I tell students that you are often better off “embracing the endogeneity” than trying to address it poorly. Understanding confounds, signing resulting bias and then clearly presenting the economic story to the reader can be quite convincing...and we still learn something.
I would love for this to become a standard way to argue about confounding.
The tendency to reach for totally implausible causal designs (IV or RDD) is so much worse than just putting bounds on for readers to decide for themselves.
Recruiting season for econ+finance PhDs has begun. You should have a website, but not just any website. Here are some slides that I made for my students -- dropbox.com/s/ztu32remz1hi29… -- that job market candidates may find useful. What follows is a thread summary. #econtwitter. 1/N
Excited to be joining the finance faculty @Columbia_Biz this summer. Looking forward to interacting with new colleagues, PhD students, MBAs and NYC. I am grateful to @Caltech for its amazing intellectual environment that supported my research and teaching. 1/2
Excited to start my academic leave this fall visiting @YaleSOM and @YaleLawSch. Plenty of seminars to attend, smart folks to bother and cheese-free pizza to eat. Let me know if you are around New Haven for the next few months. Thanks to @ProfSongMa at SOM + Roberta Romano at YLS.
Researchers interested in matching Compustat (gvkey) to SDC M&A transactions (DealNumber), check out this new mapping file: github.com/michaelewens/sdc_… It builds on a mapping from Gordon Phillips' (Dartmouth).
A (very) quick Pitchbook search of currently public, formerly VC-backed firms (my.pitchbook.com/?pcc=655595…) suggests 25% of firms' (140+) with >$100m market cap are worth < than total debt+equity raised. Excluding biotech, this is 10% (28).
"We use the March 10, 2023 closure of Silicon Valley Bank as a shock to the capital available to startups that raised VC in the prior year. Startups who deposited their capital raise with the bank in the previous year will be 'treated.'"
Happy to release a new survey paper and companion website with @jfm82 on the growth in private capital markets and its impacts for public equity markets. papers.ssrn.com/sol3/papers.… (companion website privatepublicmkts.com). Motivated by several facts, a🧵 1/12
Need time to dig into this, but this decomposition could become a standard part of any paper using IV:
"IV-OLS coefficient gap is explained by differences in the weights on the covariates, the weights on the treatment levels, and the identified marginal effects."
IV-OLS gap can be empirically decomposed, accounting for heterogeneity, nonlinearity, and endogeneity bias. In the March 2024 issue of REStat by Shoya Ishimaru. zurl.co/PZVZ
📢 @Columbia_Biz Finance is hiring a 2-year pre-doc in entrepreneurial finance, PE, and VC. Progress in these research areas demands constant innovation in finding and building new databases. The hire will work with me + other faculty on just that. 🧵w/ details+who should apply:
I'm hiring a 2-year, full-time research associate/pre-doc for a gender equity in PE project. The researcher will help build a public database on gender representation and career trajectories in PE.
apply.interfolio.com/126582
🧵
Entrepreneurship PhD students: apply for the 2024 @nberpubs Entrepreneurship Research Boot Camp (week of July 15th).
My student experience 10+(!) years ago was instrumental to my career. Thanks to @NBER and @robinson_fuqua for keeping it going.
conference.nber.org/confsubm…
My paper w/ Joan Farre-Mensa @jfm82 (UIC) is now out @RevOfFinStudies.
We show that increase in private capital - facilitated by regulatory changes - makes it possible for startups to stay private longer.
academic.oup.com/rfs/article…
🧵 1/14
I am excited to highlight 5 entrepreneurial finance+innovation job candidates from the WEFI Fellows (workshop-efi.com/wefi-fellow…). The students (+7 others) have met bi-weekly over the last year+ to discuss research, practice talks, and provide each other feedback. 🧵Check them out:
We've released the raw purchase price allocation (PPA) data from our paper "Measuring Intangible Capital with Market Prices."
