Research seminars

Subnational Debt of China: The Politics-Finance Nexus

Finance

Speaker: Dragon Tang
School of Economics and Finance, HKU

8 March 2018 - T004 - From 2:00 pm to 3:15 pm

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Using comprehensive proprietary loan-level data, we analyze debt borrowing and default of local governments in China. Contrary to conventional wisdom, policy bank loans to local governments have significantly lower default rates than commercial bank loans with similar characteristics.
Due to the importance of policy bank loans for the advancement of local politicians’ careers, distressed local governments often strategically choose to default on loans from commercial banks. This selection became more pronounced after the abrupt ending of the “4-trillion” stimulus, when China started tightening local government borrowing. Our findings shed light on a potential approach to hardening budget constraints for local governments.

Finance

Speaker: Fred Malherbe
London Business School

7 December 2017 - T015 - From 2:00 pm to 3:15 pm


Financial Innovation and Asset Prices

Finance

Speaker: Raman Uppal
EDHEC Business School

30 November 2017 - T025 - From 2:00 pm to 3:15 pm

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Finance

Speaker: Andrea Vedolin
LSE

23 November 2017 - T004 - From 2:00 pm to 3:15 pm


Team Stability and Performance: Evidence from Private Equity

Finance

Speaker: Francesca Cornelli
London Business School

16 November 2017 - T004 - From 2:00 pm to 3:15 pm

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We examine the relation between team turnover and firm performance
studying the private equity industry. Using a unique data set that tracks over
time teams in 138 PE managers and their performance, we uncover a positive
relation between turnover and fund performance. We propose and confirm in
the data two channels that explain our findings: i) in the short-run, performance
improves when bad performers are fired, ii) in the long-run, turnover
helps teams to adapt and replenish their skills in response to shifting external
demand. Our findings suggest that frictions coming from informational
asymmetries may deter optimal turnover. These findings are surprising given
the common belief among PE investors that team stability is key to long-term
success.


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