Assistant professor Gu Xuan of our school and Professor Oskar Kowalewski of French IESEG Management School cooperated a paper named Creditor Rights and the Corporate Bond Market and found the relationship between creditor protection and the development of corporate bond markets. This paper has been accepted by Journal of International Money and Finance, which is world’s leading journal in finance, and will be published in the near future.

Law and finance literature reveals: legal origin affect a country's creditor protection and shareholders' rights, thereby affecting the bank's credit and stock market development in a country; the stock market in the common law countries are more developed than civil law countries, banks credit tend to be more developed in civil law countries. But there is a gap in the field of research about the relationship between the development of the bond market and the law.

Based on data from 42 countries in the paper, Gu Xuan and her co-workers found that the corporate bond market is more developed than the stock markets in countries whose creditor protection is stronger. However, the stock market and the protection of shareholder rights, but the relationship is not significant. Financial reform of the role of capital market structure is more dependent on investor protection and information disclosure in a country. Systemic banking crisis, the corporate bond market is more likely to get short-term growth. This paper fills the gaps in the research of relationships between law and the development of corporate bond market.