The data reveals acquired intangible and tangible asset values from public firm acquisitions
github.com/michaelewens/Purc…
Paper: osf.io/preprints/socarxiv/kv…
Exciting new work. The discrimination literature is moving almost as fast as the DiD literature. So much so that this paper may require I delay circulating a review chapter for updates (not complaining).
A framework for modeling systemic forms of discrimination and its underlying sources, and a novel decomposition to identify systemic discrimination, from @aislinnbohren, @instrumenthull, and @alexoimas nber.org/papers/w29820
Excited to announce a @workshopefi new project: WEFI Fellows. Goal: help PhD students - particularly those at schools without multiple faculty in entrepreneurship and innovation - refine their dissertation topic + learn more about the research area. 1/6
workshop-efi.com/wefi-fellow…
📢PhD students interested in entrepreneurship: submit an application to this year's NBER Entrepreneurship Bootcamp. My experience was an invaluable part of my PhD for both research and networking.📅Deadline 3/26 #EconTwitterconference.nber.org/confsubm…
▶️foundingpatents.com◀️ is now live!
joint work w/@startupecon, we retrieve founding year for privately-held + publicly-traded firms in the U.S. that patented 1976-2021.
What's new here? 🧵1/
The new JFE editorial board on July 1. My coeditors and I tried to cover as many sub areas in the field as we could. Open up the pic to get the whole list. For descriptions of editor roles read my editorial. toni.marginalq.com/editorial…
Perhaps academics can sign a "Pledge of Ownership" to replace the infamous "Pledge of Honesty"? Here is mine:
"I hereby own all mistakes in my published work and never blame my RAs, whose names I will always remember."
Happy to highlight 5 entrepreneurial finance+innovation job candidates from the WEFI (@workshopefi) Fellows. These students (+9 others) have met bi-weekly since April 2021. Each has grown as a researcher while demonstrating the next generation will easily surpass the previous 🧵
📢Call for papers: 2022 @nberpubs Summer Institute Productivity/Innovation meeting on July 19th-20th (in-person and virtual). Submit your work on March 23rd: papers.nber.org/confsubmit/b…
🥳Five of the WEFI @workshopefi Fellows were on the job market this year. Each found an amazing placement for the next stage of their career.
🧵Thread follows:
I had a great time presenting a lecture "Race and Gender in Entrepreneurial Finance" at the @nberpubs Entrepreneurship Bootcamp (I'm class '08).
Thanks to @robinson_fuqua for organizing and the PhD students for great Qs.
Slides+references here: foundinggaps.com/slides/
📢Call for papers: NBER Summer Institute Innovation meeting, July 20-21. The workshop will include papers on the economics of innovation and
innovation policy. Deadline: April 5th. papers.nber.org/confsubmit/b…
📢Private equity researchers: submit work (submit@columbiapeconference.com) to the Columbia Private Equity Conference held Feb 29th-Mar. 1st at @columbia_biz
PhD students: submit work to the PhD workshop (held on the 29th)
Info: columbiapeconference.com
📅Deadline: Dec. 1st
Compensation for founder-CEOs of VC-backed startups increases significantly after the firm achieves product-market fit, marking the startup's transition from 'differentiation' to 'standardization', from @startupecon, Ramana Nanda, and Christopher Stanton nber.org/papers/w27296
PhD students interested in entrepreneurship should consider applying to the NBER Entrepreneurship Boot Camp. Info here b/c no official webpage: gist.github.com/michaelewens…
🧵about paper with @kairong_xiao + @TingXuFinance. We explore public firms' regulatory avoidance: manipulating public float. TLDR: firms bunch around regulatory thresholds➡️reveal major💲of being public.Though meaningful, costs cannot explain ⬇️ listed firms 1/
📢Private equity researchers: submit work (submit@columbiapeconference.com) to the Columbia Private Equity Conference held March 3rd in NYC at @columbia_biz. PhD students: submit work to the PhD workshop (held on the 2nd)
Info: columbiapeconference.com
📅Deadline: Dec. 10th.🧵
Happy to release code and data to help incorporate the non-compete law changes used in my work with @marxmatt: github.com/michaelewens/nonc… Feedback/corrections are welcome.
