Bank transparency and deposit flows

• 成果类型: Article
• 署名作者: Chen, Qi; Goldstein, Itay; Huang, Zeqiong; Vashishtha, Rahul
• 署名单位: Duke University; University of Pennsylvania; Yale University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2022.07.009
• 发表日期: 2022
• 页码: 475-501
• 关键词: transparency; banks; money; Safe assets; deposits; Liquidity transformation

摘要

One of the most widely discussed issues in banking regulation and research is trans-parency. Yet, whether depositors - banks' most important claimholders - are affected by transparency, is an empirical open question. Analyzing US commercial banks from 1994 to 2019, we show that uninsured deposit flows are more sensitive to information about bank performance when banks are more transparent. We also link transparency to deposit rates, banks' investment funding patterns, and profitability. In addition, we find consistent evi-dence from a differences-in-difference analysis using the Sarbanes-Oxley Act of 2002 as a shock to transparency. Overall, our findings demonstrate that transparency is important in shaping depositors' behavior and highlight its potential costs.(c) 2022 Elsevier B.V. All rights reserved.