CDS Trading Initiation, Information Asymmetry, and Dividend Payout

Published Online:https://doi.org/10.1287/mnsc.2022.4337

References

  • Acharya V, Johnson T (2007) Insider trading in credit derivatives. J. Financial Econom. 84:110–141.CrossrefGoogle Scholar
  • Amiram D, Beaver W, Landsman WR, Zhao J (2017) The effects of CDS trading initiation on the structure of syndicated loans. J. Financial Econom. 126:364–382.CrossrefGoogle Scholar
  • Arellano M, Bond S (1991) Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Rev. Econom. Stud. 58(2):277–297.CrossrefGoogle Scholar
  • Ashcraft AB, Santos JA (2009) Has the CDS market lowered the cost of corporate debt? J. Monetary Econom. 56(4):514–523.CrossrefGoogle Scholar
  • Ball R, Bushman R, Vasvari MF (2008) The debt‐contracting value of accounting information and loan syndicate structure. J. Accounting Res. 46(2):247–287.CrossrefGoogle Scholar
  • Bekaert G, Harvey CR, Lundblad C (2005) Does financial liberalization spur growth? J. Financial Econom. 77(1):3–55.Google Scholar
  • Bertrand M, Mullainathan S (2003) Enjoying the quiet life? Corporate governance and managerial preferences. J. Polit. Econom. 111(5):1043–1075.CrossrefGoogle Scholar
  • Bharath S, Dahiya S, Saunders A, Srinivasan A (2011) Lending relationships and loan contract terms. Rev. Financial Stud. 24(4):1141–1203.CrossrefGoogle Scholar
  • Bolton P, Chen H, Wang N (2011) A unified theory of Tobin’s q, corporate investment, financing, and risk management. J. Finance 66(5):1545–1578.CrossrefGoogle Scholar
  • Bolton P, Chen H, Wang N (2013) Market timing, investment, and risk management. J. Financial Econom. 109(1):40–62.CrossrefGoogle Scholar
  • Carrizosa R, Ryan SG (2017) Borrower private information covenants and loan contract monitoring. J. Accounting Econom. 64(2–3):313–339.CrossrefGoogle Scholar
  • Chang X, Chen Y, Wang SQ, Zhang K, Zhang W (2019) Credit default swaps and corporate innovation. J. Financial Econom. 134(2):474–500.Google Scholar
  • Chava S, Roberts M (2008) How does financing impact investment? The role of debt covenants. J. Finance 63:2085–2121.CrossrefGoogle Scholar
  • Christensen H, Nikolaev V, Wittenberg-Moerman R (2016) Accounting information in financial contracting: The incomplete contract theory perspective. J. Accounting Res. 54:397–435.CrossrefGoogle Scholar
  • Danis A (2017) Do empty creditors matter? Evidence from distressed exchange offers. Management Sci. 63(5):1285–1301.LinkGoogle Scholar
  • Demerjian PR, Owens EL (2016) Measuring the probability of financial covenant violation in private debt contracts. J. Accounting Econom. 61(2–3):433–447.CrossrefGoogle Scholar
  • Demirgüç-Kunt A, Maksimovic V (1998) Law, finance, and firm growth. J. Finance 53(6):2107–2137.CrossrefGoogle Scholar
  • DeAngelo H, DeAngelo L, Skinner D (2008) Corporate payout policy. Foundations Trends Finance 3:95–287.CrossrefGoogle Scholar
  • Dichev I, Skinner D (2002) Large-sample evidence on the debt covenant hypothesis. J. Accounting Res. 40:1091–1123.CrossrefGoogle Scholar
  • Faccio M, Lang LH, Young L (2001) Dividends and expropriation. Amer. Econom. Rev. 91(1):54–78.CrossrefGoogle Scholar
  • Fama EF, French KR (2001) Disappearing dividends: Changing firm characteristics or lower propensity to pay? J. Financial Econom. 60(1):3–43.CrossrefGoogle Scholar
  • Floyd E, Li N, Skinner DJ (2015) Payout policy through the financial crisis: The growth of repurchases and the resilience of dividends. J. Financial Econom. 118(2):299–316.CrossrefGoogle Scholar
  • Gopalan R, Nanda V, Yerramilli V (2011) Does poor performance damage the reputation of financial intermediaries? Evidence from the loan syndication market. J. Finance 66(6):2083–2120.CrossrefGoogle Scholar
  • Greenspan A (2004) Economic flexibility. Presentation January 26, 2004, HM Treasury Enterprise Conference, London.Google Scholar
  • Guttman I, Kadan O, Kandel E (2010) Dividend stickiness and strategic pooling. Rev. Financial Stud. 23(12):4455–4495.CrossrefGoogle Scholar
  • Hail L, Tahoun A, Wang C (2014) Dividend payouts and information shocks. J. Accounting Res. 52(2):403–456.CrossrefGoogle Scholar
  • Harford J, Klasa S, Maxwell W (2014) Refinancing risk and cash holdings. J. Finance 69(3):975–1012.CrossrefGoogle Scholar
  • Harvey C, Lins K, Roper A (2004) The effect of capital structure when expected agency costs are extreme. J. Financial Econom. 74(1):3–30.CrossrefGoogle Scholar
