SWIMMING UPSTREAM: STRUGGLING FIRMS IN CORRUPT CITIES
By Sheridan Titman,
Professor, Department of Finance,
University of Texas at Austin
Abstract
We find that a corrupt local environment amplifies the effects of financial distress. Following regional spikes in financial misconduct, credit becomes both more difficult and expensive to obtain for nearby borrowers - even those not implicated themselves. This is particularly harmful for cash-constrained firms, which cut investment more sharply and lay off more workers during industry downturns. We also find that local waves of financial misconduct are a risk factor for bankruptcy.
About the Speaker
Sheridan Titman is a professor in the Department of Finance who holds the Walter W. McAllister Centennial Chair in Financial Services. He is also the director of the Energy Management and Innovation Center at UT. Dr. Titman took his Ph.D. at Carnegie Mellon University. His research interests include both investments and corporate finance.
Seminar Details
| Date |
Monday, 6 June 2016 |
| Time |
10:15am - 11:45am |
| Venue |
Singapore Management University
Lee Kong Chian School of Business, Level 5
Meeting Room 5.4
|
| Address |
Lee Kong Chian School of Business
50 Stamford Road
Singapore 178899
(Click here for map) (Building #2)
|
| Register |
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Sim Kee Boon Institute for Financial Economics( http://skbi.smu.edu.sg/ )
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