Jung Ho Han

ABSTRACT Most banks pay corporate income taxes, but securitization vehicles do not. Our model shows that, when a bank faces strong loan demand but limited deposit market power, this tax asymmetry creates an incentive to sell loans despite less‐efficient screening and monitoring of sold loans. Moreover, loan‐selling increases as a bank's corporate income tax rate and capital requirement rise. Our empirical tests show that U.S. commercial banks sell more of their mortgages when they operate in sta

Previous research highlights the importance of two distinct types of informed trading in the options market: trading on the price direction of underlying stocks, and trading on their uncertainty. Surprisingly, however, the studies considering these in a unified framework are scant.This study attempts to fill the gap. We predict that when both directional and volatility information could motivateoptions trading, the return predictability of options volume hinges onthe shape of the volatility smir

This paper empirically examines how choose their checking account service providers and how such choices affect credit contract terms. I find that firms choices of checking accounts are negatively associated with geographical distance between banks and depositing but positively associated with durable banking relationship, implying that transportation costs and early accessibility dominantly explain checking account choices. More importantly, I find that an existing checking account from a lende

Abstract The seminal research by S tein ( J ournal of F inance 1989, 44, 1011) shows that long‐term options overreact to short‐term volatility shocks. In contrast, recent studies show that such irrational responses disappear when model‐free implied volatilities are used. We extend this literature by examining overreactions in the over‐the‐counter currency options market. Using model‐free implied volatility and by considering the estimated structural breaks around recent financial crises, we find