Insider ownership, governance mechanisms, and corporate bond pricing around the world

• The study shows that insider ownership positively relates to corporate bond spreads. Shareholder rights negatively moderate the positive ownership-spread relation. Insider probability of related-party transactions. is associated with ROA. Bondholders appear anticipate greater facilitates consumption private benefits. We investigate effect on yield spreads from 2003 2014 using a sample 10,460 bonds issued by 1,222 non-financial firms 44 countries. Using this sample, we find average higher spread. consider benefits as an economic channel through which hurts bondholders. global index shareholder rights, observe association between and spread decreases for relatively stronger in less likely occur. Furthermore, report more transactions larger whereas their accounting return assets weaker, ceteris paribus. Taken together, results indicate bondholders benefits, implications valuation debt.