Talk-show 29: FOREIGN RISK, DOMESTIC PROBLEM: CAPITAL ALLOCATION AND FIRM PERFORMANCE UNDER POLITICAL INSTABILITY.

The Talkshow aims to clarify the effect of political instability abroad on capital allocation and firm performance.

Firms with foreign operations misallocate capital and underperform when they face political instability abroad. As a political regime becomes less stable, firms invest suboptimally, i.e., they either overinvest or underinvest. Using elections and textual analysis of local media during national elections, we construct a novel index of political instability. We find that firms and industries with greater exposure to election-induced political instability experience disruptions of investment efficiency that lead to lower total factor productivity and valuations.

We also apply a similar transmission channel to study the impact of COVID-19 virus on global markets.

Time:
8.30am - 12.00pm
Sunday - March 8th 2020
Venue:
Hall I201 - University of Economics HCMC, 59C Nguyen Dinh Chieu St., W.6, Dist.3, Ho Chi Minh City.

Speakers:
- Prof. Sasha Molchanov: Associate Head of School of Economics and Finance - Massey University

https://www.massey.ac.nz/massey/expertise/profile.cfm?stref=507930

- Mr. Tai Tran: STI Chief Investment Officer. Lecturer of Master of Finance joint programs between Massey University and UEH, Vietnam
https://massey.edu.vn/staff/tai-tran/

- Mr. Nguyen Hoang: Finance Analyst Heineken Vietnam

https://www.linkedin.com/in/hoangnguyenbp/?originalSubdomain=vn

Agenda:

- 8:15 - 8:30: Reception
- 8:30 - 8:45: Introduction

      Presentation
- 8:50 - 9:30: Prof. Sasha Molchanov
- 9:30 - 9:50: Mr. Tai Tran
- 9:50 - 10:00: Tea Break
- 10:00 - 12:00: Panel Discussion

   . Speaker: Mr. Hoang Nguyen

   . Moderator: Mr. Quoc Khanh