Thu 16 Jun 13:00: Data and Welfare in Credit Markets
We show how to measure the welfare effects arising from increased data availability. When lenders have more data on prospective borrower costs, they can charge prices that are more aligned with these costs. This increases total social welfare, and transfers surplus from borrowers to lenders. We show that the magnitudes of the welfare changes can be estimated using only quantity data and variation in prices. We apply the methodology on bankruptcy flag removals, and find that removing prior bankruptcy information increases the surplus of previously bankrupt consumers substantially, at the cost of decreasing total social welfare modestly, suggesting that flag removals are a reasonably efficient tool for redistributing surplus to previously bankrupt borrowers.
- Speaker: Constantine Yannelis (University of Chicago Booth School of Business)
- Thursday 16 June 2022, 13:00-14:00
- Venue: In-person at JBS (room W201), and online (Zoom).
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 09 Jun 13:00: Temperature Shocks and Industry Earnings News
Climate scientists project a rise in both average temperatures and the frequency of temperature extremes. We study how extreme temperatures affect companies’ earnings across different industries and whether sell-side analysts understand these relationships. We combine granular daily data on temperatures across the continental U.S. with locations of public companies’ establishments and build a panel of quarterly firm-level temperature exposures. Extreme temperatures significantly impact earnings in over 40% of industries, with bi-directional effects that harm some industries while others benefit. Analysts and investors do not immediately react to observable intra-quarter temperature shocks, but earnings forecasts account for temperature effects by quarter-end in many, though not all, industries.
- Speaker: Jawad M. Addoum (Cornell)
- Thursday 09 June 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 05 May 13:00: Do Short Sellers Care about ESG?
Abstract not available as research is in its early stages
- Speaker: Mehrshad Motahari (Bayes Business School, City University of London)
- Thursday 05 May 2022, 13:00-14:00
- Venue: In-person at JBS (Castle Teaching Room) and online .
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 16 Jun 13:00: Data and Welfare in Credit Markets
We show how to measure the welfare effects arising from increased data availability. When lenders have more data on prospective borrower costs, they can charge prices that are more aligned with these costs. This increases total social welfare, and transfers surplus from borrowers to lenders. We show that the magnitudes of the welfare changes can be estimated using only quantity data and variation in prices. We apply the methodology on bankruptcy flag removals, and find that removing prior bankruptcy information increases the surplus of previously bankrupt consumers substantially, at the cost of decreasing total social welfare modestly, suggesting that flag removals are a reasonably efficient tool for redistributing surplus to previously bankrupt borrowers.
- Speaker: Constantine Yannelis (University of Chicago Booth School of Business)
- Thursday 16 June 2022, 13:00-14:00
- Venue: In-person at JBS (room tbc) and online .
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 05 May 13:00: Do Short Sellers Care about ESG?
Abstract available soon
- Speaker: Mehrshad Motahari (Bayes Business School, City University of London)
- Thursday 05 May 2022, 13:00-14:00
- Venue: In-person at JBS (room tbc) and online .
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.