We examine stock and bond market reactions to the key events leading to the passage of the Dodd-Frank Act to provide empirical evidence on the economic impact of the Act on systemically important financial firms. Using large foreign financial institutions and small/medium sized domestic...

This study examines how product market peers affect lending relationships. We contend that firms are more likely to borrow from a bank that has previously lent to a peer, to mitigate information asymmetry with the bank when potential information processing efficiencies are greater (i.e.,...

We examine the commitment effect provided by mandatory disclosure and the information effect of voluntary disclosure on market illiquidity by exploring a regulatory change that allows smaller reporting companies to reduce the disclosure of certain information in their SEC filings. This regime...

In this study, we examine the interplay between public environmental enforcement and private lender monitoring and its effects on borrowers’ environmental activities. To capture lender environmental monitoring, we use environmental covenants in loan agreements that require borrowers to take...

We examine whether bank connections via common mutual fund ownership serve as a contagion channel affecting the systemic risk of the banking system. Examining this relation is important because common mutual fund ownership has increased dramatically over the past 20 years, and a buildup of...

We examine whether bank connections via common mutual fund ownership serve as a contagion channel affecting the systemic risk of the banking system. We first document that the extent of a bank’s connection with other banks via common ownership increases its contribution to systemic risk. We...

Motivated by bank regulators’ use of level 3 fair value assets as an indicator for systemic risk, we examine whether level 3 fair value assets contribute to systemic risk buildup via the balance sheet liquidity channel and how financial reporting transparency mitigates the risk buildup. We...