Seminar (Dept. of Accounting)

Theme：Manager's incentives on consumer credit market: Evidence from a natural field experiment

Speaker：Difang Huang

Time：2021-10-13 10:00

Address：Tencent Meeting

Language：English

Venue：Tencent Meeting

https://meeting.tencent.com/dm/fdUKRyCbL2vB

Meeting ID：307 451 620

Password：1013

ABSTRACT:

We study the impacts of manager's incentives on the consumer finance market. Using the unique data from a major Chinese bank that changed its sales targets for bank managers in a highly non-linear incentive system, we find that the number of credit cards approved increases sharply at the end of each month. End-of-month borrowers are less likely to use credit cards, more likely to be delinquent, and less willing to invest in this bank compared to other borrowers. We find that lax screening and tournament effect may explain these changes.

SHORT BIOGRAPHY:

Difang Huang is a Ph.D. candidate at the Monash University. His research interests include the big data analysis and FinTech. His research has been published in Journal of Financial and Quantitative Analysis, Financial Management, and Entropy. He has several papers under resubmit and revision at Journal of Finance, and Journal of Empirical Finance.