Friday, December 2, 2022
11:00 a.m. to noon
SL406
zoom link
https://wpi.zoom.us/j/95251780313
robots, labor market friction,
and corporate financial policy
Overview:
Using a new dataset on industrial robots from the International Federation of Robotics (IFR), we found that the use of robots leads to higher leverage and lower cash holdings. Using instrumental variables based on the robot’s comparative advantage in a particular task, we find that the effect is likely causal. Further analysis shows that as companies use more robots, the benefits come from lower operational leverage. We also find that the effect is stronger when firms are hit by negative shocks. This suggests that the use of robots will reduce labor market friction and increase operational flexibility. Companies with more robots pay more and use fewer corporate hedging contracts.
Dr. Alice Liu
Alice Liu graduated with a PhD from the University of Arizona. In 2021 she will complete her PhD in Finance and is currently a tenured Assistant Professor of Finance at the University of South Dakota.
Her research interests include fintech, machine learning, corporate finance, labor and finance, venture capital, mergers and acquisitions, innovation, and tax evasion. Her papers have been published in elite financial journals such as: Journal of Banking and Finance. Her recent working papers have been recognized for presentation at several top finance conferences including AEA, NFA, FIRS and MFA, and have won best paper awards at several conferences.
Contact: yliu46@arizona.edu
