Insider Trading and Innovation
|
|
- Charleen Davidson
- 5 years ago
- Views:
Transcription
1 Insider Trading and Innovation Ross Levine, Chen Lin and Lai Wei Hoover IP 2 Conference Stanford University January 12, 2016 Levine, Lin, Wei Insider Trading and Innovation 1/17/2016 1
2 Motivation and Question Innovation is a major source of economic growth. Which laws and regulations foster/impede innovation? Considerable research on intellectual property rights. Our research agenda focuses on finance: Which financial laws and regulations foster/impede innovation? This paper examines insider trading laws Does restricting insider trading increase, decrease, or have no effect on technological innovation? Levine, Lin, Wei Insider Trading and Innovation 1/17/2016 2
3 Differing Views and Predictions Efficiency of Insider Trading View Insider trading is an efficient way to compensate insiders for undertaking risky investments, such as innovation. Insider trading reveals information, improving stock price informativeness and hence the quality of investment. If insider trading is costly for some types of firms, they will design contracts to credibly eliminate it. Restricting insider trading will hurt innovation. Levine, Lin, Wei Insider Trading and Innovation 1/17/2016 3
4 Differing Views and Predictions Inefficiency of Insider Trading View Possibility of insider trading makes outside investors reluctant to finance firms, which raises the cost of capital. Possibility of insider trading makes outside investors reluctant to expend resources researching firms. This will hinder the effective valuation of projects and firms Especially opaque, hard to value endeavors like innovation. Since legal systems are imperfect, insiders cannot credibly contract around fears of insider trading. Restricting insider trading spurs innovation. Levine, Lin, Wei Insider Trading and Innovation 1/17/2016 4
5 This paper Provides the first assessment of whether restricting insider trading increases or decreases innovation. Levine, Lin, Wei Insider Trading and Innovation 1/17/2016 5
6 Empirical Strategy Exploit the staggered enforcement of insider trading across countries from 1976 to the present. Enforcement is defined by the date that a country first implements a prosecution under its insider trading laws. 36 economies of 94 countries have enforced laws. Examine what happens to patent-based measures of innovation. Levine, Lin, Wei Insider Trading and Innovation 1/17/2016 6
7 Data Patent Data We measure innovation based on patent metrics PATSTAT EPO Worldwide Patent Statistical Database It covers over 80 million patent applications originated from more than 100 countries that are filed with more than 80 patent offices worldwide from 1800s to present. We focus on patents filed with and granted by patent offices in OECD countries plus EPO to ensure comparability. Levine, Lin, Wei Insider Trading and Innovation 1/17/2016 7
8 6 Measures of innovation Quantity Patent Count The total number of distinct patents (eventually granted) in each country-industry-year Ln (1 + patent count) c,i,t Scope Number of Patenting Entities The total number of distinct entities filing patent in a particular country-industry-year Ln (1 + # entities) c,i,t Levine, Lin, Wei Insider Trading and Innovation 1/17/2016 8
9 6 Measures of innovation Impact Patent Citation Number of distinct forward citations made to patents in industry i, filed in year t, by applicants from country c. Adjusted for truncation bias (Hall et al., 2001, 2005) Ln (1 + citations c,i,t ) High impact PC Top10% Number of patents in an industry-country-year whose forward-citation count falls into the top-10% of the citation distribution across all patents in the same technology class (IPC subsection) and application year. Ln (1 + high impact patents c,i,t ) Levine, Lin, Wei Insider Trading and Innovation 1/17/2016 9
10 6 Measures of innovation Originality Originality Score = 1 HHI(tech-classes of cited patents) higher score indicates the patent cites a diversity of technology classes. Generality Generality Score = 1 HHI(tech-classes citing the patent) higher score indicates the patent is cited by a diversity of technology classes Levine, Lin, Wei Insider Trading and Innovation 1/17/
11 Measures of innovation Some details We use first granted patent of each invention Date the innovation by its application year Assign its nationality based on the country of residence of the applicant Unit of analysis: industry-country-year level. Given data availability, we aggregate information to the industry level, not to the firm level. We omit the U.S. because we use it as a benchmark. Levine, Lin, Wei Insider Trading and Innovation 1/17/
12 Before and After Enforcement Average annual innovation before and after Median Annual Citation Pre vs. Post Pre [-5,-1] Post [+1,+10] Levine, Lin, Wei Insider Trading and Innovation 1/17/
13 Empirical Challenges Although there is a huge increase in innovation after countries start enforcing insider trading laws, we face three broad categories of challenges to drawing causal inferences. 1 Yes, innovation went up after enforcement, but was it already trending up? Levine, Lin, Wei Insider Trading and Innovation 1/17/
14 Perhaps, there is pre-existing trend Innovation Enforcement Date We will test for this. Time
15 Empirical Challenges 1 Pre-existing trends Is there a material change in the time-path of innovation after a country starts enforcing the law? 2 Reverse causality Does innovation trigger a change in insider trading laws? We examine this below. Levine, Lin, Wei Insider Trading and Innovation 1/17/
