Research

Publications:

1. A risk-return trade-off or comovement? Are food processing firms risk-averse? 

Mukherjee, S., Mukherjee, S., Parhi, M., Duan, K. & Usman, A. 2024. A risk–return trade-off or co-movement? Are food processing firms risk-averse? International Journal of Finance & Economics, 29, 2176-2192.

Abstract:

We build a two-moment decision-theoretic framework to study how firms in the food-processing industry negotiate between risk and return while relying on imported inputs for production at an intensive margin. Two possibilities emerge: either a co-movement or a trade-off in risk and return under various industry and economic conditions. Building on our theoretical setting, we design a testable empirical framework that considers a panel of 316 firms in the Indian food-processing industry between 1993 and 2009. We find strong evidence of a decrease in the absolute risk aversion preference, although the magnitude varies measurably across firms. 

2. The Economic Effects of Brexit: Evidence from the Stock Market

Breinlich, H., Leromain, E., Novy, D., Sampson, T. & Usman, A. 2018. The economic effects of Brexit: Evidence from the stock market. Fiscal Studies, 39, 581-623.

Abstract:

We study stock market reactions to the Brexit referendum on 23 June 2016 in order to assess investors’ expectations about the effects of leaving the European Union on the UK economy. Our results suggest that initial stock price movements were driven by fears of a cyclical downturn and by the sterling depreciation following the referendum. We also find tentative evidence that market reactions to two subsequent speeches by Theresa May (her Conservative party conference and Lancaster House speeches) were more closely correlated with potential changes to tariffs and non‐tariff barriers on UK–EU trade, indicating that investors may have updated their expectations in light of the possibility of a ‘hard Brexit’. We do not find a correlation between the share of EU immigrants in different industries and stock market returns. 

Working Papers:

1. Bhattacharjee, A. & Usman, A. 2025. Supply chain network and stable sales growth: Automotive manufacturers Ford and GM. Working Paper. (Accepted at Essex Finance Centre, EFiC 2023 Conference in Banking & Corporate Finance, 6-7 July at Gaeta, Italy).

2. Bhattacharjee, A. & Usman, A. 2025. A new framework for investigating productivity: Evidence from firm level data. Working Paper (work in progress).

3. Usman, A., Mishra, T. & Kabir, S. 2025. How investors behave when they need to monitor more: Evidence from International Data. Working Paper. (work in progress). 

4. Usman, A. & Demir, A. 2023. Impact of financial constraints on economic activity of firms: Evidence from Pakistan Working Paper. (Conference Presentation presented in the Workshop on Macroeconomic Policies in Emerging and Developing Countries, Loughborough University, UK; June 2022). 

5. Usman, A. 2024. Macroeconomic uncertainty and security issuance behaviour of non-financial firms: An international comparison. Working Paper.

6. Usman, A., Mizen, P. & Bougheas, S. 2023. Financial health of banks and bonds issuance by non-financial firms: The role of financial architecture. Working Paper.

7. Usman, A., Mizen, P. & Bougheas, S. 2022. Capital structure and investment decisions of non-financial firms and the role of financial architecture: An international comparison. Working Paper.