Joint Econometrics-Finance Lunch Seminar: Einar Cathrinus Kjenstad, AU

Title: The Effect of Real Estate Prices on Peer Firms

2020.08.27 | Pernille Vorsø Jachobsen

Date Tue 10 Nov
Time 12:05 12:35
Location Online

Presenter: Einar Cathrinus Kjenstad, AU

Title: The Effect of Real Estate Prices on Peer Firms

Abstract: "We investigate the peer effects from corporate real estate. Shocks to real estate prices shift firms' debt capacity, which has a significant impact not only on firm investment but also on the investment of peer firms. The peer effect from corporate real estate is stronger when firms or their peers have more investment opportunities; financially constrained firms invest more out of their own price shocks, while the peer effect is stronger for unconstrained firms; and we find significant peer effects within - but not between - groups of small and large firms, respectively. Overall, we document a new channel through which real estate is an economically significant determinant of corporate finance."

 

The 'Accounting and Finance' and 'Econometrics and Business Statistics' Sections arrange lunch seminars on a regular basis. The speakers are usually section members, mostly PhD students and postdocs. The speakers can also be visiting PhD students or professors. Each lunch seminar is followed by a discussion of the paper presented.

Organizer: Daniel Borup

Joint Econometrics-Finance Lunch Seminars