16 Empirical Challenges 1 Pre-existing trends Is there a material change in the time-path of innovation after a country starts enforcing the law. 2 Reverse causality Does innovation trigger a change in insider trading laws? 3 Other things? Other changes in the country or industry? Levine, Lin, Wei Insider Trading and Innovation 1/17/
17 Pre-trends and dynamics No pre-trend and a notable break Citation Levine, Lin, Wei Insider Trading and Innovation 1/17/
18 Reverse causality Neither the level nor the growth rate in innovation predict the timing of the enforcement Citation Δ Citation Levine, Lin, Wei Insider Trading and Innovation 1/17/
19 Empirical Strategy Baseline: Difference-in-differences specification Question: Is α 1 positive, negative, and how big is it? Does restricting insider trading accelerate or slow innovation and how big is the effect? Controls: X: GDP, GDP per capita, Stock Market Capitalization/GDP, Credit/GDP, Export activities, more too Country fixed effects control for all time-invariant country traits, e.g., culture, perhaps quality of education, etc. Industry fixed effects control for all time-invariant industry traits, e.g., the natural rate of innovativeness, capital intensity, size, etc. Time fixed effects control for all factors in each year exerting a common effect on countries and industries, e.g., global recessions, global technological changes, etc. Levine, Lin, Wei Insider Trading and Innovation 1/17/
20 Empirical Results Baseline regression: Dependent variable Patent Count Patent Entities Citation PC Top10% Generality Originality (1) (2) (3) (4) (5) (6) Enforce ** ** *** *** *** *** (2.19) (2.04) (2.67) (2.76) (2.80) (2.93) Controls Yes Yes Yes Yes Yes Yes Country Fixed Effect Yes Yes Yes Yes Yes Yes Industry Fixed Effect Yes Yes Yes Yes Yes Yes Year Fixed Effect Yes Yes Yes Yes Yes Yes Observations 70,319 70,319 70,319 70,319 65,641 67,014 Adjusted R-squared Note on magnitude: 13% increase in the number of top-10 patents Levine, Lin, Wei Insider Trading and Innovation 1/17/
21 We can push this further We test whether the results are driven by some other law or regulation that just happens to occur at the same time? We control for many laws, regulations, and policies. E.g, Credit allocation laws, interest rate controls, new bank entry limits, the stringency of bank supervision, impediments to the operation of securities markets, restrictions on international capital flows, etc. All of the results hold. Levine, Lin, Wei Insider Trading and Innovation 1/17/
22 We can push this further Are the results stronger where the Inefficient Insider Trading View suggests that they should be? Theory: Restricting insider trading will induce outside investors to expend more resources researching firms and activities. This is especially important for opaque, hard-to-value activities, such as innovation. Therefore, restricting insider trading should have a particularly big impact on opaque and innovative activities. Do we find this? Levine, Lin, Wei Insider Trading and Innovation 1/17/
23 We can push this further To measure the degree to which an industry is naturally innovative or opaque, we use the US as a benchmark. The US has comparatively strong legal and financial systems. We measure the degree to which industries in the US are innovative or opaque. We then use this to characterize industries around the world. Levine, Lin, Wei Insider Trading and Innovation 1/17/
24 Differentiating by Industry: Strategy Industry-partitioned regression: Question: Do naturally opaque and innovative industries experience a bigger increase in innovation after the enforcement of IT laws? Is β 1 > 0? Controls: country-time and industry-time fixed effects. Controls for all time-varying country traits, such as all national policies, including patenting laws, in each country, etc. Controls for all time-varying industry traits, such as global factors that shape the rate of innovation in particular industries over time. Levine, Lin, Wei Insider Trading and Innovation 1/17/
25 Empirical Results: Naturally innovative Measures of naturally innovative (US benchmark) High Tech = 1 if greater than the sample median of the average growth rate of R&D expenditures in each industry. Innovation Propensity = 1 if greater than the sample median of the average # of patents filed by public firms in each industry. Levine, Lin, Wei Insider Trading and Innovation 1/17/
26 Empirical Results: Naturally innovative Growth of Patent Count and Citation in naturally innovative and naturally less innovative groups. Levine, Lin, Wei Insider Trading and Innovation 1/17/
27 Empirical Results: Naturally innovative Stronger results among naturally innovative industries. Dependent variable Patent Count Patent Entities Citation PC Top10% Generality Originality (1) (2) (3) (4) (5) (6) Enforce High Tech *** *** *** *** *** *** (6.28) (6.73) (6.37) (5.23) (5.37) (5.62) Controls Yes Yes Yes Yes Yes Yes Country-Year Fixed Effect Yes Yes Yes Yes Yes Yes Industry-Year Fixed Effect Yes Yes Yes Yes Yes Yes Observation 73,410 73,410 73,410 73,410 68,010 69,403 Adj. R-squared Levine, Lin, Wei Insider Trading and Innovation 1/17/
28 Empirical Results: Naturally Opaque Measures of opacity (US benchmark) Intangibility = 1 if greater than the sample median intangibility; Intangibility = one minus the average share of tangible assets over total assets in each industry. STD of MTB = 1 if greater than the sample median of the average standard deviation of MTB across public firms in each industry, scaled by average MTB in the industry. Levine, Lin, Wei Insider Trading and Innovation 1/17/
