Daniela Fabbri

Daniela Fabbri is a Senior Lecturer in Finance. Daniela obtained a PhD in Economics from Pompeu Fabra University (Barcelona) and has previously held research and teaching positions in various institutions, including the University of Salerno (Italy), the University of Bologna (Italy), the University of Lausanne (Switzerland) and the University of Amsterdam (Netherlands). Her research interests are in the areas of Corporate Finance and Banking, both theoretical and applied. In her research, Daniela has investigated the role of financial intermediaries and suppliers in the financing activity and growth opportunities of small-medium sized firms. She has also contributed to the literature in Law and Finance, investigating how differences in the degree of creditor protection affect the ability of firms and households to get bank financing. In addition, she has studied the effect personal characteristics of managers have on the operations of non-financial companies. Daniela has had her research published in the Journal of Financial Economics, the Journal of the European Economic Association, the Journal of Corporate Finance, and the Journal of Banking and Finance.

Qualifications

• BA in Economics, Bocconi University, Italy
• MA in Economics, Bocconi University, Italy
• PhD in Economics, Pompeu Fabra University, Barcelona, Spain

Visiting Appointments

Visiting Scholar, New York University, Department of Economics, NY, U.S., Jan – Jul 2006

Fellowships

TMR Research Fellow, Institute for Economic Analysis, Barcelona, Spain, Jul 2001 – Jul 2002

Award

• Academic Prizes Committee, Cass Business School (2014) Academic Prize
• I received a commendation and a monetary prize in grateful recognition of my outstanding contribution to Research and Enterprise at Cass Business School through research funding.

Languages

French, Italian and Spanish; Castilian.

Expertise

Primary Topics

Banking Corporate Finance Finance Financial Economics Financial Regulation

Research

During the past three years my research has focused on three main areas: Institutions and Banks, SMEs' Financing and Behavioral Corporate Finance.

In the first research area I have produced a new paper entitled "Short-Selling Bans and Bank Stability”, joint with Marco Pagano (University of Naples) and Alessandro Beber (Cass Business School). This paper received a Revise and Resubmit at the Review of Financial Studies. In this paper, we investigate whether the short-selling bans imposed during the subprime crisis and the Eurozone debt crisis, helped stabilizing vulnerable banks and bolstering their solvency.

In the research area about SMEs' financing, I have investigated the choice between alternative sources of external financing like bank debt, relationship lending and trade credit. This is a crucial topic especially for small-medium sized firms (SMEs), as bank and trade credit are the two main sources of external financing for SMEs (70% of commercial industrial loans in the U.S., the U.K. and Germany are secured, while 48% of input purchases are financed by trade credit in the U.S). I have produced four papers in this research area. The first one is entitled "The commitment problem of secured lending", joint work with Annamaria Menichini (University of Salerno). This paper now forthcoming on the Journal of Financial Economics. The second one, "Bargaining Power and Trade Credit", joint with Leora Klapper (World Bank) is an empirical work investigating the determinants of the use of trade credit in emerging markets. This paper is forthcoming on the Journal of Corporate Finance. The third project is entitled "Contract Incompleteness and Relationship Lending", joint work with Annamaria Menichini. Using a repeated game setting with input investment unobservability and lender’s signal collection, we show that relationship lending is preferred to arm-length debt when projects have longer duration and when the quality of the signal collected by the relationship lender and the collateral value of the inputs are higher. Finally in the last project entitled "“Strategic collateral and Efficiency in Production”, co-authored with Robert Marquez (University of California at Davis) and Annamaria Menichini (University of Salerno), we investigate the role of collateral in a novel theoretical setting where both investment and financing are endogenous and contracts are renegotiated.

In the research area of behavioural corporate finance, I have worked on a new project entitled "Gender Diversity on the Board and Capital Structure”, in collaboration with Giacinta Cestone (Cass Business School) and Min Park (London School of Economics). In this project, we investigate the effect of board gender composition on changes in loan contracts characteristics, like number and strictness of covenants and credit availability after lenders are hit by a shock.

Research Topics

Corporate Finance & Banking

In the theory paper "Contract Incompleteness and Relationship Lending", joint work with Annamaria Menichini, we investigate the choice between relationship lening and arm-length debt, using a repeated game setting with input investment unobservability and lender’s signal collection.

Corporate Finance & Banking

In the theory paper "Strategic Collateral and Efficiency in Production", joint with Robert Marquez (University of California at Davis) and Annamaria Menichini (University of Salerno), we analyse the effect of using collateral in lending when the contract can be renegotiated by the contracting parties.

