Credit default swap spreads and annual report readability

• Main Authors: HU, Nan, LIU, Ling, ZHU, Lu
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Credit default swap (CDS); Credit risk; Annual report readability; 10-K; Databases and Information Systems; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/sis_research/8038
• Institution: Singapore Management University

This paper investigates whether annual report readability matters to CDS market participants and how it affects their evaluation on a firm's credit risk, as measured by CDS spreads. We find that the less readable the annual reports, the higher the CDS spreads. Furthermore, the impact of readabi...