Depositor responses to a banking crisis: Are finance professionals special?

Glenn Boyle (), Roger Stover, Amrit Tiwana and Oleksandr Zhylyevskyy

Journal of Empirical Finance, 2022, vol. 67, issue C, 182-195

Abstract: We use a conjoint analysis of 551 subjects to compare the reaction of finance professionals to news of a banking crisis with the reactions of non-finance professionals and graduate students. All three groups make greater deposit withdrawals if deposit insurance protection involves a haircut, but the response of finance professionals is more nuanced: compared to non-finance professionals and students, they seem to care about haircuts mainly when bank capitalization is low and less so when capitalization is high. Both finance and non-finance professionals are more concerned about the pre-funding of deposit insurance than are students. Overall, while our results seem to indicate that finance professionals might be more financially savvy, they also suggest that the crisis-response behavior of finance professionals does not differ substantively from that of the other two groups.

Keywords: Banking crisis; Finance professionals; Deposit withdrawals (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Depositor Responses to a Banking Crisis: Are Finance Professionals Special? (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:67:y:2022:i:c:p:182-195

DOI: 10.1016/j.jempfin.2022.03.004

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