Linda Allen
Professor
Zicklin School of Business
Department: Bert Wasserman Dept Eco & Fin
Areas of expertise:
Email Address: linda.allen@baruch.cuny.edu
> View CV- Biography
- Teaching
- Research and Creative Activity
- Grants
- Honors and Awards
- Service
Education
Ph.D., Economics & Finance, New York University United States
B.A., Economics, Queens College, CUNY Queens NY
| Semester | Course Prefix | Course Number | Course Name |
|---|---|---|---|
| Spring 2024 | BUS | 90000 | Dissertation Supervision |
| Spring 2024 | FIN | 85700 | Sem in Financial Institutions |
| Fall 2023 | BUS | 90000 | Dissertation Supervision |
| Spring 2023 | BUS | 90000 | Dissertation Supervision |
| Fall 2022 | BUS | 90000 | Dissertation Supervision |
| Spring 2022 | BUS | 90000 | Dissertation Supervision |
| Fall 2021 | BUS | 90000 | Dissertation Supervision |
| Fall 2021 | FIN | 4808 | Risk Management I |
| Spring 2021 | BUS | 90000 | Dissertation Supervision |
| Spring 2021 | FIN | 85700 | Sem in Financial Institutions |
| Spring 2021 | FIN | 4808 | Risk Management I |
| Fall 2020 | BUS | 90000 | Dissertation Supervision |
| Spring 2020 | BUS | 90000 | Dissertation Supervision |
| Fall 2019 | FIN | 4808 | Risk Management I |
| Fall 2019 | BUS | 90000 | Dissertation Supervision |
| Spring 2019 | BUS | 90000 | Dissertation Supervision |
| Spring 2019 | FIN | 85700 | Sem in Financial Institutions |
| Spring 2019 | FIN | 4808 | Risk Management I |
| Fall 2018 | BUS | 90000 | Dissertation Supervision |
| Spring 2018 | BUS | 90000 | Dissertation Supervision |
| Spring 2018 | ECON | 90000 | Dissertation Supervision |
| Fall 2017 | ECON | 90000 | Dissertation Supervision |
| Fall 2017 | FIN | 4808 | Risk Management I |
| Spring 2017 | ECON | 90000 | Dissertation Supervision |
| Spring 2017 | FIN | 85700 | Financial Institution |
| Fall 2016 | BUS | 90000 | Dissertation Supervision |
| Spring 2016 | ECON | 90000 | Dissertation Supervision |
| Spring 2016 | BUS | 90000 | Dissertation Supervision |
| Fall 2015 | BUS | 90000 | Dissertation Supervision |
| Spring 2015 | FIN | 4808 | Risk Management I |
| Spring 2015 | FIN | 85700 | Sem in Financial Institutions |
| Spring 2015 | BUS | 90000 | Dissertation Supervision |
| Fall 2014 | FIN | 4808 | Risk Management I |
| Fall 2014 | BUS | 90000 | Dissertation Supervision |
| Spring 2014 | BUS | 90000 | Dissertation Supervision |
| Spring 2014 | FIN | 4808 | Risk Management I |
| Fall 2013 | BUS | 90000 | Dissertation Supervision |
| Spring 2013 | FIN | 4808 | Risk Management I |
| Spring 2013 | BUS | 90000 | Dissertation Supervision |
| Spring 2013 | FIN | 85700 | Sem in Financial Institutions |
| Fall 2012 | BUS | 90000 | Dissertation Supervision |
| Spring 2012 | FIN | 4808 | Risk Management I |
| Spring 2011 | FIN | 4808 | Risk Management I |
| Spring 2010 | FIN | 4808 | Risk Management I |
| Spring 2009 | FIN | 4808 | Risk Management I |
| Spring 2007 | FIN | 4808 | Risk Management I |
| Spring 2006 | FIN | 4808 | Risk Management I |
| Fall 2005 | FIN | 4808 | Risk Management I |
| Fall 2004 | FIN | 4808 | Risk Management I |
| Fall 2004 | FIN | 4808 | Risk Management I |
| Spring 2004 | FIN | 4808 | Risk Management I |
| Spring 2004 | FIN | 4808 | Risk Management I |
| Fall 2003 | FIN | 4808 | Risk Management I |
| Fall 2003 | FIN | 9784 | Mgt Of Fin Inst |
| Spring 2003 | FIN | 3820 | Fin Mkts & Intermedi |
| Spring 2003 | FIN | 6002 | Honors Courses in Finance |
| Fall 2002 | FIN | 3820 | Fin Mkts & Intermedi |
| Fall 2002 | FIN | 3820 | Fin Mkts & Intermedi |
| Fall 2002 | FIN | 6001 | Honors Courses in Finance |
| Spring 2002 | FIN | 9785 | Fin Mkts/Intermediar |
| Spring 2002 | FIN | 3820 | Fin Mkts & Intermedi |
| Fall 2001 | FIN | 3820 | Fin Mkts & Intermedi |
| Fall 2001 | FIN | 9785 | Fin Mkts/Intermediar |
Books
Allen, L. (2010). Credit Risk Measurement In and Out of the Financial Crisis: New Approaches to Value at Risk and Other Paradigms. John Wiley and Sons.
