Urban Vibrancy and Corporate Growth

Dougal, Casey; Parsons, Christopher A.; Titman, Sheridan

doi:10.2139/ssrn.2023993

Urban Vibrancy and Corporate Growth

Journal of Finance, Forthcoming

66 Pages Posted: 18 Mar 2012 Last revised: 2 Oct 2014

See all articles by Casey Dougal

Christopher A. Parsons

Foster School of Business, University of Washington

Sheridan Titman

University of Texas at Austin - Department of Finance; National Bureau of Economic Research (NBER)

There are 2 versions of this paper

Date Written: May 8, 2014

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. It 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.

Keywords: agglomeration economies, spillovers, investment, equity issuance, human capital

JEL Classification: G30, R30

Suggested Citation: Suggested Citation

Dougal, Casey and Parsons, Christopher A. and Titman, Sheridan, Urban Vibrancy and Corporate Growth (May 8, 2014). Journal of Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2023993 or http://dx.doi.org/10.2139/ssrn.2023993