Discussion of Making sense of soft information: Interpretation bias and loan quality

• 成果类型: Editorial Material
• 署名作者: Vashishtha, Rahul
• 署名单位: Duke University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2019.101239
• 发表日期: 2019
• 关键词: bank mergers; authority

摘要

Campbell, Loumioti, and Wittenberg-Moerman (2018), henceforth CLW, provide evidence on the effect of human cognitive limitations on the processing of soft information in a Credit Union. Their results suggest that cognitive limitations constitute an important barrier to financial markets' ability to extract soft information. In this discussion, I delineate CLW's contribution and implications of their results, highlight key features of the empirical analyses that address interpretational difficulties that might confront some readers, and point out some limitations and unanswered questions that appear important to address in future research to obtain a more complete understanding of soft information production in financial markets. (C) 2019 Elsevier B.V. All rights reserved.