Allen, L., Boudoukh, J., & Saunders, A. (2004). Understanding Market, Credit and Operational Risk: The Value at Risk Approach. (p. 254 pages). Blackwell Publishing.
Allen, L., & Saunders, A. (2002). Credit Risk Measurement: New Approaches to Value at Risk and Other Paradigms, second edition. (p. 318 Pages). New York, NY, John Wiley & Sons.
Allen, L. (1997). Capital Markets and Institutions: A Global View. New York, NY, John Wiley & Sons.
Allen, L. (1994). Financial Institutions Management: A Modern Perspective, End of Chapter Questions, Instructors Manual and Text Bank. Burr Ridge.
Allen, L. (1987). "Equilibrium Credit Rationing: A Synthesis of the Literature". Salomon Brothers Center for the Study of Financial Institutions Monograph Series in Finance and Economics.
Journal Articles
Allen, L., & Hazarika, S. (2020). Bank Dependence in Emerging Countries: Cross Border Information Percolation in Mutual Fund Equity Investing. Journal of International Business Studies, (51). 218-243.
Allen, L. (2018). “Accounting for Contingent Litigation Liabilities: What You Disclose Can Be Used Against You” . Virginia Law and Business Review, Winter 2018.
N/A, L., & Letdin, M. (2018). The Cost of Debt for REITs: The Mortgage Puzzle. Journal of Real Estate Research,
Allen, L., & Alan, N. S. (2016). What’s the Contingency? A Proposal for Bank Contingent Capital Triggered By Systemic Risk. Journal of Financial Stability, 26(2016). 1-14.
Allen, L. (2016). What’s the Contingency? A Proposal for Bank Contingent Capital Triggered By Systemic Risk. Journal of Financial Stability,
Allen, L. (2015). Bank Delays in the Resolution of Delinquent Mortgages: The Problem of Limbo Loans. Journal of Real Estate Research,,
(2014). Bank Delays in the Resolution of Delinquent Mortgages: The Problem of Limbo Loans. Journal of Real Estate Research,
(2012). The Impact of Joint Participation on Liquidity in the Equity and Syndicated Bank Loan Markets. Journal of Financial Intermediation, (21). 50-78.
(2008). The Information Content of Quarterly Earnings in Syndicated Bank Loan Prices. Asia-Pacific Journal of Accounting and Economics, 15(2). 91-122.
(2007). Cyclicality in Catastrophic and Operational Risk Measurments. Journal of Banking and Finance, 31.
Allen, L. (2007). Accounting for Contingent Litigation Liabilities: What You Disclose Can Be Used Against You. Virginia Law and Business Review, 2018(Winter). 21.
(2007). "Meeting Daubert Standards in Calculating Damages for Shareholder Class Action Litigation". The Business Lawyer, 62(3). 955-969.
(2007). “The Path to Basel II Adoption”. Journal of Financial Services Research, Guest editors, 26(2). 101-102.
(2007). "Loan Underpricing and the Provision of Merger Advisory Services". Journal of Banking and Finance, 31. 3539-3562.
(2006). “The Informational Efficiency of the Equity Market As Compared to the Syndicated Bank Loan Market”. Financial Services Research, 30(1). 5-42.
(2006). “A New Theoretically-Grounded Microstructure Trading Model For Calculating Damages in Shareholder Class Action Litigation”. Stanford Journal of Law, Business and Finance, 12(1). 61-83.
