FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W3131152987> ?p ?o ?g. }

• W3131152987 abstract "Credit default swaps (CDSs) are credit derivatives whose primary purposes include hedging and the trading of credit risks. Unlike other derivatives, such as options or futures, CDSs materially alter lender-borrower relations and thus have real economic effects on the companies referenced by the CDSs. In this thesis, I explore the impact of CDS trading on the cost of capital, corporate capital structure, and corporate social responsibility. First, I use the universe of U.S. public firms to examine the impact of CDS trading on a firm’s cost of capital during the period 2001 – 2018. My results robustly show that the inception of CDSs causes a significant reduction in a firm’s weighted average cost of capital (WACC). Further analyses reveal that highly levered firms tend to reduce their debt weight, while firms with low leverage increase their usage of debt. Moreover, CDS referenced firms adjust their debt types by using more arm-length debts, while they simultaneously decrease the usage of revolving credits and term loans from banks. The alteration in capital financing choices may be ascribed to the improved information environment and reflects the fact that CDS trading increases debt renegotiation costs but simultaneously also reduces capital supply-side frictions.After confirming that CDS can impact firms’ financing decisions, I further investigate whether CDS trading can affect a company’s investment in corporate social and environmental activities. A longitudinal sample spanning from 2002 to 2017 across 11 countries and regions was constructed to evaluate the impact. I find that the inception of CDS trading causes a significant reduction in the metric of environmental emission reduction. In addition, the initiation of CDS trading weakly but negatively influences other aspects of CDS firms’ social and environmental performance. Further analysis reveals that investments in emission reduction activities have no relationship to shareholder value creation, whereas engaging in CSR activities related to, e.g., employee, community, or eco-product innovation, etc., increases shareholder wealth. Collectively, my findings reveal one of the downsides of CDSs arising from CDS-protected lenders who become less accommodating over post-CDS periods." @default.
• W3131152987 created "2021-03-01" @default.
• W3131152987 creator A5002674172 @default.
• W3131152987 date "2020-04-24" @default.
• W3131152987 modified "2023-09-24" @default.
• W3131152987 title "The impact of credit default swaps on corporate capital structure and investment policies" @default.
• W3131152987 cites W1559924327 @default.
• W3131152987 cites W1608818809 @default.
• W3131152987 cites W1738524706 @default.
• W3131152987 cites W1749221881 @default.
• W3131152987 cites W1891479151 @default.
• W3131152987 cites W1920341630 @default.
• W3131152987 cites W1968573787 @default.
• W3131152987 cites W1971354656 @default.
• W3131152987 cites W1974451890 @default.
• W3131152987 cites W1975438597 @default.
• W3131152987 cites W1975637155 @default.
• W3131152987 cites W1978349840 @default.
• W3131152987 cites W1989934726 @default.
• W3131152987 cites W1993987322 @default.
• W3131152987 cites W2000578291 @default.
• W3131152987 cites W2005525451 @default.
• W3131152987 cites W2016293597 @default.
• W3131152987 cites W2023841042 @default.
• W3131152987 cites W2024496989 @default.
• W3131152987 cites W2029427212 @default.
• W3131152987 cites W2032840760 @default.
• W3131152987 cites W2040324527 @default.
• W3131152987 cites W2040595555 @default.
• W3131152987 cites W2042061542 @default.
• W3131152987 cites W2047735993 @default.
• W3131152987 cites W2055324653 @default.
• W3131152987 cites W2057897933 @default.
• W3131152987 cites W2072559981 @default.
• W3131152987 cites W2080467767 @default.
• W3131152987 cites W2081113003 @default.
• W3131152987 cites W2086560845 @default.
• W3131152987 cites W2089210625 @default.
• W3131152987 cites W2105212853 @default.
• W3131152987 cites W2105453506 @default.
• W3131152987 cites W2111635289 @default.
• W3131152987 cites W2114035433 @default.
• W3131152987 cites W2115846503 @default.
• W3131152987 cites W2116542123 @default.
• W3131152987 cites W2118169830 @default.
• W3131152987 cites W2118889105 @default.
• W3131152987 cites W2119551656 @default.
• W3131152987 cites W2123760334 @default.
• W3131152987 cites W2124758339 @default.
• W3131152987 cites W2128614305 @default.
• W3131152987 cites W2129449827 @default.
• W3131152987 cites W2131662168 @default.
• W3131152987 cites W2144470805 @default.
• W3131152987 cites W2146200864 @default.
• W3131152987 cites W2149010029 @default.
• W3131152987 cites W2153784191 @default.
• W3131152987 cites W2155650193 @default.
• W3131152987 cites W2164946207 @default.
• W3131152987 cites W2170790204 @default.
• W3131152987 cites W243941710 @default.
• W3131152987 cites W2471378147 @default.
• W3131152987 cites W2474476572 @default.
• W3131152987 cites W2604705349 @default.
• W3131152987 cites W2605450246 @default.
• W3131152987 cites W2610905157 @default.
• W3131152987 cites W2612907924 @default.
• W3131152987 cites W2766850932 @default.
• W3131152987 cites W2779632026 @default.
• W3131152987 cites W2806363657 @default.
• W3131152987 cites W2810262932 @default.
• W3131152987 cites W2882993812 @default.
• W3131152987 cites W2886812813 @default.
• W3131152987 cites W2963298015 @default.
• W3131152987 cites W3022773787 @default.
• W3131152987 cites W3121131820 @default.
• W3131152987 cites W3121164101 @default.
• W3131152987 cites W3121328534 @default.
• W3131152987 cites W3121857641 @default.
• W3131152987 cites W3121986562 @default.
• W3131152987 cites W3121994643 @default.
• W3131152987 cites W3122037299 @default.
• W3131152987 cites W3122056609 @default.
• W3131152987 cites W3122238417 @default.
• W3131152987 cites W3122250255 @default.
• W3131152987 cites W3122384775 @default.
• W3131152987 cites W3122521598 @default.
• W3131152987 cites W3122638935 @default.
• W3131152987 cites W3122647754 @default.
• W3131152987 cites W3122772247 @default.
• W3131152987 cites W3122934189 @default.
• W3131152987 cites W3122957897 @default.
• W3131152987 cites W3123147400 @default.
• W3131152987 cites W3123163856 @default.
• W3131152987 cites W3123180454 @default.
• W3131152987 cites W3123419065 @default.
• W3131152987 cites W3123486385 @default.
• W3131152987 cites W3123608615 @default.
• W3131152987 cites W3123658255 @default.
• W3131152987 cites W3123675240 @default.
• W3131152987 cites W3123930591 @default.

• next