Abstract

  
 

References (48)



 
 

Citations (1)



 


 



Urban Vibrancy and Corporate Growth


Casey Dougal


University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Christopher A. Parsons


University of California, San Diego (UCSD)

Sheridan Titman


University of Texas at Austin - Department of Finance; National Bureau of Economic Research (NBER)
February 29, 2012


Abstract:     
We provide evidence that positive local spillovers strongly influence corporate investment decisions. A firm's investment is highly sensitive to the investments of other firms headquartered nearby, even those in very different industries. Moreover, a firm's investment is also related to the q and cash flows of nearby firms outside its industry, even when controlling for its own q and cash flows. Similar correlations are observed for capital raising, both debt and equity. These time-varying regional effects are large, averaging over half the size of the typical time-varying industry effect, and indicate that local agglomeration economies are important determinants of firm investment and growth.

Number of Pages in PDF File: 66

Keywords: agglomeration economies, spillovers, investment, equity issuance, human capital

JEL Classification: G30, R30

working papers series


Download This Paper

Date posted: March 18, 2012  

Suggested Citation

Dougal, Casey, Parsons, Christopher A. and Titman, Sheridan , Urban Vibrancy and Corporate Growth (February 29, 2012). Available at SSRN: http://ssrn.com/abstract=2023993 or http://dx.doi.org/10.2139/ssrn.2023993

Contact Information

Casey Dougal
University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )
McColl Building
Chapel Hill, NC 27599-3490
United States
Christopher A. Parsons (Contact Author)
University of California, San Diego (UCSD) ( email )
9500 Gilman Drive
Mail Code 0502
La Jolla, CA 92093-0112
United States
Sheridan Titman
University of Texas at Austin - Department of Finance ( email )
Red McCombs School of Business
Austin, TX 78712
United States
512-232-2787 (Phone)
512-471-5073 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 536
Downloads: 91
Download Rank: 143,837
References:  48
Citations:  1

© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was processed by apollo7 in 0.406 seconds