We examine the effects of CEO turnover in banks. Incoming bank CEOs face problems from information asymmetry because banks' operations are opaque and bank risk can change dramatically in a short time. Incoming bank CEOs may therefore change bank policies to manage their personal risks. Since CEO...

Theory suggests that the relative performance of group loans over individual loans should deteriorate during a crisis due to group members defaulting in anticipation of default by other members or due to mass strategic defaults. However, it is difficult to test the hypothesis in a crisis due to...

Although the impact of social ties on credit markets has been studied, the possibility of contagion through social ties remains unexplored. Examining the Indian caste system and the group loan structure, we find that social ties could turn shocks into a contagion within credit markets: a drought...