[Congratulations!] A recent paper of Prof. Yook was accepted by Journal of Finance.
- SKK GSB
- Hit10307
- 2010-09-09
[Congratulations!]
A recent paper of Prof. Young-suk Yook, professor of finance, was accepted by the Journal of Finance. The Journal of Finance is one of the top-tier journals in Finance. We congratulate her on this achievement.
Prof. Yook\'s research interest is in the area of corporate inverstment. The title of the paper is \'Political Uncertainty and Corporate Investment Cycles\'. The abstract of the paper is below:
We document cycles in firm-level investment corresponding with the timing of national elections across a sample of 48 countries between 1980 and 2005. During the year leading up to the election outcome, firms reduce investment expenditures by an average of 4.8% relative to nonelection years, controlling for growth opportunities and economic conditions. We investigate several potential explanations and find evidence consistent with the hypothesis that political uncertainty leads firms to temporarily reduce investment expenditures until uncertainty over the election outcome is resolved. This investment pattern is more pronounced when an election outcome is harder to predict. We also document that the magnitude of investment cycles varies with different country and election characteristics. Decreases in corporate investment correspond with temporary increases in corporate cash holdings. Overall, these findings suggest that political uncertainty is an important channel through which the political process affects real economic outcomes.
Prof. Yook teaches quantitative analysis for business decisions, financial management and corporate finance strategy at SKK GSB.