Technological Progress and Ownership Structure

The Decline of Big-Bank Lending to Small Business: Dynamic Impacts on Local Credit and Labor Markets

Good Booms, Bad Booms Credit booms are not rare; some end in a crisis (bad booms) while others do not (good booms). We document that credit booms start with an increase in productivity growth, which subsequently falls faster during bad booms. We develop a model in which a crisis happens Read more…

Do ETFs increase the commonality in liquidity of underlying stocks? We examine the impact of ETF ownership on the commonality in liquidity of the stocks held by ETFs, while controlling for the ownership by other institutional investors. Our results indicate that ETF ownership significantly increases the liquidity commonality on account Read more…

Accelerator programs and the Regional Supply of Venture Capital Investment We examine the impact of seed accelerator programs-fixed-term, cohort-based educational and mentorship programs for startups-on the seed and early stage financing ecosystem of the regions in which they locate. We use a difference-in-differences approach that utilizes the staggered introduction of Read more…

Speculation Sentiment I provide a novel and direct test that shows speculative trades push asset prices away from fundamentals. I form the Speculation Sentiment Index using observable arbitrage trades in levered exchange traded funds (ETFs). Arbitrage activity originates from demand shocks that create relative mispricing between an ETF and its Read more…

Politicizing Consumer Credit Using proprietary credit bureau data, we find that consumers’ access to credit decreases by 4.5% - 8% when the borrower’s home-state U.S. Senator becomes the chair of a powerful Senate committee. The reduction in credit access mostly affects historically credit-constrained consumers (low income, non-white, and borrowers with Read more…

Innovation and Informed Trading: Evidence from Industry ETFs We hypothesize that industry exchange traded funds (ETFs) encourage informed trading on underlying firms through facilitating the hedge of industry-specific risks. We find that the industry ETF membership increases hedge funds’ abnormal holdings before earnings announcements and reduces the market reaction to the firm’s earnings Read more…

Credit default swaps around the world: Investment and financing effects We analyze the impact of credit default swaps (CDS) introduction on real decision-making within the firm, taking into account differences in the local economic and legal environment of firms. We extend the model of Bolton and Oehmke (2011) in order to consider Read more…