(2004). “The Role of Commercial Bank Advisors in Mergers and Acquisitions”. Journal of Money, Credit and Banking, 36(2). 197-224.
(2004). “Incorporating Systemic Influences Into Risk Measurements: A Survey of the Literature,”. Journal of Financial Services Research, 26(2). 161-191.
(2004). “The Basel Capital Accords and International Mortgage Markets: A Survey of the Literature”. Financial Markets, Institutions and Instruments, 13(2). 41-108.
(2004). “Issues in the Credit Risk Modeling of Retail Markets”. Journal of Banking and Finance, 28(4). 727-752.
(2002). “Tough Love in Risk Management: The Market as Financial Parent”. Journal of Economics and Business, 3-6.
(2001). “Further Evidence on the Information Content of Bank Examination Ratings: A Study of BHC-to-FHC Conversion Applications”. Journal of Financial Services Research, 20(2/3). 213-232.
(2000). “The Risk Effects of Combining Banking, Securities and Insurance Activities”. Journal of Economics and Business, 52. 485-497.
(1998). “Losing Your Tail on the Repo Market: The Story of Robert Citron”. The Arbitrageur, 13-20.
(1998). “Debt Masquerading as Preferred Stock: Reordering the Pecking Order”. Roundtable Group Online,
(1997). “Valuation of the Operating Flexibility of Multinational Corporations,”. Journal of International Business Studies, 633-653.
(1997). “CMO, IO, PO, and Other Potentially Toxic Letters of the Alphabet,”. Corporate Finance Review, 5-11.
(1997). “Risk and Market Segmentation in Financial Intermediaries' Returns”. Journal of Financial Services Research, 12(2/3). 159-173.
(1997). “Operational Efficiency in Banking: An International Comparison: Reply”. Journal of Banking and Finance, 21. 1451-1455.
(1996). “Operational Efficiency in Banking: An International Comparison”. Journal of Banking & Finance, 655-672.
(1996). “Interest Rate Risk Subsidization in International Capital Standards”. Journal of Economics and Business, 48. 251-267.
(1996). “Bank Charter Values and Capital Levels: An International Comparison”. Journal of Economics and Business, 48. 269-284.
(1994). “Deposit Insurance and Bank Closure Policy: The Israel Banking System”. Bank of Israel, Banking Review, (4). 31-55.
(1994). “Deposit Insurance and Regulatory Forbearance: Are Caps on Insured Deposits Optimal?”. Journal of Money, Credit and Banking, 26(3). 411-438.
(1993). “Forbearance and Valuation of Deposit Insurance As A Callable Put”. Journal of Banking and Finance, 17. 629-643.
(1993). “Economies of Scale and Scope in International Banking”. Journal of International Financial Markets, Institutions, and Money, 3(2). 1-31.
(1992). “Bank Window Dressing: Theory and Evidence”. Journal of Banking and Finance, 16. 335-623.
(1991). “Bank Acquisition and Ownership Structure: Theory and Evidence”. Journal of Banking and Finance, 15. 425-448.
(1991). “The Pricing of Retail Deposits: Concentration and Information”. Journal of Financial Intermediation, 335-361.
(1989). “Bank Size, Collateral and Net Purchase Behavior in the Federal Funds Market: Empirical Evidence”. Journal of Business, 62. 501-516.
(1988). “The Determinants of Bank Interest Margins: A Note”. Journal of Financial and Quantitative Analysis, 23. 231-235.
(1988). “Cash-Futures Arbitrage and Forward-Futures Spreads in the Treasury Bill Market”. Journal of Futures Markets, 8. 563-573.
(1986). “The Large-Small Bank Dichotomy in the Federal Funds Market”. Journal of Banking and Finance, 2l9-230.
Foreign Direct Investment and Regulatory Remedies for Banking Crises: Lessons from Japan. Journal of International Business Studies, 42(7). 875-893.
Does Systemic Risk in the Financial Sector Predict Future Economic Downturns?. Review of Financial Studies, 25(10). 3000-3036.
Clawbacks and Cronyism: Evidence from China. Financial Management, 40(3). 733-756.
The Role of Banks in Dividend Policy. Financial Management,
Book Chapters
Allen, L. (2019). Private Information and Risk Management in Banking. Oxford Bankers’ Handbook (p. 20). Oxford, England,UK. Oxford University Press.
