El Departamento de Economía de la Universidad de Chile tiene el agrado de invitar a usted a un nuevo Seminario Académico:

Título - Losing Your Dictator: Firms During a Political Transition

Autores - Felipe González (University of California), Mounu Prem (Stanford University)

Presentador - Felipe González (University of California)

Resumen - Pinochet’s dictatorship of Chile ended in 1990, six quarters after he unexpectedly lost a plebiscite. How did firms connected to his regime respond to the news of the pending transition to democracy? We use historical balance sheets to construct a panel of publicly traded firms and determine their degree of connection based on their board composition. We first confirm that the outcome was unexpected by showing that firms with first or second degree connections suffer a large drop in their daily stock return immediately following the plebiscite results, which also validates our connection measure. We then show that, consistent with a model where connected firms have a first mover advantage before entry of new firms happens in the new democratic regime, connected firms increase their capacity in order to deter entry. These differential adjustments are made possible by information flows in the network of firms and distortions in the credit market during the non-democratic regime; both have important consequences for market outcomes in the new political era

El  Seminario  se realizará el miércoles 03 de junio de 13:00 a 14:00 hrs, en  la Sala P-307 Tercer Piso del edificio Placa de la Facultad de Economía y Negocios de la Universidad de Chile, ubicada en Diagonal Paraguay 257.