Annual Conference

|

Corporate Finance

|

May 2022

We show that firms anticipate information spillover from peers’ investment decisions and delay project exercise to learn from them. While this information improves project selection, the cost of waiting offsets those gains. To establish causality, we exploit local exogenous variation from the 1800...
Keywords: Real options, corporate investment, strategic interactions, peer learning, historical data
  • View
  • Download
  • Bookmark
  •    |   
  •  

Annual Conference

|

Corporate Finance

|

May 2022

Using a dataset of over one million local government procurement contracts in China, we study whether the government’s indebtedness causes delays in payment which can be averse to suppliers’ financial conditions. Higher local government distress predicts an increase in accounts receivables for s...
Keywords: Public procurement auctions, sovereign risk, financial distress
  • View
  • Download
  • Bookmark
  •    |   
  •  

Annual Conference

|

Corporate Finance

|

May 2022

We examine the causal effect of politicians’ partisan ideologies on the industrial pollution decisions of constituent firms. Using a regression discontinuity design involving close U.S. congressional elections, we show that plants increase pollution and invest less in emissions abatement following...
Keywords: Political ideology, industrial pollution, reallocation, health outcomes
  • View
  • Download
  • Bookmark
  •    |   
  •  

Annual Conference

|

Corporate Finance

|

May 2022

We exploit within-firm variations in plant-level toxic releases to document the effect of managerial hometown favoritism on corporate environmental policies. We find that pollution intensity is 20% lower for plants near CEOs’ hometowns, and this reduction is facilitated by waste management efforts...
Keywords: CEO, Hometown favoritism, Corporate environmental policies, Corporate social responsibility (CSR)
  • View
  • Download
  • Bookmark
  •    |   
  •  

Annual Conference

|

Corporate Finance

|

May 2022

Based on a novel dataset of venture capital (VC) funds and startups in China, we study the impact of the U.S.-China trade war on China’s VC market and the role of government-funded VCs (GVCs). Employing a difference-in-differences strategy, we document that independent venture capital funds (IVCs)...
Keywords: Trade War, Venture Capital, Innovation, Industrial Policy, China
  • View
  • Download
  • Bookmark
  •    |   
  •