Iftekhar Hasan's research while affiliated with Fordham University and other places

Publications (29)

Article
This paper investigates whether managers’ personal connections help corporate productivity to recover after a negative economic shock. Leveraging the heterogeneity in the severity of the financial crisis across different sectors, the paper reports that (i) the financial crisis had a negative effect on within-firm productivity, (ii) the effect was l...
Article
Do stronger political ties with a global superpower improve sovereign borrowing conditions? We use data on voting at the United Nations General Assembly along with foreign aid flows to construct an index of political ties and find evidence that suggests stronger political ties with the US is associated with both better sovereign credit ratings and...
Article
We examine how executive equity risk-taking incentives affect firms’ choice of debt structure. Using a longitudinal sample of U.S. firms, we document that when executive compensation is more sensitive to stock volatility (i.e., has higher vega), firms reduce their reliance on bank debt financing. We utilize the passage of the Financial Accounting S...
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Full-text available
Using India's national benchmark survey for financial literacy and inclusion, we observe a step change in financially literate women, who possess higher levels of sole and joint responsibility with their spouse to manage their households' finances. Considering ownership information in eighteen different financial products, alternative investments (...
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This paper investigates the relative importance of microfinance institutions (MFIs) at both the macro (financial development, economic growth, income inequality, and poverty) and micro levels (efficiency of traditional commercial banks). We observe a significant impact on most of the fronts. MFIs’ participation increases overall savings (total bank...
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This paper examines the economic effects of a firm's approach to developing and maintaining political connections. Specifically, we investigate whether lenders favor transactional connection as opposed to relational connection. By tracing firms in a politically volatile emerging democracy in Indonesia, we find that firms following a transactional p...
Article
We survey 149 leading academic researchers on bank capital regulation. The median (average) respondent prefers a 10% (15%) minimum non-risk-weighted equity-to-assets ratio, which is considerably higher than the current requirement. North Americans prefer a significantly higher equity-to-assets ratio than Europeans. We find substantial support for t...
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This article traces the extant literature on the impact of social capital on economic attitudes and outcomes. Special attention is paid to clarify conceptual ambiguities, measurement techniques, channels of influence, and identification strategies. Insights derived from the literature are then used to analyze the marketplace lending industry in Chi...
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Previous research finds market financing is favored over relationship financing in environments of better governance, since the transaction costs to investors of vetting asymmetric information are thereby reduced. For industries supplying public goods, for-profits rely on market financing, while nonprofits rely on relationships with donors. This su...
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We assess the extent to which discretion, unexplained variations in the terms of a loan contract, has varied across time and lending institutions and show that part of this discretion is due to private information that lenders have on their borrowers. We find that discretion is lower for secured loans and loans granted by a larger group of lenders,...
Article
In this work, we investigate the relationship between corporate social responsibility (CSR) and profit shifting. First, we employ worldwide data for parent firms and their foreign subsidiaries to derive a profit shifting measure. Then, drawing on legitimacy theory and risk-management strategy, we find corporate social responsibility to be positivel...
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This paper investigates how political influence affects firms’ financial flexibility and speed of adjustment toward target leverage ratios. We find that at the macro level, firms in environments with high political advantages, proxied by provincial affiliations with heads of state as well as political status and party rank of provincial leaders, ad...
Article
Full-text available
This paper examines the benefits to venture capital firms of their officers holding directorships in mature public companies in terms of fundraising and investment performance. Our empirical results show that venture capital firms raise more funds, set higher fund-raising targets, and are more likely to successfully exit their investments post-appo...
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This study examines how national culture affects corporate investment. We argue that national culture affects corporate investment efficiency through the level of secrecy that national culture exhibits. Using a sample of firms from eight culturally-diverse European Union countries, we find that the level of secrecy that national culture exhibits is...
Article
Trust in banks is considered essential for an effective financial system, yet little is known about what determines trust in banks. Only a handful of single-country studies discuss the topic, so this paper aims to fill the gap by providing a cross-country analysis on the level and determinants of trust in banks. Using World Values Survey data cover...
Article
This paper documents how debt holders respond to firms’ litigation revealing a significant tightening impact on issuers’ public debt properties. All else equal, investment grade bonds of litigated issuers have 4.9% higher yield spread, 11-month shorter maturity, and $14.7 million less issuance volume than propensity score matched bonds of non-litig...

