Accounting Webinar (2020-17)

Topic:Learning from Peers: Evidence from Disclosure of Consumer Complaints

Speaker: Mingyi Hung,The Hong Kong University of Science and Technology

Time: Wednesday, Dec 16th, 10:00-11:30 a.m

Place: Microsoft Teams

Abstract:

The Consumer Financial Protection Bureau (CFPB) released a database of consumer complaints against banks under its supervision in 2013. We examine how rival banks that are not supervised by the CFPB react to this disclosure. We find that after the disclosure, the rival banks exhibit a greater increase in mortgage approval rates in markets with more intensive complaints about mortgages of CFPB-supervised banks. The effect is stronger when there is less information about CFPB-supervised banks’ local operations, when the complaints are more informative, and when the rival banks are better able to process the disclosures. The findings suggest that the rival banks learn from the disclosures about peers’ local operational deficiencies and thereby make aggressive lending decisions. Our evidence supports the learning-from-peers channel, through which disclosure regulation imposes real effects.

Introduction:

Mingyi Hung studies financial disclosures and institutional development in global capital markets. Her research addresses the information and monitoring roles of accounting in international capital markets and investigates the interaction between country-specific institutional factors and accounting information. Professor Hung's research has been published in leading academic journals such as Journal of Accounting and Economics, Journal of Accounting Research, and Review of Accounting Studies. She is a former Editor of The Accounting Review and serves in the editorial boards of Journal of International Business Studies and The Accounting Review and is a recipient of numerous research awards, including the Journal of Accounting & Economics Best Paper prize. Her research has been featured in media such as The Economist and Financial Times. She is also a recipient of the USC Marshall MBA Golden Apple Teaching Award and the Gamma Sigma Alpha Professor of the Year.

//iems.usthk.cn/people/faculty-associates/mingyi-hung

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