535
Views
0
CrossRef citations to date
0
Altmetric
Articles

Killing Growth: Homicides and Corporate Investment in Brazil

ORCID Icon
Pages 533-552 | Received 25 May 2022, Accepted 17 Nov 2023, Published online: 10 Dec 2023

References

  • Acolin, A., Walter, R. J., Tillyer, M. S., Lacoe, J., & Bostic, R. (2022). Spatial spillover effects of crime on private investment at nearby micro-places. Urban Studies, 59(4), 834–850. doi:10.1177/00420980211029761
  • Ağca, Ş., & Mozumdar, A. (2008). The impact of capital market imperfections on investment–cash flow sensitivity. Journal of Banking & Finance, 32(2), 207–216. doi:10.1016/j.jbankfin.2007.02.013
  • Agrawal, A., & Mandelker, G. N. (1987). Managerial incentives and corporate investment and financing decisions. The Journal of Finance, 42(4), 823–837. doi:10.1111/j.1540-6261.1987.tb03914.x
  • Ahn, S., Denis, D. J., & Denis, D. K. (2006). Leverage and investment in diversified firms. Journal of Financial Economics, 79(2), 317–337. doi:10.1016/j.jfineco.2005.03.002
  • Akee, R. K., Copeland, W. E., Keeler, G., Angold, A., & Costello, E. J. (2010). Parents’ incomes and children’s outcomes: A quasi-experiment using transfer payments from casino profits. American Economic Journal: Applied Economics, 2(1), 86–115. doi:10.1257/app.2.1.86
  • Almeida, A. F. G., & Montes, G. C. (2020). Effects of crime and violence on business confidence: Evidence from Rio de Janeiro. Journal of Economic Studies, 47(7), 1669–1688. doi:10.1108/JES-07-2019-0300
  • Almeida, H., & Campello, M. (2007). Financial constraints, asset tangibility, and corporate investment. Review of Financial Studies, 20(5), 1429–1460. doi:10.1093/rfs/hhm019
  • Anderson, D. A. (1999). The aggregate burden of crime. The Journal of Law and Economics, 42(2), 611–642. doi:10.1086/467436
  • Arias, M. A., Ibáñez, A. M., & Zambrano, A. (2019). Agricultural production amid conflict: Separating the effects of conflict into shocks and uncertainty. World Development, 119, 165–184. doi:10.1016/j.worlddev.2017.11.011
  • Ashby, N. J., & Ramos, M. A. (2013). Foreign direct investment and industry response to organized crime: The Mexican case. European Journal of Political Economy, 30, 80–91. doi:10.1016/j.ejpoleco.2013.01.006
  • Babenko, I., Lemmon, M., & Tserlukevich, Y. (2011). Employee stock options and investment. The Journal of Finance, 66(3), 981–1009. doi:10.1111/j.1540-6261.2011.01657.x
  • Becker, G. S. (1968). Crime and punishment: An economic approach. Journal of Political Economy, 76(2), 169–217. doi:10.1086/259394
  • BenYishay, A., & Pearlman, S. (2014). Crime and microenterprise growth: Evidence from Mexico. World Development, 56, 139–152. doi:10.1016/j.worlddev.2013.10.020
  • Biagi, B., & Detotto, C. (2014). Crime as tourism externality. Regional Studies, 48(4), 693–709. doi:10.1080/00343404.2011.649005
  • Blanco, L. R., Ruiz, I., & Wooster, R. B. (2019). The effect of violent crime on sector-specific FDI in Latin America. Oxford Development Studies, 47(4), 420–434. doi:10.1080/13600818.2019.1611754
  • Blumenstock, J., Ghani, T., Herskowitz, S., Kapstein, E., Scherer, T. L., & Toomet, O. (2020). How do firms respond to insecurity? Evidence from Afghan corporate phone records. Mimeo.