29 Empirical Results: Naturally Opaque Stronger results among naturally opaque industries Dependent variable Patent Count Patent Entities Citation PC Top10% Generality Originality (1) (2) (3) (4) (5) Enforce Intangibility *** *** *** *** *** *** (6.89) (7.15) (5.75) (5.63) (5.68) (6.03) Controls Yes Yes Yes Yes Yes Yes Country-Year Fixed Effect Yes Yes Yes Yes Yes Yes Industry-Year Fixed Effect Yes Yes Yes Yes Yes Yes Observation 76,321 76,321 76,321 76,321 70,684 72,111 Adj. R-squared Levine, Lin, Wei Insider Trading and Innovation 1/17/
30 We can push a bit further We can evaluate an additional prediction from theory: If restrictions on insider trading spur innovation by improving valuations and therefore making it easier for such firms to raise money, then we should see them raise more money. Let s look at IPOs and SEOs. Levine, Lin, Wei Insider Trading and Innovation 1/17/
31 Empirical Results Growth of IPO and SEO proceeds in naturally innovative and naturally less innovative groups. Levine, Lin, Wei Insider Trading and Innovation 1/17/
32 Conclusion The enforcement of insider trading laws is associated with faster innovation. Consistent with Inefficiency of Insider Trading view: Increase is especially pronounced in naturally innovative and opaque industries. Equity issuances rise more these industries too. Levine, Lin, Wei Insider Trading and Innovation 1/17/
33 Thank You! Levine, Lin, Wei Insider Trading and Innovation 1/17/
Key Words: Insider Trading; Financial Regulation; Patents; Finance and Economic Growth JEL Classifications: G14; G18; O30; F63
INSIDER TRADING AND INNOVATION Ross Levine, Chen Lin and Lai Wei* March 2016 Abstract Do legal restrictions on insider trading accelerate or slow technological innovation? Based on over 75,000 industry-country-year
More informationNBER WORKING PAPER SERIES INSIDER TRADING AND INNOVATION. Ross Levine Chen Lin Lai Wei. Working Paper
NBER WORKING PAPER SERIES INSIDER TRADING AND INNOVATION Ross Levine Chen Lin Lai Wei Working Paper 21634 http://www.nber.org/papers/w21634 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue
More informationFinance, Firm Size, and Growth. Thorsten Beck Senior Economist Development Research Group World Bank
Finance, Firm Size, and Growth Thorsten Beck Senior Economist Development Research Group World Bank tbeck@worldbank.org Asli Demirguc-Kunt Senior Research Manager Development Research Group World Bank
More informationThe Effect of Intellectual Property Boxes on Innovative Activity & Tax Avoidance University of Illinois Tax Doctoral Consortium III
The Effect of Intellectual Property Boxes on Innovative Activity & Tax Avoidance University of Illinois Tax Doctoral Consortium III Tobias Bornemann, Stacie Laplante, Benjamin Osswald 1 Overview What?
More informationManaging Trade: Evidence from China and the US
Managing Trade: Evidence from China and the US Nick Bloom, Stanford & NBER Kalina Manova, Stanford, Oxford, NBER & CEPR John Van Reenen, London School of Economics & CEP Zhihong Yu, Nottingham National
More informationRethinking industrial policy. Philippe Aghion
Rethinking industrial policy Philippe Aghion In aftermath of WWII, many developing countries have opted for trade protection and import substitution policies aimed at promoting new infant industries Classical
More informationCapital Market Financing to Firms
Capital Market Financing to Firms Sergio Schmukler Research Department World Bank Seventeenth Annual Conference on Indian Economic Policy Reform Stanford University June 2-3, 2016 Motivation Capital markets
More informationOnline Appendices for
Online Appendices for From Made in China to Innovated in China : Necessity, Prospect, and Challenges Shang-Jin Wei, Zhuan Xie, and Xiaobo Zhang Journal of Economic Perspectives, (31)1, Winter 2017 Online
More informationTHE WILLIAM DAVIDSON INSTITUTE AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL
THE WILLIAM DAVIDSON INSTITUTE AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL Financial Dependence, Stock Market Liberalizations, and Growth By: Nandini Gupta and Kathy Yuan William Davidson Working Paper
More informationInternational Royalty Flows and Research and Development Responses to IP Box Regimes
International Royalty Flows and Research and Development Responses to IP Box Regimes Eric Ohrn Grinnell College National Tax Association 109th Annual Conference on Taxation November 11, 2016 Introduction
More informationCorporate Governance, Regulation, and Bank Risk Taking. Luc Laeven, IMF, CEPR, and ECGI Ross Levine, Brown University and NBER
Corporate Governance, Regulation, and Bank Risk Taking Luc Laeven, IMF, CEPR, and ECGI Ross Levine, Brown University and NBER Introduction Recent turmoil in financial markets following the announcement
More informationCorporate Strategy, Conformism, and the Stock Market
Corporate Strategy, Conformism, and the Stock Market Thierry Foucault (HEC) Laurent Frésard (Maryland) November 20, 2015 Corporate Strategy, Conformism, and the Stock Market Thierry Foucault (HEC) Laurent
More informationInternational Patent Protection:
International Patent Protection: 1990-2005 Measurement and Trends Patent Strength and Stages of Economic Development I. Measurement & Trends Patent Rights Index (0-5) Duration (0-1) Coverage (0-1) Restrictions,
More informationPATENT INFORMATION AND CORPORATE CREDIT RATINGS: AN EMPIRICAL STUDY OF PATENT VALUATION BY CREDIT RATING AGENCIES
PATENT INFORMATION AND CORPORATE CREDIT RATINGS: AN EMPIRICAL STUDY OF PATENT VALUATION BY CREDIT RATING AGENCIES Peter Neuhaeusler, Carl Benedikt Frey, Knut Blind Patent Statistics for Decision Makers
More informationTesting the predictions of the Solow model:
Testing the predictions of the Solow model: 1. Convergence predictions: state that countries farther away from their steady state grow faster. Convergence regressions are designed to test this prediction.
