Credit default swaps and corporate innovation

• Main Authors: Chang, Xin, Chen, Yangyang, Wang, Sarah Qian, Zhang, Kuo, Zhang, Wenrui
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2020
• Subjects: Business::Finance; Credit Default Swaps; Corporate Innovation
• Online Access: https://hdl.handle.net/10356/143478
• Institution: Nanyang Technological University

We show that credit default swap (CDS) trading on a firm's debt positively influences its technological innovation output measured by patents and patent citations. This positive effect is more pronounced in firms relying more on debt financing or being more subject to continuous monitoring by l...