  • Blundell, R., Bond, S., Devereux, M., & Schiantarelli, F. (1992). Investment and Tobin’s Q: Evidence from company panel data. Journal of Econometrics, 51(1-2), 233–257. doi:10.1016/0304-4076(92)90037-R
  • Bonaime, A., Gulen, H., & Ion, M. (2018). Does policy uncertainty affect mergers and acquisitions? Journal of Financial Economics, 129(3), 531–558. doi:10.1016/j.jfineco.2018.05.007
  • Callen, M., Isaqzadeh, M., Long, J. D., & Sprenger, C. (2014). Violence and risk preference: Experimental evidence from Afghanistan. American Economic Review, 104(1), 123–148. doi:10.1257/aer.104.1.123
  • Camacho, A., & Rodriguez, C. (2013). Firm exit and armed conflict in Colombia. Journal of Conflict Resolution, 57(1), 89–116. doi:10.1177/0022002712464848
  • Cerqueira, D. R. D. C. (2014). Causas e consequências do crime no Brasil [Causes and consequences of crime in Brazil]. Rio De Janeiro: Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
  • Chen, W., Wu, H., & Zhang, L. (2021). Terrorist attacks, managerial sentiment, and corporate disclosures. The Accounting Review, 96(3), 165–190. doi:10.2308/TAR-2017-0655
  • Chen, Z., & Strebulaev, I. A. (2019). Macroeconomic risk and idiosyncratic risk-taking. The Review of Financial Studies, 32(3), 1148–1187. doi:10.1093/rfs/hhy066
  • Chong, A., & Yañez-Pagans, M. (2017). Impact of long run exposure to television on homicides: Some evidence from Brazil. The Journal of Development Studies, 53(1), 18–31. doi:10.1080/00220388.2016.1171843
  • Colonnelli, E., Lagaras, S., Ponticelli, J., Prem, M., & Tsoutsoura, M. (2022). Revealing corruption: Firm and worker level evidence from Brazil. Journal of Financial Economics, 143(3), 1097–1119. doi:10.1016/j.jfineco.2021.12.013
  • Dai, Y., Rau, P. R., Stouraitis, A., & Tan, W. (2020). An ill wind? Terrorist attacks and CEO compensation. Journal of Financial Economics, 135(2), 379–398. doi:10.1016/j.jfineco.2019.06.005
  • Daniele, V., & Marani, U. (2011). Organized crime, the quality of local institutions and FDI in Italy: A panel data analysis. European Journal of Political Economy, 27(1), 132–142. doi:10.1016/j.ejpoleco.2010.04.003
  • De Mello, J. M., & Schneider, A. (2010). Assessing São Paulo’s large drop in homicides: The role of demography and policy interventions. In R. Di Tella, S. Edwards, & E. Schargrodsky (Eds.), The economics of crime: Lessons for and from Latin America (pp. 207–235). Chicago, IL: University of Chicago Press.
  • Detotto, C., & Otranto, E. (2010). Does crime affect economic growth? Kyklos, 63(3), 330–345. doi:10.1111/j.1467-6435.2010.00477.x
  • Di Tella, R., Edwards, S., & Schargrodsky, E. (Eds.). (2010). The economics of crime: Lessons for and from Latin America. Chicago, IL: University of Chicago Press.
  • Du, Q., & Heo, Y. (2022). Political corruption, Dodd–Frank whistleblowing, and corporate investment. Journal of Corporate Finance, 73, 102145. doi:10.1016/j.jcorpfin.2021.102145
  • Eberly, J., Rebelo, S., & Vincent, N. (2012). What explains the lagged-investment effect? Journal of Monetary Economics, 59(4), 370–380. doi:10.1016/j.jmoneco.2012.05.002
  • Fahlenbrach, R. (2009). Founder-CEOs, investment decisions, and stock market performance. Journal of Financial and Quantitative Analysis, 44(2), 439–466. doi:10.1017/S0022109009090139
  • Fama, E. F. (1978). The effects of a firm’s investment and financing decisions on the welfare of its security holders. American Economic Review, 68(3), 272–284.
  • Firth, M., Lin, C., & Wong, S. M. (2008). Leverage and investment under a state-owned bank lending environment: Evidence from China. Journal of Corporate Finance, 14(5), 642–653. doi:10.1016/j.jcorpfin.2008.08.002
  • Fisman, R., & Love, I. (2007). Financial dependence and growth revisited. Journal of the European Economic Association, 5(2-3), 470–479. doi:10.1162/jeea.2007.5.2-3.470
  • Frésard, L., & Valta, P. (2015). How does corporate investment respond to increased entry threat? Review of Corporate Finance Studies, 5(1), cfv015. doi:10.1093/rcfs/cfv015
  • Gaviria, A. (2002). Assessing the effects of corruption and crime on firm performance: Evidence from Latin America. Emerging Markets Review, 3(3), 245–268. doi:10.1016/S1566-0141(02)00024-9
  • Giannetti, M., Liao, G., You, J., & Yu, X. (2021). The externalities of corruption: Evidence from entrepreneurial firms in China. Review of Finance, 25(3), 629–667. doi:10.1093/rof/rfaa038
  • Goergen, M., & Renneboog, L. (2001). Investment policy, internal financing and ownership concentration in the UK. Journal of Corporate Finance, 7(3), 257–284. doi:10.1016/S0929-1199(01)00022-0
  • Greene, W. H. (2003). Econometric analysis (5th ed.). Upper Saddle River, NJ: Prentice-Hall.
