Working Papers

“Cash Flow Diversification of Offshoring Firms” (solo-authored job market paper)

Abstract: Using the 10-K textual data of firms’ offshore sales network, I examine the implications of cash flow diversification on firms’ leverage, debt capacity and cash flow volatility. Consistent with a debt coinsurance effect, I find that the benefits of international diversification are higher for firms operating in countries where shocks co-vary less with the domestic ones. My empirical analysis further confirms that purchasing input from the same nation where a firm sells its output to is counter-cyclical and serves as an operational hedge which in turn strengthens the effects of cash flow diversification. The results are robust to controlling for potential selection effects and alternate interpretations.

“The Impact of Religiosity on Contractual Choices: Evidence from CEO Employment Agreements” (with Wei Li and Yiming Qian)

Abstract: We examine the impact of firm’s culture, specifically it’s religiosity on the use of explicit employment agreements (EA). Using a sample of 10,378 U.S firm-year observations, we find that local religiosity is negatively (positively) related to the choice of explicit (implicit) employment agreements. In a religious environment, the concerns of opportunistic behavior are mitigated and the Chief Executive Officers (CEOs) have no incentive to enter into a formally written explicit agreement. We further investigate how the contradicting behaviors and beliefs of Protestant and Catholic religious groups affect the choice between explicit and implicit contracting.

Work in Progress

“Incoming headquarters boost local entrepreneurial ecosystem: Evidence from Private Equity backed firms” (with Shagun Pant)

· Draft coming soon

“Pay Disparity in top executive team hurts firm innovation” (solo-authored)

· Preliminary results; additional analyses in progress; first draft written