Annual Conference

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Corporate Finance

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May 2015

Do Corporate Taxes Hinder Innovation?

Abhiroop MUKHERJEE, Alminas ZALDOKAS, Manpreet SINGH
We exploit staggered changes in state-level corporate tax rates to show that an increase in taxes reduces future innovation. A variety of tests, including those based on policy discontinuity at contiguous counties straddling borders of politically similar states, show that local economic conditions ...
Keywords: innovation, patents, research and development, New Products, Corporate Taxes
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Annual Conference

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Corporate Finance

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May 2015

Does It Pay for Entertaining Your Stakeholders?

Haibing SHU, Ou-Yang HUI, Sonia WONG
Using a unique dataset on business entertainment expenditure (BEE) spent by Chinese public firms from 2004 to 2012, this paper performs the first systematic study on the effects of BEE on firm performance. We find that BEE can improve future firm performance and firm valuation, while it has not been...
Keywords: Business Entertainment Expenditure, Transaction costs, Favor-seeking, firm performance, Stakeholders
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Annual Conference

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Economic Transformation of Asia

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May 2015

Education Choice, Rural-urban Migration and Economic Development

Pei-Ju LIAO, Yin-Chi WANG, Wang PING , Chong Kee YIP
Observing rapid structural transformation accompanied by a continual process of rural to urban migration in many developing countries, we construct a micro founded dynamic framework to explore how important education-based migration is, as opposed to work-based migration, for economic development, u...
Keywords: Educational choice, Rural-Urban Migration, urbanization and development
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Annual Conference

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Economic Transformation of Asia, Senior Fellows/Fellows

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May 2015

Evaluating the Risk of Chinese Housing Markets: What We Know and What We Need to Know

Jing WU, Yongheng DENG, Joseph GYOURKO
Competing claims about conditions in Chinese housing markets are challenging to evaluate because of data limitations. We bring new data to bear on this issue and examine a wide array of property market risk metrics and fundamentals. On average across 35 large cities, real land and house prices have ...
Keywords: Housing markets, China
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Annual Conference

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Corporate Finance

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May 2015

Do Family Firms Invest More than Nonfamily Firms in Employee-Friendly Policies?

Jun-Koo KANG, Jungmin KIM
We examine whether family firms invest more in employee relations than nonfamily firms. Using the variation in state-level changes in inheritance, gift, and estate taxes as an exogenous shock to family control, we find that family firms, particularly those in which a founder serves as CEO or those i...
Keywords: Family Firm, Founder, Employee-friendly Policy, Concern Score, Life Cycle, Labor-intensive Industry, Managerial Myopia, Agency Problem, Endogeneity
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