Reaction of the credit default swap market to the release of periodic financial reports

Maryam Akbari Nasiri, Paresh Kumar Narayan, Sagarika Mishra

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Abstract

This paper studies the reaction of the CDS market to the release of periodic financial reports. The results show that periodic financial reports contain valuable information for the CDS market. This finding supports the value relevance of accounting information for the CDS market. We also find that the reaction of the CDS market to the information content of periodic financial reports is with delay. This implies that the limited attention phenomenon characterizes the CDS market.

Original languageEnglish
Article number101383
Number of pages12
JournalInternational Review of Financial Analysis
Volume65
DOIs
Publication statusPublished - Oct 2019
Externally publishedYes

Keywords

  • CDS market
  • Form 10-K (annual reports)
  • Form 10-Q (quarterly reports)
  • Limited attention
  • Periodic financial reports

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