A Comprehensive Approach to Determinants of Bond Yields for School Districts: The roles of states and school districts in lowering bond yields

This study examines the impacts of both state-imposed fiscal institutions and method of sale on yields of serial bonds issued by independent school districts in the U.S. Findings show that state-imposed binding expenditure limit, debt limit, balanced-budget, supermajority referendum, full disclosure, and GAAP requirement help the school districts to have lower yields while binding revenue limit, state audit, and credit enhancement program do not. In addition, yields will be lower at the school districts that use competitive sales. With these results, this study comprehensively discusses the role of both states and school districts in lowering borrowing costs.