KHAS Finance Webinars – Conrado Diego García-Gómez
The guest of the Finance Webinars series organized by Kadir Has University International Trade and Finance Department is Conrado Diego García-Gómez from the University of Valladolid on Tuesday, November 22 at 5:00 PM (GMT+3).
You may follow García-Gómez’s speech titled “How does uncertainty affect corporate investment inefficiency? Evidence from Europe” on Zoom.
Zoom Meeting ID: 838 6693 5154
Abstract: We conduct a cross-country, firm-based analysis of the impact of uncertainty (World Uncertainty Index–WUI) on corporate investment inefficiency. The analysis, conducted in the period 2012–2020 across 30 European region countries, demonstrates a negative impact of uncertainty on the absolute value of investment inefficiency. Specifically, there is a negative effect of uncertainty on investment inefficiency in cases of overinvestment, and a positive effect of uncertainty on investment inefficiency in cases of underinvestment. Thus, in both abnormal investment scenarios, uncertainty alleviates the investment inefficiency – namely, uncertainty may optimize investment decisions. The findings are robust to country, industry, and time fixed-effects; GMM; and different legal systems. Moreover, the findings shed important light on the exogenous uncertainty effect on asymmetric information and agency, generating investment decisions.
About the Speaker: Conrado Diego García-Gómez serves as an Associate Professor of Finance at University of Valladolid (Spain) and is currently a visiting researcher at University of Porto (Portugal). He has been a visiting professor at University of Coimbra (Portugal), Catholic University of Louvain (Belgium) and University of Pau et des Pays de l’Adour (France). His research interests include corporate finance, corporate governance, risk-taking and hospitality finance. His works have been published in top referred journals, such as Tourism Management, Finance Research Letters, Research in International Business and Finance and European Journal of Finance.