Journal of Finance Vol. 70 No. 1 2015

Urban Vibrancy and Corporate Growth

Casey Dougal; Christopher A. Parsons¹; Sheridan Titman²

¹ The Rady School of Management, The University of California · ² The University of Texas at Austin

Abstract

We find that a firm's investment is highly sensitive to the investments of other firms headquartered nearby, even those in very different industries. A firm's investment also responds to fluctuations in the cash flows and stock prices ( q ) of local firms outside its sector. These patterns do not appear to reflect exogenous area shocks such as local shocks to labor or real estate values, but rather suggest that local agglomeration economies are important determinants of firm investment and growth.

DOI

10.1111/jofi.12215

Volume

70

Issue

1

Pages

163-210

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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