Finance Seminar, Vasso Ioannidou - City University of London
Title: Corporate Pension Risk-Taking in a Low Interest Rate Environment
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Past Events
Finance Research Seminar: Vasso Ioannidou
10:00 to 11:30
EBAPE/FGV
Lecture: The Impact of Digitalization on the Financial System
14:00 to 15:30
FGV/EBAPE
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Finance Research Seminar: Tobias Berg
10:00 to 11:30
Finance Seminar, Tobias Berg - Frankfurt School of Finance and Management
Title: On the Rise of Payment Firms
Payment firms have experienced an exceptional growth over the past decade, with payment firms’ market capitalization now exceeding the combined market capitalization of all banks in the U.S. We show that stock returns of payment firms are strongly correlated with stock returns of Ecommerce firms. Using three million observations at an online retailer, we provide micro-level evidence on the importance of payment firms for E-commerce purchases. When a customer’s preferred payment type is not seamlessly available, approximately a quarter of customers abandon the purchase instead of switching to a different payment type. We document this strong clientele effect both for credit cards, PayPal, as well as Buy-Now-Pay-Later (BNPL) products. Our results suggest that – although E-Commerce firms have access to many payment types – each payment firm has a significant bargaining power vis-à-vis E-Commerce firms.
Due to the pandemic, the seminar will be through zoom.
Zoom: https://fgv-br.zoom.us/j/94988153200?pwd=bHR3UWtiN0FkUXZXb1RmbGk4L2FDQT09Meeting
ID: 949 8815 3200
Finance Research Seminar: Diana Bonfim
10:00 to 11:30
Finance Seminars, Diana Bonfim - Bank of Portugal
Title: Growing SMEs The sensitivity of investment and employment to the cost of debt financing.
How sensitive is the growth of small firms to the cost of borrowing? This paper uses variation in the access to a credit certification program in Portugal to estimate the sensitivity of small and medium sized firms (SMEs)´ investment and employment to the cost of debt financing. The program was implemented during the global financial crisis to prevent small firms from becoming credit constrained. The targeted program provides a credit certification as well as a loan guarantee by the Portuguese government to firms with a minimum credit quality. The program design and implementation allows for a multidimensional regression discontinuity methodology to estimate its real effects over a decade. When comparing firms around cutoff points, we find that eligible firms increase their borrowing, and borrow at significantly lower rates than non-eligible firms. Targeted firms also increase investment and employment when compared to non-certified firms. The program was effective in ensuring small firms continued to grow during the financial crisis, while the certification effects matter mostly in the postcrisis period.
Due to the covid19, the presentation will be remotely through zoom.
Link: https://fgv-br.zoom.us/j/91999112003
Finance Research Seminar: Janis Skrastins
10:00 to 12:00
Finance Seminars, Janis Skrastins - Washignton University
Title: We investigate the impact of institutions on the transmission of shocks across firms. Using novel inter-firm wire transfer data, we find that suppliers exposed to natural disasters pass this shock to their customers, particularly when the court system is congested. Evidence suggests that congested courts amplify spillovers through contracting frictions of customers with new suppliers and creditors. Subsequently, customers seem to vertically integrate the production of affected inputs and obtain liquidity by selling their accounts receivables. Our results highlight the importance of institutions.
Due to the covid19, the presentation will be remotely through zoom.
Link: https://ide-fgv-br.zoom.us/j/93254710952?pwd=Ulo2V1V5SWp3Mzh1S1RadjZsVnltZz09
ID: 932 5471 0952
Password: 1111-Janis
Finance Research Seminar: Dietmar Leisen
10:00 to 12:00
Finance Seminars, Dietmar Leisen - Gutenberg University in Mainz
Title: When the remedy is the problem: Risk governance in independent bank boards
We study the independence ratio, as well as the financial expertise of independent directors for 625 U.S. bank holding companies (BHC) from 2000 to 2015, to concentrate on causes of the subprime crisis: short-termism, poor monitoring, and excessive risk-taking. Following Enron and Sabanes-Oxley, independence ratios rised; while official responses to the subprime crisis claim that (even then) bank directors were not independent enough, we find that higher independence ratios decrease the monitoring quality of the board and increase short-term incentives for the CEO. Finally, boards with a higher fraction of independent directors decrease standard measures of bank risk, but promote tail risk taking.
