Author(s): Siyuan Chen
Based on an event study, this paper analyses two main causes of the 2007/8 Global Financial Crisis (GFC) - the Sub-prime mortgage and Credit Default Swap (CDS). According to the recording data and historical research, the over-packed sub-prime mortgage can be the epicentre of the 2007/8 financial crisis. The unbefitting issue of CDS, simultaneously, acted as a catalyser which exacerbated it to a larger extent of deterioration. An essential contribution of this study is to provide suggestions for listed companies to resist systemic risks with adjustments on their further crisis strategies.