Third-Party Certification in New Issues of Corporate Tax-Exempt Bonds: Standby Letter of Credit and Bond Rating Interaction
研究银行作为备用信用证发行方在公司免税债券市场中的认证作用，发现市场对信用证的使用及银行质量有积极反应，且评级机构是传递银行认证效应的主要渠道。
This paper expands the commercial bank certification literature by examining the role of banks as issuers of standby letters of credit in the corporate tax-exempt debt market. While considerable evidence for such a role is observed in the equity markets, little has been done to focus on the debt markets. The certification influence of the bank is confirmed as the market reacts positively to not only the employment of the letter of credit but also the quality of the bank providing this form of credit enhancement. The results also substantiate the role of the rating agency as the principle means by which the bank certification effect is transmitted to the market.