037 ◽

2011 ◽

Vol 16 (2) ◽

Cited By ~ 1

Author(s):

Angeline M. Lavin

Keyword(s):

Stock Returns ◽

Bond Market ◽

Corporate Bond ◽

Corporate Bond Market ◽

Average Return ◽

Bond Returns ◽

Bond Return ◽

The Government ◽

Using Data ◽

Return Seasonality

The purpose of this paper is to investigate the persistence of seasonality in stock and bond returns using data from 1926 to 1992. This study finds evidence of seasonality in stock returns during the 1926-92 period.  Dividing the data into sub-periods yields the following results: there was no evidence of stock market seasonality from 1926 to 1940, seasonality increased between 1941 and 1975 and then diminished slightly from 1976 to 1992. Specifically, the average January return was found to be significantly different than the average return in the other eleven months of the year.  Seasonality was found in the high-quality end of the corporate bond market during the 1966-78 period, but there was no evidence of seasonality in the government bond market.

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MULTIVARIATE ANALYSIS OF SHORT AND LONG-IMPACT INDICATORS FOR CORPORATE BOND MARKET DEVELOPMENT

Business Management and Education ◽

10.3846/bme.2016.318 ◽

2016 ◽

Vol 14 (1) ◽

pp. 116-135

Author(s):

Ieva ASTRAUSKAITĖ

Keyword(s):

Capital Market ◽

Banking Sector ◽

Bond Market ◽

Corporate Bond ◽

Market Development ◽

Corporate Bond Market ◽

Performance Development ◽

Long Term Impact ◽

The Capital Market

An additional instrument or established access to the capital market funding would increase business opportunities for performance, development, growth, channeling financing for sustainable and long-term economic growth and job creation. Capital market and its level of development or further development opportunities are exposed to different factors. Clear identification of them mobilizes the attention of accurate and useful decisions or actions influencing the expected results, their adoption and implementation, monitoring. With the purpose to identify a set of factors influencing the capital market deve lopment as well as to introduce a model of their short term and long term impact projections, the ARDL model for the US and Lithuanian cases is introduced. The concluding remarks state on different legal and regulatory framework, banking sector and ICT measures exposures to the different stages of the corporate bond market development.

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The Theory and Empirics of Financial Development in the East Asian Bond Markets

Vienna Journal of East Asian Studies ◽

10.2478/vjeas-2014-0003 ◽

2014 ◽

Vol 5 (1) ◽

pp. 45-76

Author(s):

Thomas Kemetmüller

Keyword(s):

Financial Crisis ◽

Financial Development ◽

Global Financial Crisis ◽

East Asian ◽

Bond Market ◽

Corporate Bond ◽

Bond Markets ◽

Government Bond ◽

Corporate Bond Market ◽

The Government

Abstract The Asian financial crisis marked a turning point in financial development in East Asia that brought the development of bond markets within the focus of policy-makers. This paper tracks the benefits of an advanced bond market, the current state of the East Asian corporate and government bond markets and their rapid evolution since the Asian crisis. Subsequently, a multivariate model is used to determine the endogenous economic and institutional factors that drove growth in the region’s bond markets. The following findings may be noted: (1) growth in the government bond market was driven by the monetary sterilisation efforts of East Asian central banks in order to cope with excessive liquidity, (2) the government bond market may crowd out the corporate bond market, and (3) the corporate bond market grew particularly strongly during the global financial crisis.

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Liquidity in Asian Financial Markets: Crowding Out or Spillover Effect

Applied Finance Letters ◽

10.24135/afl.v9i2.251 ◽

2020 ◽

Vol 9 (SI) ◽

pp. 90-102

Author(s):

Sonal Thukral ◽

Rahul Sikka

Keyword(s):

Stock Market ◽

Spillover Effect ◽

Bond Market ◽

Market Liquidity ◽

The Other ◽

Corporate Bond ◽

Crowding Out ◽

Corporate Bond Market ◽

Stock Market Liquidity ◽

The Impact

The paper attempts to explore the relationship between the stock market and the corporate bond market, with a focus on the inter-dependency of liquidity between the two markets. The study employs a panel dataset to assess the impact of stock market liquidity on the corporate bond market liquidity for top five Asian economies (ranked by GDP) for the period 2008-2017. In contrast to limited number of earlier studies that reported a spillover effect of liquidity among the markets for stock and government bonds, the results of the present study convey that an increase in stock market liquidity tends to eat up the liquidity of the corporate bonds, even after controlling for government bond yield and inflation rate changes. The findings indicate a crowding out effect instead of a spillover effect, as indicated by related studies. The ‘flight-to-quality’ argument provides one possible explanation of liquidity moving away from one market to the other. This has an implication that if regulators’ policies are focused in developing only one type of market, it may crowd out the liquidity and the development of the other market. The study suggests the government to focus more on corporate bond market, which is yet to flourish in the Asian markets as compared to its stock market counterparts. The paper is one of the few attempts that focus on the corporate bond market and its liquidity and aims to ignite a debate on the possible linkages between liquidity of corporate bond market and the stock market.

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The Corporate Bond Market Crises and the Government Response

FEDS Notes ◽

10.17016/2380-7172.2769 ◽

2020 ◽

Vol 2020 (2769) ◽

Author(s):

Steven A. Sharpe ◽

◽

Alex X. Zhou ◽

Keyword(s):

Bond Market ◽

Corporate Bond ◽

Corporate Bond Market ◽

Government Response ◽

The Government

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Is government borrowing crowding out long term debt resources

International Journal of Emerging Markets ◽

10.1108/ijoem-05-2017-0171 ◽

2018 ◽

Vol 13 (6) ◽

pp. 1719-1731 ◽

Cited By ~ 1

Author(s):

Tanzeem Hasnat ◽

Shahid Ashraf

Keyword(s):

Interest Rate ◽

Yield Curve ◽

Bond Market ◽

Corporate Bond ◽

Crowding Out ◽

Content Type ◽

Corporate Bond Market ◽

Debt Market ◽

The Interest Rate

Purpose The purpose of this paper is to empirically investigate the possibility of financial crowding out in the long-term debt market in India taking the corporate bond market as a proxy. Design/methodology/approach The study follows a two-pronged approach. First, it tests the corporate bond market sensitivity to interest rate, along with other determinants like commercial bank credit and government securities size using the autoregressive distributed lag approach. These are considered instrumental in the development of a long-term debt market. Second, it tests if the interest rate changes are fiscal deficit (FD) induced using Granger causality framework. Findings It finds evidence of both the interest rate sensitivity of the corporate bond market and the interest rates to be FD induced, thereby empirically validating the possibility of financial crowding out in the Indian debt market segment. Research limitations/implications Based on the results, it seems that any deviation from the path of fiscal prudence can prove dear in the development of the corporate bond market. Also, the banking sector is overexposed to the risks it is not geared to handle, given by the serious asset-liability mismatches and contraction it leads in the market debt, like the corporate bond market. The government securities market could be further developed, which would provide a cue to corporate segment further and also a benchmark yield curve. Originality/value The study adds to the very limited literature on the corporate bond market in India, especially in the empirical domain and possibly is the first attempt to empirically explore the aspect of financial crowding out with reference to corporate bond market.

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