Financial Management Association International

Financial Management article "Brand Equity and Debt Diversification" by David C. Mauer, Yu Miaomiao, and Aihuan Zhang is now available in Early View.

Abstract:
This study examines how brand equity influences the diversity of firms’ debt structures. We propose that brand equity, by signaling larger and more stable future cash flows and greater product market awareness, alters the fundamental trade-offs that drive optimal debt type diversity. Specifically, strong brand equity may enable greater debt diversity by reducing the costs of creditor coordination failure and reducing the firm's exposure to lender-specific shocks. Using trademarks to proxy for brand equity, we find a robust positive relationship between brand equity and debt diversity. Quasi-natural experiments support a likely causal interpretation of this effect. Cross-sectional tests further reveal that the relationship is more pronounced for firms facing greater information asymmetry and heightened product market competition. Our results are robust to alternative measures of brand equity and debt diversity.

🔗 Read the article: https://onlinelibrary.wiley.com/doi/full/10.1111/fima.70053

Financial Management article "Institutions and Bank Intermediation: The Joint Role of State Capacity and Civil Liberties" by Arisyi Raz and Seyit Gokmen (Abdullah Gül University) is now available in Early View.

Abstract:
We examine the effects of state capacity and civil liberties on bank intermediation, measured by banks' ability to generate liquidity in the economy. Theory suggests that a strong state that upholds civil liberties can create institutions that promote economic activity, including the development of its banking sector. We investigate this hypothesis by testing a possible channel: confidence in the banking system. Democracies tend to increase trust in the banking system by reforming institutions, while autocracies frequently rely on cronyism. Over the long run, trust in the banking system promotes banking development and intermediation in democracies, whereas cronyism and the risk of expropriation by autocrats undermine the potential for banking sector advancement in autocracies, despite having a trustworthy banking system. Our findings provide evidence in support of this channel, offering new insights into the role of political institutions in the banking sector.

🔗 Read the article: https://onlinelibrary.wiley.com/doi/abs/10.1111/fima.70050

📅 Save the Date!

📌 Mark your calendar for the 2027 FMA Asia/Pacific Conference at VinUniversity in Hanoi, Vietnam. The conference will be held on 7 - 9 July 2027. Details to be announced soon.

🔗 Learn more about past FMA Asia/Pacific Conferences here: https://www.fma.org/past-programs

Financial Management article "Price and Non-price Terms of Syndicated Loans to Technology Firms" by Weiting Hu, PhD, Eric K. M. Tan, and Nadeesh Warusamanna (The University of Queensland) is now available in Early View.

Abstract:
This paper examines whether US technology firms receive different price and nonprice terms in the syndicated loan market compared to nontechnology firms. The analysis reveals that technology borrowers face significantly less favorable terms, including 12 basis points higher loan spreads, approximately 5% shorter maturities, and loan sizes reduced by 3% of total assets. Evidence suggests these differences are consistent with being driven by higher information asymmetry, as technology firms benefit more from reductions in opacity than nontechnology peers. The relationship between firm quality and loan maturity appears nonmonotonic, with higher-quality firms potentially opting for shorter loan terms. The findings are robust to entropy balancing, endogeneity concerns, credit rating subsamples, and omitted variable bias. Overall, the results indicate that technology firms face systematically worse loan terms, with important implications for borrowers, lenders, and market participants amid the sector's growing presence in syndicated lending.

🔗 Read the article:

Financial Management | FMA Finance Journal | Wiley Online Library This paper examines whether US technology firms receive different price and nonprice terms in the syndicated loan market compared to nontechnology firms. The analysis reveals that technology borrower...

Financial Management article "Bank Branching Deregulation and the Deposit Channel of Credit Dislocation" by Brad Cannon (Binghamton University) and John Lynch (Hofstra University) is now available in Early View.

Abstract:
We show that interstate bank branching deregulation in the United States led to a substantial and persistent decline in small business lending, driven by a reallocation of deposits away from local relationship lenders and toward large, out-of-state entrants. Lending to small businesses fell by over 5% in affected areas, with dynamic estimates revealing persistent declines of just under 10% in the medium run. The sharpest declines occurred in counties with larger deposit bases and stronger housing markets, suggesting that entering banks prioritized deposit acquisition and mortgage lending over relationship-based small business credit. This funding disruption triggered lasting real effects: dynamic estimates suggest the number of small firms declined by approximately 5% relative to prederegulation levels, and employment at the smallest firms fell significantly. Our findings highlight a deposit channel through which deregulation can dislocate credit and reshape local business landscapes, even when aggregate banking activity ultimately stabilizes.

