This study extends the Grullon, Michaely and Swaminathan (2002) analysis by incorporating default risk. Using data for … firms that either increased or initiated cash dividend payments during the 23-year period 1986-2008, we find reduction in … default risk. This reduction is shown to be a priced risk factor beyond the Fama and French (1993) risk measures, and that it …

Data breaches may affect firms' future performance, financial stability, and risk profiles, thus potentially resulting … in increased credit risk. Using firm-level credit ratings and credit default swap (CDS) spreads to proxy for credit risk …, we find that data breaches lead to increases in firm credit risk. Firms exposed to data breaches are more likely to …

stock crash risk is supported by multiple approaches, including propensity score matching and entropy balancing analysis …

covered bonds are secured and backed by collateral. Our results show that collateral reduces the total risk in individual … significantly lower level of systematic risk. However, the fraction of systematic risk to total risk is higher for covered bonds. By … decomposing the variance of bond returns, we find that around 33% of the risk in senior bonds is systematic, versus 53% in covered …

We document the negative effect of stock liquidity on default risk for a sample of 46 countries. We further find that … default risk declines following the introduction of the Directive on Markets in Financial Instruments (MiFID)—an exogenous … shock that increases liquidity. The effect of liquidity on default risk is more pronounced in countries with poorer investor …