V. Siddhartha Yerramilli

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We construct a Risk Management Index (RMI) to measure the strength and independence of the risk management function at bank holding companies (BHCs). U.S. BHCs with higher RMI before the onset of the financial crisis have lower tail risk, lower non-performing loans, and better operating and stock return performance during the financial crisis years. Over(More)
We investigate the effect of poor performance on financial intermediary reputation by estimating the effect of large-scale bankruptcies among a lead arranger’s borrowers on its subsequent syndication activity. Consistent with reputation damage, such lead arrangers retain larger fractions of the loans they syndicate, are less likely to syndicate loans, and(More)
We test if credit ratings adequately reflect liquidity risk, i.e., the risk that the firm may face difficulty in refinancing its short-term debt. Consistent with credit ratings underestimating liquidity risk, we find that after controlling for credit ratings and other known determinants, long-term bonds of firms with a higher proportion of short-term debt(More)
Using a large loan sample from 1990 to 2006, we examine why firms form new banking relationships. Small public firms that do not have existing relationships with large banks are more likely to form new banking relationships. On average, firms obtain higher loan amounts when they form new banking relationships, while small firms also experience an increase(More)
In this paper, we investigate whether U.S. bank holding companies (BHCs) with strong and independent risk management functions had lower enterprise-wide risk. We hand-collect information on the organizational structure of the risk management function at the 74 largest publicly-listed BHCs, and use this information to construct a Risk Management Index (RMI)(More)
Phospholipase Cβ2 (PLC β2) is activated by G proteins and generates calcium signals in cells. PLCβ2 is absent in normal breast tissue, but is highly expressed in breast tumors where its expression is correlated with the progression and migration of the tumor. This pattern of expression parallels the expression of the breast cancer specific gene protein 1(More)
We examine whether a firm’s debt maturity structure affects its credit quality. We find that firms with a larger proportion of their debt maturing within the year (short-term debt) are more likely to experience a severe fall in their credit quality in the following year, as measured by the severity of credit rating downgrades and the propensity to default.(More)
Does a financial intermediary’s concern with maintaining its reputation help alleviate agency problems between the financial intermediary and investors? We investigate this question in the context of the loan syndication market by measuring how defaults by a lead arranger’s borrowers affect its subsequent lending activity. Defaults appear to diminish a lead(More)
In a dynamic model of originate-to-distribute lending, we examine whether reputation concerns can incentivize a bank to monitor loans it has sold. Investors believe that banks with fewer recent loan defaults are more likely to monitor (“have higher reputation”). In equilibrium, banks monitor more and retain a smaller loan fraction when their reputations are(More)