Alice Jun

Ph.D. Candidate

Finance Department
Ph.D., Finance, Kellogg School of Management, Northwestern University, Expected 2018
M.S., Finance, Kellogg School of Management, Northwestern University, 2015
B.S., Business Administration, Tepper School of Business, Carnegie Mellon University, 2013

Research Interests: Banking and Financial Institutions, Corporate Finance, Household Finance

Curriculum Vitae

Job Market Paper: "Small Banks Financing Small Businesses"

Abstract:
This paper explores how small banks incorporate different types of soft information, information that is not easily quantifiable, into their lending decisions. I identify two types of soft information: borrower-specific and local market. Using natural disasters in a bank’s lending network as a credit supply shock to non-disaster counties, I look at what lenders, if any, step in to fill the gap in credit demand when small banks reduce credit supply to small businesses. I find that other lenders do not completely fill the gap in credit demand, suggesting that borrower-specific soft information renders lending relationships sticky. Firms in non-tradable industries, which depend on local customers and therefore benefit most from lenders that have local market soft information, are more adversely affected than those in tradable industries. Overall, these results suggest small banks are an important source of credit not only because they collect soft information, but also because the different types of soft information they collect can differentially impact certain borrowers.

Works in Progress:
"Strategic Complementarities, Debt Overhang, and Rollover Freezes”

Committee:
Prof. Mitchell Petersen (Co-Chair)
Prof. Lorenz Kueng (Co-Chair)
Prof. Paola Sapienza
Prof. David Berger

Dual Citizenship: U.S.A., Republic of Korea (South Korea)

Contact Information
Finance Department
Kellogg School of Management
2211 Campus Drive
Evanston, IL 60208

Phone: 312-610-0574

alice.jun@northwestern.edu