报告1：The Current Expected Credit Loss Model and Bank Lending
摘要：The switch from the incurred credit loss (ICL) to the current expected credit loss (CECL) model is a momentous change in U.S. bank accounting to enhance loan loss recognition timeliness. Using novel data on CECL adoption by public banks, we find that banks adopting the CECL model curtail lending. Consistent with the CECL model curtailing lending, we find that this reduction concentrates in CECL-adopters experiencing a larger increase in loan loss recognition timeliness, recognizing a larger day-one adjustment to loan loss allowance after CECL adoption, or having loan types (e.g., heterogenous loans or riskier loans) more likely to impacted by the shift. We show that this reduction exists mainly for CECL-adopting banks that choose to use the transition provision to phase in the CECL’s effect on regulatory capital over a longer period, indicating that banks cutting lending are those concerned about the CECL’s impact on regulatory capital. Overall, our paper sheds light on how the switch to a more forward-looking credit loss model affects banks’ lending decisions.
报告2：Riding the Tide of Urbanization: Corporate Investment in Bigger Cities
摘要：Urbanization has powered China’s economic growth in recent decades. Local investment opportunities arise with profound social and economic impacts of rapid urban expansion. In this study, I explore the real effects of cities’ spatial expansion on corporate investment decisions and the economic consequences. I find that corporate investment expenditures are responsive to local investment opportunities changes catalyzed by urban expansion. This result is robust to the use of instrumental variable based on geographical characteristics. Leveraging the enriched investment environment, firms also improve their investment efficiency and experience increases in future sales, employment, and firm value. A channel analysis shows that urban expansion influences corporate investment decisions through supplying labor and promoting industry agglomeration. In addition, pursuing urban-expansion investment opportunities should be supported by strong and well-developed market institutions. Collectively, the evidence supports the narrative that firms can grab opportunities for growth when investment environment changes during urbanization.
报告3：Credible Audit Regulation and International Debt Structure Concentration: Evidence from PCAOB International Inspections
摘要：We examine whether and how an internationally mobile audit regulatory oversight affects a firm’s debt concentration level. For a sample of non-US-listed companies across 45 countries, we observe a significant decrease in debt concentration for firms whose auditors inspected by the US Public Company Accounting Oversight Board (PCAOB) following the initial public disclosure of the auditors’ inspection reports. In addition, the decrease in debt concentration level is more pronounced for clients have greater reliance/demand/interaction with the foreign credit market and varies with a series of borrower-level and country-level characteristics. Compared to local audit oversight program, PCAOB international inspection is proved to be more credible for information users and more efficient in shaping firms’ debt structure choices. We further find that the effect of PCAOB oversight on credit market’ risk perception will be impaired when the disclosed report contains detailed audit deficiencies. Our findings highlight the role of a credible audit regulation in shaping a firm’s expected bankruptcy costs and the co-ordination of debtholder groups in the international context especially foreign debts are involve.