Using the Troubled Asset Relief Program (TARP) as a laboratory, this paper examines the impacts of bank bailouts on bank-dependent clients. We find that large TARP recipient banks reduce credit supply to dependent borrowers in the post-TARP period. Such effect is more pronounced when recipient...

One of the most contentious issues raised during the recent crisis has been the potentially exacerbating role played by mark-to-market accounting. Many have proposed the use of historical cost accounting, promoting its ability to avoid the amplification of systemic risk. We caution against...

We find that increases in lending by Japanese Government Owned Bank (GOB) during the crisis in early 1990's had a strong incremental impact on firm level investment, especially for credit constrained firms. Firms have better future accounting performance when their investment is associated with...

Our study leverages detailed résumé data of bank regulators to examine the impact of their early-career experiences with the S&L crisis during the 1980s and 1990s on banking supervision in their later careers. We find regulators with banking crisis experiences in their early careers are...

We document that an increased likelihood of losing important stakeholders like key talents can lead to a higher stock price crash risk. Our test exploits U.S. state courts’ staggered rejections of the inevitable disclosure doctrine (IDD), which improves the ability of key talent to switch...