We apply text analysis to Twitter messages in Spanish to build a sentiment- based risk index for the financial sector in Mexico. We classify a sample of tweets for the period 2006-2019 to identify messages in response to positive or negative shocks to the Mexican financial sector. We use a...

We apply sentiment analysis to Twitter messages in Spanish to build a sentiment risk index for the financial sector in Mexico. We classify a sample of tweets from 2006-2019 to identify messages in response to a positive or negative shock to the Mexican financial sector, relative to merely...

We investigate whether cross-country differences in the legal system influence demand-sidecredit constraints. We explore the notion of discouraged borrowers — firms that choose notto apply for bank credit because they anticipate rejection. Employing survey data from 46economies, we find that...

Despite the acknowledged importance of agent banking, limited research explains ground-level practices and challenges backed by data. Based on extensive fieldwork spanning approximately 1000 person-days across 301 locations, this report aims to advance the understanding of India's agent banking...

We examine how banks respond to large natural disasters when corporate borrowers are located in the neighborhood of the disaster area. We find robust evidence that banks charge significantly higher loan spreads for firms located in the neighborhood of the disaster area than for remote firms. The...

We investigate whether the textual sentiment affects European depositors’ behavior to withdraw their deposits. Following Loughran and McDonald (2011) methodology, we construct two textual sentiments able to capture the perceived uncertainty. Our findings suggest that a high frequency of...

Impact investing has great potential to contribute to achieving the Sustainable Development Goals by financing the growth of social sector organizations. This paper conducts a systematic literature review to develop cumulative insights into impact investing in social sector organizations. It...

I examine the impact of corporate Environmental, Social, and Governance (ESG) profiles on the formation of lending relationships between firms and banks, and the implications of this matching for loan pricing. I find that high ESG firms are more likely to receive a bank loan, and their loans...

Bank stability depends critically on the ability to connect and retain customers amid negative shocks. This study proposes a novel measure of accumulated customer capital at the branch level. In a within bank-county estimation, we exploit reputation damage as exogenous negative shocks to...

We implement a lab-in-the-field experiment with 334 Turkish loan officers to document gender discrimination in small business lending and to unpack the mechanisms at play. Each officer reviews multiple real-life loan applications in which we randomize the applicant's gender. While unconditional...