Allen, L., & N/A, A. (2018). “Private Information and Risk Management in Banking”. “Private Information and Risk Management in BaOxford Bankers’ Handbook, A. Berger, P. Molyneux and J. Wilson, eds., Third edition, Oxford University Press
Allen, L., & Saunders, A. (2017). Private Information and Risk Management in Banking. Oxford University Press,UK. Oxford Bankers’ Handbook.
(2014). Revisiting Risk Management in Banking. Oxford Bankers' Handbook
(2013). Revisiting Risk Management in Banking. Oxford Handbook of Banking, volume 2
(2010). "Risk Management in Banking". Oxford Handbook of Banking (pp. 90-111). Oxford,England. Oxford Bankers’ Handbook.
Allen, L., Bali, T., & Tang, Y. (2004). “Cyclicality in the Catastrophic Risk of Financial Institutions,. In Cruz, M. (Ed.), Operational Risk Modelling and Analysis: Theory and Practice (pp. 209-246).
Allen, L. (2003). The BIS Basel International Bank Capital Accords. In Choi, F. D. (Ed.), International Accounting and Finance Handbook
Allen, L. (2002). “Cyclical Effects in Credit Risk Ratings and Default Risk”. In Ong, M. (Ed.), BIS Working Paper Series and in Credit Ratings: Methodologies, Rationale and Default Risk
Allen, L. (1993). Capital and Deposit Insurance Regulations. In Zissu, A., & N/A, C. (Eds.), Risk Based Capital Regulations: Asset Management and Funding Strategies
“Frontiers in Risk Management”. Oxford Bankers’ Handbook.
Patents and Intellectual Properties
Allen, L. (2011). An Arrangement For and A Method For Determining Damages in Shareholder Class Action Litigation. Regular. United States.
Presentations
Shen, Y., Allen, L., & Shan, Y. (2021, June 23). Do FinTech Mortgage Lenders Fill the Credit Gap? Evidence from Natural Disasters. IBEFA Summer Meeting. Virtual: International Banking, Economics, and Finance Association.
Shen, Y., Allen, L., & Shan, Y. (2021, July 8). Do FinTech Mortgage Lenders Fill the Credit Gap? Evidence from Natural Disasters. 2021 China International Conference in Finance.
Shen, Y., Allen, L., & Shan, Y. (2019, September 14). Do FinTech Lenders Fill the Credit Gap? Evidence from Local Mortgage Demand Shocks. NFA Annual Conference. Vancouver, Canada: Northern Finance Association.
Shen, Y., Allen, L., & Shan, Y. (2019, June 13). Do Fintech Lenders Fill the Credit Gap? Evidence from Local Mortgage Demand Shocks. 2019 FMA European Conference. Glasgow, Scotland
Shen, Y., Allen, L., & Shan, Y. (2019, October 31). Do FinTech Lenders Fill the Credit Gap? Evidence from Local Mortgage Demand Shocks. FMA 2019. New Orleans, LA: Financial Management Association.
Chakraborty, S., Allen, L., & Watanabe, W. (2010, November 30). . North East Universities Development Consortium 2010. MIT: NUEDC.
Chakraborty, S., Allen, L., & Watanabe, W. (2010, February 28). Regulatory Remedies for Banking Crises: lessons from Japan. Board of Governors of the Federal Reserve System. Washington, D.C.: Board of Governors of the Federal Reserve System.
Chakraborty, S., Allen, L., & Watanabe, W. (2010, November 30). Regulatory Remedies for Banking Crises: lessons from Japan. Rutgers University Seminar. Rutgers University: Rutgers University, Dept. of Economics (Newark Campus).
Chakraborty, S., Allen, L., & Watanabe, W. (2010, October 31). Regulatory Remedies for Banking Crises: lessons from Japan. Keio University Seminar. : Keio University.
Chakraborty, S., Allen, L., & Watanabe, W. (2010, June 30). . European Finance Association Annual Meetings. : European Finance Association.
Chakraborty, S., Allen, L., & Watanabe, W. (2010, May 31). Regulatory Remedies for Banking Crises: lessons from Japan. Financial Intermediation Workshop, Bank of International Settlements. Basel, Switzerland: Bank of International Settlements.
