Working Papers
Political Conflict and Corporate Policies: Evidence from the Basque Country, with F. Derrien, S. Hadjigavriel and A. Romec
We exploit the announcement by the Basque nationalist terrorist group ETA of the definitive cessation of its armed and extortion activities, and find that firms exposed to the extortion risk significantly increase their cash holdings and exhibit higher cash flow sensitivity of cash. They also reduce investment in fixed assets. These reactions are consistent with a shift away from strategic liquidity minimization under extortion risk.
Governance effort reallocation by institutional owners, with S. Garcia and A. Remesal
Institutional investors re-balance between internal and external monitoring mechanisms. As heightened short-selling threats improve external discipline and alleviate the need for direct monitoring, monitoring-prone institutional investors reallocate efforts to other portfolio firms.
Selected presentations: Financial Markets and Corporate Governance Conference (2022)*, FMA Europe (2022), KU Leuven (2022), Erasmus Corporate Governance Conference (2023), BOCA-ECGI Corporate Finance and Governance Conference (2024)
Formerly entitled "Institutional investors and the governance spillovers of financial regulations: Evidence from a natural experiment"
*Presented by a coauthor