Submit a paper just so you might experience a @ProfSongMa co-organized conference: cohesive program, ideal discussants, and smooth organization. New Haven also has one of the best Indian restaurants (Lazeez) and donut shops (Donut Crazy).
📢Call for papers!
The 11th Finance, Organizations & Markets (FOM) conf will be held on Oct 12-13, 2023 at Yale SOM @YaleSOM.
We invite you to submit your papers related to FOM research topics.
📩Call for papers/submission link: sites.google.com/site/uscfom…
📅DDL: July 14, 2023
It seems more than a software bug! The regressions set 0 references to missing and the random network approach that has a "degree-preserving [...] rewiring algorithm."
If you need to incorporate intangible assets such as organizational and knowledge capital into your research, then check out the Ewens, Peters and Wang (2018) capitalization parameter estimates and intangible asset stock measures here: github.com/michaelewens/inta…
Question for #EconTwitter : planning a reading group with faculty+PhD students. I'd love to hear about successful formats others have used (e.g., presentations, role of faculty vs. student, # of papers, expected "deliverables", etc).
More tips: put your papers on @socarxiv, get a LinkedIn profile, populate your university page (in case Google is stubborn), set up Google Scholar, make sure https works, tweet your JMP, and remember that you know your JMP better than anyone else, so be confident. Good luck! /end
Excited to talk about my new work with Nadya Malenko @nmalenko (UMich) about startup board structure and power allocation. Boards of directors of VC-backed startups guide strategy, facilitate new financings and vote on exit decisions. 1/13 osf.io/preprints/socarxiv/t9…
Boards of directors at startups experience significant shifts in control as firms mature, while the independent directors play a mediating role between the venture capitalists and entrepreneur, from @startupecon and Nadya Malenko
nber.org/papers/w27769
This project aims to help researchers interested in race/gender issues in entrepreneurship hit the ground running in their projects. Along with the WIP companion site (foundinggaps.com/), the list of unanswered research questions is a resource for these researchers. A 🧵
A review of the literature on race and gender discrimination in entrepreneurial finance reveals stark under-representation by women and minorities and unanswered research questions, from @startupeconnber.org/papers/w30444
I will be hiring RAs+pre-docs soon, so drop me an email if interested. The annual academic PE conference continues every first Friday of March...now in NYC and with a new feature: a 2nd day for PhD student presentations in the VC/PE/Entrepreneurship area. Stay tuned! 2/2
PhD students working in Innovation and Entrepreneurship! If you are interested to participate in a student-led workshop co-organized with @workshopefi, apply by August 23rd. More information here: workshop-efi.com/sefi-call-f…
This is the final article in our Private Equity Special Issue. Thanks to all the authors for making the issue a success. Stay tune for 🧵 with all the papers.
In the hunt for an exogenous shock for your next project? Check out this JCF paper by Vladimir I. Ivanov on "Recent changes to the regulatory framework for the private capital market"
doi.org/10.1016/j.jcorpfin.2…
Entrepreneurial finance and innovation Ph.D. students: remember to submit your paper to the 4th student-led Workshop on Entrepreneurial Finance and Innovation @workshopefi student event by Oct 1st.
📢Call for student papers📢
Submit your paper to the 4th Student-led Workshop on Entrepreneurial Finance and Innovation (WEFI)!
Submission Deadline: Oct. 1st
Workshop Date: Nov. 14th
✉️ students@workshop-efi.com
workshop-efi.com/student-wor…
Excited to present our (w/ @jfm82 ) work detailing the private capital market landscape (paper here: osf.io/preprints/socarxiv/9a…). Tune in for our review of the last 25 yrs of private+public capital market changes and their implications for researchers and policymakers.
