We develop a theoretical model quantifying how firm-level pandemic exposure and sentiment, as informational shocks, affect a firm’s credit spread and default risk. Consistent with model predictions, we find significantly positive impacts on single-name credit default swap (CDS) spreads from...

Using a sample of bank loans to firms operating in the Greek tourism sector, and regional variation of tourism activities to identify the strategic defaulted firms, we examine the impact of bank consolidation on the firms’ payment behavior. We show that a merger-induced impairment of the...