Category

Seminar

Student Seminar #7: The Growth Potential of Startups over the Business Cycle

Date Time Presenter Location
Monday, May 06, 2019

(16 Ordibehesht 1398)

12:30 – 13:30 Ramtin Salamat Khatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“This paper shows that employment in cohorts of US firms is strongly influenced by aggregate conditions at the time of their entry. Employment fluctuations of startups are procyclical, they persist into later years, and cohort-level employment variations are largely driven by differences in firm size, rather than the number of firms. An estimated general equilibrium firm dynamics model reveals that aggregate conditions at birth, rather than post-entry choices, drive the majority of cohort-level employment variation by affecting the share of startups with high growth potential. In the aggregate, changes in startup conditions result in large, slow-moving fluctuations in employment.”

Required Reading(s) The Growth Potential of Startups over the Business Cycle

Student Seminar #6: The Impact of Uncertainty Shocks

Date Time Presenter Location
Monday, April 22, 2019

(02 Ordibehesht 1398)

12:30 – 13:30 Mohammad Sadeghi Khatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“Uncertainty appears to jump up after major shocks like the Cuban Missile crisis, the assassination of JFK, the OPEC I oil‐price shock, and the 9/11 terrorist attacks. This paper offers a structural framework to analyze the impact of these uncertainty shocks. I build a model with a time‐varying second moment, which is numerically solved and estimated using firm‐level data. The parameterized model is then used to simulate a macro uncertainty shock, which produces a rapid drop and rebound in aggregate output and employment. This occurs because higher uncertainty causes firms to temporarily pause their investment and hiring. Productivity growth also falls because this pause in activity freezes reallocation across units. In the medium term the increased volatility from the shock induces an overshoot in output, employment, and productivity. Thus, uncertainty shocks generate short sharp recessions and recoveries. This simulated impact of an uncertainty shock is compared to vector autoregression estimations on actual data, showing a good match in both magnitude and timing. The paper also jointly estimates labor and capital adjustment costs (both convex and nonconvex). Ignoring capital adjustment costs is shown to lead to substantial bias, while ignoring labor adjustment costs does not.”

Required Reading(s) The Impact of Uncertainty Shocks

Student Seminar #5: Tunneling (Fraud)

Date Time Presenter Location
Monday, April 08, 2019

(19 Farvardin 1398)

12:30 – 13:30 Esmaeil Aliabadi Khatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“Owners of business groups are often accused of expropriating minority shareholders by tunneling resources from firms where they have low cash flow rights to firms where they have high cash flow rights. In this paper we propose a general methodology to measure the extent of tunneling activities. The methodology rests on isolating and then testing the distinctive implications of the tunneling hypothesis for the propagation of earnings shocks across firms within a group. When we apply our methodology to data on Indian business groups, we find a significant amount of tunneling, much of it occurring via nonoperating components of profit.”

Required Reading(s) Ferreting Out Tunneling: An Application to Indian Business Groups

Student Seminar #4: Improving the Design of Conditional Transfer Programs

Date Time Presenter Location
Monday, February 25, 2019

(06 Esfand 1397)

12:30 – 13:30 Mohammad Majidi Khatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“Using a student level randomization, we compare three education-based conditional cash transfers designs: a standard design, a design where part of the monthly transfers are postponed until children have to re-enroll in school, and a design that lowers the reward for attendance but incentivizes graduation and tertiary enrollment. The two nonstandard designs significantly increase enrollment rates at both the secondary and tertiary levels while delivering the same attendance gains as the standard design. Postponing some of the attendance transfers to the time of re-enrollment appears particularly effective for the most at-risk children.”

Required Reading(s) Improving the Design of Conditional Transfer Programs: Evidence from a Randomized Education Experiment in Colombia

Student Seminar #3: Beauty Is a Beast, Frog Is a Prince: Assortative Matching with Nontransferabilities

Date Time Presenter Location
Monday, February 18, 2019

(29 Bahman 1397)

12:30 – 13:30 Amirreza Ahmadzadeh
Pedram Pooyafar
Khatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“We present sufficient conditions for monotone matching in environments where utility is not fully transferable between partners. These conditions involve complementarity in types not only of the total payoff to a match, as in the transferable utility case, but also in the degree of transferability between partners. We apply our conditions to study some models of risk sharing and incentive problems.”

Required Reading(s) Beauty Is a Beast, Frog Is a Prince: Assortative Matching with Nontransferabilities

Student Seminar #2: Do Director Elections Matter?

Date Time Presenter Location
Monday, February 04, 2019

(15 Bahman 1397)

12:30 – 13:30 Peyman Shahidi Khatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“Using a hand-collected sample of election nominations for more than 30,000 directors over the period 2001–2010, we construct a novel measure of director proximity to elections called Years-to-election. We find that the closer directors of a board are to their next elections, the higher CEO turnover-performance sensitivity is. A series of tests, including one that exploits variation in Years-to-election that comes from other boards, supports a causal interpretation. Further analyses show that other governance mechanisms do not drive the relation between board Years-to-election and CEO turnover-performance sensitivity. We conclude that director elections have important implications for corporate governance.”

Required Reading(s) Do Director Elections Matter?

Student Seminar #1: Does Shareholder Composition Matter?

Date Time Presenter Location
Monday, January 28, 2019

(08 Bahman 1397)

12:30 – 14:00 M. M. Shahrabi Khatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“We examine whether institutional ownership composition is related to parameters of the market reaction to negative earnings announcements. When firms report earnings below analysts’ expectations, the stock price response is more negative for firms with higher levels of ownership by momentum or aggressive growth investors. There is no evidence, however, that these institutions cause an “overreaction” to earnings news. Ownership structure is also related to trading volume and to stock price volatility on days around earnings announcements. Our findings are consistent with the idea that the composition of institutional shareholders effects stock price behavior around the release of corporate information.”

Required Reading(s) Does Shareholder Composition Matter? Evidence from the Market Reaction to Corporate Earnings Announcements