We use fair value adoption as a quasi-natural experiment to examine the effect of hard information on credit supply through a contracting channel. After fair value adoption, usage of financial covenants depending on capital-based fair value treatments significantly declined. Capital-based...

When lenders gain control rights in technical default, they influence corporate operating decisions. We develop a novel measure of operational risk-taking that utilizes industry-specific data on corporate operations. Using a regression discontinuity design, we find that borrowers reduce...

I identify the effects of personal relationships on loan contracting using executive deaths and retirements at other firms as a source of exogenous variation in executive turnover. After plausibly-exogenous turnover, borrowers choose lenders with which their new executive's have personal...

We propose that extrapolative beliefs about earnings announcement (EA) returns may contribute to our understanding of EA return patterns. We construct a theoretically-motivated measure of extrapolative investors' expectations based on a stock's recent history of EA returns. We then show that...

I characterize cosyndication relationships between lead banks and syndicate participants and identify their effects on borrowing capacity during the recent financial crisis. Cosyndication relationships are persistent and reduce bank-bank information asymmetries as measured by retained share....

To estimate the expected cost of technical default for equityholders, we analyze the stock market reaction to changes in the ex-ante likelihood of technical default. Our large-sample, ex-ante estimates exceed five percent of equity value, which reflects material monetary and risk consequences of...

We provide causal evidence of the deposits channel of monetary policy transmission in a newsetting, but show that bank entry can reduce or even reverse the relationship between depositmarket structure and monetary policy pass-through. We build a simple model of monetary policytransmission when...

We present three findings on the effects of environmental regulation on the municipal bond market. First, yields increase (decrease) after a new standard is proposed (finalized), consistent with the resolution of regulatory uncertainty. Second, around annual compliance announcements, yields fall...