Work in Progress

Working Paper (2022)

Payment firms are gaining importance, overtaking banks in terms of market capitalization. Their rise is intimately linked to the growth in E-commerce. Using data from an online retailer and analyzing PayPal, credit card, and Buy-Now-Pay-Later, we show that the removal of any single individual payment options or the introduction of obstacles impacting the ease-of-use results in a significant drop in sales - even when other payment alternatives are easily available at very little costs.

  • Consumer Finance and Behavior - Evidence From Fintech Lending, with Valentin Burg (Humboldt University)

Working Paper (2022)

Using a set of natural experiments and data from an online retailer, we analyze how household credit supply affects consumer behavior and if it reinforces existing behavioral patterns. We differentiate between intensive and extensive margins, effects of differences in maturities and interest rates.

Swiss Finance Institute Research Paper (2021) [BibTeX]

We explore which explanations for the reduction of bank branches are supported by the data. While technology is associated with de-branching of banks across countries, economic factors like growth or bank fragility and consolidation of banks are more robustly linked to de-branching in US counties and on the branch level in the US.

Working Paper (2022) [BibTeX]

I show that lending relationships have positive numerous effects on borrowers when covenant violations shift control rights to creditors. They are driven by opaque borrowers. Unexpectedly, there is no evidence of any "dark side" to lending relationships.

Main Publications

Journal of Corporate Finance (2022) [BibTeX] [COVID Economics WP] [CEPR WP] [VOX ] [Slides]

Banks with a greater deposit footprint in areas hit by COVID experience a significantly greater deterioration of their loan portfolios. While such lenders provide paycheck protection grants in affected areas more than other lenders, we observe negative effects on regular small business bank loans and on loan terms in the market for large syndicated loans.

Journal of Financial and Quantitative Analysis (2020) [WP] [BibTeX] [Slides]

Changes in banking regulation have unintended and undocumented effects on the market for corporate credit. Bank branching deregulation following the Riegle-Neal Interstate Branching and Banking Efficiency Act of 1994 decreased syndicated loan issuance but spurred bilateral lending to corporations. This shift is also reflected in interest rate spreads, pointing to a supply-driven substitution effect. Results suggest that changes to banking regulation can affect not just the amount but also type of credit in the economy.

Journal of Corporate Finance (2017) [WP] [BibTeX] [Data]

Using Compustat to measure industry concentration is problematic. Popular Herfindahl Index approximations have vanishingly low correlations with the more comprehensive Census metric. As a result, major variables of interest in corporate finance correlate markedly different with these indicators. I show that this can lead to a breakdown of regression results.