Banking & Regulation

In the empirical paper "Short-Selling Bans and Bank Stability", joint work with Alessandro Beber (Cass Business School) and Marco Pagano (University of Naples), we investigate the effect on banking activity of the widespread imposition of short-selling bans during the 2008-09 subprime and the 2011-12 Euro-area sovereign crises.

Behavioral Corporate Finance

In the empirical paper “"Gender Diversity on the Board and Capital Structure”, co-authored with Giacinta Cestone (Cass Business School) and Min Park (London School of Economics), we investigate the effect of board gender composition on changes in loan contracts characteristics, like number and strictness of covenants and credit availability after lenders are hit by a liquidity shock.

Books (3)

• Fabbri, D. and Klapper, L. (2011). Trade Credit and the Supply Chain.
• Fabbri, D. (2001). The Legal Enforcement of the Credit Contracts and the Level of Investment.
• Fabbri, D. (2000). Corporate Finance and Creditor Protection: An Overview.

Chapters (2)

• Fabbri, D. and Menichini, A.M. (2011). Firms' Trade-Financing Decisions during Crises. In Malouche, M. and Chauffour, J.P. (Eds.), Trade Finance during the Great Trade Collapse (pp. 41–58). World Bank. ISBN 978-0-8213-8748-1.
• Fabbri, D. and Padula, M. (2005). Legal Institutions, Credit Markets and Poverty in Italy. In Bolton, P. and Rosenthal, R. (Eds.), Credit Markets for the Poor (pp. 113–142). Russell Sage Foundation. ISBN 978-0-87154-132-1.

Journal Articles (7)

• Fabbri, D. and Klapper, L.F. (2016). Bargaining power and trade credit. Journal of Corporate Finance, 41, pp. 66–80. doi:10.1016/j.jcorpfin.2016.07.001.
• Fabbri, D. and Menichini, A.M.C. (2016). The commitment problem of secured lending. Journal of Financial Economics, 120(3), pp. 561–584. doi:10.1016/j.jfineco.2016.02.009.
• Casu, B., Fabbri, D. and Wilson, J.O.S. (2013). Emerging issues in financial institutions and markets. European Journal of Finance .
• Beber, A. and Fabbri, D. (2012). Who times the foreign exchange market? Corporate speculation and CEO characteristics. Journal of Corporate Finance, 18(5), pp. 1065–1087. doi:10.1016/j.jcorpfin.2012.07.004.
• Fabbri, D. (2010). Law enforcement and firm financing: Theory and evidence. Journal of the European Economic Association, 8(4), pp. 776–816. doi:10.1162/jeea_a_00004.
• Fabbri, D. and Menichini, A. (2010). Trade credit, collateral liquidation and borrowing constraints. Journal of Financial Economics, 96(3), pp. 413–432.
• Fabbri, D. and Padula, M. (2004). Does poor legal enforcement make households credit-constrained? Journal of Banking and Finance, 28(10), pp. 2369–2397. doi:10.1016/j.jbankfin.2003.09.009.

2011 - 2012 Master in Business Economics, Finance

Since I joint CASS in 2011, I have contributed in several ways to the Administration, Management, Educational and Research Development and Academic Leadership in the University and at Cass.

1) I have been a very active participant at our seminar and conferences, engaging regularly with speakers during and after the seminar. Furthermore, I helped the head of faculty Lucio Sarno in recruitment, by signalling and intermediating with a senior candidate who ended up joining us as Professor at Cass in September 2013 (Thorsten Beck).

2)I also worked for the development of banking research at Cass on different fronts. First, I helped the finance group and Cass to negotiate a new contract with the SNL data provider that has given access to bank level data for faculty and students (Spring 2013). Second, I helped the director of the Banking Centre at Cass, Barbara Casu, in promoting the Centre profile in the industry and among the faculty at Cass, by participating to several meetings with faculty, administrative staff, and the Centre's board of directors (2012-2013).

Editorial Activities (9)

• Empirical Economics, Referee, 2013 – present.
• Financial Management, Referee, 2013 – present.
• Journal of Financial and Quantitative Analysis, Referee, 2013 – present.
• European Journal of Finance, Special Editor, 2012 – 2013.
• American Economic Journal: Macroeconomics, Referee, 2011 – present.
• Economic Journal, Referee, 2007 – present.
• Review of Finance, Referee, 2007 – present.
• Journal of Banking and Finance, Referee, 2006 – present.
• Journal of Financial Intermediation, Referee, 2003 – present.