Investment differences between public and private firms: Evidence from U.S. tax returns

Feldman, Naomi E.; Kawano, Laura; Patel, Elena; Rao, Nirupama; Stevens, Michael P.; Edgerton, Jesse

doi:10.1016/j.jpubeco.2021.104370

Cited by 11 publications

(4 citation statements)

References 29 publications

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“…In addition to rigorous statistical methods—two-way fixed effects, matching, and synthetic difference-in-differences models, we build on previous studies by focusing on publicly traded companies and differentiating by the level of reporting. Publicly traded companies are important as they tend to invest more in R&D than similar private firms, potentially due to lower costs of capital [ 26 ]; they may also respond to demand shocks more quickly [ 27 ]. Therefore, given the short duration of the first phase of KETS, we expect publicly traded companies to exhibit the most changes if the program design is effective.…”

Section: Introductionmentioning

confidence: 99%

Impact of Korea’s emissions trading scheme on publicly traded firms

O.,

Miteva,

Lee

2023

PLoS ONE

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Reducing fossil fuel energy consumption and greenhouse gas (GHG) emissions is vital to protecting life on the planet. Globally, emissions trading schemes are gaining traction as one way to curb emissions. However, the evidence of their effectiveness remains scarce. To address this gap, we examine the impact of Korea’s Emissions Trading Scheme (KETS), the first nationally mandated cap-and-trade program in East Asia to reduce GHG emissions, relative to its pre-existing command-and-control regulation called the Target Management System for Greenhouse Gases and Energy (TMS). Using panel data for publicly traded firms between 2011 and 2017, we apply a combination of panel data estimators and matching methods. We find that KETS did not significantly reduce emissions by firms but may have improved the aggregate efficiency in energy use in the energy and manufacturing sectors. Given the low levels of noncompliance with the first phase of the policy, it is likely that firms purchased permits and offsets or used previously banked permits to meet policy targets. Our work is one of the first efforts to understand the impact of KETS and the mechanisms underpinning its impact.

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Section: Introductionmentioning

confidence: 99%

Impact of Korea’s emissions trading scheme on publicly traded firms

O.,

Miteva,

Lee

2023

PLoS ONE

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“…Schlingemann and Stultz (2020) also show that the industrial composition of publicly traded firms has declined, a finding corroborated by Flynn and Ghent (2022) using an alternative data source. Finally, Flynn and Ghent (2022) and Feldman et al (2021) show that, even within industry, private firms have different growth dynamics than public ones such that an investor that only has access to publicly traded equities is less able to invest in the market portfolio even with appropriate reweighting of stocks towards their composition in the US economy.…”

Section: Better Portfolio Diversification Amid the Changing Compositi...mentioning

confidence: 99%

Should Defined Contribution Plans Include Private Equity Investments?

et al. 2020

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“…The present analysis aims to contribute to the literature on the macroeconomic effects of the DFQF market access initiative (in favour of LDCs), by examining the effect of this initiative on LDCs' domestic investment (which includes public and private investment). The relevance of this topic lies on the critical role of domestic investment for promoting exports, including under the DFQF schemes (e.g., Calì and te Velde, 2011;Tadesse et al, 2021;Vijil and Wagner, 2012), and enhancing economic growth and development (e.g., Adams, 2009;Dinlersoz and Fu, 2022;Feldman et al, 2021;Xiao et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Effect of the Duty-Free and Quota-Free Market Access Initiative in favour of Least developed countries on Domestic Investment in Least developed countries

Gnangnon

2022

Preprint

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Trade Ministers of the World Trade Organization adopted in 2005 an important Decision ("DFQF Decision") that aimed to provide duty-free-quota-free market access for products originating from least developed countries (LDCs). The present analysis has investigated the effect of the DFQF Decision on domestic investment in LDCs. The study has been performed in the difference-in-difference analytical framework, and using the two-step system generalized method of moments estimator. The panel dataset covers the period from 1996 to 2019, and contains 40 LDCs (which is the treatment group) and 15 low-income countries (designated as such by the International Monetary Fund) in the control group (which is the main control group). For a robustness check analysis, we use an alternative control group, which contains countries that had not been in the LDC category, but would not have met the criteria for graduating from this category if they were included in the category. Results suggest a negative effect of the DFQF Decision on domestic investment in LDCs. The intensity of adverse environmental and exogenous shocks that affect LDC economies is an important factor that prevented LDCs from expanding domestic investment further to the DFQF market access initiative. At the same time, the DFQF Decision led to the expansion of domestic investment in LDCs that enjoyed higher development aid flows, with the magnitude of this positive effect increasing as the amounts of development aid rose. These outcomes, therefore, underline the importance of not only helping LDCs cope with the adverse effects of environmental and external shocks on their economies, but also enhancing incentives for both LDC governments and private firms to expand domestic investment, which is key for exports, economic growth and development.

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Investment differences between public and private firms: Evidence from U.S. tax returns

Cited by 11 publications

References 29 publications

Impact of Korea’s emissions trading scheme on publicly traded firms

Impact of Korea’s emissions trading scheme on publicly traded firms

Should Defined Contribution Plans Include Private Equity Investments?

Effect of the Duty-Free and Quota-Free Market Access Initiative in favour of Least developed countries on Domestic Investment in Least developed countries

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