We find that higher stock lending fees predict significantly lower future returns after controlling for shorting demand for U.S. stocks during the period 2007–2010. These results suggest that active institutional investors on the supply side play an important role in the return predictability...

This study provides novel evidence about the functioning of the centralized and the OTC stock lending markets in Japan, and show that in general the OTC market has a superior role in promoting pricing efficiency. In the subsample where the OTC market supply is limited, the centralized market...

This study provides new insights about less regulated nonbank lenders, major originators of risky subprime mortgages prior to 2008. We document significant cross-sectional variations in lending practices and show that nonbank lenders who entered the industry via less-regulated states are...

We examine changes in lending behavior in response to the Federal Reserve's requirement to disclosure of loan pricing information implemented in 2004 for depository and nondepository residential lending institutions. We find that although subprime approval rates generally increased after 2004 as...