Despite the growing international importance of Chinese economy, the currency risk of Chinese firms has received little attention. This paper documents Chinese exporters are exposed to significant currency risk to ASEAN countries and firms in three industries are adversely affected when Yuan...

In this paper, we examine whether the onset of credit default swaps (CDSs) affects a firm's executive compensation. The availability of CDSs allows lenders to transfer credit risk, but not control or monitoring rights, to CDS sellers. Hence, CDS-protected lenders' incentives to monitor borrowing...