Citations

... 5. In unreported tests, we use two-way clustering by firm and year, following Chen et al. (2021), and our results remain intact. ...
... Empirical evidence supports that agents from high social capital environments are less opportunistic (Ang et al., 2015;Hasan et al., 2017;Lin & Pursiainen, 2018), and they are more trusting on others (Guiso et al., 2008;Bottazzi et al.,. 2016;Hasan et al., 2021). ...
... A key consideration will be the role of financial intermediaries (banks and financial institutions that accept transferable deposits) in strengthening the links between resource allocation, economic efficiency and environmental sustainability. Among other roles, the financial intermediary sector mobilizes savings and allocates these savings to other economic entities (Abrar et al., 2021;Umar et al., 2021). In theory, the composition of investment and consumption demand in the economy changes as financial resources are withdrawn from the surplus units to finance productive sectors (Umar et al., 2021;Wen et al., 2021;Zhang et al., 2021). ...
... The choice of using RE for panel data analysis is because the main variable of interest of IW (Islamic Windows) is a rarely changing variable or relatively time-invariant variable. The use of fixed effects, in this case, is inappropriate (Arifin, Hasan, & Kabir, 2020;Doumpos, Hasan, & Pasiouras, 2017). The coefficient of β_1become the main focus; if the β_1 significant, it implies that Islamic windows' stability differs from their full-fledged counterparts. ...
... Ambrocio et al. (2020) survey 149 leading academic researchers on bank capital regulation and find that the vast majority believe that an increase in capital regulation would translate to a higher cost of bank lending. ...
... El capital social se refiere a los recursos reales y disponibles que se generan por la interacción de individuos que crean redes o lazos (Nahapiet y Ghoshal, 1998;Nappi, 2014). Para comprender mejor la forma como el liderazgo compartido influye en el desempeño empresarial, es pertinente analizar el rol mediador que puede ejercer el capital social en dicha relación, ya que cuando se comparten las responsabilidades del liderazgo hay unos efectos producidos por esta interacción, como la cohesión, la confianza, el compromiso y la cognición de equipo, que favorecen el desarrollo del capital social, el cual a su vez puede influir directamente en los resultados de la empresa (Hasan, He y Lu, 2020). En esencia, cuando se implementa el liderazgo compartido en los equipos directivos, aumenta la colaboración y la coordinación, por lo que se crea un lenguaje compartido y que fortalece las relaciones del equipo con todos los colaboradores, de tal forma que se fortalece a su vez el capital social de la organización. ...
... In their study, Al-Awadhi et al. (2020) demonstrate that the daily COVID-19 confirmed cases and total cases of death interacts negatively with stock returns for all companies on the Chinese stock market. Goodel et al. (2020) examine the comovement of Bitcoin with daily COVID-19 world deaths. They find that level of COVID-19 world deaths cause a growth in Bitcoin prices. ...
... A 100-basis point decrease in GDP growth decreases loan granting by lowly capitalized banks by 3.4 percent more than by highly capitalized banks, and by 1.6 percent more by lowly than by highly liquid banks (the latter difference is not statistically significant, however). 15 Hence, the change in the interest rate for the bank lending channel has a much larger differential impact in this case on loan granting than a similarly sized change in GDP growth (recall that their standard deviations were both close to 100 basis points), though the effect goes especially through bank liquidity. ...
... These insights have been complemented by studies that examine CSR's influence on profits at the firm level. For instance, hasan et al. (2018) emphasise how CSR enhances a firm's competitive advantage and can create shareholder value (see also Lins et al. 2017;hasan et al. 2019). Likewise, Albuquerque et al. (2019) have explored how the implementation of CSR can be used as a marketing and showcasing strategy to signal product differentiation. ...
... In frictionless environment, firms deemed more financially flexible. Constructive environment, favourable policies by making external funding more reliant, ensures quick and cost-effective adjustment of financial structure (Denis 2011;Gu et al. 2019). Reversely, volatile market environment, strict regulations, underdeveloped capital market constraints external funding, forcing the firms to rely more on internal funds. ...