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Manuel Neves Adelino

Professor of Business Administration
Fuqua School of Business

Selected Publications


Trade Credit and the Transmission of Unconventional Monetary Policy

Conference Review of Financial Studies · January 1, 2023 We show that production networks are important for the transmission of unconventional monetary policy. Firms with bonds eligible for purchase under the European Central Bank’s Corporate Sector Purchase Program act as financial intermediaries by extending a ... Full text Cite

Hospital Financial Health and Clinical Choices: Evidence from the Financial Crisis

Journal Article Management Science · March 1, 2022 Financial constraints can cause firms to reduce product quality when quality is difficult to observe. We test this hypothesis in the context of medical choices at hospitals. Using heart attacks and child deliveries, we ask whether hospitals shift toward mo ... Full text Cite

Are lemons sold first? Dynamic signaling in the mortgage market

Journal Article Journal of Financial Economics · April 1, 2019 A central result in the theory of adverse selection in asset markets is that informed sellers can signal quality and obtain higher prices by delaying trade. This paper provides some of the first evidence of a signaling mechanism through trade delays using ... Full text Cite

The role of housing and mortgage markets in the financial crisis

Journal Article Annual Review of Financial Economics · November 1, 2018 Ten years after the financial crisis of 2008, there is widespread agreement that the boom in mortgage lending and its subsequent reversal were at the core of the Great Recession. We survey the existing evidence, which suggests that inflated house-price exp ... Full text Cite

Dynamics of housing debt in the recent boom and great recession

Journal Article NBER Macroeconomics Annual · January 1, 2018 This paper documents a number of key facts about the evolution of mortgage debt, homeownership, debt burden, and subsequent delinquency during the recent housing boom and Great Recession. We show that the mortgage expansion was shared across the entire inc ... Full text Cite

The economic effects of public financing: Evidence from municipal bond ratings recalibration

Journal Article Review of Financial Studies · September 1, 2017 We show that municipalities' financial constraints can have a significant impact on local employment and growth. We identify these effects by exploiting exogenous upgrades in U.S. municipal bond ratings caused by Moody's recalibration of its ratings scale ... Full text Cite

Firm Age, Investment Opportunities, and Job Creation

Scholarly Edition · June 1, 2017 New firms are an important source of job creation, but the underlying economic mechanisms for why this is so are not well understood. Using an identification strategy that links shocks to local income to job creation in the nontradable sector, we ask wheth ... Full text Cite

The effect of large investors on asset quality: Evidence from subprime mortgage securities

Journal Article Journal of Monetary Economics · May 1, 2017 Fannie Mae and Freddie Mac (the GSEs), the dominant investors in subprime mortgage-backed securities before the 2008 crisis, substantively affected collateral composition in this market. Mortgages included in securities designed for the GSEs performed bett ... Full text Cite

Bank ratings and lending supply: Evidence from sovereign downgrades

Journal Article Review of Financial Studies · July 1, 2016 We study the causal effect of bank credit rating downgrades on the supply of bank lending. The identification strategy exploits the asymmetric impact of sovereign downgrades on the ratings of banks at the sovereign bound relative to banks that are not at t ... Full text Cite

Loan originations and defaults in the mortgage crisis: The role of the middle class

Journal Article Review of Financial Studies · July 1, 2016 This paper highlights the importance of middle-class and high-FICO borrowers for the mortgage crisis. Contrary to popular belief, which focuses on subprime and poor borrowers, we show that mortgage originations increased for borrowers across all income lev ... Full text Cite

Investment Decisions of Nonprofit Firms: Evidence from Hospitals

Journal Article Journal of Finance · August 1, 2015 This paper examines investment choices of nonprofit hospitals. It tests how shocks to cash flows caused by the performance of the hospitals' financial assets affect hospital expenditures. Capital expenditures increase, on average, by 10 to 28 cents for eve ... Full text Cite

House prices, collateral, and self-employment

Journal Article Journal of Financial Economics · January 1, 2015 We show the importance of the collateral lending channel for small business employment over the past decade. Small businesses in areas with greater increases in house prices experienced stronger growth in employment than large firms in the same areas and i ... Full text Cite

Corporate distress and lobbying: Evidence from the stimulus act

Journal Article Journal of Financial Economics · November 1, 2014 The literature on distressed firms has focused on these firms' investment, capital structure, and labor decisions. This paper investigates a novel aspect of firm behavior in distress: how financial health affects a firm's lobbying and, consequently, its re ... Full text Cite

Identifying the Effect of Securitization on Foreclosure and Modification Rates Using Early Payment Defaults

Journal Article Journal of Real Estate Finance and Economics · October 1, 2014 This paper develops and estimates an instrumental variables strategy for identifying the causal effect of securitization on the incidence of mortgage modification and foreclosure based on the early payment default analysis performed by Piskorsi et al. (J F ... Full text Cite

Why don't Lenders renegotiate more home mortgages? Redefaults, self-cures and securitization

Journal Article Journal of Monetary Economics · October 1, 2013 A leading explanation for the lack of widespread mortgage renegotiation is the existence of frictions in the mortgage securitization process. This paper finds similarly small renegotiation rates for securitized loans and loans held on banks' balance sheets ... Full text Cite