This paper examines sovereign ceiling violations (SCVs) in credit default swap (CDS) markets, whereby private sector firms have lower CDS spreads relative to their sovereign counterparts with equal contractual terms. Using 5-year CDS spreads on 2,364 companies in 54 countries during 2004-2011,...

Corporate managers often invest in activities that are deemed to be socially responsible. In some instances, these investments enhance shareholder value. However, in other cases, altruistic managers or managers who privately benefit from the positive attention arising from these activities may...

We examine the global geography and pricing of the syndicated loan market using a sample of more than 13,000 loan packages issued to 4,713 firms headquartered across 10 countries during the 1998 to 2004 sample period. Our results provide insights into the relative importance of information...

This paper finds that firms with large asset opaqueness problems are more likely to receive split bond ratings from Moody's and Samp;P rating agencies, split rated bonds and bond with more opaque assets are more likely to have rating changes in the future. These results imply a causal link...

This paper examines the sources of cross-country comovement of momentum returns over the 1975-2002 period. Using data on more than 16,000 individual firms across 100 industries from 38 countries, we document the profitability of momentum trading strategies using individual firm returns, industry...

An important group of traders in the foreign exchange market are governments who often adhere to a foreign exchange rate policy of occasional interventions with otherwise floating rates. In this paper, we provide a theoretical model and empirical evidence that government foreign exchange...

We document that stock return momentum strategies earn 20% more per year among firms with strong alignment in their past equity and credit returns than firms with diverging returns across these two markets. Using structural Q-theory, we show information in both equity and credit from the full...

This paper examines the ability of firms to overcome cross-country borrowing barriers through foreign asset connections. We find that firm-level foreign assets are an important mechanism in reducing the boundary between borrowers and lenders and thereby enhancing capital access in the syndicated...

This paper highlights the adverse consequences of sluggish credit rating updates in creating information efficiency distortions and investment anomalies. We first document significant credit default swap (CDS) return momentum yielding 7.1% per year. We further show that cross-market momentum...

We document that stock return momentum strategies earn 20% more per year among firms with strong alignment in their past equity and credit returns than firms with diverging returns across these two markets. Using structural Q-theory, we show information in both equity and credit from the full...