Working papers

• Big Broad Banks: How Does Cross-Selling Affect Lending? EFA Doctoral Tutorial Best Paper Prize 2019

Revise and resubmit at The Review of Finance

Abstract: This paper investigates how cross-selling affects relationship lending with internal data of a large bank and the Swedish credit registry. I show that within a bank-firm relationship, profit earned from non-loan products cross-subsidizes loans and increases 1) credit supply and 2) lenience in delinquency. For identification, I exploit the Basel II-induced exogenous variation in products' profitability while holding constant the firms' creditworthiness and relationship informativeness. I find that the average affected firms experienced a decrease of 6.1% ($400,000) in credit supply and 24% (9.9 pp) in lenience in delinquency. The results inform optimal regulatory design for lenders who multi-produce.

Conferences: AFA 2021, CICF 2021, EFA 2020, European Central Bank Young Economists’ Competition 2020

• Cost of loans and moral hazard: Evidence from a quasi-experiment in Sweden (with Clara Fernström)

Abstract: We document the effects of higher borrowing cost on private firms in the presence of financial frictions by exploiting a quasi-experiment and a unique and comprehensive dataset from Sweden. In June 2010, the central bank of Sweden increased the repo rate unexpectedly and exposed firms with long term loan maturing right before or after the hike to different cost of borrowing. Consistent with the debt overhang theory, we find that higher cost of borrowing has a significant negative effect on investment, but more for highly levered firms. These results are robust to carefully controlling for firms' credit demand. Our findings highlight the importance of balance sheet heterogeneity in the responsiveness of firms to interest rate shocks.

Conferences: CEPR Second Annual Spring Symposium in Financial Economics (PhD poster session)

Publications

• Bank misconduct and online lending (with Christoph Bertsch, Isaiah Hull, and Xin Zhang) Journal of Banking and Finance, Volume 116, July 2020

Summary: Misconduct (mis-selling and hidden fees etc.) in traditional banking sector drives borrowers to online lenders.

Conferences: EFA 2018, CEPR Third European Workshop on Household Finance, 4th IWH-FIN-FIRE Workshop in Halle

Teaching

• Corporate Finance (Spring 2022, Bachelor Program at Copenhagen Business School)

Evaluation: median = 5/5, mean = 4.9/5, N = 130