Check out our Symposium on US Private Firms, financing, regulation and impact on aggregate macro- economy, organized by the University of Chicago’s Booth School of Business bringing together academics, regulators and data providers, will be livestreamed: research.chicagobooth.edu/ar…
This is a bittersweet moment 🥲: five of the original WEFI Fellows are "graduating," so we are reopening applications.
I couldn't be more proud of the students moving onto the next stage of their careers, and I'm also excited to see who joins us.
workshop-efi.com/wefi-fellow…
📢Apply to the Summer PhD Workshop on Entrepreneurial Finance.
Finance, econ, and management PhD students with a research interest in entrepreneurial finance are encouraged to apply for the first Summer PhD Workshop on Entrepreneurial Finance. It is scheduled for Aug 27th. 🧵
Submissions are open for the December @nberpubs Entrepreneurship Working Group.
Deadline: Sept. 27th
Workshop date: Dec. 1st
Submission link: conference.nber.org/confsubm…
Check out our @workshopefi upcoming seminars and lectures. The lecture series -- workshop-efi.com/lecture-ser… -- is almost a PhD course on its own, while the seminars represent exciting new work in entrepreneurial finance+innovation. #EconTwitter
We are excited to announce the spring 2022 @workshopefi seminars, starting March 7th. Sign up for updates or continue in this 🧵for previews of the talks and events. workshop-efi.com/signup 1/7
Excited to announce the Spring 2023 @workshopefi schedule of four excellent papers.
Presentations start March 20th at 12pm EST. The full schedule is here workshop-efi.com.
Sign up to get email announcements: workshop-efi.com/signup
A 🧵 on each paper follows:
📢 PhD students in entrepreneurial finance or innovation! Submit your papers for the 5th WEFI student-led online workshop.
📅 Submission Deadline: Sep 15th. Event: Nov 13th.
Details and past programs 👉
workshop-efi.com/student-led…
New @nberpubs Call for Papers: Inequality, Discrimination, and the Financial System. Includes a dual-submission option to @RevOfFinStudies. Deadline 1/24/21: conference.nber.org/confer/2…
Submit your PE, VC or entrepreneurial finance paper to the 6th annual Southern CA PE conference. It's held on March 6th in Pasadena, CA at the "Harrow Club" (now Athenaeum) from Beverly Hills Cop (piped.video/watch?v=SyWjZM78…) . Deadline is 12/1. socalpeconference.com/call-f…
We've released more code/data from Ewens, Peters and Wang (2019): full text of MD&A sections from 10-Ks for 2002-2018. See github.com/michaelewens/MD-A… for instructions and data.caltech.edu/records/124… for the raw data. Email me if you encounter any issues.
PhD students interested in VC/PE: consider applying to the Private Equity Institute's Private Capital Bootcamp held on May 28th at Oxford Said sbs.ox.ac.uk/events/private-…
The pre-doc will sit in the Columbia Business School @Columbia_Biz Finance division with opportunities to take PhD courses and attend academic seminars.
Apply here: apply.interfolio.com/126582
Send questions: michael.ewens@columbia.edu
@predoc_org
Stata tip for csv files like:
[1,CA,"This is the string "" and more text",2021]).
⚠️Stata will read in as [1,CA," and more text",2021]😲
because of the 2X quotes.
Use
filefilter "data/originalCSV.csv" "data/fixedCSV.csv", from("\Q\Q") to("'") replace
panda's read_csv() is👌
Finance scholars who just finished submitting to all the Fall conference deadlines: send your private equity / entrepreneurial finance paper to the Columbia PE conference. The conference is March 2-3rd @Columbia_Biz.
