We examine the effect of voluntary climate risk disclosure on Credit Default Swap (CDS) premiums. We develop a structural model, in which climate-related disclosures serve as an information source reducing climate change uncertainty. The model predicts a negative relation between the informativeness of climate risk disclosure and the CDS premium, and asymmetric effects of positive and negative disclosure tone on the CDS premium. Using climate risk measures quantified from earnings call transcripts, we provide evidence supporting these predictions with causal inference. Our study suggests that climate risk is priced in the CDS market, where investors pay attention to climate risk disclosures.

We analyze how corporate direct investments in fintech startups affect startup performance and that of investing firms. Corporate investment in fintech startups is associated with a greater likelihood of successful exit, more and higher-quality innovation, and a greater inflow of high-quality inventors. A stacked difference-in-differences analysis shows that direct investments enhance the operating performance and equity-market valuation of corporate investors in the financial services sector, but not those in the nonfinancial sector. We establish two channels that drive fintech startups’ performance improvements: strategic alliance formation between investors and startups, and enhanced startup monitoring by corporate investors.