Abstract

http://ssrn.com/abstract=2064141
 
 

References (23)



 
 

Citations (2)



 


 



Geography of Firms and Propagation of Local Economic Shocks


Gennaro Bernile


Singapore Management University - Lee Kong Chian School of Business

Stefanos Delikouras


University of Miami

George M. Korniotis


University of Miami

Alok Kumar


University of Miami - School of Business Administration

November 14, 2015


Abstract:     
We use information from annual 10-K filings to identify economic connections among U.S. states. We find that there is excess comovement in the returns and liquidity of firms headquartered in economically connected states. These connections facilitate the propagation of economic shocks across the U.S. states. Specifically, the economic conditions in a state predict the economic growth in connected states. State-to-state effects aggregate and create externalities that amplify the impact of local economic shocks on the U.S. economy. Collectively, these findings suggest that the geographical network of publicly-traded firms' economic activities affects the intensity and duration of state-level business cycles.

Number of Pages in PDF File: 64

Keywords: Economic networks, 10-K reports, U.S. states, Gross state product (GSP) predictability

JEL Classification: C23, E32, E37, G10


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Date posted: May 22, 2012 ; Last revised: November 14, 2015

Suggested Citation

Bernile, Gennaro and Delikouras, Stefanos and Korniotis, George M. and Kumar, Alok, Geography of Firms and Propagation of Local Economic Shocks (November 14, 2015). Available at SSRN: http://ssrn.com/abstract=2064141 or http://dx.doi.org/10.2139/ssrn.2064141

Contact Information

Gennaro Bernile
Singapore Management University - Lee Kong Chian School of Business ( email )
50 Stamford Road
Level 4
Singapore, 178899
Singapore
+65-68085478 (Phone)

Stefanos Delikouras
University of Miami ( email )
Coral Gables, FL 33124
United States
George M. Korniotis
University of Miami ( email )
P.O. Box 248094
Coral Gables, FL 33124-6552
United States
305-284-5728 (Phone)
Alok Kumar (Contact Author)
University of Miami - School of Business Administration ( email )
514 Jenkins Building
Department of Finance
Coral Gables, FL 33124-6552
United States
305-284-1882 (Phone)
HOME PAGE: http://moya.bus.miami.edu/~akumar
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