This paper examines the impact of RMB internationalization reforms on invoicing currency choices of firms exporting to China. Using detailed French customs data spanning 2011-2017, it documents three novel stylized facts on RMB adoption and suggests a novel mechanism that drives the self-selection of firms into RMB invoicing. Additionally, it provides causal estimates of the impact of RMB use on...
The project seeks to identify the share of productive and fast-growing firms in the economy, their characteristics such as sector, location (urban/rural, low-density, high-density, etc.), size and age since formation, and their growth performance. Furthermore, it will be analyzed - as far as the data situation allows - which factors contribute to the success.
Entrepreneurs tend to be risk tolerant but is higher risk tolerance always better? In a sample of about 2100 small businesses, we find an inverted U-shaped relation between risk tolerance and profitability. This relationship holds in a simple bilateral regression, and even after controlling for a large set of individual and business characteristics. Apparently, one major transmission goes from risk ...
Theory suggests that corporate and sovereign bonds are fundamentally different, also because sovereign debt has no bankruptcy mechanism and is hard to enforce. We show empirically that the two assets are more similar than you think, at least when it comes to high-yield bonds over the past 20 years. Based on rich new data we compare risky US corporate bonds (“junk” bonds) to risky emerging market sovereign ...
Applying universal ownership theory and drawing on multiple-case studies, this article analyzes what drives institutional investors to engage with government entities and what challenges they find in the process. We relied on document analysis and conducted twelve semi-structured interviews with representatives from asset owners, asset managers, investor associations, and academia. We identify a trend ...
The interplay of technology and knowledge constitutes the backbone of entrepreneurial ecosystems, crucial for fostering innovation. This study applies the economic complexity approach as a tool for quantitatively evaluating these ecosystems in German labor market regions. Our contribution to the literature involves linking comprehensive micro-datasets encompassing economic sectors and patent data...