More informationShareholder Litigation and Corporate Innovation
Shareholder Litigation and Corporate Innovation Chen Lin, The University of Hong Kong Sibo Liu, The University of Hong Kong Gustavo Manso, University of California, Berkeley November 2017 1 Shareholder
More informationFinance, Firm Size, and Growth
Finance, Firm Size, and Growth Thorsten Beck, Asli Demirguc-Kunt, Luc Laeven and Ross Levine* This draft: February 3, 2005 Abstract: This paper examines whether financial development boosts the growth
More informationFiscal Policies for Innovation and Growth
Fiscal Policies for Innovation and Growth CARLOS MULAS-GRANADOS INTERNATIONAL MONETARY FUND ECFIN WORKSHOP JANUARY 24TH, 2016 1 Outline Growth: Three a state of alert pillars of innovation: a role for
More informationDiscussion of: Banks Incentives and Quality of Internal Risk Models
Discussion of: Banks Incentives and Quality of Internal Risk Models by Matthew C. Plosser and Joao A. C. Santos Philipp Schnabl 1 1 NYU Stern, NBER and CEPR Chicago University October 2, 2015 Motivation
More informationDoes Financial Openness Lead to Deeper Domestic Financial Markets?
Does Financial Openness Lead to Deeper Domestic Financial Markets? FPD Academy Award Seminar The World Bank July 28, 2010 César Calderón (The World Bank) Megumi Kubota (University of York) Motivation Salient
More informationWho Feeds the Trolls?
Who Feeds the Trolls? Patent Trolls and the Patent Examination Process Josh Feng 1 and Xavier Jaravel 2 1 Harvard University 2 Stanford University NBER Summer Institute 2016 Feng, Jaravel (Harvard/Stanford)
More informationFinance, Firm Size, and Growth
Finance, Firm Size, and Growth Thorsten Beck, Asli Demirguc-Kunt, Luc Laeven and Ross Levine* This draft: June 23, 2005 Abstract: This paper provides empirical evidence on whether financial development
More informationInternet Appendix for: Does Going Public Affect Innovation?
Internet Appendix for: Does Going Public Affect Innovation? July 3, 2014 I Variable Definitions Innovation Measures 1. Citations - Number of citations a patent receives in its grant year and the following
More informationBachelor Thesis Finance
Bachelor Thesis Finance What is the influence of the FED and ECB announcements in recent years on the eurodollar exchange rate and does the state of the economy affect this influence? Lieke van der Horst
More informationTopic 3: Endogenous Technology & Cross-Country Evidence
EC4010 Notes, 2005 (Karl Whelan) 1 Topic 3: Endogenous Technology & Cross-Country Evidence In this handout, we examine an alternative model of endogenous growth, due to Paul Romer ( Endogenous Technological
More informationNBER WORKING PAPER SERIES FINANCE, FIRM SIZE, AND GROWTH. Thorsten Beck Asli Demirguc-Kunt Luc Laeven Ross Levine
NBER WORKING PAPER SERIES FINANCE, FIRM SIZE, AND GROWTH Thorsten Beck Asli Demirguc-Kunt Luc Laeven Ross Levine Working Paper 10983 http://www.nber.org/papers/w10983 NATIONAL BUREAU OF ECONOMIC RESEARCH
More informationIPO Underpricing and Information Disclosure. Laura Bottazzi (Bologna and IGIER) Marco Da Rin (Tilburg, ECGI, and IGIER)
IPO Underpricing and Information Disclosure Laura Bottazzi (Bologna and IGIER) Marco Da Rin (Tilburg, ECGI, and IGIER) !! Work in Progress!! Motivation IPO underpricing (UP) is a pervasive feature of
More informationKoji Ishida: Japan s economy, price developments and monetary policy
Koji Ishida: Japan s economy, price developments and monetary policy Speech by Mr Koji Ishida, Member of the Policy Board of the Bank of Japan, at a meeting with business leaders, Fukuoka, 18 February
More informationOptimal Financial Structure and the Role of the State
IEA Panel on Development Strategy and Finance Optimal Financial Structure and the Role of the State Beijing, July 5, 2011 Justin Yifu Lin Chief Economist and Senior Vice President The World Bank 1 Structure
More informationDiscussion. Benoît Carmichael
Discussion Benoît Carmichael The two studies presented in the first session of the conference take quite different approaches to the question of price indexes. On the one hand, Coulombe s study develops
More informationInternet Appendix for Do General Managerial Skills Spur Innovation?
