Abstract
This paper investigate the impact of Credit Default Swaps (CDSs) trading on the cost of bank loan during 2001 to 2012. Theoretically, the CDS trading have lowered the cost of bank loan to firms by creating risk sharing opportunities and reducing bank monitoring and information cost. However, as a whole, we only find limited evidence that the CDS trading have lowered the cost of bank loan but the impact is stronger for smaller firms, those firms with higher liquidity in the CDS market, and bank loan market in Asia. Nevertheless, there is strong evidence, during the recent financial crisis period, those firms with CDS trading faced higher bank loan spread than those not with CDS trading.
| Translated title of the contribution | CDS交易對公司取得銀行放款成本的影響 |
|---|---|
| Original language | English |
| Pages (from-to) | 291-322 |
| Number of pages | 32 |
| Journal | 中山管理評論 |
| Volume | 24 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - Jun 1 2016 |
Keywords
- 信用違約交換
- 貸款利率
- 流動性
- Credit Default Swaps
- Loan Spread
- Liquidity