Arcticle’s by jjin

Since the 2007–2008 global financial crisis, governments, financial sector experts, and academics have emphasized the role of financial literacy in supporting inclusive and sustainable growth as well as the relationship between financial education and broader financial, economic, and social outcomes (OECD, 2018). Although financial literacy attracts global interest, not much empirical evidence exists to support its perceived role beyond the documented individual or household changes in financial behaviors, such as savings, equity investments, and borrowing. Our research takes an initial step toward understanding the association between consumer behaviors and aggregate financial and economic outcomes. Banks are known to play a…

In a recent study, published in the European Accounting Review (EAR), Yi Liu, Khalid Nainar and I examine the impact of banks’ organizational memory of past history on the conservatism of accounting policy. We investigate two types of bad time history: banks’ undercapitalization and the failures of other banks during financial crises. Using a large sample of U.S. banks over the period 1997–2013, we find that both types of bad times are positively related to timelier recognition of earnings decreases versus earnings increases in accounting income. We also find that following bad times, banks increase their allowance for loan losses.…