Erik J. Mayer ♦ Consolidation in the United States banking industry has led to larger banks. I find that low income households face reduced access to credit when local banks are large. This result appears to stem from large banks’…
Tim Loughran and Bill McDonald ♦ In business research, firm size is both ubiquitous and readily measured. Complexity, another firm-related construct, is also relevant, but difficult to measure and not well-defined. As a result, complexity is less frequently incorporated in empirical…
Benjamin Golez, Antonino Emanuele Rizzo, and Rafael Zambrana ♦ Do asset managers engage in friendly investing to obtain privileged investment information? We test this hypothesis in the context of mutual fund connections to financial groups. Using brokers as the source of connections,…
Alan Kwan, Chen Lin, Vesa Pursiainen, and Mingzhu Tai ♦ Banks’ IT capabilities affect their ability to serve customers during the COVID-19 pandemic, which generates an unexpected and unprecedented shock that shifts banking services from in-person to digital. Amid mobility…
Shiyang Huang, Yang Song, and Hong Xiang ♦ We document and explain the sharp performance deterioration of smart beta indexes after the corresponding ETFs are launched for investment. While smart beta is purported to deliver excess returns through factor exposures, the market-adjusted…
Tri Vi Dang, Wei Li, and Yongqin Wang ♦ We use the 2015 Chinese stock market crash to study the effects of government stock purchases. The Chinese government purchased stocks to stabilize the markets through state-owned financial institutions known as the “National…
