We examine natural disasters and long-run climatic factors as potential determinants of international migration, implementing a panel dataset of bilateral migration flows from 1960 to 2000. We find ...no direct effect of long-run climatic factors on international migration across our entire sample. These results are robust when conditioning on origin-country characteristics, when considering migrants returning home, and when accounting for the potential endogeneity of migrant networks. Rather, we find evidence of indirect effects of environmental factors operating through wages. We find that epidemics and miscellaneous incidents spur international migration, and there is strong evidence that natural disasters beget greater flows of migrants to urban environs.
The Geography of Financial Misconduct PARSONS, CHRISTOPHER A.; SULAEMAN, JOHAN; TITMAN, SHERIDAN
The Journal of finance (New York),
10/2018, Letnik:
73, Številka:
5
Journal Article
Recenzirano
Financial misconduct (FM) rates differ widely between major U.S. cities, up to a factor of 3. Although spatial differences in enforcement and firm characteristics do not account for these patterns, ...city-level norms appear to be very important. For example, FM rates are strongly related to other unethical behavior, involving politicians, doctors, and (potentially unfaithful) spouses, in the city.
Using individual patient records for every hospital in California from 1983 to 2011, we find a strong inverse link between daily stock returns and hospital admissions, particularly for psychological ...conditions such as anxiety, panic disorder, and major depression. The effect is nearly instantaneous (within the same day) for psychological conditions, suggesting that anticipation over future consumption directly influences instantaneous utility.
Geographic Lead-Lag Effects Parsons, Christopher A.; Sabbatucci, Riccardo; Titman, Sheridan
The Review of financial studies,
10/2020, Letnik:
33, Številka:
10
Journal Article
Recenzirano
We document lead-lag effects on returns between coheadquartered firms in different sectors. Geographic lead-lags yield risk-adjusted returns of 5 %–6 % annually, half that observed for industry ...lead-lag effects. Whereas industry lead-lag effects are strongest among small, thinly traded stocks with low analyst coverage, geographic lead-lags are unrelated to these proxies for investor scrutiny. We propose an explanation linked to the structure of the investment analyst business, which is organized by sector, not by geographic region. Our findings suggest that in lead-lag relationships, analysts common to both leading and lagging firms are important, regardless of the number of analysts covering each individually.
Urban Vibrancy and Corporate Growth DOUGAL, CASEY; PARSONS, CHRISTOPHER A.; TITMAN, SHERIDAN
The Journal of finance (New York),
February 2015, Letnik:
70, Številka:
1
Journal Article
Recenzirano
We find that a firm's investment is highly sensitive to the investments of other firms headquartered nearby, even those in very different industries. A firm's investment also responds to fluctuations ...in the cash flows and stock prices (q) of local firms outside its sector. These patterns do not appear to reflect exogenous area shocks such as local shocks to labor or real estate values, but rather suggest that local agglomeration economies are important determinants of firm investment and growth.
Combining unique, annual, bilateral data on labor flows of highly skilled immigrants for 10 OECD destinations between 2000 and 2012, with new databases comprising both unilateral and bilateral policy ...instruments, we present the first judicious cross-country assessment of policies aimed to attract and select high-skilled workers. Points-based systems are much more effective in attracting and selecting high-skilled migrants than requiring a job offer, labor market tests, and shortage lists. Offers of permanent residency, while attracting the highly skilled, overall reduce the human capital content of labor flows because they prove more attractive to non-high-skilled workers. Bilateral recognition of diploma and social security agreements foster greater flows of high-skilled workers and improve the skill selectivity of immigrant flows. Conversely, double taxation agreements deter high-skilled migrants, although they do not alter overall skill selectivity. Our results are robust to a variety of empirical specifications that account for destination-specific amenities, multilateral resistance to migration, and the endogeneity of immigration policies.
The Price of a CEO's Rolodex Engelberg, Joseph; Gao, Pengjie; Parsons, Christopher A.
The Review of financial studies,
01/2013, Letnik:
26, Številka:
1
Journal Article
Recenzirano
CEOs with large networks earn more than those with small networks. An additional connection to an executive or director outside the firm increases compensation by about $17,000 on average, more so ...for "important" members, such as CEOs of big firms. Pay-for-connectivity is unrelated to several measures of corporate governance, evidence in favor of an efficient contracting explanation for CEO pay.
Disentangling the causal impact of media reporting from the impact of the events being reported is challenging. We solve this problem by comparing the behaviors of investors with access to different ...media coverage of the same information event. We use zip codes to identify 19 mutually exclusive trading regions corresponding with large U.S. cities. For all earnings announcements of S&P 500 Index firms, we find that local media coverage strongly predicts local trading, after controlling for earnings, investor, and newspaper characteristics. Moreover, local trading is strongly related to the timing of local reporting, a particular challenge to nonmedia explanations.
We exploit a unique event in human history, the exodus of the Vietnamese Boat People to the US, to provide evidence for the causal pro-trade effect of migrants. This episode represents an ideal ...natural experiment as the large immigration shock, the first wave of which comprised refugees exogenously allocated across the US, occurred over a 20-year period during which time the US imposed a complete trade embargo on Vietnam. Following the lifting of trade restrictions in 1994, US exports to Vietnam grew most in US states with larger Vietnamese populations, themselves the result of larger refugee inflows 20 years earlier.
This study explores the distress risk anomaly—the tendency for stocks with high credit risk to perform poorly—among 38 countries over two decades. We find a strongly negative relationship between ...default probabilities and equity returns concentrated among low-capitalization stocks in developed countries in North America and Europe. Although risk-based explanations provide a poor account of these patterns, several pieces of evidence point to a behavioral interpretation, suggesting that stocks of firms in financial distress are temporarily overpriced.
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