- Corporate Finance
- Credit Ratings
- Financial Intermediation
- International Capital Markets
- Read the Impact article featuring research from Professor Restrepo
- To search for publications by a specific faculty member, select the database and then select the name from the Author drop down menu.
My primary research interests are in empirical corporate finance and financial intermediation. My current research focuses on the financial and real effects of bank transaction taxes, and on the impact of credit rating policies on the investment and financing decisions of firms.
I earned my PhD in Finance from Boston College in May, 2014. I have a Master of Science in Finance also from Boston College (2009) and a BS in Economics from EAFIT University in Medellin, Colombia (2004).
Before my PhD I worked for five years in the financial industry in Colombia. First in Valores Bancolombia, Colombia's largest brokerage firm, as a Quantitative Analyst in the Economic Research Department, and then in Bancolombia, Colombia's largest bank, as a Project Manager in the Derivatives and Risk Management division.
- Finance (HBA1)
- Global Corporate Finance (MSc)
- Ph.D. in Finance, Boston College
- M.S. in Finance, Boston College
Recent Refereed Articles
Restrepo, F.; Cardona-Sosa, L.; Strahan, P. E.,
(Forthcoming), "Funding Liquidity Without Banks: Evidence from a Shock to the Cost of Very Short-Term Debt", Journal of Finance.
Abstract: In 2011, Colombia instituted a tax on repayment of bank loans, thereby increasing the cost of short-term bank credit more than long-term credit. Firms responded by cutting their short-term loans for liquidity management purposes and increasing their use of cash and trade credit. In industries where trade credit is more accessible (based on U.S. Compustat firms), we find substitution into accounts payable and little effect on cash and investment. Where trade credit is less available, firms increase cash and cut investment. Thus, trade credit offers a substitute source of liquidity that can insulate some firms from bank liquidity shocks.
Link(s) to publication:
Busaba, W. Y.; Liu, Z.; Restrepo, F.,
(Forthcoming), "Do Underwriters Price-Up IPOs to Prevent Withdrawal?", Journal of Financial and Quantitative Analysis.
Abstract: We examine whether underwriters price-up weakly-demanded IPOs to prevent withdrawal. Our empirical strategy exploits a discontinuity in the distribution of IPO prices around the low boundary of the filing range. Offerings with a high ex-ante withdrawal probability that are priced at this boundary are likely priced-up to meet issuers’ reservation prices. We compare the aftermarket returns of these IPOs to the returns of other weakly-demanded offerings where issuers’ reservation prices were likely not binding, and identify a negative 8.4-percentage point differential attributable to the aggressive pricing inherent in setting the price at the low boundary when withdrawal risk is high.
2019, "The Effects of Taxing Bank Transactions on Bank Credit and Industrial Growth: Evidence from Latin America", Journal of International Money and Finance, May 93: 335 - 355.
Abstract: This paper studies the bank credit and industry growth effects stemming from the introduction of a tax on bank debits. Using a sample of Latin American countries that implemented this tax at different times between 1986 and 2005, I exploit a key channel through which this levy affects the supply of credit: it creates a strong incentive to shift away from holding deposits and into using cash and other quasi-currencies. I find that taxing bank transactions has a significant negative effect on economic growth, mainly by reducing the growth prospects of industries that are more susceptible to financing frictions.
Link(s) to publication:
Almeida, H.; Cunha, I.; Ferreira, M.; Restrepo, F.,
2017, "The Real Effects of Credit Ratings: The Sovereign Ceiling Channel", Journal of Finance, January 72(1): 249 - 290.
Abstract: We show that sovereign debt impairments can have a significant impact on financial markets and real economies through a credit ratings channel. Specifically, we find that firms reduce their investment and reliance on credit markets due to a rising cost of debt capital following a sovereign rating downgrade. We identify these effects by exploiting exogenous variation on corporate ratings due to rating agencies' sovereign ceiling policies that require firms' ratings to remain at or below the sovereign rating of their country of domicile.
Link(s) to publication:
Works in Progress
- “Do Underwriters Price-Up IPOs to Prevent Withdrawal?”, R&R at the Journal of Financial and Quantitative Analysis (with Walid Busaba and Zheng Liu)
- “Private Firms' Incentives to Manage Earnings: Evidence from a Quasi-Natural Experiment” (with Jerome Taillard)
Honours & Awards
- Fulbright Foreign Scholarship, 2008
- Bancolombia - Colombia's largest Commercial Bank (Medellin, Colombia): Project Manager, Derivatives and Structured Products (2006 - 2008)
- Valores Bancolombia - Colombia's largest Brokerage Firm (Medellin, Colombia): Quantitative Analyst, Economic Research (2004 - 2006)
- Valores Bancolombia - Colombia's largest Brokerage Firm (Medellin, Colombia): Emerging Markets Analyst, Economic Research (2003 - 2004)