Finance Webinar（2022- 02）-Job talk

Topic 1: Gender Differences In Reaction To Enforcement Mechanisms: A Large-Scale Natural Field Experiment

Topic 2: Shadow Banking in a Crisis: Evidence from FinTech During COVID-19

Speaker: Difang Huang, Monash University

Time: Friday, January 7,10:00-11:30 a.m. Beijing Time

Location: Microsoft Teams

Abstract 1：

We follow 58,345 borrowers from a peer-to-peer lending platform to study how women and men react to enforcement mechanisms differently. In the experiment, borrowers are randomized into treatments where they receive different text messages urging for timely repayment if they have loans due the next day. Compared to a reminder message, the messages inducing social pressures and financial  incentives reduce the overdue rate for both genders. However, women are more responsive to messages producing social pressures, while men are more responsive to financial incentives. The results imply the potential importance of a gender-dependent mechanism to enhance compliance.

Abstract 2：

We analyze lending by traditional as well as FinTech lenders during COVID- 19. Comparing samples of FinTech and bank loan records across the outbreak, we find that FinTech companies are more likely to expand credit access to new and  financially constrained borrowers after the start of the pandemic. However, this increased credit provision may not be sustainable; the delinquency rate of FinTech loans triples after the outbreak, but there is no significant change in the delinquency of bank loans. Borrowers holding both loan types prioritize the payment of bank loans. These results shed light on the benefits provided by shadow banking in a crisis and hint at the potential fragility of such institutions when delinquency rates spike.

Biography

Difang Huang is a Ph.D. candidate at the Monash University. His research interests include the big data analysis and FinTech. His research has been published in Financial Management and Journal of Financial and Quantitative Analysis. He has several papers under resubmit and revision at Journal of Empirical Finance, Journal of Finance, Nature Human Behaviour.

Your participation is warmly welcomed