Prof. Fahlenbrach's paper in the Harvard Corporate Governance blog
© 2017 EPFL
The Harvard Corporate Governance blog featured a paper of Professor Fahlenbrach, titled "Why Does Fast Loan Growth Predict Poor Performance for Banks?" It was published Tuesday, October 24, 2017 on its Forum.
In this article, recently accepted for publication in the Review of Financial Studies, the authors show that the common stock of U.S. banks with loan growth in the top quartile of banks significantly underperforms the common stock of banks with loan growth in the bottom quartile.
Rüdiger Fahlenbrach, Associate Professor at the Swiss Finance Institute at EPFL, published this paper with Robert Prilmeier, Assistant Professor at Tulane University A.B. Freeman School of Business, and René M. Stulz, Everett D. Reese Chair of Banking and Monetary Economics at The Ohio State University Fisher College of Business.