Urban Vibrancy and Corporate Growth

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

See all articles by Casey Dougal

Casey Dougal

Florida State University

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)

Multiple version iconThere 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

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

Casey Dougal

Florida State University ( email )

Tallahasse, FL 32306
United States

Christopher A. Parsons (Contact Author)

Foster School of Business, University of Washington ( email )

PACCAR HALL
4273 E Stevens Way NE
Seattle, WA 98195
United States

Sheridan Titman

University of Texas at Austin - Department of Finance ( email )

Red McCombs School of Business
Austin, TX 78712
United States
512-232-2787 (Phone)
512-471-5073 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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