🔗 Read the article: https://onlinelibrary.wiley.com/doi/abs/10.1111/fima.70048

📢 Call for Papers! 2026 FMA Asia/Pacific Conference

FMA International is pleased to announce its 15th Asia/Pacific Conference at Massey University in Auckland, New Zealand on 2 - 4 December 2026. FMA’s Asia/Pacific Conference brings together academicians and practitioners with interests in financial decision-making and provides a forum for presenting new research and discussing current issues in financial management and related topics.

🎓 Program Co-Chairs:
Martin Young, Professor of Finance, Massey University
Xiaoyun Yu, Chair Professor of Finance, Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University
Tao CHEN, Provost's Chair in Finance, Associate Professor, Nanyang Technological University

🎓 Massey University Organizing Committee:
Harvey Nguyen, Associate Professor of Finance, Massey University
Jasmine Jiali Fang, Senior Lecturer in Finance, Massey University

🔗 Learn more and submit your paper today: https://www.fma.org/auckland

📢 Important 2026 FMA Annual Meeting deadlines!

📌 Doctoral Student Consortium
Coordinated by James J. Choi, Professor of Finance at the Yale School of Management, the Doctoral Student Consortium includes a panel session with distinguished scholars discussing the latest advances in research and offering career advice. Deadline to apply: 22 May 2026

📌 Emerging Scholars Initiative
Led by John Graham, D. Richard Mead Professor of Finance at the Fuqua School of Business at Duke University, the Emerging Scholars Initiative (ESI) is a program that offers early career scholars (e.g., Assistant Professors or untenured professors) from disadvantaged backgrounds opportunities to gain visibility in the profession, benefit from mentorship, receive feedback and ongoing support on their research from senior faculty, and receive advice on professional development. Deadline to apply: 22 May 2026

📌 Innovation in Teaching Award
Led by Wei Wang, Distinguished Professor of Finance at Queen's University and FMA Vice President - Financial Education, the Financial Management Association International's (FMA) Innovation in Teaching Award is designed to recognize inspiring educators, enhance the quality and relevance of education in finance, disseminate successful innovative practices, and elevate teaching as a craft to the next level. Deadline to apply: 22 May 2026

Learn more and apply here: https://www.fma.org/tampa

Financial Management article "Non-Answers on Social Media and Stock Price Crash Risk" by yuqin huang (Central University of Finance and Economics), Tong Li (Xiamen University), and Maobin Xu (Central South University) is now available in Early View.

Abstract:
We document the widespread use of “non-answers” by firms on interactive investor relations platforms in China, referring to vague or evasive responses that provide little substantive information. Analyzing over 5.3 million question–answer pairs, we find that firms with higher non-answer rates subsequently face greater stock price crash risk. The effect is stronger when responses are off-topic, cite confidentiality or regulatory constraints, redirect investors to existing disclosure, or concern corporate governance. Mechanism tests suggest that non-answers help conceal unfavorable information and delay its incorporation into stock prices. Analysis exploiting a regulatory shock shows that increased scrutiny reduces non-answer frequency and mitigates crash risk. Our findings highlight how opacity in firm–investor interactions on social media affects the timing of price discovery, emphasizing the need for transparency in corporate communication.

🔗 Read the article: https://onlinelibrary.wiley.com/doi/abs/10.1111/fima.70047

Register today for the virtual Research Seminar in Finance, Economics, and Banking in the Spring 2026 series. The virtual seminars are presented by the Finance, Economics and Banking Research Network (FEB-RN) and Financial Management Association International!

📅 The seminar will be held on Thursday, 7 May 2026, at 9 AM ET US (3 PM CET) on "The Commercial Real Estate Ecosystem" with Stijn Van Nieuwerburgh, Professor of Real Estate, Columbia Business School.

The seminar is free to attend; share with your network!

🔗 Sign up here: https://www.fma.org/febrn.

🚨 Registration is now open for the 2026 FMA European Conference!

FMA International is pleased to announce its 2026 European Conference in partnership with the University of Minho will be held in Braga, Portugal on 10 - 12 June 2026. The Doctoral Student Consortium (by invitation only) will be held on Wednesday, 10 June; paper sessions will begin on Thursday, 11 June and will conclude on Friday, 12 June.

🎓 This year's conference will feature Keynote Speakers Alex Edmans, Professor of Finance; Fellow of the British Academy; Fellow of the Academy of Social Sciences, London Business School and Victoria Ivashina, Lovett-Learned Professor of Business Administration & Anne and James F. Rothenberg Faculty Fellow, Harvard Business School.

🔗 Learn more and register today:

2026 European Conference 2024 European Conference