measure their impact on the credit default swap (CDS) market. Risk disclosures can either increase or decrease credit spreads …We use BERT, an AI-based algorithm for language understanding, to decipher regulatory climate-risk disclosures and …

We study whether climate transition risk is reflected in the credit default swap (CDS) spreads of firms. Using … risk (CTR) factor, and document how this factor shifts the term structure of the CDS spreads of more vulnerable firms but … that they have asymmetric and significant economic impacts on the credit risk of more vulnerable firms, and negligible …

-implied credit risk across various time horizons. Findings show that firms with higher GHG emissions have higher CDS spreads at all … exposure to transition risk for a firm across different time horizons. However, it fails to account for a company's efforts to … to risk-differentiate ETS-participating firms from other firms. …

We examine the effect of voluntary climate risk disclosure on Credit Default Swap (CDS) premiums. We develop a … structural credit risk model, in which climate-related disclosures serve as an information source reducing uncertainty about … climate risks. The model predicts a negative relation between the informativeness of climate risk disclosure and the CDS …

disclosure choices. CDSs enable lenders to hedge their credit risk exposure, weakening their incentives to monitor borrowers. We … disclosure when (1) lenders have higher ability and propensity to hedge credit risk using CDSs, and (2) lender monitoring …

Using Credit Default Swap spreads, we construct a forward-looking, market-implied carbon risk factor and show that … carbon risk affects firms' credit spread. The effect is larger for European than North American firms and varies … to carbon risk when market-wide concern about climate change risk is elevated. Finally, lenders expect that adjustments …

information to the credit default swap (CDS) market. Prior studies largely focus on the amount of risk disclosures and provide …This paper examines whether the tone of corporate textual disclosures related to risk and uncertainty conveys relevant … inconclusive evidence on the usefulness of risk disclosures for investors in assessing firm risk. Using a large sample of textual …

We investigate the externality influence of credit default swap (CDS) trading on management forecasting activity when … to CDS-referenced customers. In a test employing a measure of ex ante litigation risk, we find consistent evidence that … when litigation risk increases, the negative relationship between revenue derived from CDS-referenced customer firms and …

This study examines the potential risk reducing benefits of credit default swaps (CDS) against risk in U.S. stock … effective hedge against risk in all stock sectors. CDS also provide a safe haven in times of extreme stock market volatility and …