Due to the covid19, the presentation will be remotely through zoom.
Link: https://ide-fgv-br.zoom.us/j/98504105929?pwd=VkdaaG1oazZSdFd1WHhXRGt0M20rdz09
ID: 985 0410 5929
Password: Dietmar14
Finance Research Seminar: David Schoenherr
10:00 to 12:00
Finance Seminars, David Schoenherr - Princeton University
Title: Spatial Mobility and Labor Market Outcomes: Evidence from Credit Lotteries
In this paper, we examine the effect of access to individual mobility on labor market outcomes. We exploit exogenous time-series variation in access to individual mobility through credit lotteries that randomly allocate credit designated for motorcycle purchase to participants of a financial product in Brazil. We find that upon access to a motorcycle, individuals exhibit higher formal employment rates and earnings. Consistent with a geographically broader job search, individuals move to jobs further away from home and harder to reach by public transportation. Investment in individual mobility yields an annual rate of return of 17 percent over an individual's career.
Due to the covid19, the presentation will be remotely through zoom.
Link: https://ide-fgv-br.zoom.us/j/97286024576?pwd=Z3NvdTRPcmwwRmxwVTNvS0gyUFE4dz
ID: 972 8602 4576
Password: 26-8-David
Finance Research Seminar: Marco Bonomo
10:00 to 12:00
Finance Seminars, Marco Bonomo - Insper
Title: Effects of sharing positive credit information on the credit market
Finance Research Seminar: Weichao Wang
10:00 to 12:00
Finance Seminars, Weichao Wang - PhD Student at FGV EBAPE
Title: BANKS’ BALANCE SHEET MANAGEMENT AS A BARGAINING TOOL: EVIDENCE FROM UNION STRIKES
I investigate whether banks adjust balance sheet variables strategically in the wake of anticipated bank employee union strikes using a difference-in-difference design. Using hand-collected strike information and bank-municipality level bank balance sheet data in Brazil, I find a robust causal relationship between union strikes and bank manipulations in accrual account, asset portfolio and liquidity position within a short time period just before the routinely happened strikes from 2006 to 2016. Specifically, I find that banks significantly increased their loan loss provision ratio, decreased security and instrument trading and loans, and held less cash and interbank liquidity in municipalities mobilized to go on strikes just before strikes. These results are most consistent with my bargaining motive hypothesis that banks account fewer current earnings reported and expected future cash flows, and less liquidity revealed to employee unions just before the anticipated strikes in order to strengthen their bargaining power in wage negotiations.
Due to the covid19, the presentation will be remotely through zoom.
Link: https://zoom.us/j/94853633048?pwd=ZnMrbDBoS3VDMEtGTXB2ZzVVTUFBUT09
Password: 9Dp3xD
Finance Research Seminar: Patricio Valenzuela
10:00 to 12:00
EBAPE/FGV - Rua Jornalista Orlando Dantas 30 / Room 3
Finance Seminars, Patricio Valenzuela – University of Chile.
Title: Sovereign Credit Risk, Financial Fragility, and Global Factors
This study explores the relationship between sovereign credit risk, financial stability, and global factors in emerging market economies, by using a novel model-based semi-parametric metric (JLoss) that computes the expected joint loss of the banking sector in the event of a large financial meltdown. Our metric of financial fragility is positively associated with sovereign bond spread and negatively associated with higher sovereign credit ratings, after controlling for the standard determinants of sovereign credit risk. The results additionally indicate that countries with more fragile banking sectors are exposed to a global (exogenous) financial factors than those with more resilient banking sectors. These findings underscore that regulators must ensure that stability of the banking sector to improve governments’ borrowing costs in international debt markets.