What is it about?

This study aims to investigate how opening high-speed railways affects the cost of debt financing based on China’s background.

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Why is it important?

This paper can inform firms and stakeholders about the impact of opening highspeed railways on debt financing cost: it improves the information environment, reduces the geographical location restrictions of debt financing, ensures the reasonable pricing of corporate debt, and thus promotes the healthy and sound development of the debt market.


This paper provides theoretical support and empirical evidence for the impact of infrastructure construction on the information environment of the debt market in China, which enriches the research on the “high-speed railway economy.” In addition, as an exogenous event, the opening of high-speed railways instantly shortens the time distance between firms and external stakeholders, which gives us a natural environment to conduct empirical research, thus providing a new perspective for financial research on firms’ geographical location.

Dean Keping Wu
chaohu university

Read the Original

This page is a summary of: Does opening high-speed railways affect the cost of debt financing? A quasi-natural experiment, China Finance Review International, May 2020, Emerald,
DOI: 10.1108/cfri-06-2019-0083.
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