There exists strong commonality in credit risk across sovereigns [Pan and Singleton (2008); Longstaff, Pan, Pedersen …

unemployment risk. We exploit changes in state unemployment insurance laws as a source of variation in the costs borne by workers …-intensive and financially constrained firms. We estimate the ex ante, indirect costs of financial distress due to unemployment risk …

We document the negative effect of stock liquidity on default risk for a sample of 46 countries. We further find that … default risk declines following the introduction of the Directive on Markets in Financial Instruments (MiFID)—an exogenous … shock that increases liquidity. The effect of liquidity on default risk is more pronounced in countries with poorer investor …

order to apply pricing tools of financial mathematics, one needs to isolate a Gaussian risk factor. A conventional model for … Gaussian variable appears. Earlier work investigated this temperature risk in different locations and showed that neither … accurate fitting procedure of localised temperature risk process by achieving excellent normal risk factors …

, resolving this credit spread puzzle requires credit-market investors, especially those in high-quality debt, to be more risk …

countries over the period from year 1990 to 2008, we find that past dividend payers are more likely to terminate dividends and … political uncertainty, which is consistent with the catering theory of dividends …

countries over the period from year 1990 to 2008, we find that past dividend payers are more likely to terminate dividends and … political uncertainty, which is consistent with the catering theory of dividends …