Chakraborty, S., Allen, L., & Watanabe, W. (2010, May 31). Regulatory Remedies for Banking Crises: lessons from Japan. North American Law and Economics Association Annual Meetings. Princeton University: North American Law and Economics Association.
Chakraborty, S., Allen, L., & Watanabe, W. (2010, April 30). Regulatory Remedies for Banking Crises: lessons from Japan. Midwest Macroeconomics Meetings 2010. Michigan State University: Michigan State University (Organizer).
Chakraborty, S., Allen, L., & Watanabe, W. (2009, November 30). Regulatory Remedies for Banking Crises: lessons from Japan. Macroeconomics Colloquium- CUNY Graduate Center. CUNY Graduate Center: CUNY Graduate Center.
Allen, L. (2008, December 31). The Credit Crisis – How Did We Get Here, Where Are We Going?. New York, NY: Baruch College Fund Trustees.
Allen, L. (2008, December 31). Risk: Keeping Ahead of the Curve. : Royal Bank of Scotland Private Banking Academy.
Allen, L. (2008, December 31). Risk: Keeping Ahead of the Curve. Kansas City, Missouri: Henry W. Bloch School of Business University of Missouri Kansas City.
Allen, L. (2008, March 31). Risk: Keeping Ahead of the Curve. : DePaul University.
Allen, L. (2008, March 31). Risk: Keeping Ahead of the Curve. Chicago, IL: Federal Reserve Bank of Chicago.
Allen, L. (2007, December 31). Risk: Keeping Ahead of the Curve. : Royal Bank of Scotland Private Banking Academy.
Allen, L. (2007, December 31). . NYU/Federal Reserve Conference. New York, NY: New York University/Federal Reserve Bank.
Allen, L. (2006, December 31). . Financial Management Association. New York, NY
Allen, L. (2006, December 31). The Credit Crisis – How Did We Get Here, Where Are We Going?. NYU/Federal Reserve Conference. New York, NY: New York University/Federal Reserve Bank.
Allen, L. (2005, December 31). . Financial Management Association. New York, NY
Allen, L. (2005, December 31). The Credit Crisis – How Did We Get Here, Where Are We Going?. NYU/Federal Reserve Conference. New York, NY: New York University/Federal Reserve Bank.
Allen, L. (2004, December 31). “Comment on “Evidence on the Efficacy of Interest Rate Risk Disclosures by Commercial Banks”. : International Journal of Accounting.
Allen, L. (2002, December 31). “Comments on ‘Credit Ratings and the BIS Reform Agenda,’”. : Global Financial System.
Allen, L. (1992, December 31). “Joint Ventures in Poland: A Discussion”. : Business Finance in Less Developed Countries.
Allen, L. “Does Systemic Risk in the Financial Sector Predict Future Economic Downturns?”. The Global Financial Crisis. New York: RFS/NYU/NY Federal Reserve.
Other Scholarly Works
Shen, Y., Shan, Y., & Allen, L. (2020). Do FinTech Lenders Fill the Credit Gap? Evidence from Local Mortgage Demand Shocks.
Allen, L., Peng, L., & N/A, Y. S. (2019). Social Interactions and Peer-to-Peer Lending Decisions.
In Progress.Research Currently in Progess
Allen, L., & Letdin, M.(n.d.). Bank Certification of Closely-Held Borrowers and the Risky Road to REIT Returns. In Progress.
Analyzing a hand-collected loan level database of heterogeneous REIT borrowings and controlling for REIT risk and loan collateral as well as endogeneity of access to public debt markets, we find that mortgage loans include a rate premium to compensate banks for monitoring. Access to public debt markets raises financing costs, inconsistent with a bank hold-up problem for REITs. However, non-monitored debt financing costs are reduced when bank lenders and equity analysts monitor REIT management. Equity alpha reflects positive abnormal returns from equity analyst monitoring, but not from costly bank monitoring. Equity gains from analyst monitoring are not found during recessions.
Stavros, , & Allen, L.(n.d.). Bank Delays in the Resolution of Delinquent Mortgages: The Problem of Limbo Loans. In Progress.
