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Three Essays In Finance, Liying Wang
Three Essays In Finance, Liying Wang
Theses and Dissertations
This dissertation is composed of three essays on corporate credit markets and corpo- rate finance. The first essay examines the impact of unconventional monetary policies (UMPs), including Quantitative Easing (QE), Operation Twist (OT), and Forward Guidance (FG), on corporate credit markets. These policies were expected to reduce credit spreads by decreasing credit risk premium and/or liquidity premium, and to further lengthen borrowing maturity. During the crisis, Quantitative Easing (QE) 1 reduced these risk premia as expected. However, after the crisis, QE 2 and Oper- ation Twist announcements increased fears of a weaker economy and, consequently, widened credit spreads. In contrast, …