Quotation Halling, Michael, Yu, Jin, Zechner, Josef. 2020. How Did COVID-19 Affect Firms' Access to Public Capital Markets? Research Seminar, Naples, 17.04.20




We find that bond issues increased substantially since the onset of the COVID-19 crisis in calendar week 12 (March 16-20) for bonds rated A or higher, but surprisingly also for bonds rated BBB or lower. In contrast to existing evidence on bond maturities in economic downturns, we document that maturities exceed those of bonds issued before by the same firms as well as the average maturities during normal times. Determinants of corporate bond spreads differ substantially between COVID-19 and normal periods. Most prominently, asset tangibility has a highly significant negative effect on spreads during normal times. In the COVID-19 period this is reversed, especially in industries heavily affected by lock-down measures, reflecting the inflexibility associated with fixed assets. A different picture emerges for equity issues, which slowed considerably during the first four weeks of the pandemic before accelerating again. Capital raised during COVID-19 via equity issues is approximately 5% of capital raised via bond issues.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Unpublished lecture
Language English
Title How Did COVID-19 Affect Firms' Access to Public Capital Markets?
Event Research Seminar
Location Naples
Event country Italy
Date April 17, 2020
URL https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3596114
JEL G01, G32


Zechner, Josef (Details)
Halling, Michael (Stockholm School of Economics, Sweden)
Yu, Jin (Monash University, Australia)
Institute for Finance, Banking and Insurance IN (Details)
Research Institute for Capital Markets FI (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5305 Bank management (Details)
5307 Business and management economics (Details)
5358 Corporate finances (Details)
5361 Financial management (Details)
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