... debt default risk using the Differences-in-Differences method with the sample of listed firms in China from 2011 to 2022. Findings (1) CSL effectively mitigates debt default risk. (2) CSL significantly decreases debt default risk by reducing operational risk, alleviating financing constraints...

... that managerial myopia increases the expected default probability through operational risk and opportunistic agency channels. Third, the cross-sectional tests reveal that the positive association is less pronounced for firms with effective internal control systems, higher audit quality and more financial analyst...