Seminar – Economics of Voluntary Information Sharing

Professor Jason Sturgess, School of Economics and Finance, Queen Mary University of London

We show that lenders join a US commercial credit bureau when information asymmetries between incumbents and entrants create an adverse selection problem that hinders market entry. Lenders also delay joining when information asymmetries protect them from competition in existing markets, consistent with lenders trading off new market entry against heightened competition. We exploit shocks to information coverage to show that lenders enter new markets after joining the bureau in a pattern consistent with this trade-off. Our results illuminate why intermediaries voluntarily share information and show how financial technology that mitigates information asymmetries can shape the boundaries of lending.

Speaker bio

Jason Sturgess is a Professor in the School of Economics and Finance at Queen Mary University of London. His research focuses on corporate finance, especially issues related to financial intermediation, law and regulation, corporate governance, and the internal organisation of firms.

Recent topics include information sharing and rating manipulation, how debt enforcement law affects financial and economic growth, and the effects of firm ownership structure on both governance and price informativeness.

His research has been published in The Journal of Finance, Review of Financial Studies, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Review of Finance, and other journals.

Professor Sturgess has been awarded several prizes and grants, including the BlackRock Inc. and National Association of Corporate Directors (NACD) Global Challenge for Innovation Award, an Institute for Quantitative Research in Finance (the Q Group) research grant, and best paper awards at the China International Conference in Finance, Financial Management Association, Mid-West Finance Association, and Spanish Finance Association Annual Meetings.

He regularly presents work at international conferences including the annual meetings of the American Finance Association, Western Finance Association, NBER meetings, European Finance Association, SFS Cavalcade, Utah Winter Finance Conference, and UBC Winter Finance Conference.

His research has been featured in major media, including the Wall Street Journal.

Professor Sturgess holds a masters degree and PhD from London Business School. He was previously a faculty member at Driehaus College of Business and Kellstadt Graduate School of Business, DePaul University, and McDonough School of Business, Georgetown University.