Bank sentiment and liquidity hoarding

• 成果类型: Article
• 署名作者: Berger, Allen N.; Kim, Hugh Hoikwang; Ma, Xiaonan Flora
• 署名单位: University of South Carolina System; University of South Carolina Columbia; University of South Carolina System; University of South Carolina Columbia; Washington State University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12949
• 发表日期: 2024
• 页码: 1513-1542
• 关键词: Investor sentiment; SENSATION SEEKING; Textual analysis; RISK-MANAGEMENT; mood; earnings; MARKET; weather; Sunshine; BEHAVIOR

摘要

We analyze how bank sentiment affects bank liquidity hoarding, distinguishing unexplained beliefs of bank managers from fundamental-based beliefs. We build a bank management sentiment measure from textual analysis of 10-Ks and utilize a comprehensive bank liquidity hoarding measure. We find that negative bank sentiment increases liquidity hoarding not warranted by a bank's fundamental conditions or external circumstances. Further analysis confirms that our findings reflect bank volition rather than being driven solely by borrowers or depositors. We address endogeneity concerns using exogenous weather conditions as instruments. Overall, our findings suggest that bank sentiment can influence how much liquidity banks provide to the economy and financial system.