Speaker: Dr. Xinming LI, Associate Professor, Nankai University
Time: 14:00-15:30 , May 14, 2021
Onsite Venue: Room 202, Institute of Financial Studies
Virtual Platform: Voov Meeting (ID 767 001 657)
Organizers: Institute of Financial Studies, Research Office
Speaker's Profile
Dr. Li is a tenure-track assistant professor at Nankai University. He holds a doctorate in Finance from University of South Carolina. His research mainly focuses on banking, financial institution, and corporate finance. His papers have been published in Journal of Financial and Quantitative Analysis and Journal of Financial Intermediation.
Lecture Preview
Abstract: Governments provide guarantees to banks, such as deposit insurance, often increasing them during financial crises. While risk effects are well researched, impacts on bank output remain largely unexplored. We investigate bank output effects using data from 75 countries on bank liquidity creation, a comprehensive bank output measure. We address reverse causality identification challenges by examining effects of home country guarantees on liquidity creation by subsidiary banks in foreign host nations, and mitigate omitted variables concerns with host country × year fixed effects and home country controls. Our findings suggest that home country guarantees decrease subsidiary bank liquidity creation by as much as 15%.
