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Accepted Papers

Finance, Advertising, and Race

Co-Author: Claire Célérier

Journal: Review of Financial Studies, 2025

We study how bank advertising practices contribute to racial disparities in financial markets by steering minorities toward inferior products. We exploit a regulatory change that incentivizes deposit collection at the Freedman's Savings Bank, the first institution to collect deposits from African Americans post-Emancipation, by facilitating misuse of depositor funds. After deregulation, advertising volume rises, particularly in African American newspapers, leading to increased deposits from Black depositors despite the bank's insolvency. We identify persuasion as a key mechanism; prescriptive stereotypes and false claims likely amplify advertising's impact on African Americans, exacerbating historically large depositor losses after the bank's collapse.

Presented at: Australian National University*, Bank of Canada*, Bank of England*, Bocconi University*, Canadian Network for Economic Research Conference 2023, Cliometric Society Conference 2022*, Cornell*, Federal Reserve Board*, HEC Paris*, Imperial College London*, International Macroeconomic History Online Seminar 2023*, La Trobe University*, Laval University*, Oxford Said*, Paris December Finance Meeting 2022, Queen Mary University of London*, Research in Behavioral Finance Conference 2022, Rutgers*, Tinbergen Institute*, UCL*, University of Illinois Urbana-Champaign*, University of Luxembourg*, University of Warwick*, Vienna Graduate School of Finance*, Virtual Economic History Seminar 2022*, Washington University in St. Louis*, 82nd Economic History Association Annual Meeting 2022​​

Media: Bloomberg

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Working Papers

Mortgage Refinancing During Tightening Monetary Policy: Evidence from the United Kingdom

with Philippe Bracke, João Cocco, and Elena Markoska

We study the mortgage refinancing behavior of United Kingdom households around the large unanticipated increase in interest rates resulting from the September 2022 mini- budget announcement. We uncover sizeable effects in the choice of interest rate fixation term, with a greater proportion of borrowers opting for loans with shorter fixation terms that offer greater flexibility. Fewer borrowers switch lenders when refinancing as it requires passing an affordability assessment. Loan amounts decrease on average, contributing to household deleveraging. We discuss these decisions in the context of the trade-off between interest rate insurance and flexibility. Our results have implications for monetary policy transmission.

Presented at: Bank of England*, Collegio Carlo Alberto*, Conference on Real Estate, Financial Markets and Monetary Policy 2024, Danmarks Nationalbank*, EEA 2024, EFA 2024, Household Savings and Macroprudential Regulation Workshop 2024*, Norges Bank*, Sveriges Riksbank*, UK Women in Finance Workshop 2025, University of Cyprus*

Divine Catalysts: Religion and Portfolio Choices

with Maxime Bonelli, Pulak Ghosh, and S. Lakshmi Naaraayanan​

Does religion shape individual portfolio choices and long-term wealth accumulation? To answer these questions, we examine whether the same individual adjusts their equity portfolio on specific religious days, allowing us to isolate religion-driven investments. Using trading sessions held in India during a major festival promoting long-term prosperity which act as a cue, we find that individuals who associate with beliefs about the festival invest substantially more on the event day. They buy new stocks, hold them longer, and experience persistent increases in equity account size and diversification post-event. Event-driven purchases represent a larger financial commitment for lower-income individuals and smaller accounts, who subsequently benefit from increased equity exposure and greater wealth accumulation. Our findings uncover how religious cues can shape individual long-term investments and wealth accumulation.

Presented at: 18th International Behavioural Finance Conference*, CEPR 10th European Workshop on Household Finance 2025, Helsinki Finance Summit 2025, NBER Household Finance across the Lifecycle* (scheduled), SKEMA Business School*

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