Publication:
Boosting Data Transparency: A Shared Incentive for Borrowers and Investors

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dc.contributor.authorKubota, Megumi
dc.date.accessioned2025-02-05T17:13:16Z
dc.date.available2025-02-05T17:13:16Z
dc.date.issued2025-02-05
dc.description.abstractThis paper shows that enhancing data transparency can help increase sovereign bond returns in countries with medium to higher levels of institutional quality. Bond returns are lower in countries with high levels of debt. However, the findings from the fixed effect instrumental variables for panel data analysis highlight that enhancing data transparency can mitigate the negative impact of debt even in a highly indebted country. The novelty of the study is that it examines the relationship between sovereign bond returns and data transparency, and then calculates the benefits accrued by external creditors from improved data transparency in the borrowing country. The determinants differ from the those of sovereign bond spreads. The paper also introduces S&P sovereign credit ratings and total reserves as additional explanatory variables. There are thresholds beyond which data transparency has a positive impact on bond returns. The estimated threshold effect levels show that a country needs to have an International Country Risk Guide score greater than 4.15 in logs for international creditors to reap the benefits from enhancing data transparency.en
dc.identifierhttp://documents.worldbank.org/curated/en/099316502042538802/IDU11ba22ec2144f11424e19bc219be5ad88b35f
dc.identifier.doi10.1596/1813-9450-11054
dc.identifier.urihttps://hdl.handle.net/10986/42762
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11054
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectECONOMIC DATA TRANSPARENCY
dc.subjectTHRESHOLD EFFECTS
dc.subjectINVESTORS' BENEFIT
dc.subjectINSTITUTION
dc.subjectSOVEREIGN BOND RETURNS
dc.subjectCREDIT RATINGS
dc.titleBoosting Data Transparencyen
dc.title.subtitleA Shared Incentive for Borrowers and Investorsen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-02-05
okr.date.lastmodified2025-02-04T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099316502042538802/IDU11ba22ec2144f11424e19bc219be5ad88b35f
okr.guid099316502042538802
okr.identifier.docmidIDU-1ba22ec2-44f1-424e-9bc2-9be5ad88b35f
okr.identifier.doi10.1596/1813-9450-11054
okr.identifier.externaldocumentum34452800
okr.identifier.internaldocumentum34452800
okr.identifier.reportWPS11054
okr.import.id6496
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099316502042538802/pdf/IDU11ba22ec2144f11424e19bc219be5ad88b35f.pdfen
okr.region.geographicalWorld
okr.topicInternational Economics and Trade::Foreign Direct Investment
okr.topicInternational Economics and Trade::External Debt
okr.topicMacroeconomics and Economic Growth::Economic Adjustment and Lending
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitOffice of the Chief Economist (AFECE)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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