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...

We study how lenders respond to excessive optimism in the corporate sector. Our identification relies on plausibly exogenous variation in optimism across areas in Italy. We document that firms in optimistic areas hold favorable views about their own business, and that they are more likely to...

Although psychometric features have been considered for alternative credit scoring, they have not yet been applied to peer-to-peer (P2P) lending because such information is not available on platforms. This study proposed an alternative credit scoring model for P2P lending by extracting typical...

Crowdfunding appears to be an innovative way of fundraising various projects. Although it is a relatively new and unique way of financing, competition for potential backers increases every year. While recent works have explored the role of engagement and involvement in crowdfunding, there is...

Information technology (IT) is meant to improve bank performance by lowering operational costs and improving the process of financial intermediation of banks. However, the empirical evidence has failed to reach a consensus on the precise effects of IT on bank performance as some find evidence to...

This study skims the much debatable issue of customer satisfaction (quality matching expectations) in the banking system, as for banks are the main actors of the Albanian financial system. In fact, the customer satisfaction in the banking sector is an important criterion for customer to...

In this paper, we provide first empirical evidence that peer effects matter for banks' deposit demand. We construct a novel measure that depicts for each county how exposed peers are to a specific bank in a given year. This granularity allows us to tightly identify the causal effect of peer...

Using the construct of “expected loss” component of loan loss provisions as a measure of expectations, we document evidence of departure from rational expectations for the U.S. banking sector. We find that, on average, banks tend to overreact to currently observed loan losses and make...

This paper extends a quantitative medium-scale New-Keynesian DSGE model with financial intermediaries to account for shocks to investor confidence. Shocks of this nature manifest themselves as per period changes to financial intermediaries' leverage ratios. A Bayesian MCMC approach is utilized...

We contend that economic preferences over risk-taking in different subnational regions worldwide affect fundamental aspects of firms’ corporate financing, namely financing costs and capital structure. We study this hypothesis, by hand-matching firms’ regions worldwide with the corresponding...