Going the Extra Mile: What Taxi Rides Tell Us about the Long-Hour Culture in Finance

Forthcoming at Management Science

33 Pages Posted: 23 Mar 2021 Last revised: 3 May 2023

See all articles by Deniz Okat

Deniz Okat

Hong Kong University of Science & Technology (HKUST)

Ellapulli V. Vasudevan

Indian Institute of Management (IIM), Ahmedabad

Date Written: November 11, 2022

Abstract

We analyze banks’ “protected-weekend” policies that restrict junior bankers from working during weekends. We use taxi rides from bank addresses in New York City to infer bankers' working hours. We find the policies induced bankers to shift their work to late-night hours on weekdays. We then investigate whether such shifts in working hours affected the quality of work. After the policy, analysts of the policy-implementing banks make more errors in their earnings forecasts. They also herd more toward the consensus in their forecasts. We further provide evidence that junior bankers are the most adversely affected by the policy.

Suggested Citation

Okat, Deniz and Vasudevan, Ellapulli V., Going the Extra Mile: What Taxi Rides Tell Us about the Long-Hour Culture in Finance (November 11, 2022). Forthcoming at Management Science, Available at SSRN: https://ssrn.com/abstract=3810864 or http://dx.doi.org/10.2139/ssrn.3810864

Deniz Okat

Hong Kong University of Science & Technology (HKUST) ( email )

Clearwater Bay
Kowloon, 999999
Hong Kong

Ellapulli V. Vasudevan (Contact Author)

Indian Institute of Management (IIM), Ahmedabad ( email )

Vastrapur
Ahmedabad, Gujarat 380 015
India

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