Dr José Maria Liberti, Kellstadt Graduate School of Business, DePaul University
This paper investigates the effect of a change in informational environment, brought about by the introduction of credit registry for a subset of borrowers, on the organisational design of lending. We exploit micro data from a large multinational bank and find that the establishment of the credit registry improves the efficiency of credit allocated by the bank. This is accompanied by a concurrent change in the organisational design that involves an increase in the delegation of tasks to the loan officers and an expansion of scope of activities of both loan officers and divisional managers. There is some suggestive evidence that larger banks in the economy were better able to implement these changes. We discuss that these patterns can be understood within the framework of information cost processing and incentive based theories. Our findings could help rationalise why the improvement in information environment is altering the landscape of lending by moving decisions outside the boundaries of financial intermediaries.
José María Liberti is a Visiting Associate Professor of Finance at Kellogg School of Management and Associate Professor of Finance at Kellstadt Graduate School of Business, DePaul University. He is also a research fellow of the European Banking Center (EBC). He also holds an affiliation with both the Heizer Center for Private Equity and Venture Capital, and the Center for Family Enterprises at Kellogg School of Management.
His research lies in the boundaries of corporate finance, financial intermediation and organisational economics. Part of his attention has been drawn to understand how incentives, allocation of authority and types of information are used in the actual decision-making process of individuals His work has been published in the Journal of Finance and the Review of Financial Studies. José María received the Brattle Award (First Prize) for the best paper in corporate finance awarded annually by the American Finance Association. He has also received twice the Brattle Distinguished paper award. His work has been presented at numerous universities and governmental bodies around the world.