Disclosure, Banks, Macroeconomics
Economic Consequences of Stress Test Model Disclosure
I examine the economic consequences of the Federal Reserve's enhanced supervisory stress test model disclosure between 2015 and 2025. I find that regulatory disclosure redistributes wealth from depositors to shareholders, as banks face less uncertainty around stress test outcomes, and pay out capital rather than expand lending.
Working paper
Economic Consequences of Stress Test Model Disclosure, solo-authored
I examine the economic consequences of the Federal Reserve's enhanced supervisory stress test model disclosure between 2015 and 2025. I find that regulatory disclosure redistributes wealth from depositors to shareholders, as banks face less uncertainty around stress test outcomes, and pay out capital rather than expand lending.
Recognition of Forward-Looking Estimates and Learning about the Macroeconomy: Evidence from CECL, with Oliver Binz (ESMT Berlin) and Matthew A. Phillips (Northwestern)
→ Revising for 3rd Resubmission to The Accounting Review
We find that ASU 2016-13 (Current Expected Credit Loss Model) adoption by banks reduces managers’ ability to learn from the market, especially macroeconomic information.
Predicting Profitability of Newly Established Firms, with Katja Kisseleva-Scherenberger (Frankfurt School of Finance & Management) and Per Olsson (ESMT Berlin)
Using the full population of Swedish firms from 1998 to 2011, we find that firms’ accounting profitability is predictive of future performance, which combats the view that accounting numbers by young firms are not informative.
