Sheridan Titman from University of Texas at Austin is giving a VGSF research seminar on
"Financial Structure, Liquidity, and Firm Locations" on December 12, Wednesday,
from 11:00 to 12:30, at HS 12, BWZ, Bruennerstrasse 72, A-1210 Vienna. The paper to be
presented can be downloaded at the VGSF webpage (Activities & Events--> Research
Seminars). The abstract of the paper is attached below.
Please note the special time and location of this seminar!!!
Professor Titman is visiting BWZ on December 10-12. If you would like to talk to him at
BWZ, please let me know as soon as possible.
Best,
Youchang
This paper investigates the relation between a firm’s location and its corporate finance
decisions. We develop a simple model where being located within an industry cluster
increases opportunities to make acquisitions, and to facilitate those acquisitions, firms
within clusters maintain more financial slack. Consistent with our model we find that
firms that are located within industry clusters tend to make more acquisitions, and have
lower debt ratios and larger cash balances than their industry peers located outside
clusters. In addition, we document that firms in growing cities and technology centers
also maintain more financial slack. Overall, these findings, which reveal systematic
patterns between geography and corporate finance choices, suggest the importance of
growth opportunities in firms’ financial decisions.