The Impact of Bank Liquidity Injections on Borrowers’ Voluntary Disclosures and Real Investments
主题：The Impact of Bank Liquidity Injections on Borrowers’ Voluntary Disclosures and Real Investments
报告人：Yupeng Lin, Associate Professor in Accountancy
地点：ZOOM会议平台:会议号928 4409 8972 密码：040193
Dr. Yupeng Lin is an Associate Professor of Accountancy at the National University of Singapore. Prior to that, he was an Assistant Professor of Accountancy at the City University of Hong Kong. Dr. Lin’s primary research interests focus on disclosure, auditing, and tax. His research has been published in major accounting and finance journals, including The Accounting Review, Journal of Accounting and Economics, Journal of Accounting Research, Journal of Financial and Quantitative Analysis and Review of Corporate Finance Studies.Dr. Yupeng Lin earned a Bachelor from the Sun Yat-Sen University in 2008 and Ph.D. in Business Administration from the National University of Singapore in 2014.
This paper examines the resource allocation role of voluntary disclosure following increased credit supply. Exploiting the unconventional liquidity injections by the European Central Bank in 2011-2012, we find that U.S. borrowers that depend on EU lenders increase the likelihood and frequency of capital expenditure forecasts following the ECB liquidity injections, relative to other U.S. borrowers. In addition, the association between CAPEX adjustments and stock market reactions to management CAPEX forecasts increases following the liquidity injections. This effect does not extend to management earnings forecasts and is more pronounced for firms that are younger or have higher growth volatility. Overall, we contribute to the literature by documenting the impact of improved bank liquidity on firms’ disclosure choices and providing insights into factors that shape the corporate-level efficacy of monetary interventions.