Welcome! I am a doctoral candidate in finance. My research interests include banking, household finance, and corporate finance. My broad interest is in how information frictions affect financing. In my job market paper, I explore the importance of small banks in U.S. lending markets and show suggestive evidence that small banks fill an important gap in credit markets because they specialize in collecting and using non-quantifiable, or "soft," information. In particular, I use natural disasters to construct credit supply shocks from small banks and explore the impact on small businesses. I find small banks are not an easily substitutable source of credit, and that this has real impacts on small businesses, particularly on those in industries with more localized demand. After graduating, I will be joining the Compliance Risk Analysis Division at the Office of the Comptroller of the Currency.
My non-academic interests include boxing and community service. In 2010, I was awarded first place in Carnegie Mellon University's Got Talent! for an original bass guitar solo.
Research Interests: Banking and Financial Institutions, Household Finance, Corporate Finance
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”
This paper explores a model in which current debtholders take equityholders' actions into consideration when choosing to roll over debt. Likewise, debtholders' actions influence equityholders' decision to invest. The main finding is that a failed equity issuance may induce a panic-based rollover freeze due to strategic complementarities between current debtholders and potential equityholders. Consequently, firms that are fundamentally strong enough to obtain a rollover in the absence of strategic complementarities are inefficiently liquidated. These findings can provide additional insight into the lack of equity issuances by distressed banks, which were using high amounts of short-term debt, during the crisis.
Dual Citizenship: U.S.A., Republic of Korea (South Korea)