Info: columbiapeconference.com/cal…
📢Private equity researchers: submit work (submit@columbiapeconference.com) to the Columbia Private Equity Conference held March 3rd in NYC at @columbia_biz. PhD students: submit work to the PhD workshop (held on the 2nd)
Info: columbiapeconference.com
📅Deadline: Dec. 10th.🧵
We exploit a plausibly exogenous increase in traffic accidents based on the rollout of a "free" service to a subset of drivers. As a proxy for an area's treatment, we use the density of Tesla superchargers in an MSA.
Caroline Genc @caroline_genc (Universite Paris-Dauphine).
Caroline will join Eli Broad College of Business, Michigan State University, as an Assistant Professor of Finance.
carolinegenc.com/
Median seed valuation in the US right is $13.5M pre-money.
And Henri is totally right - those have not that much to do with the underlying value of the business.
Banks aren't the only game in town. Private debt funds - direct lending, mezz, and distressed - raised >$1t in the last few years. Assuming that PE is 40% of deals, the market needs $3.45t in debt. Realistic to think these growing debt alternatives help.
📢Reminder to submit your PE/VC and entrepreneurial finance papers to the Columbia PE conference by Dec. 1st 📅. PhD students have a workshop option:
➡️columbiapeconference.com/cal…
📢Private equity researchers: submit work (submit@columbiapeconference.com) to the Columbia Private Equity Conference held Feb 29th-Mar. 1st at @columbia_biz
PhD students: submit work to the PhD workshop (held on the 29th)
Info: columbiapeconference.com
📅Deadline: Dec. 1st
How about the choice in your textbook about what to call c_i (aka alpha_i)? (Fixed vs. random) | unobserved effect? I tried to sell the "unobserved" naming to Phd students, but as your book says "This terminology is so ingrained that it is pointless to try and change it now."
📢Register now for next Monday's (Oct. 11th) student-led @workshopefi. Our nine WEFI Fellows have put together a great program with four PhD-student authored papers and faculty discussants.
More details here: workshop-efi.com/schedule/oc…
Register: bit.ly/2YdYQc1
A notable change in regulatory stance: concerns about declining IPOs have shifted to concerns about small business capital raising. Nice to see a push for targeting private capital dereg. on location, fund size, and founder characteristics: jimhamiltonblog.blogspot.com…
What @arpitrage said. Projects like this are only possible b/c others (discussants, journalists, etc) share data and ideas, @eBay sellers decide to keep that old book and heroes at the @caltech copy office figure out how to scan dozens of those books at scale.
🚨New Working Paper!🚨
The rise of PE ownership leads to important tradeoffs for news. In joint work with @startupecon and Sabrina Howell, we highlight benefits:
- higher survival
- more digital circulation
and costs:
- less local news
- less employment
- lower civic engagement
📢Call for papers! WEFI 2023 Spring Series starts March 20th.
We invite you to submit your papers on Entrepreneurship, Entrepreneurial Finance, and Innovation.
📩Email: contact@workshop-efi.com
📅Deadline: Feb. 15, 2023
Thank you for all your support in keeping WEFI strong!
This accidental consequence of Amazon's infrastructure rework is central to our (Ewens, Nanda and Rhodes-Kropf, 2018) study of the impact of AWS on VC financing and portfolio strategy. I wonder if the recent de-Oracle'ing of AMZN will provide new accidents for researchers.
Then something even more interesting happened. As a retailer we had always faced huge seasonality, with traffic and revenue surging every Nov/Dec. Jeff started to think - we have all this excess server capacity for 46 weeks/year, why not rent it out to other companies?
I am very proud of these students (soon, professors). Their "graduation" means we will admit a new cohort of @workshopefi Fellows. PhD students: sign up here to receive the call for applications:
workshop-efi.com/signup/
Job market candidates can still remove one uncertainty in their online interviews: poor audio quality on Zoom. 👂The solution is a high-quality microphone 🎤. I like this one (but anything that is not your laptop is an improvement): amazon.com/Recording-Streami…#EconTwitter