I examine the effect of product market competition on the yield spread of corporate bonds. I find that firms that face more competitive threats also face a higher cost of corporate bond debt. After controlling for common bond‐level, firm‐level, and macroeconomic variables, my results show that bondholders of firms that are subject to increased competition demand significantly higher credit spreads than holders of otherwise similar bonds. Furthermore, this effect is more pronounced for firms that have assets that are difficult to redeploy. Overall, my findings provide evidence that competitive threats are being reflected in corporate debt prices.

中文翻译：

---

企业债券和产品市场竞争

我研究了产品市场竞争对公司债券收益率传播的影响。我发现面临更大竞争威胁的公司也面临着更高的公司债券债务成本。在控制了常见的债券级别，公司级别和宏观经济变量之后，我的结果表明，竞争加剧的公司的债券持有人比其他类似债券的持有者要求更高的信用息差。此外，对于资产难以重新部署的公司，这种影响更为明显。总体而言，我的发现提供了证据，表明企业债务价格已反映出竞争威胁。