Professor Gordon Phillips from University of Maryland is giving a VGSF research seminar on
"Real and Financial Industry Booms and Busts" on October 5 (Friday,
15:30-17:00), at Institute for Advanced Studies(SZ VI),Stumpergasse 56, 1060 Vienna. You
can download the paper to be presented at the VGSF webpage (Activities & Events-->
Research Seminars). The abstract of the paper is attached below.
Professor Phillips is going to visit BWZ in the afternoon of Oct 10. If you would like to
meet him at BWZ on Oct 10, please let me know as soon as possible.
Kind regards,
Youchang Wu
We examine how industry valuation and product market competition affect firm cash flows
and stock returns. In competitive industries we find that operating
cash flows and stock returns decrease with industry-level stock-market valuation,
investment and new financing. We find weak and generally insignificant
results in concentrated industries. In competitive industries, firms in the most highly
valued industry quintile have abnormal stock returns that are
four percentage points lower than those in the least valuable industry quintile. Overall
our results are consistent with a small probability of a new era of very high subsequent
growth, or high competition among firms that affects both industry cash flows and stock
prices in competitive industries.