Brown Bag Seminars
Date: Wednesday, March 6th
Time: 12:00-1:00pm
Location: CSOM L-118
Title: More Cash Flows, More Options? The Effect of Cash Windfalls on Small Firms
Authors: Jacelly Cespedes, Xing Huang and Carlos Parra
Abstract: This paper studies the effect of shocks to firms’ internal resources on business success. We use a new source of variation in cash flows by exploiting the bonus that retailers earn when selling jackpot winning lottery tickets. Increases in firms’ internal resources reduce the probability of survival. The evidence is not consistent with deteriorating credit behavior or owner retirement. Small business owners receiving large cash windfalls are more likely to start new businesses in non-retail industries. This effect becomes stronger when owners reside in low-income ZIP codes or own no real estate assets. Findings highlight importance of considering business owners’ outside options when studying small firms.
Date: Wednesday, March 27th
Time: 12:00-1:00pm
Location: CSOM L-118
Title: Gender Complimentary and the Market Value of the Firm
Authors: Alex Pecora
Title: Effects of banking crises on firms' real and financial quantities
Authors: Christos Kamara
Date: Wednesday, April 3rd
Time: 12:00-1:00pm
Location: CSOM L-118
Title: Capital misallocation and risk sharing" is with Hengjie Ai, Anmol Bhandari and Chao Ying
Authors: Yuchen Chen
Title: Estimating and Testing Investment-Based Asset Pricing Models, with Frederico Belo and Juliana Salomao
Authors: Yao Deng
Title: Information provision of the intermediary with reputation concern
Authors: Fangyuan Yu
Title: Financial Institution Misconduct and the Rise of FinTech
Authors: Keer Yang
Date: Wednesday, April 10th
Time: 12:00pm-1:00pm
Location: CSOM L-118
Title: Do Shocks to Intermediaries' Balance Sheet Impact Aggregate Risk Premium?
Author: Ramin Hassan
Title: Minsky Cycles
Author: Dan Su
Title: Public market's discipline and managers' incentives
Author: Colin Ward and Chao Ying
Abstract: We revisit Jensen’s (1986) manager-investor relationship fraught with conflicting interests over the use of firm resources in a dynamic optimal contracting environment with costly external finance. Managers’ private quest for resource control separates these interests and endogenously creates a role for public markets as a provider of discipline.
Brown Bag Seminars Fall 2019
Wednesday September 4th, 2019
12:30-1:30 PM
CSOM 1-136
Title: Heterogeneous Beliefs and FOMC Announcements
Abstract: This paper studies the effect of FOMC announcements on the dynamics of investors’ beliefs. I document the open interest decreases significantly after FOMC, which implies investors unwind their positions due to less disagreement. To jointly explain the announcement premium and large trading volume dynamics, I develop a general equilibrium model with heterogeneous beliefs under learning. Upon announcements, investors disagree less on the underlying fundamentals and rebalance their portfolios, which leads to both large trading dynamics and asset prices fluctuations.
Presenter: Fangyuan Yu
Title: Rating, incentives, and efficiency
Abstract: I consider a model of rating with both adverse selection and moral hazard. The rating system not only provides information about asset quality to buyers but also provides incentives for the seller to put more effort. I compare the efficiency in single rating scheme with that in a menu of rating schemes (discriminatory ratings where sellers could choose their preferred rating scheme) , and show that efficiency is higher when the menu of rating schemes is allowed, and in this setting, the high type seller is charged with lower rating fee but provided with less precise ratings.
Wednesday September 11th, 2019
12:30-1:30 PM
CSOM 1-143
Title: Financial Institution Misconduct and the Rise of FinTech
Abstract: This paper studies the credit market consequences of financial institution misconduct and the role of trust in the rise of FinTech lending. Using the revelation of Wells Fargo account scandal and court verdicts on bank misconduct cases as exogenous shocks to trust, I show that fraudulent banks’ lending is reduced after the revelation of misconduct. Erosion of trust does not affect non-fraudulent banks’ lending. FinTech lending grows more in communities that were exposed to fraud. Misconduct events have negative effects on local employment and income, but FinTech lending mitigates such adverse effects.
Presenter: Dan Su
Title: The Financial Accelerator of Micro Uncertainty Shocks
Abstract: This paper attempts to introduce a new financial accelerator mechanism: through a finance efficiency channel, a temporary increase in micro-level uncertainty, combined with earnings-based borrowing constraint(EBC), can generate persistently positive impacts on aggregate output. Empirically, I find that a rise in micro uncertainty facilitates capital flowing from low to high productivity firms, which is contrary to the mainstream uncertainty theory. To explain this phenomenon, I use a general equilibrium model in which heterogeneous producers face EBCs. In equilibrium, aggregate productivity is endogenously determined by the net worth share of highly productive firms. EBCs will amplify the impacts of uncertainty on net worth inequality by allowing more productive firms to use more leverage and grow faster. As a result, a transitory micro uncertainty shock can lead to persistent changes in credit allocation efficiency and aggregate productivity. This new financial accelerator mechanism differs from the classic one in three aspects: micro uncertainty instead of aggregate productivity is the primitive shock; financial friction comes from EBCs instead of collateral-based borrowing constraints; and the feedback loops happen between net worth inequality, instead of net worth level, and asset prices.
Wednesday September 18th, 2019
12:30-1:30 PM
CSOM L-110
Details pending.
Wednesday September 25th, 2019
12:30-1:30 PM
CSOM 1-114
Details pending.
Wednesday October 02nd, 2019
12:30-1:30 PM
CSOM L-110
Details pending.