Jinoug Jeung

Assistant Professor of Finance

CUHK Business School

The Chinese University of Hong Kong

Research Areas

Banking & Public Finance

Education

Ph.D. in Finance, Emory University, 2023

M.S. in Finance, Seoul National University, 2017

B.S. in Mathematics and Economics, HKUST, 2013

Contact

Room 1238, 12/F Cheng Yu Tung Building

12 Chak Cheung Street, Shatin, NT, Hong Kong

Email: jinoug.jeung@cuhk.edu.hk

Publications

• Politically Polarized Depositors

  Forthcoming, JFQA

  Exploiting an exogenous increase in public awareness of banks' lending to the gun industry, this paper documents significant deposit outflows from gun lenders... Show moreExploiting an exogenous increase in public awareness of banks' lending to the gun industry, this paper documents significant deposit outflows from gun lenders. These outflows are stronger in Democratic-leaning markets and for Republican-leaning lenders. In contrast, anti-gun lenders experience limited and insignificant outflows, consistent with policy alignment with depositor values. Outflows tighten funding constraints, prompting gun lenders to reduce deposit spreads and branches in Democratic-leaning markets. While large gun lenders remain resilient, small gun lenders significantly reduce CRA loan volumes. The findings highlight political value misalignment as a driver of depositor behavior and its real effects on bank operations. Show less

  Depositor Behavior ESG Financial Activism Political Value

Working Papers

• Risk (Mis)Perception in the Municipal Bond Market: Evidence from Mass Shootings

  with Tarun Chordia and Abinash Pati

  We show that emotionally salient events affect prices even in the absence of any financial impact. Specifically, we evaluate the impact of random non-school mass shootings on school district bonds... Show moreWe show that emotionally salient events affect prices even in the absence of any financial impact. Specifically, we evaluate the impact of random non-school mass shootings on school district bonds. Perceived credit risk drives the pricing and liquidity in municipal bond markets. Mass shootings increase secondary market yield spreads by 10.4 basis points (bps) and reduce liquidity. Bonds from districts with minimal tax revenue declines also incur an increase of 9 bps, confirming that perceived risk dominates actual risk. Primary market borrowing costs increase, underscoring the real effects of perceived risks caused by localized, emotionally-charged, salient shocks. Show less

  Credit Risk Illiquidity Municipal Bond Perceived Risk Violent Crime

• Bank Interest Rate Risk Exposures and Municipal Bond Yields

  with Abinash Pati and Yitong Shang

  This paper examines how commercial banks, as marginal investors in the bank-qualified municipal bond market, transmit interest rate risk exposures to bond yields... Show moreThis paper examines how commercial banks, as marginal investors in the bank-qualified municipal bond market, transmit interest rate risk exposures to bond yields. Preferential tax treatment incentivizes state-specific bank holdings, segmenting marginal investors across states and creating cross-state and temporal variation in exposures. We find that heightened exposures, measured by earnings-based income gaps, raise yields, with effects amplifying during monetary tightening---especially unexpected rate hikes. Deposit market power and derivatives hedging attenuate transmission. Comparisons with valuation-based repricing/maturity gaps reveal regime-specific channels: earnings risks dominate in tightening regimes, valuation risks in easing ones. Results highlight intermediary risk spillovers, with implications for local government financing. Show less

  Commercial Banks Interest Rate Risk Intermediary Asset Pricing Municipal Bonds

• Bank Balance Sheet Constraints and Municipal Finance: Evidence from Current Expected Credit Losses

  with Liuming Yang

  This study examines how bank balance sheet constraints---the Current Expected Credit Losses (CECL) standard---affect municipal finance... Show moreThis study examines how bank balance sheet constraints---the Current Expected Credit Losses (CECL) standard---affect municipal finance. By mandating lifetime loss provisions, CECL induces banks to reduce municipal bond holdings by 17.4 percent, with capital-constrained banks reducing their holdings more significantly. This contraction raises primary market yields, particularly for long-term and high-uncertainty bonds. Issuers respond by shortening maturities, increasing coupons, and shifting to negotiated sales, while curtailing debt issuance and expenditures, highlighting real spillovers to public finance. Show less

  Commercial Banks Current Expected Credit Losses Municipal Finance

• Social Connection and Financing Cost of Municipal Governments

  with Jaemin Lee

  Municipal Bond Mutual Funds Social Connection