KHAS Finance Seminars – Conrado Diego García-Gómez

On Tuesday, November 22nd, Conrado Diego García-Gómez from University of Valladolid will be the guest of the Finance Seminar series organized by Kadir Has University Department of International Trade and Finance.

García-Gómez’s talk “How does uncertainty affect corporate investment inefficiency? Evidence from Europe” will be available on Zoom from 17:00 (GMT+3).

Zoom Meeting ID: 838 6693 5154

The language of the event is English.

Özet: 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.

Konuşmacı Hakkında: 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.