Browsing by Subject "J15"

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  • Fang, Yiwei; Francis, Bill; Hasan, Iftekhar (2018)
    Journal of Corporate Finance February ; 2018
    Prior research has demonstrated that CEOs learn privileged information from their social connections. Going beyond the importance of the number of social ties in a CEO's social network, this paper studies the value generated from a diverse social environment. We construct an index of social-network heterogeneity (SNH) that captures the extent to which CEOs are connected to people of different demographic attributes and skill sets. We find that higher CEO SNH leads to greater firm value through the channels of better corporate innovation and diversified M&As. Overall, the evidence suggests that CEOs' exposure to human diversity enhances social learning and creates greater growth opportunities for firms.
  • Pekkala Kerr, Sari; Kerr, William R. (2017)
    Bank of Finland Research Discussion Papers 3/2017
    We study the prevalence and traits of global collaborative patents for U.S. public companies, where the inventor team is located both within and outside of the United States. Collaborative patents are frequently observed when a corporation is entering into a new foreign region for innovative work, especially in settings where intellectual property protection is weak. We also connect collaborative patents to the ethnic composition of the firm s U.S. inventors and cross-border mobility of inventors within the firm. The inventor team composition has important consequences for how the new knowledge is exploited within and outside of the firm.
  • Pekkala Kerr, Sari; Kerr, William; Özden, Çağlar; Parsons, Christopher (2017)
    Bank of Finland Research Discussion Papers 2/2017
    Forthcoming in Journal of Economic Perspectives
    The global distribution of talent is highly skewed and the resources available to countries to develop and utilize their best and brightest vary substantially. The migration of skilled workers across countries tilts the deck even further. Using newly available data, we first review the landscape of global talent mobility, which is both asymmetric and rising in importance. We next consider the determinants of global talent flows at the individual and firm levels and sketch some important implications. Third, we review the national gatekeepers for skilled migration and broad differences in approaches used to select migrants for admission. Looking forward, the capacity of people, firms, and countries to successfully navigate this tangled web of global talent will be critical to their success.
  • Pekkala Kerr, Sari; Kerr, William; Özden, Çağlar; Parsons, Christopher (2017)
    Bank of Finland Research Discussion Papers 7/2017
    This paper reviews recent research regarding high-skilled migration. We adopt a data-driven perspective, bringing together and describing several ongoing research streams that range from the construction of global migration databases, to the legal codification of national policies regarding high-skilled migration, to the analysis of patent data regarding cross-border inventor movements. A common theme throughout this research is the importance of agglomeration economies for explaining high-skilled migration. We highlight some key recent findings and outline major gaps that we hope will be tackled in the near future.
  • Pekkala Kerr, Sari; Kerr, William R. (2016)
    Bank of Finland Research Discussion Papers 33/2016
    We examine immigrant entrepreneurship and the survival and growth of immigrant-founded businesses over time relative to native-founded companies. Our work quantities immigrant contributions to new firm creation in a wide variety of fields and using multiple definitions. While significant research effort has gone into understanding the economic impact of immigration into the United States, comprehensive data for quantifying immigrant entrepreneurship are difficult to assemble. We combine several restricted-access U.S. Census Bureau data sets to create a unique longitudinal data platform that covers 1992-2008 and many states. We describe differences in the types of businesses initially formed by immigrants and their medium-term growth patterns. We also consider the relationship of these outcomes to the immigrants’ age at arrival to the United States.
  • Pekkala Kerr, Sari; Kerr, William (2020)
    Research Policy 3 ; April
    We study immigrant entrepreneurship in 2007 and 2012 using the Survey of Business Owners. First-generation immigrants create about 25% of new firms in America, but this share exceeds 40% in some states. Conditional on basic regression controls, immigrant-owned firms tend to create fewer jobs than native-owned firms, have comparable pay levels, offer fewer benefits, and engage more in international activities. Prominent tech clusters display quite pronounced shares of immigrant entrepreneurs. Our results suggest that most of the impact of immigrant high-tech entrepreneurship for tech centers happens through the quantity dimension: Silicon Valley and similar tech hubs attract many immigrant founders.
  • Alvarez, Luis H. R.; Koskela, Erkki (2003)
    Suomen Pankin keskustelualoitteita 29/2003
    Published in Journal of Business, 79, 2, March 2006: 623-644
    The current literature on irreversible investment decisions usually makes the assumption of a constant interest rate.We study the impact of interest rate and revenue variability on the decision to carry out an irreversible investment project.Given the generality of the valuation problem considered, we first provide a thorough mathematical characterization of the two-dimensional optimal stopping problem and develop some new results.We establish that interest rate variability has a profound decelerating or accelerating impact on investment demand depending on whether the current interest rate is below or above the long run steady state interest rate, and that its quantitative size may be very large. Allowing for interest rate uncertainty is shown to decelerate rational investment demand by raising both the required exercise premium of the irreversible investment opportunity and the value of waiting.Finally, we demonstrate that increased revenue volatility strengthens the negative impact of interest rate uncertainty and vice versa. Key words: irreversible investment, variable interest rates, free boundary problems JEL classification numbers: Q23, G31, C61 AMS classification numbers: 91B76, 49K15, 49J15
  • Mäkelä, Erik; Viren, Matti (2018)
    Review of Economics 1
    In this paper we examine how Finnish municipalities’ expenditures depend on the demographic structure of the population. More precisely, we scrutinize the role of foreign citizens: how does the share of citizens with foreign background out of the total population manifest itself in total expenditures and some key expenditure categories. The study makes use of Finnish panel data from 249 municipalities for the period 2000–2014. Empirical analyses show that foreign population tends to increase per capita expenditures up to the point where the respective semi-elasticity is about one. The result seems robust in terms of different control variables, subsamples of the data and different estimation techniques. Also, it is found that the unemployment rate of foreign citizens tends to increase municipalities’ expenditures. Thus, opposite to standard assumptions, per capita public consumption expenditures do depend on migration and that should be taken into account when making assessments on overall fiscal effects of migration. From political economy point of view, these results seem to be at variance with the “non-willingness to pay other ethnic groups’ expenditures” hypothesis that has been put forward by e. g. Alberto Alesina and Assaf Razin.