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Credit markets and financial information

Author

Listed:
  • Stephen Lok

    (BlackRock)

  • Scott Richardson

    (London Business School)

Abstract

The last decade has seen rapid growth in trading of credit instruments on secondary markets. The ensuing availability of a rich set of credit market data has created a novel environment for testing a variety of financial economic theories. In this discussion, we provide a simple framework for linking asset pricing research using equity and credit market data and offer some suggestions for future archival empirical research aiming to establish relations between financial information and credit markets. Credit instruments are intrinsically linked to equity instruments. The strength of this link varies temporally and cross-sectionally in measurable ways that can, and should be, used to guide future empirical research linking information to credit markets.

Suggested Citation

  • Stephen Lok & Scott Richardson, 2011. "Credit markets and financial information," Review of Accounting Studies, Springer, vol. 16(3), pages 487-500, September.
    • Handle: RePEc:spr:reaccs:v:16:y:2011:i:3:d:10.1007_s11142-011-9147-6
    DOI: 10.1007/s11142-011-9147-6
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    References listed on IDEAS

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    Cited by:

    1. Maria Correia & Scott Richardson & İrem Tuna, 2012. "Value investing in credit markets," Review of Accounting Studies, Springer, vol. 17(3), pages 572-609, September.

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    More about this item

    Keywords

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    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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