Johnson Graduate School of Management
321 Sage Hall
114 East Avenue
Ithaca, NY 14853
Tel: (607) 255-8335
Institutional Affiliation: Cornell University
NBER Working Papers and Publications
|February 2018||Strong Employers and Weak Employees: How Does Employer Concentration Affect Wages?|
with Efraim Benmelech, Nittai Bergman: w24307
We analyze the effect of local-level labor market concentration on wages. Using Census data over the period 1977–2009, we find that: (1) local-level employer concentration exhibits substantial cross-sectional and time-series variation and increases over time; (2) consistent with labor market monopsony power, there is a negative relation between local-level employer concentration and wages that is more pronounced at high levels of concentration and increases over time; (3) the negative relation between labor market concentration and wages is stronger when unionization rates are low; (4) the link between productivity growth and wage growth is stronger when labor markets are less concentrated; and (5) exposure to greater import competition from China (the “China Shock”) is associated with mor...
|October 2011||The Real Effects of Hedge Fund Activism: Productivity, Asset Allocation, and Labor Outcomes|
with Alon Brav, Wei Jiang: w17517
This paper studies the long-term effect of hedge fund activism on the productivity of target firms using plant-level information from the U.S. Census Bureau. A typical target firm improves its production efficiency in the three years after an activist intervention, and the improvements are most pronounced in those interventions specifically targeting the firm’s business strategy. We also find that plants sold post-intervention exhibit a significant improvement in productivity under new ownership, consistent with the view that efficient capital redeployment is an important channel via which activists create value. We further find that employees of target firms experience a reduction in work hours and stagnation in wages despite an increase in labor productivity. Additional tests refute alte...
Published: Alon Brav & Wei Jiang & Hyunseob Kim, 2015. "The Real Effects of Hedge Fund Activism: Productivity, Asset Allocation, and Labor Outcomes," Review of Financial Studies, vol 28(10), pages 2723-2769.
|July 2009||The Effects of the Length of the Tax-Loss Carryback Period on Tax Receipts and Corporate Marginal Tax Rates|
with John R. Graham: w15177
We investigate how the length of the net operating loss carryback period affects corporate liquidity and marginal tax rates. We estimate that extending the carryback period from two to five years, as recently proposed in President Obama's budget blueprint, would provide $19 ($34) billion of additional liquidity to the corporate sector for 2008 (2009). Our calculations imply that the benefits of the extended carryback period would be concentrated in the homebuilding, automobile, and financial industries. Extending the carryback period would increase the marginal tax rate of loss firms by more than 200 basis points on average, which all else equal would lead corporations to use an additional $8 ($10) billion of debt and reduce tax payments by another $1.2 ($1.5) billion in 2008 (2009). Overa...
Published: Graham, John R., and Hyunseob Kim, 2009, The Effects of the Length of the Tax-Loss Carryback Period on Tax Receipts and Corporate Marginal Tax Rates National Tax Journal 62, 413-427.