Finance Seminar Summer term 2020

The finance seminar is organized in collaboration with the Cluster of Excellence 2126 ECONtribute: Markets & Public Policy and with the Collaborative Research Center Transregio 224: Economic Perspectives on Societal Challenges.

Tuesday, 12:15-1:30 PM in the Faculty Lounge, Juridicum, Adenauerallee 24-42, 53113 Bonn

Recent seminars:

Finance Seminar in collaboration with ECONTribute:

July 14, 2020 - Marco Pagano (CSEF)


Finance Seminar in collaboration with ECONTribute:

July 07, 2020 - Amil Dasgupta (LSE)

"Bond Funds and Credit Risk"

Abstract: We show that supply side effects arising from the bond holdings of open-end mutual funds affect corporate credit risk. In our model, funds exposed to flow-performance relationships are reluctant to refinance bonds of companies with poor cash flow prospects fearing future investor outflows as a result of potential default events. This lowers refinancing prices, enhancing incentives for strategic default by equityholders, engendering a positive association between bond funds’ presence and credit risk. Empirically, we find that in firms with poor cash flow prospects, mutual fund bond holdings is associated with increased CDS spreads, more so when funds are more sensitive to flows. We address endogeneity issues by using the acquisitions of management companies as shocks to funds’ flow concerns.


Finance Seminar in collaboration with ECONTribute:

June 09, 2020 - Guillaume Vuiellemey (HEC Paris)

"Set-Up Costs and the Financing of Young Firms"

Abstract: We show that set-up costs are a key determinant of the capital structure of young firms. Theoretically, when firms face high set-up costs, they can only be established by lengthening debt maturity. Empirically, we use a large sample of French firms to show that young firms have a significantly higher leverage and issue longer-maturity debt than seasoned companies. As predicted by the model, these patterns are stronger in high set-up cost industries and for firms with lower profitability. Last, we show that, following an exogenous shock that reduces banks' supply of long-term loans, young firms in high set-up cost industries grow significantly less.


Finance Seminar in collaboration with ECONTribute:

May 19, 2020, - Sascha Steffen (Frankfurt School of Finance & Management)


Finance Seminar in collaboration with ECONTribute:

May 5, 2020, - Frederic Malherbe (UCL)


Finance Seminar in collaboration with ECONTribute:

April 28, 2020, 12:15- Linda Schilling (Utrecht School of Economics)


Finance Seminar in collaboration with CRC Tr 224:

April 21, 2020 - Hans Degryse (IWH & KU Leuven)

"GSIB designation and corporate lending: an international analysis"


Finance Seminar in collaboration with ECONTribute:

April 14, 2020, 15:00 - Haoxiang Zhu (MIT)

Title: When FinTech Competes for Payment Flows
Abstract: We study the impact of FinTech competition in payment services when banks rely on consumers' payment data to obtain information about their credit quality. Competition from FinTech payment providers disrupts this information spillover, reducing the bank's loan quality and profit. FinTech competition benefits consumers with weak bank affinity (financial inclusion improves), but may hurt consumers with strong bank affinity. We consider three regimes in which payment information flows back into the credit market: FinTech lending, data sales, and consumer data portability. All three regimes improve the quality of loans, although their effects for bank profit and consumer welfare are ambiguous. Our results highlight the important and complex trade-off between consumer welfare and the stability of banks following FinTech competition in payment.