Information Sharing Technology and Specialization in Credit Markets
With the Lunch Seminar series, the Department of Finance is bringing eminent and up-and-coming researchers from around the world to Luxembourg.
Authors
José Liberti, Jason Sturgess, and Andrew Sutherland
Abstract
We explore how information technology affects specialization in financial intermediation. Using U.S. credit bureau data on SME lending, we develop a specialization measure that captures comparative advantage based on the similarity of collateral types within lenders’ portfolios. We find lower delinquencies and less cyclical borrower turnover and credit originations in lenders’ specialized markets. We then use bureau coverage changes as an information innovation and trace these changes to increasing lender specialization and entry into related markets. Our findings illustrate how information technology innovations shape lender specialization, which has implications for credit availability, market structure, and financial stability.
About the speaker
José María Liberti is the Joseph Jr. and Carole Levy Chair in Entrepreneurship and a Clinical Professor of Finance at Kellogg School of Management, Northwestern University.
Language
English.
This is a free seminar. Registration is mandatory.
Cold lunches are provided to registered participants.
Supported by the Luxembourg National Research Fund (FNR) 17984041