  • Hoberg G, Makismovic V (2015) Redefining financial constraints: A test-based analysis. Rev. Financial Stud. 28:1312–1352.CrossrefGoogle Scholar
  • ISDA (2010) ISDA market surveys 1995-2010. Accessed January 15, 2020, https://www.isda.org/2010/06/30/isda-market-surveys-1995-2010/.Google Scholar
  • James C (1987) Some evidence on the uniqueness of bank loans. J. Financial Econom. 19(2):217–235.CrossrefGoogle Scholar
  • Jensen M (1986) Agency cost of free cash flow, corporate finance, and takeovers. Amer. Econom. Rev. 76(2):323–329.Google Scholar
  • John K, Knyazeva A, Knyazeva D (2011) Does geography matter? Firm location and corporate payout policy. J. Financial Econom. 101(3):533–551.CrossrefGoogle Scholar
  • Kaplan S, Zingales L (1997) Do investment-cash flow sensitivities provide useful measures of financial constraints? Quart. J. Econom. 112(1):159–216.CrossrefGoogle Scholar
  • Kim J, Valentine K (2021) The innovation consequences of mandatory patent disclosures. J. Accounting Econom. 71(2–3):101381.CrossrefGoogle Scholar
  • Kim JB, Shroff P, Vyas D, Wittenberg‐Moerman R (2018) Credit default swaps and managers’ voluntary disclosure. J. Accounting Res. 56(3):953–988.CrossrefGoogle Scholar
  • Knyazeva A (2008) Which companies deliver on the dividend promise? New evidence on dividend smoothing and dynamic dividend behavior. Working paper, New York University, New York.Google Scholar
  • Lang LH, Litzenberger RH (1989) Dividend announcements: Cash flow signalling vs. free cash flow hypothesis? J. Financial Econom. 24(1):181–191.CrossrefGoogle Scholar
  • Lee J, Naranjo A, Velioglu G (2018) When do CDS spreads lead? Rating events, private entities, and firm-specific information flows. J. Financial Econom. 130(3):556–578.CrossrefGoogle Scholar
  • Leuz C, Triantis A, Wang TY (2008) Why do firms go dark? Causes and economic consequences of voluntary SEC deregistrations. J. Accounting Econom. 45(2–3):181–208.CrossrefGoogle Scholar
  • Li F, Morgan K, Zaslavsky A (2018) Balancing covariates via propensity score weighting. J. Amer. Statist. Assoc. 113(521):390–400.CrossrefGoogle Scholar
  • Lummer SL, McConnell JJ (1989) Further evidence on the bank lending process and the capital market response to bank loan agreements. J. Financial Econom. 25(1):99–122.CrossrefGoogle Scholar
  • Martin X, Roychowdhury S (2015) Do financial market developments influence accounting practices? Credit default swaps and borrowers’ reporting conservatism. J. Accounting Econom. 59(1):80–104.CrossrefGoogle Scholar
  • Myers S, Majluf N (1984) Corporate financing and investment decisions when firms have information that investors do not have. J. Financial Econom. 12:187–221.CrossrefGoogle Scholar
  • Morrison AD (2005) Credit derivatives, disintermediation, and investment decisions. J. Bus. 78(2):621–648.CrossrefGoogle Scholar
  • Nini G, Smith DC, Sufi A (2009) Creditor control rights and firm investment policy. J. Financial Econom. 92(3):400–420.Google Scholar
  • Qiu J, Yu F (2012) Endogenous liquidity in credit derivatives. J. Financial Econom. 103(3):611–631.CrossrefGoogle Scholar
  • Richardson S (2006) Over-investment of free cash flow. Rev. Accounting Stud. 11(2–3):159–189.CrossrefGoogle Scholar
  • Saretto A, Tookes HE (2013) Corporate leverage, debt maturity, and credit supply: The role of credit default swaps. Rev. Financial Stud. 26(5):1190–1247.CrossrefGoogle Scholar
  • Shan SC, Tang DY, Winton A (2019) Do banks still monitor when there is a market for credit protection? J. Accounting Econom. 68(2–3):101241–101266.CrossrefGoogle Scholar
  • Stulz RM (2010) Credit default swaps and the credit crisis. J. Econom. Perspect. 24:73–92.CrossrefGoogle Scholar
  • Subrahmanyam M, Tang D, Wang S (2014) Does the tail wag the dog? The effect of credit default swaps on credit risk. Rev. Financial Stud. 27(10):2927–2960.CrossrefGoogle Scholar
  • Subrahmanyam MG, Tang YD, Wang SQ (2017) Credit default swaps, exacting creditors and corporate liquidity management. J. Financial Econom. 124(2):395–414.CrossrefGoogle Scholar
  • Sufi A (2007) Information asymmetry and financing arrangements: Evidence from syndicated loans. J. Finance 62(2):629–668.CrossrefGoogle Scholar
  • Tirole J (2006) The Theory of Corporate Finance (Princeton University Press, Princeton, NJ).Google Scholar
  • Wooldridge JM (2010) Econometric Analysis of Cross Section and Panel Data, 2nd ed. (MIT Press, Cambridge, MA).Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.