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Assistant Professor of Finance, York University
Ph.D., Finance, Virginia Tech
Email: anhvn@yorku.ca

Publications

Derrien, François, Ambrus Kecskés, and Phuong-Anh Nguyen, 2023, Labor force demographics and corporate innovation, Review of Financial Studies 36, 2797-2838

Abstract: Firms in younger labor markets produce more innovation. We establish this by instrumenting the current labor force with historical births in each local labor market in the United States. Analyses of firms and inventors allow us to rule out unobservable heterogeneity across local labor markets and firms, life cycles, and other effects. Corporate innovation in younger labor markets reflects the innovative characteristics of younger labor forces, and its market value is higher. Younger workers as a group, not merely inventors by themselves, produce more innovation for firms through the labor force channel rather than through a financing or consumption channel.

Best Paper Award, Eurasia Business and Economics Society Conference, 2022
Best Paper Award for Corporate Finance, Academy of Finance Conference, 2020
Best Paper Award, Vietnam International Conference in Finance, 2019
Best Paper Award, World Conference on Business and Management, 2019
Best Paper Award in Corporate Finance and Financial Institutions, Financial Management Association Asia/Pacific Conference, 2018

Selected conferences: Western Finance Association (WFA), European Finance Association (EFA), Financial Intermediation Research Society (FIRS), Northern Finance Association (NFA), SFS Cavalcade Asia-Pacific, Santiago Finance Workshop (SFW)

Bernile, Gennaro, Vineet Bhagwat, Ambrus Kecskés, and Phuong-Anh Nguyen, 2021, Are the risk attitudes of professional investors affected by personal catastrophic experiences?, Financial Management 50, 455-486 (top three published paper, Financial Management, 2021)

Abstract: We adopt a novel empirical approach to show that the risk attitudes of professional investors are affected by their catastrophic experiences – even for catastrophes without any meaningful economic impact on these investors or their portfolio firms. We study the portfolio risk of U.S.-based mutual funds that invest outside the U.S. before and after fund managers personally experience severe natural disasters. Using a difference-in-differences approach, we compare managers in disaster versus non-disaster counties matched on prior disaster probability and fund characteristics. We find that monthly fund return volatility decreases by roughly 60 basis points in year +1 and the effect disappears by year +3. Systematic risk drives the results. Additional analyses do not support wealth effects (using disasters with no property damage) or managerial agency, skill, and catering explanations.

Semifinalist for Best Paper Award, Financial Management Association Conference, 2019

Nguyen, Phuong-Anh, and Ambrus Kecskés, 2021, Technology spillovers, asset redeployability, and corporate financial policies, European Financial Management 27, 555-588 (lead article)

Reprinted in Harnessing Digitalization for Sustainable Economic Development: Insights for Asia, John Beirne and David G. Fernandez, eds., Asian Development Bank Institute, 2022

Abstract: Prior research shows that technology spillovers across firms increase innovation, productivity, and value. We study how firms finance their own growth stimulated by technology spillovers from their technological peer firms. We find that greater technology spillovers lead to higher leverage. This is the result of technology spillovers increasing asset redeployability, as evidenced by more collateralized borrowing and asset transactions. Borrowing costs also decrease. Exogenous variation in the R&D tax credits of other firms allows us to identify the causal effect of technology spillovers on a given firm.

Best Paper Award on Firm Growth and Innovation, Northern Finance Association, 2017
Semifinalist for the CFA Institute Research Award, Financial Management Association Asia/Pacific Conference, 2017

Nguyen, Phuong-Anh, and Ambrus Kecskés, 2020, Do technology spillovers affect the corporate information environment?, Journal of Corporate Finance 62, 101581

Abstract: Technology spillovers across firms affect corporate innovation, productivity, and value, according to prior research, so information about technology spillovers should matter to investors. We argue that technology spillovers increase the complexity and uncertainty of value relevant information about the firm, which makes information processing more costly, discourages it, and thereby increases information asymmetry between insiders and outsiders. We find that not only does information asymmetry increase, but so does avoidance by sophisticated market participants, uncertainty, and insider trading. We also find that investors do not misestimate short-term earnings, but they underestimate long-term earnings, consistent with the higher future stock returns that we also find.

