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Agarwal, Sumit; Chomsisengphet, Souphala; Liu, Chunlin - In: The analytics of risk model validation, (pp. 1-12). 2008

Persistent link: https://www.econbiz.de/10003868664

Collateral pledge, sunk-cost fallacy and mortgage default

Agarwal, Sumit; Green, Richard K.; Rosenblatt, Eric; … - In: Journal of financial intermediation 24 (2015) 4, pp. 636-652

Persistent link: https://www.econbiz.de/10011526286

How Does Financial Literacy Affect Mortgage Default?

Agarwal, Sumit - 2017

This paper uses a dataset from one of the leading subprime lenders in America, containing detailed information on borrower and loan characteristics, finds that borrowers from the financial industry, who have higher financial literacy, are less likely to default. This effect cannot be explained...

Persistent link: https://www.econbiz.de/10012971816

Collateral Pledge, Sunk-Cost Fallacy and Mortgage Default

Agarwal, Sumit - 2014

Individuals and firms pledge collateral to mitigate agency costs or contracting frictions in a world with asymmetric information. However, the option value theory suggests that once the mark-to-market asset valuation is below the current debt, the firms and individuals should default on their...

Persistent link: https://www.econbiz.de/10013052915

Reducing strategic default in a financial crisis

Agarwal, Sumit; Mikhed, Vyacheslav; Scholnick, Barry; … - 2021

Persistent link: https://www.econbiz.de/10012744669

Reducing Strategic Default in a Financial Crisis

Agarwal, Sumit; Mikhed, Vyacheslav; Scholnick, Barry; … - 2021

We document that increasing penalties for default reduces strategic default in financial crises by exploiting the 2009 changes to Canadian consumer insolvency regulations. Our novelty is that the incentives from increasing penalties for default operate in the opposite direction from incentives...

Persistent link: https://www.econbiz.de/10013321871

Bankruptcy Exemptions, Garnishment Laws and Consumer Default Behavior : An Empirical Analysis of Credit Card Data

Agarwal, Sumit - 2005

whether consumer propensity for formal and informal bankruptcy changes with respect to the exemption levels those resident … reveals that loose garnishment and property laws encourage informal bankruptcy and loose homestead and property laws encourage … formal bankruptcy. The results show a certain degree of substitutability between formal and informal bankruptcy. The …

Persistent link: https://www.econbiz.de/10012784764

Second liens and the holdup problem in mortgage renegotiation

Agarwal, Sumit; Amromin, Gene; Ben-David, Itzhak; … - 2014

When borrowers are delinquent, senior debtholders prefer liquidation whereas junior debtholders prefer to maintain their option value by delaying resolution or modifying the loan. In the mortgage market, a conflict of interest (“holdup”) arises when servicers of securitized senior liens are...

Persistent link: https://www.econbiz.de/10010353293

Earnings management behaviors under different economic environments : evidence from Japanese banks

Agarwal, Sumit; Chomsisengphet, Souphala; Liu, Chunlin; … - In: International review of economics & finance : IREF 16 (2007) 3, pp. 429-443

Persistent link: https://www.econbiz.de/10003613164

Thy neighbor's mortgage : does living in a subprime neighborhood affect one's probability of default?

Agarwal, Sumit; Ambrose, Brent William; Chomsisengphet, … - In: Real estate economics : journal of the American Real … 40 (2012) 1, pp. 1-22

Persistent link: https://www.econbiz.de/10009522929