Limbo loans are defined as delinquent mortgage loans that have not progressed either to foreclosure (non-foreclosure limbo) or to resolution (foreclosure limbo). We find that 21.79% (representing $24.8 billion in principal) of the subprime loans originated in Florida during 2004-2008 were in limbo as of December 2010. We utilize a unique legal docket database for Florida alone and find no support for either bottlenecks or bank capital constraints as explanations for the limbo loan phenomenon. Rather we find support for an operational risk hypothesis in which the impairment of property rights contributes to both the likelihood that a loan will remain in limbo and the length of time spent in limbo. In particular, we find that the presence of the Mortgage Electronic Registration System (MERS) in both assignment and foreclosures significantly increases both the likelihood and severity of the time spent in limbo, such that a 10% increase in the presence of MERS in county foreclosures and assignments adds around 8 months (3.5 months) to the time spent in foreclosure limbo (non-foreclosure limbo). Lost documentation affidavits are found to be required to replace lost property rights so as to move these loans to resolution more quickly.
Allen, L.(n.d.). Cutting Operational Costs by Integrating Fintech into Traditional Banking Firms. In Progress.
Fintech firms mobilize information technology to provide intermediation services using a broker methodology, whereas traditional banks utilize core deposits and leveraged balance sheets to offer dealer intermediation. We examine whether the integration of Fintech into traditional banks has reduced the unit cost of financial intermediation. We utilize principal component analysis on Call Report data to develop the “Fintech score” spectrum from most broker-like (high Fintech score) to most dealer-like (low score). We validate the Fintech score using self-designation (keyword counts) obtained from SEC filings. Data Envelope Analysis efficiency measures show that banks with higher Fintech scores are more operationally efficient.
Allen, L., & Shen, Y.(n.d.). Do Fintech Lenders Fill the Credit Gap? Evidence From Local Mortgage Demand Shocks?. In Progress.
Allen, L., Shan, Y., & Tang, Y.(n.d.). How Much Fintech is in Your Bank? The Fintech Footprint in Bank Returns. In Progress.
Traditional banks provide a myriad of services to online financial startups that integrates Fintech into established financial services firms. We utilize principal component analysis applied to Call Report data to develop an empirical metric, the “Fintech score,” which measures the interconnectedness between a traditional bank and Fintech services. We study the relationship between the Fintech score and bank stock returns, and find that bank diversification into Fintech lowers bank risk and future stock returns.
Chakraborty, S., Allen, L., Hazarika, S., & Chih-Hu, S.(n.d.). Mutual Fund Performance- Do bank owned funds have an insider advantage?. In Progress.
In this paper, in an international framework, we ask: (1) Do bank-owned mutual funds have an insider advantage in picking good international stocks? (2) Does information flows from lending arm to investment arm benefit the mutual funds or is it institutional knowledge guided by a bank's intensive information about a country?
Allen, L., & Peng, L.(n.d.). Social Networks and Credit Allocation on FinTech Lending Platforms. In Progress.
Allen, L., Hazarika, S., Chakraborty, S., & Su, D.(n.d.). Strategic Use of Cross-Border Bank Lending Information in Mutual Fund Equity Investing. In Progress.
In contrast to the literature involving U.S. bank lending domestically to U.S. firms, we find that affiliated U.S. banks’ mutual funds do not increase their holdings of equity in non-U.S. borrowing firms around new loan initiations. Mutual funds affiliated with lending banks have less equity investment and turnover in the stock of their non-U.S. borrowers as compared to non-lending bank or unaffiliated mutual funds. Reduced equity holdings increase loan spreads consistent with the preservation of the lending bank’s information monopoly, thereby encouraging further lending. Equity market turnover is most reduced when banks lend to firms in emerging nations.
Allen, L., Letdin, M., & McCollum, M. N.(n.d.). The Benefits of Bank Transactional Lending to REITs. In Progress.
The literature treats the bank’s decision to lend on a relationship or transactional basis as a strategic and competitive bank decision. However, none of these studies focus on the borrower’s choice between relationship and transactional lending. If these two products have different risk and return characteristics, then borrowers would optimally choose between them. Indeed, firms may choose both relationship and transaction loans (in contrast to Boot and Thakor (2000) which borrowers as choosing between the alternative sources of funding). Empirically distinguishing relationship and transactional loans at a given borrower is complicated by endogeneity and the classic identification problem between chosen and rejected alternative outcomes. REITs offer a unique opportunity to address this question since as a matter of course, REITs simultaneously utilize both relationship and transactional borrowing. That is, REITs obtain bank mortgages on a transactional level, often dictated by the geographic proximity between the mortgaged property and the lending bank. Simultaneously, REITs obtain relationship loans (e.g., lines of credit) that are not tied to individual properties, but rather provide private information at the firm level obtained through repeat lending activity. Examining the REITs’ choice between relationship and transactional loans enables us to understand the relative benefits and costs of each form of lending technology.
