Professor Danny McGowan's Outputs (9)

Deposit Competition and Mortgage Securitization (2024)
Journal Article
Mcgowan, D., Nguyen, H., & Schaeck, K. (online). Deposit Competition and Mortgage Securitization. Journal of Money, Credit and Banking, https://doi.org/10.1111/jmcb.13207

We study how deposit competition affects a bank's decision to securitize mortgages. Exploiting the state-specific removal of deposit market caps across the US as a source of competition, we find a 7.1 percentage point increase in the probability that... Read More about Deposit Competition and Mortgage Securitization.

The dark side of liquidity regulation: Bank opacity and funding liquidity risk (2022)
Journal Article
Raz, A. F., McGowan, D., & Zhao, T. (2022). The dark side of liquidity regulation: Bank opacity and funding liquidity risk. Journal of Financial Intermediation, 52, Article 100990. https://doi.org/10.1016/j.jfi.2022.100990

We evaluate how the liquidity coverage rule affects US banks’ opacity and funding liquidity risk. Banks subject to the rule become significantly more opaque and funding liquidity risk increases by $245 million per quarter. Higher funding liquidity ri... Read More about The dark side of liquidity regulation: Bank opacity and funding liquidity risk.

To Securitize or to Price Credit Risk? (2022)
Journal Article
McGowan, D., & Nguyen, H. (2023). To Securitize or to Price Credit Risk?. Journal of Financial and Quantitative Analysis, 58(1), 289-323. https://doi.org/10.1017/s0022109022000552

Do lenders securitize or price loans in response to credit risk? Exploiting exogenous variation in regional credit risk due to foreclosure law differences along U.S. state borders, we find that lenders securitize mortgages that are eligible for sale... Read More about To Securitize or to Price Credit Risk?.

The Digital Credit Divide: Marketplace Lending and Entrepreneurship (2022)
Journal Article
Cumming, D., Farag, H., Johan, S., & McGowan, D. (2022). The Digital Credit Divide: Marketplace Lending and Entrepreneurship. Journal of Financial and Quantitative Analysis, 57(7), 2659-2692. https://doi.org/10.1017/s0022109022000357

We conjecture that marketplace lending provokes an increase in the quantity of entrepreneurship, particularly in more regionally disadvantaged areas, albeit at lower average quality. Using a fuzzy regression discontinuity design that exploits exogeno... Read More about The Digital Credit Divide: Marketplace Lending and Entrepreneurship.

Natural disasters and economic growth: The role of banking market structure (2021)
Journal Article
Duqi, A., McGowan, D., Onali, E., & Torluccio, G. (2021). Natural disasters and economic growth: The role of banking market structure. Journal of Corporate Finance, 71, Article 102101. https://doi.org/10.1016/j.jcorpfin.2021.102101

Following a natural disaster, the rate of economic growth recovers faster in less competitive banking markets. A 10% reduction in competition increases the rate of economic growth by 0.3%. In less competitive markets, banks respond to a disaster by i... Read More about Natural disasters and economic growth: The role of banking market structure.

Furlough and Household Financial Distress during the COVID-19 Pandemic (2021)
Preprint / Working Paper
Görtz, C., McGowan, D., & Yeromonahos, M. (2021). Furlough and Household Financial Distress during the COVID-19 Pandemic

We study how furlough affects household financial distress during the COVID-19 pandemic.
Furlough increases the probability of late housing and bill payments by 30% and 9%, respectively.
The effects exist for individuals who rent their home, but n... Read More about Furlough and Household Financial Distress during the COVID-19 Pandemic.

Debtholder Monitoring Incentives and Bank Earnings Opacity (2020)
Journal Article
Danisewicz, P., McGowan, D., Onali, E., & Schaeck, K. (2020). Debtholder Monitoring Incentives and Bank Earnings Opacity. Journal of Financial and Quantitative Analysis, 56(4), 1408-1445. https://doi.org/10.1017/s0022109020000241

We exploit exogenous legislative changes that alter the priority structure of different classes of debt to study how debtholder monitoring incentives affect bank earnings opacity. We present novel evidence that exposing nondepositors to greater losse... Read More about Debtholder Monitoring Incentives and Bank Earnings Opacity.

Debt Priority Structure, Market Discipline, and Bank Conduct (2017)
Journal Article
Danisewicz, P., McGowan, D., Onali, E., & Schaeck, K. (2018). Debt Priority Structure, Market Discipline, and Bank Conduct. The Review of Financial Studies, 31(11), 4493-4555. https://doi.org/10.1093/rfs/hhx111

We examine how debt priority structure affects bank funding costs and soundness. Leveraging an unexplored natural experiment that changes the priority of claims on banks’ assets, we document asymmetric effects that are consistent with changes in moni... Read More about Debt Priority Structure, Market Discipline, and Bank Conduct.

The real effects of banking supervision: Evidence from enforcement actions (2016)
Journal Article
Danisewicz, P., McGowan, D., Onali, E., & Schaeck, K. (2016). The real effects of banking supervision: Evidence from enforcement actions. Journal of Financial Intermediation, 35, 86-101. https://doi.org/10.1016/j.jfi.2016.10.003

We present a novel way to examine macro-financial linkages by focusing on the real effects of bank supervisors’ enforcement actions. Exploiting plausibly exogenous variation in supervisory monitoring intensity, we show that enforcement actions in sin... Read More about The real effects of banking supervision: Evidence from enforcement actions.