Abstract: Breaking the“rigid payment”of the bond market is an important measure of China’s financial market reform. This paper conducts a study based on the data of the listed companies from 2008 to 2021 and the difference-in-difference model. The findings show thatwhen the“rigid payment”of the bond market is broken, the level of enterpriserisk information disclosure will be significantly lowered. This negative effect is more significant among the enterprises with weaker implicit government guarantee capacity, with insufficient regional financial resources, with lower credit rating, or without third-party guarantee. The impact of the breaking of the“rigid payment”in the bond market on the internal mechanism of the bond-issuing enterprises to reduce risk information disclosure is realized through increasing the negative sentiment of investors and intensifying the financing constraints of enterprises, thus improving the motivation of enterprise information manipulation. The results of the economic consequence reveals that when the“rigid payment”is broken, although enterprises’ reducing the risk information disclosure will reduce the costs of corporate debt financing, the abnormal volatility of the capital markets will be intensified, which goes against the capital market stability. Therefore, efforts should be made to improve the bond risk hedging mechanism, to build a market-oriented credit mechanism, and to strengthen the supervision of enterprise text information, so as to alleviate the credit impact of the breaking of“rigid payment”on the market.

Key words: "rigid payment", risk information disclosure, financing cost, market stability