Allen, L., & Su, D.(n.d.). The Impact of Bank Lending Relationships on Mergers and Acquisitions. In Progress.
Information is particularly hard to obtain, but extremely valuable in the course of major corporate events such as acquisitions. As informed lenders, relationship banks are found to play a certification role in acquisitions. The greater the intensity of a prior bank lending relationship, the greater the probability that a firm will initiate and complete acquisitions. Conditional on those completed acquisitions, prior bank lending relationships are positively associated with the greater use of cash as a method of payment, indicating that studies finding positive abnormal returns for cash-financed acquisitions may contain bank certification effects. Furthermore, the market perceives the monitoring and screening associated with more intense bank lending relationships as certification of value, as evidenced by positive announcement effects, particularly for private target firms.
Allen, L., & Yildirim, A.(n.d.). The Intangible Value of Key Talent: Decomposing Organization Capital. In Progress.
Intangible assets are a key contributor to firm value, enabling the firm to differentiate itself from competitors on the basis of its access to specialized, efficient, firm-specific information, activities and procedures, identified as organization capital (OC). Since OC contains a heterogeneous group of disparate items, we isolate firm value creation by decomposing OC into two major parts: (1) key talent in the form of compensation of top executives which creates value and (2) a residual comprised of perquisites and empire building expenses that destroy firm value. Furthermore, residual OC creates systematic risk exposure, whereas key talent engenders idiosyncratic risk only.
Allen, L.(n.d.). What’s Your CEO Worth? A New Measure of the Firm’s Organization Capital. In Progress.
Intangible assets are a key contributor to firm value, enabling the firm to differentiate itself from competitors on the basis of its firm-specific information, identified as organization capital (OC). Since OC contains a heterogeneous group of disparate items, we decompose OC into: (1) key talent in the form of disclosed compensation of top executives which creates value and (2) a strategic component comprised of undisclosed OC mixed with agency costs that does not increase firm value, but generates systematic risk. Disclosures revealing the breakdown between OC and agency costs (i.e., unexpectedly positive earnings announcements, earnings management, stock mispricing) generate abnormal returns.
| Honor / Award | Organization Sponsor | Date Received | Description |
|---|---|---|---|
| William F. Aldinger Chair in Banking and Finance | 2011 | This endowed chair enables me to contribute to the School, the College, CUNY and the broader community by supporting my research activities. | |
| Presidential Professor of Finance | Baruch College | 2007 |
College
| Committee Name | Position Role | Start Date | End Date |
|---|---|---|---|
| Baruch FEI CFO Survey | Baruch College Representative | Present | |
| Executive Committee Real Estate Department | Committee Member | Present | |
| External Relations | Committee Chair | Present | |
| Executive Committee Dept. of Economics and Finance | Committee Member | Present | |
| Executive Committee | Committee Member | 12/31/2013 | |
| Executive committee | Committee Member | 12/31/2013 | |
| PSC-CUNY Research Award Economics and Finance | Committee Chair | 12/31/2001 | |
| General Faculty | Secretary | 12/31/1996 | |
| Ad Hoc Bylaws Committee | Committee Chair | 12/31/1996 | |
| Committee on Committees | Committee Member | 8/31/1995 | |
| Faculty Senate | Secretary | 12/31/1994 |
University
| Committee Name | Position Role | Start Date | End Date |
|---|---|---|---|
| PSC-CUNY Award Review | Committee Chair | Present |
Professional
| Organization | Position Role | Organization State | Organization Country | Start Date | End Date | Audience |
|---|---|---|---|---|---|---|
| American Finance Association | Member | Present | ||||
| Financial Management Association | Member | Present | ||||
| Journal of Economics and Business | Editor, Associate Editor | Present | ||||
| Journal of International Business Studies | Editor, Associate Editor | Present | ||||
| FMA Program Committee | Committee Member | 1/1/2010 | Present | |||
| Journal of Credit Risk | Editor, Journal Editor | 11/30/2019 |