Internet Appendix for Do General Managerial Skills Spur Innovation? Cláudia Custódio Imperial College Business School Miguel A. Ferreira Nova School of Business and Economics, ECGI Pedro Matos University
More informationFinance, Firm Size, and Growth
Finance, Firm Size, and Growth Thorsten Beck, Asli Demirguc-Kunt, Luc Laeven and Ross Levine* February 16, 2006 Abstract: This paper provides empirical evidence on whether financial development boosts
More informationInput Tariffs, Speed of Contract Enforcement, and the Productivity of Firms in India
Input Tariffs, Speed of Contract Enforcement, and the Productivity of Firms in India Reshad N Ahsan University of Melbourne December, 2011 Reshad N Ahsan (University of Melbourne) December 2011 1 / 25
More informationMacroeconomic Models of Economic Growth
Macroeconomic Models of Economic Growth J.R. Walker U.W. Madison Econ448: Human Resources and Economic Growth Summary Solow Model [Pop Growth] The simplest Solow model (i.e., with exogenous population
More informationCredit Constraints and Search Frictions in Consumer Credit Markets
in Consumer Credit Markets Bronson Argyle Taylor Nadauld Christopher Palmer BYU BYU Berkeley-Haas CFPB 2016 1 / 20 What we ask in this paper: Introduction 1. Do credit constraints exist in the auto loan
More informationFinancial liberalization and the relationship-specificity of exports *
Financial and the relationship-specificity of exports * Fabrice Defever Jens Suedekum a) University of Nottingham Center of Economic Performance (LSE) GEP and CESifo Mercator School of Management University
More informationFinancial Innovation and Borrowers: Evidence from Peer-to-Peer Lending
Financial Innovation and Borrowers: Evidence from Peer-to-Peer Lending Tetyana Balyuk BdF-TSE Conference November 12, 2018 Research Question Motivation Motivation Imperfections in consumer credit market
More informationLabor Regulation, Enforcement, and Employment: Lessons from China. Albert Park Hong Kong University of Science and Technology
Labor Regulation, Enforcement, and Employment: Lessons from China Albert Park Hong Kong University of Science and Technology Motivations Debates over optimal labor regulation Concerns about enforcement
More informationThe Economic Impact of Special Economic Zones: Evidence from Chinese Municipalities
uotaintro Roadmap Reform Review A Conceptual Framework Data and Identi cation Results Conclusion The Economic Impact of s: Evidence from Chinese Municipalities London School of Economics January 16th,
More informationSources of Financing in Different Forms of Corporate Liquidity and the Performance of M&As
Sources of Financing in Different Forms of Corporate Liquidity and the Performance of M&As Zhenxu Tong * University of Exeter Jian Liu ** University of Exeter This draft: August 2016 Abstract We examine
More informationDOES MONEY BUY CREDIT? FIRM-LEVEL EVIDENCE ON BRIBERY AND BANK DEBT
DOES MONEY BUY CREDIT? FIRM-LEVEL EVIDENCE ON BRIBERY AND BANK DEBT Zuzana Fungáčová (Bank of Finland) Anna Kochanova (Max Planck Institute, Bonn) Laurent Weill (University of Strasbourg & Bank of Finland)
More information(Est.2201) Parametric Contingency Estimating on Small Projects. Matthew Schoenhardt, P.Eng, MBA, PMP, RMP
(Est.2201) Parametric Contingency Estimating on Small Projects Matthew Schoenhardt, P.Eng, MBA, PMP, RMP mschoenh@telus.net 587.988.2305 1 Confirmation Question? Interrupt me and ask! Discussion Question?
More informationThe Variability of IPO Initial Returns
The Variability of IPO Initial Returns Journal of Finance 65 (April 2010) 425-465 Michelle Lowry, Micah Officer, and G. William Schwert Interesting blend of time series and cross sectional modeling issues
More informationWhat determines government spending multipliers?
What determines government spending multipliers? Paper by Giancarlo Corsetti, André Meier and Gernot J. Müller Presented by Michele Andreolli 12 May 2014 Outline Overview Empirical strategy Results Remarks
More informationThe Effects of Capital Infusions after IPO on Diversification and Cash Holdings
The Effects of Capital Infusions after IPO on Diversification and Cash Holdings Soohyung Kim University of Wisconsin La Crosse Hoontaek Seo Niagara University Daniel L. Tompkins Niagara University This
More informationSUMMARY AND CONCLUSIONS
5 SUMMARY AND CONCLUSIONS The present study has analysed the financing choice and determinants of investment of the private corporate manufacturing sector in India in the context of financial liberalization.
More informationIS THERE A RELATION BETWEEN MONEY LAUNDERING AND CORPORATE TAX AVOIDANCE? EMPIRICAL EVIDENCE FROM THE UNITED STATES
IS THERE A RELATION BETWEEN MONEY LAUNDERING AND CORPORATE TAX AVOIDANCE? EMPIRICAL EVIDENCE FROM THE UNITED STATES Grant Richardson School of Accounting and Finance, The Business School The University
More informationTesting the predictions of the Solow model: What do the data say?
Testing the predictions of the Solow model: What do the data say? Prediction n 1 : Conditional convergence: Countries at an early phase of capital accumulation tend to grow faster than countries at a later
More informationUNIVERSITY OF CALIFORNIA DEPARTMENT OF ECONOMICS. Economics 134 Spring 2018 Professor David Romer
UNIVERSITY OF CALIFORNIA DEPARTMENT OF ECONOMICS LECTURE 17 THE LONG-RUN BUDGET OUTLOOK MARCH 21, 2018 I. FEASIBLE AND INFEASIBLE BUDGET POLICIES A. The distinction between the debt and the deficit B.
