The effects of credit default swaps on corporate investment

被引：5

作者：

Hong, Jieying ^{[1
,2
]}

Wang, Na ^{[3
]}

机构：

[1] Beihang Univ, Sch Econ & Management, Beijing, Peoples R China

[2] ESSEC Business Sch, Singapore, Singapore

[3] Hofstra Univ, Frank G Zarb Sch Business, Hempstead, NY 11550 USA

来源：

EUROPEAN JOURNAL OF FINANCE | 2021年 / 27卷 / 03期

关键词：

Credit default swaps; corporate investment; bank monitoring; empty creditor; costly external capital; CASH HOLDINGS; RISK; UNCERTAINTY; DEBT; DERIVATIVES; GOVERNANCE; IMPACT; COSTS;

D O I：

10.1080/1351847X.2020.1806092

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This paper examines how credit default swaps (CDS) affect the corporate investment of the referenced entities. We document a significant reduction in corporate investment after CDS trading, a result that is robust to alternative model specifications and a set of endogeneity tests. Our findings of the increased firm risk and cost of capital support the costly external capital channel. The cross-sectional variations in CDS effects demonstrate that both reduced monitoring and the empty creditor problem might be the underlying forces driving the costly external capital channel. Our additional analysis implies that CDS trading is associated with an enhancement in investment efficiency for firms that are prone to overinvestment.

引用

页码：260 / 277

页数：18

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