Selected conferences: Canadian Academic Accounting Association (CAAA)

Nguyen, Phuong-Anh, Ambrus Kecskés, and Sattar Mansi, 2020, Does corporate social responsibility create shareholder value? The importance of long-term investors, Journal of Banking & Finance 112, 105217

Abstract: We study the effect of corporate social responsibility (CSR) on shareholder value. We argue that long-term investors can ensure that managers choose the amount of CSR that maximizes shareholder value. We find that long-term investors do increase the value to shareholders of CSR activities, not through higher cash flow but rather through lower cash flow risk. Following prior work, we use indexing by investors and state laws on stakeholder orientation for identification. Our findings suggest that CSR activities can create shareholder value as long as managers are properly monitored by long-term investors.

Research Award, Rotman International Center for Pension Management, 2017

Selected conferences: China International Conference in Finance (CICF)

Working papers

Producing AI innovation and its value implications, 2023, with Ali Ahmadi, Ambrus Kecskés, and Roni Michaely

Abstract: We document that artificial intelligence accounts for a significant and growing share of aggregate innovation produced during the past three decades, and is now diffuse across industries and technology fields. We then study publicly traded firms, finding that firms direct their production of innovation toward AI, motivated by their own, and their customers', labor's exposure to AI technology. We interact exogenously measured innovation capacity and AI exposure to instrument actual AI production. Our central findings are that producing AI increases a firm's future stock returns, supported by both higher profitability and lower risk. The results suggest that AI production increases firm value.

Skilled immigrants, corporate acquisitions, and shareholder value, 2019

Abstract: I use corporate acquisitions to study whether gaining access to a skilled immigrant labor force generates growth opportunities and creates shareholder value. Exogenous variation in the skill structure of new immigrants is generated by allocating skilled and unskilled U.S. immigration flows each decade (1990-2010) from each foreign country to each U.S. city based on historical (1960) country-city settlement patterns. I remove time-invariant city-specific factors, historical city-specific labor market characteristics that are allowed to vary over time, and current city-specific labor demand. I find that firms located in cities with a skilled immigrant labor force are more likely to be the target of an acquisition by a non-local firm, as evidenced by both deal volume and value. Additionally, announcement stock returns for acquirer firms, reflecting estimates of shareholder value creation, are higher for acquisitions of target firms located in such cities. Post-acquisition corporate profitability is also higher, driven by greater cost efficiency. Overall, a skilled immigrant labor force is beneficial for shareholders.

Best Paper Award in Corporate Finance, Financial Management Association Conference, 2020
Best Paper Award in Corporate Finance, Baltimore Area Finance Conference, 2019

Selected conferences: Baltimore Area Finance Conference, Urban Economics Association Conference

Severance agreements, incentives, and the cost of debt, 2011, with Sattar Mansi and John Wald, permanent working paper

Teaching

York University: Undergraduate corporate finance (2017-Present), Undergraduate introductory finance (2020-Present)

Boston University: Undergraduate corporate finance (2016)

Virginia Tech: Undergraduate corporate finance (2011)

Selected media citations

Forbes, Mar. 15, 2019, The effect of demographics on innovation

Oxford Business Law Blog, May 17, 2018, Labor force demographics and corporate innovation

Oxford Business Law Blog, Apr. 3, 2018, Technology spillovers, asset redeployability, and corporate financial policies

Columbia Law School Blue Sky Blog, Jan. 26, 2018, Technology spillovers, asset redeployability, and corporate financial policies

The National, Jan. 6, 2018, Economics 101: Gulf states can harness population growth to their advantage

Asset International Chief Investment Officer (aiCIO) magazine, May 6, 2013, Long-term investors reduce volatility, improve corporate responsibility

Wall Street Journal, February 12, 2010, Milestone figures grab attention, but their impact is hazy