More informationThe impact of accounting standards on the allocation of pension assets
Christian Barthelme, Siemens Group Vicky Kiosse, University of Exeter Thorsten Sellhorn, LMU Munich christian.barthelme@whu.edu p.kiosse@exeter.ac.uk sellhorn@bwl.lmu.de The impact of accounting standards
More informationComparing China and India: National Intellectual Capital Perspective. Carol Y.Y. Lin & Ahmed Bounfour June 7, 2013
Comparing China and India: National Intellectual Capital Perspective Carol Y.Y. Lin & Ahmed Bounfour June 7, 2013 Introduction (1) A simple definition of intellectual capital is the knowledge, information,
More informationCorporate Leverage and Taxes around the World
Utah State University DigitalCommons@USU All Graduate Plan B and other Reports Graduate Studies 5-1-2015 Corporate Leverage and Taxes around the World Saralyn Loney Utah State University Follow this and
More informationThe Time Cost of Documents to Trade
The Time Cost of Documents to Trade Mohammad Amin* May, 2011 The paper shows that the number of documents required to export and import tend to increase the time cost of shipments. However, this relationship
More informationHow Was the U.S. Economy Doing Prior to the 2016 Election?
How Was the U.S. Economy Doing Prior to the 2016 Election? Edward C. Prescott Arizona State University Restoring Prosperity: Contemporary and Historical Perspectives Conference Hoover Institution, Stanford
More informationThe Stategic Petroleum Reserve and Oil Prices
The Stategic Petroleum Reserve and Reid Stevens UC Berkeley October 8, 2014 1 / 52 Question: Does the SPR affect crude oil prices? Answer: Yes, but not as intended. Assumption Data Crude Oil Release Oil
More informationAN ANALYSIS OF THE DEGREE OF DIVERSIFICATION AND FIRM PERFORMANCE Zheng-Feng Guo, Vanderbilt University Lingyan Cao, University of Maryland
The International Journal of Business and Finance Research Volume 6 Number 2 2012 AN ANALYSIS OF THE DEGREE OF DIVERSIFICATION AND FIRM PERFORMANCE Zheng-Feng Guo, Vanderbilt University Lingyan Cao, University
More informationInternational Transfer Pricing and Tax Avoidance: Evidence from Linked Tax-Trade Statistics in the UK
International Transfer Pricing and Tax Avoidance: Evidence from Linked Tax-Trade Statistics in the UK Li Liu, Tim Schmidt-Eisenlohr, and Dongxian Guo International Monetary Fund, Federal Reserve Board,
More informationWhy Do Companies Choose to Go IPOs? New Results Using Data from Taiwan;
University of New Orleans ScholarWorks@UNO Department of Economics and Finance Working Papers, 1991-2006 Department of Economics and Finance 1-1-2006 Why Do Companies Choose to Go IPOs? New Results Using
More informationFinancial innovation and regulation. Thorsten Beck
Financial innovation and regulation Thorsten Beck Financial innovation What is financial innovation: new financial products and services, new financial intermediaries or markets, and new delivery channels
More informationThe Effects of Dollarization on Macroeconomic Stability
The Effects of Dollarization on Macroeconomic Stability Christopher J. Erceg and Andrew T. Levin Division of International Finance Board of Governors of the Federal Reserve System Washington, DC 2551 USA
More informationFiring Costs, Employment and Misallocation
Firing Costs, Employment and Misallocation Evidence from Randomly Assigned Judges Omar Bamieh University of Vienna November 13th 2018 1 / 27 Why should we care about firing costs? Firing costs make it
More informationFinal Exam: 14 Dec 2004 Econ 200 David Reiley
Your Name: Final Exam: 14 Dec 2004 Econ 200 David Reiley You have 120 minutes to take this exam. There are a total of 100 points possible, on 5 multiple-choice questions, and 2 multi-part essay questions.
More informationMITTELSTANDSM NITOR 2003
MITTELSTANDSM NITOR 2003 SUMMARY Annual report on cyclical and structural issues relating to small and medium-sized enterprises. MittelstandsMonitor 2003 MittelstandsMonitor 2003 Annual report on cyclical
More informationEconomic Growth: Extensions
Economic Growth: Extensions 1 Road Map to this Lecture 1. Extensions to the Solow Growth Model 1. Population Growth 2. Technological growth 3. The Golden Rule 2. Endogenous Growth Theory 1. Human capital
More informationTesting the Solow Growth Theory
Testing the Solow Growth Theory Dilip Mookherjee Ec320 Lecture 5, Boston University Sept 16, 2014 DM (BU) 320 Lect 5 Sept 16, 2014 1 / 1 EMPIRICAL PREDICTIONS OF SOLOW MODEL WITH TECHNICAL PROGRESS 1.
