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ICEF/LFE Research Seminar in Finance

Venue: Shabolovka st., 26, room 3211


On Thursday, March 27 at 4.40 pm International College of Economics and Finance and International Labouratory of Financial Economics will hold the research seminar in Finance.
Speaker: Caterina Moschieri (IE Business School)
Theme: «Policy risk, strategic decisions and contagion effects: FIRM-specific considerations»
Venue: Shabolovka st., 26, room 3211

Abstract: We explore whether, where and how firm-specific facets of policy risk lead firms to dispose of and divest their units. Specifically, we argue that when firms experience a serious dispute with a government, their assessment of their exposure to policy risk changes, making them more likely to divest in that country and, surprisingly, even beyond the boundaries of the host country, in the country’s region. We find support for this argument using an originally compiled database that matches all the disputes presented before the World Bank with the worldwide divesting activity in the last 18 years. Furthermore, we find no evidence that firm-specific risk spreads to other firms operating in the same country suggesting firm-specific is indeed specific to particular firms. These results extend the boundaries of current knowledge with respect to the determinants of strategic decisions, by showing that policy risk is an important driver of firm’s strategic decisions, such as divestiture, and by identifying the mechanisms that spread these strategic decisions. By highlighting the potential disjuncture between macro environmental characteristics and how they apply to, or are experienced by, individual firms, we offer a nuanced understanding of environmental features and firms’ strategies. 

Everyone interested is welcome to attend!

Pass can be ordered by:
tel. (495)772-95-90*26090
e-mail: vzheleznov@hse.ru
contact: Zheleznov Slava


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