Social Capital and the Municipal Bond Market

2016 ◽  
Author(s):  
Pei Li ◽  
Leo Tang ◽  
Bikki Jaggi
Keyword(s):  
Social Capital ◽  
Bond Market ◽  
Municipal Bond

Social Capital and the Municipal Bond Market

2016 ◽  
Vol 153 (2) ◽  
pp. 479-501 ◽  
Author(s):  
Pei Li ◽  
Leo Tang ◽  
Bikki Jaggi
Keyword(s):  
Social Capital ◽  
Bond Market ◽  
Municipal Bond

Revitalizing Municipal Bond Market : The Case of Total Bond Limits Policy

2019 ◽  
Vol 17 (1) ◽  
pp. 175-195 ◽  
Author(s):  
Il Hwan Chung ◽  
◽  
Eung Gil Kim
Keyword(s):  
Bond Market ◽  
Municipal Bond

Investing with Futures in the Municipal Bond Market—Part I

1988 ◽  
Vol 1988 (1) ◽  
pp. 42-46, 62-64
Author(s):  
William A. Trader
Keyword(s):  
Bond Market ◽  
Municipal Bond

scholarly journals Trading Activity and Price Volatility in the Municipal Bond Market

2002 ◽  
Vol 2002 (39) ◽  
pp. 1-30
Author(s):  
Chris Downing ◽  
◽  
Frank X. Zhang
Keyword(s):  
Price Volatility ◽  
Bond Market ◽  
Municipal Bond ◽  
Trading Activity

Does financial advisor quality improve liquidity and issuer benefits in segmented markets? Evidence from the municipal bond market

2018 ◽  
Vol 30 (4) ◽  
pp. 440-458
Author(s):  
Kenneth Daniels ◽  
Jack Dorminey ◽  
Brent Smith ◽  
Jayaraman Vijayakumar
Keyword(s):  
Bond Market ◽  
Current Data ◽  
Financial Advisors ◽  
Municipal Bond ◽  
High Quality ◽  
Regression Estimate ◽  
Content Type ◽  
Financial Advisor ◽  
Revenue Bonds ◽  
The Impact

Purpose Using a unique sample of about 563,000 competitively bid municipal revenue bonds with financial advisors issued during the period 1998–2012, the purpose of this paper is to examine the role and influence of financial advisor quality in the municipal bond market. Design/methodology/approach The authors use a sample of about 563,000 competitively bid municipal revenue bonds with financial advisors issued during the period 1998–2012. The authors estimate a selection model where the authors identify the factors leading to the selection of a high-quality financial advisor. The authors then, using the inverse mills ratio from the first regression, estimate the association of high-quality advisor (and other factors) with the cost of borrowing. Findings The results suggest that high-quality financial advisors provide a credible signal to market participants about issue and issuer quality. This signal translates to a greater number of bids for issues that use high-quality financial advisors, resulting in improved liquidity and lower borrowing costs for these issues. The results also show that the beneficial effects obtained by using higher quality financial advisors are prevalent across all categories of issues such as for refunding and non-refunding issues, and for both insured and non-insured issues. The benefits are also generally observed for issues of most size categories. The results also suggest that the passage of the Dodd–Frank Act requiring mandatory registration of financial advisors and enhanced scrutiny has only increased the benefits to issuers from using higher quality financial advisors. Originality/value This paper differs from previous research in several important ways. First, the study is, to the authors’ knowledge, the first study that explores the relationship between financial advisor quality and liquidity in the municipal sector. The authors show using higher quality financial advisors enhances liquidity for the issues by attracting a significantly large number of bids. Second, the sample is exclusively comprised of competitively bid revenue issues all of which rely on financial advisors. This enables us to examine more unambiguously the influence of financial advisor quality, without the confounding effects of issues without financial advisors. Third, time coverage (1998–2012) and size of the sample (roughly 563,000 bond issues) enables us to conduct varied sub-sample analyses with greater power since the resulting sub-sample partitions themselves are of very large size. This provides better and additional insights into the role of financial advisor quality. The more current data when compared to prior research enables us to examine the impact of financial advisor quality inter-temporally with special attention devoted to the period after passage of the Dodd–Frank Act.

Developing a Government Reporting Taxonomy

2016 ◽  
Vol 30 (2) ◽  
pp. 49-81 ◽  
Author(s):  
Neal M. Snow ◽  
Jacqueline L. Reck
Keyword(s):  
Financial Reporting ◽  
Municipal Government ◽  
Financial Statements ◽  
Bond Market ◽  
Empirical Approach ◽  
Municipal Bond ◽  
Data Accessibility ◽  
Public Companies ◽  
Private Investors ◽  
Over Time

ABSTRACT The municipal bond market is a $3.7 trillion market with approximately 75 percent of the market held by private investors (SEC 2012). Municipal bondholders and potential buyers do not have the same level of information as those investors choosing to invest in public companies. This inequity is, in part, the result of poor data accessibility. Frequently the data provided are in a format that does not allow easy comparison across governments or over time. To increase comparability and consistency in government reporting we build a government financial reporting taxonomy using the empirical approach. The completed taxonomy has 194 terms that cover financial statements filed by municipalities. Expert analysts and preparers in government reporting reviewed the completed taxonomy. This study has implications for the municipal reporting market and those entities that regulate them by providing a validated municipal government financial reporting taxonomy.

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