  • Hirth, S., & Viswanatha, M. (2011). Financing constraints, cash-flow risk, and corporate investment. Journal of Corporate Finance, 17(5), 1496–1509. doi:10.1016/j.jcorpfin.2011.09.002
  • Jiang, F., Kim, K. A., Nofsinger, J. R., & Zhu, B. (2015). Product market competition and corporate investment: Evidence from China. Journal of Corporate Finance, 35, 196–210. doi:10.1016/j.jcorpfin.2015.09.004
  • Julio, B., & Yook, Y. (2012). Political uncertainty and corporate investment cycles. The Journal of Finance, 67(1), 45–83. doi:10.1111/j.1540-6261.2011.01707.x
  • Kang, S. H., Kumar, P., & Lee, H. (2006). Agency and corporate investment: The role of executive compensation and corporate governance. The Journal of Business, 79(3), 1127–1147. doi:10.1086/500671
  • Khurana, I. K., Martin, X., & Pereira, R. (2006). Financial development and the cash flow sensitivity of cash. Journal of Financial and Quantitative Analysis, 41(4), 787–808. doi:10.1017/S0022109000002647
  • Lacoe, J., Bostic, R. W., & Acolin, A. (2018). Crime and private investment in urban neighborhoods. Journal of Urban Economics, 108, 154–169. doi:10.1016/j.jue.2018.11.001
  • Lang, L., Ofek, E., & Stulz, R. (1996). Leverage, investment, and firm growth. Journal of Financial Economics, 40(1), 3–29. doi:10.1016/0304-405X(95)00842-3
  • Lyandres, E. (2007). Costly external financing, investment timing, and investment–cash flow sensitivity. Journal of Corporate Finance, 13(5), 959–980. doi:10.1016/j.jcorpfin.2007.07.001
  • Mirenda, L., Mocetti, S., & Rizzica, L. (2022). The economic effects of mafia: Firm level evidence. American Economic Review, 112(8), 2748–2773. doi:10.1257/aer.20201015
  • Murray, J., de Castro Cerqueira, D. R., & Kahn, T. (2013). Crime and violence in Brazil: Systematic review of time trends, prevalence rates and risk factors. Aggression and Violent Behavior, 18(5), 471–483. doi:10.1016/j.avb.2013.07.003
  • Nasir, M., Rockmore, M., & Tan, C. M. (2020). Do the lessons from micro-conflict literature transfer to high crime areas?: Examining Mexico’s war on drugs. The Journal of Development Studies, 56(1), 26–44. doi:10.1080/00220388.2017.1400016
  • Nguyen, N. H., & Phan, H. V. (2017). Policy uncertainty and mergers and acquisitions. Journal of Financial and Quantitative Analysis, 52(2), 613–644. doi:10.1017/S0022109017000175
  • Pinotti, P. (2015). The economic costs of organised crime: Evidence from Southern Italy. The Economic Journal, 125(586), F203–F232. doi:10.1111/ecoj.12235
  • Pshisva, R., & Suarez, G. A. (2010). Capital crimes: Kidnappings and corporate investment in Colombia. In R. Di Tella, S. Edwards, & E. Schargrodsky, (Eds.), The economics of crime: Lessons for and from Latin America (pp. 67–93). Chicago, IL: University of Chicago Press.
  • Rahaman, M. M. (2011). Access to financing and firm growth. Journal of Banking & Finance, 35(3), 709–723. doi:10.1016/j.jbankfin.2010.09.005
  • Roodman, D. (2009). How to do Xtabond2: An introduction to difference and system GMM in Stata. The Stata Journal: Promoting Communications on Statistics and Stata, 9(1), 86–136. doi:10.1177/1536867X0900900106
  • Rosenthal, S. S., & Ross, A. (2010). Violent crime, entrepreneurship, and cities. Journal of Urban Economics, 67(1), 135–149. doi:10.1016/j.jue.2009.09.001
  • Rozo, S. V. (2018). Is murder bad for business? Evidence from Colombia. The Review of Economics and Statistics, 100(5), 769–782. doi:10.1162/rest_a_00735
  • Sanford, A., & Yang, M. J. (2022). Corporate investment and growth opportunities: The role of R&D-capital complementarity. Journal of Corporate Finance, 72, 102130. doi:10.1016/j.jcorpfin.2021.102130
  • Sena, V., Duygun, M., Lubrano, G., Marra, M., & Shaban, M. (2018). Board independence, corruption and innovation. Some evidence on UK subsidiaries. Journal of Corporate Finance, 50, 22–43. doi:10.1016/j.jcorpfin.2017.12.028
  • Singh, P. (2013). Impact of terrorism on investment decisions of farmers: Evidence from the Punjab insurgency. Journal of Conflict Resolution, 57(1), 143–168. doi:10.1177/0022002712464850
  • Soares, R. R. (2004). Development, crime and punishment: Accounting for the international differences in crime rates. Journal of Development Economics, 73(1), 155–184. doi:10.1016/j.jdeveco.2002.12.001
  • Voors, M. J., Nillesen, E. E. M., Verwimp, P., Bulte, E. H., Lensink, R., & Soest, D. P. V. (2012). Violent conflict and behavior: A field experiment in Burundi. American Economic Review, 102(2), 941–964. doi:10.1257/aer.102.2.941
  • Xu, G., & Yano, G. (2017). How does anti-corruption affect corporate innovation? Evidence from recent anti-corruption efforts in China. Journal of Comparative Economics, 45(3), 498–519. doi:10.1016/j.jce.2016.10.001