Allison Nicoletti

Assistant Professor of Accounting

Contact Information

Primary Email:
anico@wharton.upenn.edu
Office Phone:
215-898-2610

office Address:
1318 Steinberg Hall - Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104-6365

Research Interests: accounting standards and regulation, financial institutions, financial reporting and disclosure, debt contracting

Links: CV

Overview

Professor Nicoletti’s research examines financial reporting and disclosure decisions made by financial institutions as well as the economic consequences of accounting standards and regulation. She holds a PhD in accounting from The Ohio State University and a BA in accounting and economics from Illinois Wesleyan University. Prior to returning to academia, Professor Nicoletti was a senior audit associate in financial services at KPMG in Chicago, IL focusing on financial statement audits of bank and insurance companies and is a CPA licensed in Illinois.

Research

Allison Nicoletti and Christina Zhu (Working), Economic Consequences of Transparency Regulation: Evidence from Bank Mortgage Lending.
Abstract: We examine the economic consequences of a rule designed to improve consumers' understanding of mortgage information. The 2015 TILA-RESPA Integrated Disclosures (TRID) rule simplifies the disclosures provided to consumers, reducing their information processing costs and increasing lenders' compliance-related frictions. We posit that TRID-affected mortgages become less attractive to lenders as an investment opportunity. Our main results document that mortgage applications affected by TRID are less likely to be approved following the rule's effective date. We document evidence consistent with both a decrease in consumers' information costs and an increase in compliance-related frictions faced by lenders, providing insight into the potential channels through which this reduction in mortgage credit operates. We also find that banks partially compensate for reduced mortgage lending by increasing small business lending. Additional analyses suggest positive consequences for some consumers and negative consequences for others. Our study provides a better understanding of the broader economic consequences of transparency regulation for both the regulated firms and consumers, and provides a complementary perspective to the literature examining bank-level transparency in lending markets.
Christopher Armstrong, Allison Nicoletti, Frank Zhou (2021), Executive stock options and systemic risk, Journal of Financial Economics.
Hailey Ballew, Allison Nicoletti, Sarah Stuber (2021), The Effect of the Paycheck Protection Program and Financial Reporting Standards on Bank Risk-Taking, Management Science.
Matthew Beck, Allison Nicoletti, Sarah Stuber (2021), The Role of Audit Firms in Spreading Depositor Contagion, The Accounting Review.
Hailey Ballew, Michael Iselin, Allison Nicoletti (2021), Accounting-based thresholds and growth decisions in the banking industry, Review of Accounting Studies.
Allison Nicoletti (2018), The effects of bank regulators and external auditors on loan loss provisions, Journal of Accounting and Economics, 66 (1).
Michael Iselin and Allison Nicoletti (2017), The Effects of SFAS 157 Disclosures on Investment Decisions, Journal of Accounting and Economics, 63 (2-3), pp. 404-427.

Teaching

Past Courses

ACCT101 - ACCT & FINANCIAL REPORT
This course is an introduction to the basic concepts and standards underlying financial accounting systems. Several important concepts will be studied in detail, including: revenue recognition, inventory, long-lived assets, present value, and long term liabilities. The course emphasizes the construction of the basic financial accounting statements - the income statement, balance sheet, and cash flow statement - as well as their interpretation.
ACCT1010 - Acct & Financial Report
This course is an introduction to the basic concepts and standards underlying financial accounting systems. Several important concepts will be studied in detail, including: revenue recognition, inventory, long-lived assets, present value, and long term liabilities. The course emphasizes the construction of the basic financial accounting statements - the income statement, balance sheet, and cash flow statement - as well as their interpretation.
ACCT399 - INDEPENDENT STUDY
Intensive reading and study with some research under the direction of a faculty member. Approval from one of the departmental advisers must be obtained before registration. Also a 3.4 average in major related subjects required.
ACCT9420 - Research in Acct IIi
This is Part III of a theoretical and empirical literature survey sequence covering topics that include corporate disclosure, cost of capital, incentives, compensation, governance, financial intermediation, financial reporting, tax, agency theory, cost accounting, capital structure, international financial reporting, analysts, and market efficiency. Please contact the accounting doctoral coordinator for information on the specific upcoming modules/topics that will be taught.

Activity

Latest Research

Allison Nicoletti and Christina Zhu (Working), Economic Consequences of Transparency Regulation: Evidence from Bank Mortgage Lending.

All Research

In the News

How PPP Participation Increased Banks’ Risk Appetites

Risk appetites have increased among U.S. banks that dispensed money to pandemic-hit small businesses under the government’s Paycheck Protection Program, a new study has found.…Read More

Knowledge at Wharton - 10/26/2021

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Allison Nicoletti

Contact Information

Overview

Research

Teaching

Past Courses

ACCT101 - ACCT & FINANCIAL REPORT

ACCT1010 - Acct & Financial Report

ACCT399 - INDEPENDENT STUDY

ACCT9420 - Research in Acct IIi

Awards and Honors

In the News

Knowledge @ Wharton

Activity

Latest Research

In the News