Certain nonrecurring circumstances associated with the passage of the Financial ServicesModernization Act of 1999 have created a unique opportunity for the market to obtainbank examination ratings of management quality. We utilize this natural experiment in order to determine how the market...

Certain nonrecurring circumstances associated with the passage of the Financial Services Modernization Act of 1999 have created a unique opportunity for the market to obtain bank examination ratings of management quality. We utilize this natural experiment in order to determine how the market...

Investment analysts require information on potential losses from contingent liabilities such as litigation expenses. However, revelation of the firm's private estimates of the probability of loss and possible legal damages can be detrimental to the firm by encouraging litigation and increasing...

In contrast to the literature involving U.S. bank lending domestically to U.S. firms, we find that affiliated U.S. banks' mutual funds do not increase their holdings of equity in non-U.S. borrowing firms around new loan initiations. Mutual funds affiliated with lending banks have less equity...

Analyzing a hand-collected loan level database of heterogeneous REIT borrowings and controlling for REIT risk and loan collateral as well as endogeneity of access to public debt markets, we find that mortgage loans include a rate premium to compensate banks for monitoring. Access to public debt...

In this paper, we utilize a hand gathered, bank specific database covering the period 1993 to 2007 to empirically examine the reactions of individual Japanese banks to governmental policies designed to end Japan's financial crisis. Our unique database allows us to examine the composition of...

We show that social networks (Facebook connections) impact both the demand for and supply of consumer and small business loans originated on lending marketplaces. Loan demand increases substantially with past borrowing activities of geographically distant but socially connected areas, with an...

Using equity returns on all banks (across 28 countries) that ever issued contingent convertiblecapital securities (CoCos), we identify a “CoCo-induced collapse option,” that apparently was exercised during the March 2023 failure of Credit Suisse. Reflecting this option’s value, abnormal...