Events

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 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 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 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