Essays in Corporate and Consumer Finance

The first essay tests whether Chapter 11 restructuring outcomes are affected by time constraints in busy bankruptcy courts. Using the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005 as an exogenous shock to court caseloads, I estimate the impact of bankruptcy caseload changes on the outcomes of firms in Chapter 11. I find that as bankruptcy judges become busier they tend to allow more firms to reorganize. Firms that reorganize in busy courts spend longer in bankruptcy, while firms that are dismissed from busy courts are more likely to re-file for bankruptcy within three years of their original filing. In addition, busy courts impose costs on local banks, which report higher charge-offs on business lending when caseload increases. Using novel data that has complete coverage of claims for 136 Chapter 11 bankruptcy protection filings and that includes detailed information on claims transfers, in the second essay we provide the first empirical insight on how a firm's ownership changes during the bankruptcy process and how these changes impact bankruptcy outcomes. Pre-bankruptcy ownership concentration is important for the coordination of a prearranged bankruptcy filing and is associated with a faster bankruptcy resolution and a higher likelihood of a successful reorganization. However, as the trading of claims in bankruptcy concentrates ownership further, the probability of liquidation increases and recovery rates decrease. The third essay studies whether prize-linked savings (PLS) accounts, which offer random, lottery-like payouts to account holders in lieu of risk-free interest, can aid individuals in increasing savings levels by adding the chance to "win big." Using micro-level data, we show that PLS is attractive to a broad group of individuals across all age, race, and income levels. We find that financially constrained individuals and those with no other deposit accounts are particularly likely to open a PLS account. Participants in the PLS program increased their total savings on average by 1.1% of annual income, a 31% increase form the mean level of savings. Deposits in PLS do not cannibalize savings in standard savings products. Instead, PLS appears to act as a substitute for lottery gambling

Can Gambling Increase Savings? Empirical Evidence on Prize-Linked Savings Accounts

This paper studies the adoption and impact of prize-linked savings (PLS) accounts, which offer random, lottery-like payouts to individual account holders in lieu of interest. Using micro-level data from a bank offering these products in South Africa, we show that a PLS product was attractive to a broad group of individuals, across all age, race, and income levels. Financially-constrained individuals and those with no other deposit accounts were particularly likely to open a PLS account. Participants in the PLS program increased their total savings on average by 1% of annual income, a 38% increase from the mean level of savings. Deposits in PLS did not appear to cannibalize same-bank savings in standard savings products. Instead, PLS appears to serve as a substitute for lottery gambling. Exploiting the random assignment of prizes, we also present evidence that prize winners increase their investment in PLS, sometimes by more than the amount of the prize won, and that large prizes generate a local “buzz” which lead to an 11.6% increase in demand for PLS at a winning branch

Climate Change and the Future of California's Endemic Flora

The flora of California, a global biodiversity hotspot, includes 2387 endemic plant taxa. With anticipated climate change, we project that up to 66% will experience >80% reductions in range size within a century. These results are comparable with other studies of fewer species or just samples of a region's endemics. Projected reductions depend on the magnitude of future emissions and on the ability of species to disperse from their current locations. California's varied terrain could cause species to move in very different directions, breaking up present-day floras. However, our projections also identify regions where species undergoing severe range reductions may persist. Protecting these potential future refugia and facilitating species dispersal will be essential to maintain biodiversity in the face of climate change

How are subaqueous sediment density flows triggered, what is their internal structure and how does it evolve? Direct observations from monitoring of active flows

Subaqueous sediment density flows are one of the volumetrically most important processes for moving sediment across our planet, and form the largest sediment accumulations on Earth (submarine fans). They are also arguably the most sparely monitored major sediment transport processes on our planet. Significant advances have been made in documenting their timing and triggers, especially within submarine canyons and delta-fronts, and freshwater lakes and reservoirs, but the sediment concentration of flows that run out beyond the continental slope has never been measured directly. This limited amount of monitoring data contrasts sharply with other major types of sediment flow, such as river systems, and ensure that understanding submarine sediment density flows remains a major challenge for Earth science. The available monitoring data define a series of flow types whose character and deposits differ significantly. Large (> 100 km3) failures on the continental slope can generate fast-moving (up to 19 m/s) flows that reach the deep ocean, and deposit thick layers of sand across submarine fans. Even small volume (0.008 km3) canyon head failures can sometimes generate channelised flows that travel at > 5 m/s for several hundred kilometres. A single event off SE Taiwan shows that river floods can generate powerful flows that reach the deep ocean, in this case triggered by failure of recently deposited sediment in the canyon head. Direct monitoring evidence of powerful oceanic flows produced by plunging hyperpycnal flood water is lacking, although this process has produced shorter and weaker oceanic flows. Numerous flows can occur each year on river-fed delta fronts, where they can generate up-slope migrating crescentic bedforms. These flows tend to occur during the flood season, but are not necessarily associated with individual flood discharge peaks, suggesting that they are often triggered by delta-front slope failures. Powerful flows occur several times each year in canyons fed by sand from the shelf, associated with strong wave action. These flows can also generate up-slope migrating crescentic bedforms that most likely originate due to retrogressive breaching associated with a dense near-bed layer of sediment. Expanded dilute flows that are supercritical and fully turbulent are also triggered by wave action in canyons. Sediment density flows in lakes and reservoirs generated by plunging river flood water have been monitored in much greater detail. They are typically very dilute (< 0.01 vol.% sediment) and travel at < 50 cm/s, and are prone to generating interflows within the density stratified freshwater. A key objective for future work is to develop measurement techniques for seeing through overlying dilute clouds of sediment, to determine whether dense near-bed layers are present. There is also a need to combine monitoring of flows with detailed analyses of flow deposits, in order to understand how flows are recorded in the rock record. Finally, a source-to-sink approach is needed because the character of submarine flows can change significantly along their flow path