More informationThe Impact of Private Equity on Firms Patenting Activity
The Impact of Private Equity on Firms Patenting Activity Kevin Amess - CMBOR & Nottingham University Business School Joel Stiebale - DICE, Heinrich Heine University Dusseldorf Mike Wright - CMBOR & ERC,
More informationDo tax incentives for research increase firm innovation? A RDD (Regression Discontinuity Design) for R&D
Do tax incentives for research increase firm innovation? A RDD (Regression Discontinuity Design) for R&D Antoine Dechezleprêtre (LSE, CEP) Elias Einiö (VATT, CEP) Ralf Martin (Imperial College, CEP) Kieu-Trang
More informationProfit shifting and FDI restrictions
Profit shifting and FDI restrictions Mathilde Lebrand World Bank November 29, 2016 Motivation Both the WTO and most regional agreements have been effective in removing most of the tariffs. Entry of multinationals
More informationDeposit Insurance and Banks Deposit Rates: Evidence From a EU Policy
Deposit Insurance and Banks Deposit Rates: Evidence From a EU Policy Matteo Gatti Tommaso Oliviero EUI University of Naples and CEF May 1, 2017 Motivation In 2009 EU raised deposit insurance limit to e100,
More informationLEC 2: Exogenous (Neoclassical) growth model
LEC 2: Exogenous (Neoclassical) growth model Development of the model The Neo-classical model was an extension to the Harrod-Domar model that included a new term productivity growth The most important
More informationThe Effect of Financial Constraints, Investment Policy and Product Market Competition on the Value of Cash Holdings
The Effect of Financial Constraints, Investment Policy and Product Market Competition on the Value of Cash Holdings Abstract This paper empirically investigates the value shareholders place on excess cash
More informationDEBT SHIFTING RESTRICTIONS AND REALLOCATION OF DEBT
DEBT SHIFTING RESTRICTIONS AND REALLOCATION OF DEBT Katarzyna Habu * Yaxuan Qi ** Jing Xing *** This Version: 05.11.2018 Abstract: This paper analyses the effects of tax incentives on the location of debt
More informationEconomic Growth II. macroeconomics. fifth edition. N. Gregory Mankiw. PowerPoint Slides by Ron Cronovich Worth Publishers, all rights reserved
CHAPTER EIGHT Economic Growth II macroeconomics fifth edition N. Gregory Mankiw PowerPoint Slides by Ron Cronovich 2002 Worth Publishers, all rights reserved Learning objectives Technological progress
More informationFifth Annual Fisher Real Estate Conference St. Francis Hotel San Francisco For delivery June 6, 2000, approximately 8:15 AM P.D.T.
Fifth Annual Fisher Real Estate Conference St. Francis Hotel San Francisco For delivery June 6, 2000, approximately 8:15 AM P.D.T. A Look at the Regional and National Economies I. Good morning. It's a
More informationThe Effect of Interventions to Reduce Fertility on Economic Growth. Quamrul Ashraf Ashley Lester David N. Weil. Brown University.
The Effect of Interventions to Reduce Fertility on Economic Growth Quamrul Ashraf Ashley Lester David N. Weil Brown University December 2007 Goal: analyze quantitatively the economic effects of interventions
More informationDebt Financing and Survival of Firms in Malaysia
Debt Financing and Survival of Firms in Malaysia Sui-Jade Ho & Jiaming Soh Bank Negara Malaysia September 21, 2017 We thank Rubin Sivabalan, Chuah Kue-Peng, and Mohd Nozlan Khadri for their comments and
More informationProgress Evaluation of the Transformation of China's Economic Growth Pattern 1 (Preliminary Draft Please do not quote)
Progress Evaluation of the Transformation of China's Economic Growth Pattern 1 (Preliminary Draft Please do not quote) Si Joong Kim 2 China has been attempting to transform its strategy of economic
More informationEconomics 689 Texas A&M University
Horizontal FDI Economics 689 Texas A&M University Horizontal FDI Foreign direct investments are investments in which a firm acquires a controlling interest in a foreign firm. called portfolio investments
More informationVolume 37, Issue 3. The effects of capital buffers on profitability: An empirical study. Benjamin M Tabak Universidade Católica de Brasília
Volume 37, Issue 3 The effects of capital buffers on profitability: An empirical study Benjamin M Tabak Universidade Católica de Brasília Dimas M Fazio London Business School Joao M. T. Amaral Universidade
More informationDiscussion of "The Value of Trading Relationships in Turbulent Times"
Discussion of "The Value of Trading Relationships in Turbulent Times" by Di Maggio, Kermani & Song Bank of England LSE, Third Economic Networks and Finance Conference 11 December 2015 Mandatory disclosure
More informationPublic Bank Guarantees and Allocative Efficiency
Public Bank Guarantees and Allocative Efficiency Reint Gropp, Andre Guettler, Vahid Saadi Halle Institute for Economic Research (IWH) and Uni. of Magdeburg University of Ulm IE Business School Golub Center
More informationTopic 2. Productivity, technological change, and policy: macro-level analysis
Topic 2. Productivity, technological change, and policy: macro-level analysis Lecture 3 Growth econometrics Read Mankiw, Romer and Weil (1992, QJE); Durlauf et al. (2004, section 3-7) ; or Temple, J. (1999,
More informationCapital Market Integration and Innovation: Firm-level Evidence from 43 Countries
Capital Market Integration and Innovation: Firm-level Evidence from 43 Countries Fangfang Hou and Xinpeng Xu ABSTRACT Using a novel firm-level panel data set covering 43 countries over two decades, we
More informationProcuring Firm Growth:
Procuring Firm Growth: The Effects of Government Purchases on Firm Dynamics Claudio Ferraz PUC-Rio Frederico Finan UC-Berkeley Dimitri Szerman CPI/PUC-Rio November 2014 Motivation Government purchases
More informationWeek 11: Real Estate Cycles and Time Series Analysis The dynamic behavior of the 4-Q model: stability versus oscillations. Real Estate Pricing
Week 11: Real Estate Cycles and Time Series Analysis The dynamic behavior of the 4-Q model: stability versus oscillations. Real Estate Pricing Behavior: backward or forward looking? Development Options
More informationCreditor countries and debtor countries: some asymmetries in the dynamics of external wealth accumulation
ECONOMIC BULLETIN 3/218 ANALYTICAL ARTICLES Creditor countries and debtor countries: some asymmetries in the dynamics of external wealth accumulation Ángel Estrada and Francesca Viani 6 September 218 Following
More informationINTERMEDIATE MACROECONOMICS
INTERMEDIATE MACROECONOMICS LECTURE 5 Douglas Hanley, University of Pittsburgh ENDOGENOUS GROWTH IN THIS LECTURE How does the Solow model perform across countries? Does it match the data we see historically?
