Xiao Yin
Melissa Wang
ABSTRACT: I analyze the impacts of reduced screening costs on banks' lending activities. I use a policy change in China that provides small firms' balance sheets and credit history to all commercial banks. I show that enriched information set increased banks' gross profitability, equity ratio, and interest rate, and decreased banks operational costs and default rate. The impacts are heterogeneous, with larger impacts on larger banks. The findings suggest that reduced screening costs asymmetrically benefits large banks the most.
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ABSTRACT: I show in this paper that firms’ and CEOs’ usage of Twitter on and after earnings announcements align with the incentives for consistent good news and inconsistent bad news. In particular, I show that firms and CEOs are both more likely to tweet about the information content within quarterly earnings news releases after the disclosure given good news and that the proportion of tweets related to earnings after the disclosure is positively correlated with how good the news is. I also show some evidence that suggests that firms' and CEOs' tweeting behavior prior to an earnings announcement depends on how popular the firm and manager are, and depends on the makeup of the audience population following the firm and manager. Using an event study framework, I show that firms perform better in quarters in which CEOs tweet about earnings, though that is not necessarily the case for when firms tweet.