Credit default swaps and firm risk
研究了信用违约互换（CDS）交易启动后如何降低企业风险，发现空头债权人渠道是主要影响机制，对金融创新与企业行为的关系有启示。
Abstract This study investigates how initiating a credit default swap (CDS) affects firm risk. Using the firm value volatility as a measure of firm risk, we document that firm risk decreases following the commencement of CDS trading. Further analysis indicates that the empty creditor channel, which arises when a debt holder with CDS protection has no interest in preserving the company it provides funds, is the primary way of influence. Our findings reveal a significant impact of financial innovation on a firm's behavior. We also document that market frictions affect the degree of such effect.