More informationThe Short- and Medium-Run Effects of Computerized VAT Invoices on Tax Revenues in China (Very Preliminary)
The Short- and Medium-Run Effects of Computerized VAT Invoices on Tax Revenues in China (Very Preliminary) Haichao Fan (Fudan), Yu Liu (Fudan), Nancy Qian (Northwestern) and Jaya Wen (Yale) 2nd IMF-Atlanta
More informationThe Composition of Knowledge and Long-Run Growth
The Composition of Knowledge and Long-Run Growth Jie Cai Shanghai University of Finance and Economics Nan Li International Monetary Fund 4th Joint WTO-IMF-WB trade workshop, 2015 Jie Cai & Nan Li 1/25
More informationBenefits of Protecting Your IP - Patents as Business Tools
Benefits of Protecting Your IP - Patents as Business Tools David Paton Patent Attorney Venner Shipley LLP 31st January 2013 John Chettle Patent Attorney Benefits of Protecting Your IP 1. Recent trends
More informationInvestment and the weighted average cost of capital: new micro evidence for France
Investment and the weighted average cost of capital: new micro evidence for France J. Carluccio 1 C. Mazet-Sonilhac 1 J.S. Mésonnier 1 1 Banque de France Very Preliminary. Please do not circulate. This
More informationFirm R&D Strategies Impact of Corporate Governance
Firm R&D Strategies Impact of Corporate Governance Manohar Singh The Pennsylvania State University- Abington Reporting a positive relationship between institutional ownership on one hand and capital expenditures
More informationBanks Incentives and the Quality of Internal Risk Models
Banks Incentives and the Quality of Internal Risk Models Matthew Plosser Federal Reserve Bank of New York and João Santos Federal Reserve Bank of New York & Nova School of Business and Economics The views
More information14.02 Solutions Quiz III Spring 03
Multiple Choice Questions (28/100): Please circle the correct answer for each of the 7 multiple-choice questions. In each question, only one of the answers is correct. Each question counts 4 points. 1.
More informationUNIVERSITY OF CALIFORNIA Economics 134 DEPARTMENT OF ECONOMICS Spring 2018 Professor David Romer LECTURE 13 DOES FISCAL POLICY MATTER?
UNIVERSITY OF CALIFORNIA Economics 134 DEPARTMENT OF ECONOMICS Spring 2018 Professor David Romer LECTURE 13 DOES FISCAL POLICY MATTER? MARCH 5, 2018 I. THE EFFECTS OF FISCAL POLICY IN THE IS-MP-IA MODEL
More informationTax and Economic Growth
Tax and Economic Growth Christopher Heady Centre for Tax Policy and Administration OECD Conference at Victoria University of Wellington New Zealand Tax Reform Where To Next? Wellington, 12 th February
More informationThe Empirical Study on the Relationship between Chinese Residents saving rate and Economic Growth
2017 4th International Conference on Business, Economics and Management (BUSEM 2017) The Empirical Study on the Relationship between Chinese Residents saving rate and Economic Growth Zhaoyi Xu1, a, Delong
More informationEMPIRICAL ASSESSMENT OF THE PHILLIPS CURVE
EMPIRICAL ASSESSMENT OF THE PHILLIPS CURVE Emi Nakamura Jón Steinsson Columbia University January 2018 Nakamura-Steinsson (Columbia) Phillips Curve January 2018 1 / 55 BRIEF HISTORY OF THE PHILLIPS CURVE
More informationDo Financial Frictions Amplify Fiscal Policy?
Do Financial Frictions Amplify Fiscal Policy? Evidence from Business Investment Stimulus Eric Zwick and James Mahon* NTA Annual Conference on Taxation, November 13th, 2014 *The views expressed here are
More informationBanking Market Structure and Macroeconomic Stability: Are Low Income Countries Special?
Banking Market Structure and Macroeconomic Stability: Are Low Income Countries Special? Franziska Bremus (German Institute for Economic Research (DIW) Berlin) Claudia M. Buch (Halle Institute for Economic
More information