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Professor Iftekhar Hasan, PhD

Professor Iftekhar Hasan, PhD
Current Position

since 12/16

Research Fellow Department of Financial Markets

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 1/11

University Professor and E. Gerald Corrigan Chair in Finance

Gabelli School of Business, Fordham University

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Research Interests
  • corporate finance
  • banking
  • finance and accounting

Iftekhar Hasan joined the Department of Financial Markets as a Research Fellow in December 2016. His research focuses on financial institutions and capital markets, applied corporate finance, entrepreneurial finance and venture capital, financial accounting, emerging markets, and international banking.

Iftekhar Hasan is University Professor, E. Gerald Corrigan Chair in Finance, and the academic director of the PhD programme at the Gabelli School of Business at Fordham University. He serves as a scientific advisor of the Bank of Finland and as managing editor for the Journal of Financial Stability.

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Professor Iftekhar Hasan, PhD
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Publications

Citations
32954

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Market Feedback Effect on CEO Pay: Evidence from Peers’ Say-on-Pay Voting Failures

Agnes Cheng Iftekhar Hasan Feng Tang Jing Xie

in: Journal of Financial and Quantitative Analysis, forthcoming

Abstract

<p>We find that a firm’s stock price drops when its compensation peer firm announces a severe say-on-pay voting failure. This price drop causes a reduction in the focal firm CEO’s pay in the following period. The effect on CEO pay is stronger when the board of directors is more powerful, when the proxy advisor holds a negative view of the CEO’s pay, and when the hired compensation consultant is less reputable. Directors who cut their CEO’s pay following the price drop receive more voting support from investors than other directors. Our findings show that the peer firm’s voting failure induces a market-feedback effect for focal firm directors.</p>

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CEO Personality Traits and Compensation: Evidence from Investment Efficiency

Yao Du Iftekhar Hasan Chih-Yung Lin Chien-Lin Lu

in: Review of Quantitative Finance and Accounting, forthcoming

Abstract

<p>We examine the effects of the big five personalities of CEOs (openness, conscientiousness, extroversion, agreeableness, and neuroticism) on their annual compensation. We hand-collect the tweets of S&amp;P 1500 CEOs and use IBM's Watson Personality Insights to measure their personalities. CEOs with high ratings of agreeableness and conscientiousness get more compensation. We further find that the firms with these CEOs outperform their peers due to better investment efficiency. Firms are willing to pay higher compensation for talent, especially for firms with better operations, located in states with higher labor unionization, or facing higher competition in the product market. Overall, CEO personality is a valid predictor of CEOs' compensation.</p>

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Tax Authority Attention and Financial Reporting

Iftekhar Hasan Tahseen Hasan Kose John

in: International Journal of Banking, Accounting and Finance, forthcoming

Abstract

<p>We study the effects of Tax Authority (IRS) attention on a firm’s financial reporting. We explore whether firms institute a higher degree of accounting conservatism in response to IRS monitoring. Using data on IRS acquisition of public firms’ 10-K financial disclosures to proxy for IRS attention, we find that when firms are under IRS attention, they tend to initiate higher levels of unconditional and, to some extent, conditional accounting conservatism. We alleviate some of the endogeneity concerns by using pre- and post-IRS attention environments between the treated group (firms with IRS attention) and a propensity score that matches the control group of firms (no IRS attention). These results withstand several robustness tests and subsample analyses.</p>

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Browse all refereed publications

Working Papers

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Global Political Ties and the Global Financial Cycle

Gene Ambrocio Iftekhar Hasan Xiang Li

in: IWH Discussion Papers, No. 23, 2023

Abstract

We study the implications of forging stronger political ties with the US on the sensitivities of stock returns around the world to a global common factor – the global financial cycle. Using voting patterns at the United Nations as a measure of political ties with the US along with various measures of the global financial cycle, we document evidence indicating that stronger political ties with the US amplify the sensitivities of stock returns in developing countries to the global financial cycle. We explore several channels and find that a deepening of financial linkages along with a reduction in information asymmetries and an amplification of sentiment are potentially important factors behind this result.

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Banking Market Deregulation and Mortality Inequality

Iftekhar Hasan Thomas Krause Stefano Manfredonia Felix Noth

in: Bank of Finland Research Discussion Papers, No. 14, 2022

Abstract

This paper shows that local banking market conditions affect mortality rates in the United States. Exploiting the staggered relaxation of branching restrictions in the 1990s across states, we find that banking deregulation decreases local mortality rates. This effect is driven by a decrease in the mortality rate of black residents, implying a decrease in the black-white mortality gap. We further analyze the role of mortgage markets as a transmitter between banking deregulation and mortality and show that households' easier access to finance explains mortality dynamics. We do not find any evidence that our results can be explained by improved labor outcomes.

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Technological Innovation and the Bank Lending Channel of Monetary Policy Transmission

Iftekhar Hasan Xiang Li Tuomas Takalo

in: IWH Discussion Papers, No. 14, 2021

Abstract

This paper studies whether and how banks’ technological innovations affect the bank lending channel of monetary policy transmission. We first provide a theoretical model in which banks’ technological innovation relaxes firms’ earning-based borrowing constraints and thereby enlarges the response of banks’ lending to monetary policy changes. To test the empirical implications, we construct a patent-based measurement of bank-level technological innovation, which can specify the nature of technology and tell whether it is related to the bank’s lending business. We find that lending-related innovations significantly strengthen the transmission of the bank lending channel.

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Browse all working papers

Topics

Financial Markets Policy Evaluation Monetary Policy Risk Regulation Financial Institutions
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