Vienna

Claire Celerier, University of Toronto, Rotman School of Management

Campus WU Vienna D3.0.225 11:00 - 12:15

Organizer VGSF

As part of the series of the „Finance Research Seminar“, VGSF welcomes Claire Celerier from University of Toronto, Rotman School of Management to present her research paper.
Personal Webpage

 

Paper

Finance, Advertising, and Race

Using a natural experiment from the US post-Emancipation era, this paper investigates the role of bank advertising in racial financial disparities. We exploit a regulatory change at the Freedman’s Savings Bank – the first bank collecting deposits from African Americans -, which facilitated the misuse of depositor funds. A difference-in-differences analysis shows an increase in advertising volume post deregulation, linked to a rise in deposit collection, as well as a shift in content towards racially targeted messaging and false claims. This intensified persuasive messaging coincides with the issuance of fraudulent loans, leading to substantial depositor losses.



Back to overview