@article{f5263edbea1743c7bcc7d7fa84b19746,
title = "How voluntary information sharing systems form: Evidence from a U.S. commercial credit bureau",
abstract = "We use the introduction of a U.S. commercial credit bureau to study when lenders adopt voluntary information sharing technology and the resulting consequences for competition and credit access. Our results suggest that lenders trade off access to new markets against heightened competition for their own borrowers. Lenders that initially do not adopt lose borrowers to competitors that do, which ultimately compels them to adopt and leads to the formation of an information sharing system. Access to credit improves but only for high-quality borrowers in markets with greater lender adoption. We provide the first direct evidence on when financial intermediaries adopt information sharing technologies and how sharing systems form and evolve.",
keywords = "Access to credit, Financial intermediation, Fintech, Information sharing, SMEs",
author = "Jos{\'e} Liberti and Jason Sturgess and Andrew Sutherland",
note = "Funding Information: G. William Schwert and Toni Whited were editors for this article. This paper is based on a prior working paper titled, “Economics of Voluntary Information Sharing.” For helpful comments, we thank: Phil Berger, Philip Bond, Mike Burkhart, John Core, Hans Degryse, Doug Diamond, Daniel Ferreria, Juanita Gonzalez-Uribe, Daniel Green, Rajkamal Iyer, Christian Leuz, Xiumin Martin, David Matsa, Will Mullins, Richard Rosen, Antoinette Schoar, Enrique Schroth, Amit Seru, Chester Spatt, Per Stromberg, Javier Suarez, and Rodrigo Verdi; discussants Martin Brown, Jian Cai, Giovanni Dell'Ariccia, Vasso Ioannidou, Anna Kovner, Elena Loutskina, Raoul Minetti, Abhiroop Mukherjee, Jordan Nickerson, Clemens Otto, Marco Pagano, Daniel Paravisini, Francesc Rodriguez Tous, Anthony Saunders, and Moqi Xu and participants at the American Finance Association meetings, the Bristol Workshop on Banking and Financial Intermediation, Cambridge University, Chicago Booth, the Chicago Financial Institutions Conference, the China International Conference in Finance, the Edinburgh Corporate Finance Conference, the European Banking Center Network Conference (Lancaster), the European Finance Association meetings, the European Summer Symposium in Financial Markets (ESSFM), the FDIC Center for Financial Research Annual Bank Research Conference, the Federal Reserve Bank of Chicago, the London Business School, MIT, the Midwest Finance Association Annual Meetings, Northwestern University Kellogg School of Management, the Review of Corporate Finance Studies Conference, the University of Rochester, Washington University in St. Louis, and the Western Finance Association. Any errors or omissions are our own. We are grateful to PayNet for providing data. Financial support was provided by DePaul University and Northwestern University (Liberti), Queen Mary University of London (Sturgess), and MIT (Sutherland). Funding Information: G. William Schwert and Toni Whited were editors for this article. This paper is based on a prior working paper titled, “Economics of Voluntary Information Sharing.” For helpful comments, we thank: Phil Berger, Philip Bond, Mike Burkhart, John Core, Hans Degryse, Doug Diamond, Daniel Ferreria, Juanita Gonzalez-Uribe, Daniel Green, Rajkamal Iyer, Christian Leuz, Xiumin Martin, David Matsa, Will Mullins, Richard Rosen, Antoinette Schoar, Enrique Schroth, Amit Seru, Chester Spatt, Per Stromberg, Javier Suarez, and Rodrigo Verdi; discussants Martin Brown, Jian Cai, Giovanni Dell'Ariccia, Vasso Ioannidou, Anna Kovner, Elena Loutskina, Raoul Minetti, Abhiroop Mukherjee, Jordan Nickerson, Clemens Otto, Marco Pagano, Daniel Paravisini, Francesc Rodriguez Tous, Anthony Saunders, and Moqi Xu and participants at the American Finance Association meetings, the Bristol Workshop on Banking and Financial Intermediation, Cambridge University, Chicago Booth, the Chicago Financial Institutions Conference, the China International Conference in Finance, the Edinburgh Corporate Finance Conference, the European Banking Center Network Conference (Lancaster), the European Finance Association meetings, the European Summer Symposium in Financial Markets (ESSFM), the FDIC Center for Financial Research Annual Bank Research Conference, the Federal Reserve Bank of Chicago, the London Business School, MIT, the Midwest Finance Association Annual Meetings, Northwestern University Kellogg School of Management, the Review of Corporate Finance Studies Conference, the University of Rochester, Washington University in St. Louis, and the Western Finance Association. Any errors or omissions are our own. We are grateful to PayNet for providing data. Financial support was provided by DePaul University and Northwestern University (Liberti), Queen Mary University of London (Sturgess), and MIT (Sutherland). Publisher Copyright: {\textcopyright} 2021",
year = "2022",
month = sep,
doi = "10.1016/j.jfineco.2021.08.023",
language = "English (US)",
volume = "145",
pages = "827--849",
journal = "Journal of Financial Economics",
issn = "0304-405X",
publisher = "Elsevier",
number = "3",
}