The study looked at what factors affect credit spreads on corporate bonds in Australia. They used data on credit default swaps and found that both credit risk and liquidity influence credit spreads. Factors like firm leverage, market value, and volatility also play a role. The study showed that liquidity has a bigger impact on credit spreads than credit risk itself. Additionally, variables like the slope of the yield curve and the performance of the stock market can affect credit spreads. The researchers used a method to address potential biases in their analysis.