Annual Conference

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Corporate Finance

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May 2022

We show that history can explain the geographic concentration of investment over and above traditional agglomerative forces, geography, and expectations. We use spatial variation in direct and indirect British rule to identify differences in historical circumstances. Using this within-country variat...
Keywords: investment, agglomeration, history, colonial rule, economic organization, state capacity
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Annual Conference

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Corporate Finance

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May 2022

Losses from frauds and financial scams are estimated to exceed U.S. $5 trillion annually. To study the economics of financial scams, we investigate the market for initial coin offerings (ICOs) using point-in-time data snapshots of 5,935 ICOs. Our evidence indicates that ICO issuers strategically scr...
Keywords: Financial scams, Screening, Cryptocurrencies, Advisors
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Annual Conference

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Corporate Finance

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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
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Annual Conference

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Corporate Finance

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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
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Annual Conference

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Corporate Finance

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May 2022

We provide evidence that advanced manufacturing and process innovations are important for firm and aggregate economic growth through technological spillover to product innovations and increased profitability. We do so by introducing a new timevarying measure of process innovations based on patent in...
Keywords: innovation, Process innovation, Product innovation, Process-driven products, firm growth, Economic growth, Growth convergence
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