Consumer, bank, and stock market reaction to CFPB’s complaint data disclosure

Abhi Bhattacharya ()
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Abhi Bhattacharya: Culverhouse College of Business, University of Alabama

Journal of Financial Services Marketing, 2023, vol. 28, issue 1, No 9, 128-145

Abstract: Abstract With the signing of the Dodd-Frank Wall Street and Consumer Protection Act in 2011, and the accompanying Consumer Financial Protection Bureau, there is now a public database filled with US bank complaints and their resolution process. While the disclosure created ripples in the news media, research on the reaction to this disclosure by consumers, banks, and the stock market was scant. This paper examines how these multiple stakeholders reacted to the public disclosure of bank complaint data. Analyses indicate that more consumers complain and dispute a case post-data disclosure even though banks respond to complaints in a more timely fashion. The stock market reactions to the complaint data disclosure are positive in the short run, driven by the brand value and the extant internal governance mechanisms present in the financial firm.

Keywords: CFPB; Event study; Complaint; Data disclosure; Abnormal return (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1057/s41264-022-00143-2

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