Free

FIRN Women Virtual Seminar - Shushu Liao, AUT

Event Information

Share this event

Date and Time

Location

Location

Zoom

Australia

View Map

Event description

Description

FIRN Women is hosting online seminars presented by female ECRs in a monthly seminar series. The seminars will be via zoom and will be about an hour long, comprising presentation followed by moderated Q&A.

FIRN Women invites you to a virtual seminar presented by Shushu Liao, AUT

Title: The Joint Effect of Measurement Error in Q and Covariance Between Regressors on Coefficient Biases

Abstract: The effect of measurement error, which operates via the covariance between q and cash flow, plays an important part in explaining the time-series and cross-section of cash flow sensitivity. We find that the measurement error decreases investment-cash flow sensitivity in the recent decades because it biases cash flow sensitivity downward when q and cash flow are negatively covaried. The covariance structure also offers explanations for the perceived “wrong-way” differential investment-cash flow sensitivity between constrained and unconstrained firms (the perceived negative relationship between investment-cash flow sensitivity and constraints status) classified under the widely used a priori measures. Moreover, we show that even the higher-order moment-based GMM estimator cannot address the bias if the measurement error is not independent of q (a nonclassical error).

Moderated by: Jacquie Humphrey, UQ

All FIRN members are welcome to this event. Please register your interest and you will be sent an email the day before with the Zoom code and password.

Share with friends

Date and Time

Location

Zoom

Australia

View Map

Save This Event

Event Saved