Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/279822 
Erscheinungsjahr: 
2023
Schriftenreihe/Nr.: 
New Working Paper Series No. 338
Verlag: 
University of Chicago Booth School of Business, Stigler Center for the Study of the Economy and the State, Chicago, IL
Zusammenfassung: 
We study the effect of official statement textual complexity on municipal borrowing costs (yield) through the clientele channel. Theoretically, complexity reduces signal quality for unsophisticated investors, potentially increasing yield. We provide causal evidence of an economically significant complexity-yield premium that is especially large for issues with greater tax-induced exogenous demand from unsophisticated investors or less complementary information from rating agencies. We decompose complexity into multiple topics and find that "legal complexity" matters most for the complexityyield premium. Despite this premium, complexity has been trending upward across all credit categories. This trend is attributable to increased regulatory enforcement from the SEC.
Schlagwörter: 
municipal bonds
disclosure
complexity
textual analysis
clientele
JEL: 
G12
G14
G18
H74
Dokumentart: 
Working Paper

Datei(en):
Datei
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