Faculty of Business and Economics
The University of Hong Kong
NBER Working Papers and Publications
|March 2018||Toxic Emissions and Executive Migration|
with Ross Levine, Chen Lin: w24389
We study the impact of toxic emissions on the migration of corporate executives. We link data on the opening of industrial plants emitting toxic air pollutants with information on the career paths of executives at all S&P 1500 firms over the 1996-2014 period. We find that (1) the opening of toxic emitting plants increases the rate at which executives leave geographically close firms and move to firms in less polluted areas, (2) stock returns fall when these “treated” executives announce their departures, and (3) the replacement executives have less experience than the departing executives.
|Bank Liquidity, Credit Supply, and the Environment|
with Ross Levine, Chen Lin, Wensi Xie: w24375
We evaluate the impact of the credit conditions facing corporations on their emissions of toxic air pollutants. Exploiting cross-county, cross-time shale discoveries that generated liquidity windfalls at local bank branches, we construct measures of (1) the degree to which banks in non-shale counties, i.e., counties where shale was not discovered, receive liquidity shocks through their branches in shale counties and (2) the degree to which a corporation in a non-shale county has a relationship lender that receives liquidity shocks through its branches. From both the county- and firm-level analyses, we discover that positive shocks to credit conditions reduce corporate pollution.
|June 2017||Acquiring Banking Networks|
with Ross Levine, Chen Lin: w23469
Does the pre-deal geographic overlap of the subsidiaries and branches of two banks affect the probability that they merge and post-merger value creation and synergies? We compile comprehensive information on U.S. bank acquisitions from 1986 through 2014, construct several measures of network overlap, and design and implement a new identification strategy. We find that greater pre-deal network overlap (1) increases the likelihood that two banks merge, (2) boosts the cumulative abnormal returns of the acquirer, target, and combined banks, and (3) is associated with larger labor cost reductions, managerial turnover, loan quality improvements, and revenue enhancements at target banks.