UNIVERSITY OF PIRAEUS
The Department of Banking and Financial Management announces the upcoming seminar with
Prof. François Derrien, HEC Paris
“Labor Force Demographics and Corporate Innovation”
Seminar Organizers: Assist. Prof. Michail Anthropelos, Prof. George Skiadopoulos
Abstract: Firms in younger labor markets produce more innovation. We establish this using the local labor force projected based on historical births in each local labor market in the United States. Successive analyses of labor markets, firms, and inventors allow us to separate out effects such as firm and inventor life cycles. Corporate innovation activities reflect the innovative characteristics of younger labor forces. Additionally, firms in younger labor markets have higher valuations. Younger people as a group – inventors interacting with non-inventors – produce more innovation for firms through the labor supply channel rather than through a financing supply or consumer demand channel.
François Derrien is a Professor of Finance at HEC Paris. His research is in corporate finance, with a focus on how the environment of firms affects their financing and investment decisions, and ultimately, their performance and value. In that vein, he has studied the impact of security analysts on corporate policies, as well as the effect of the horizon of investors on firms’ decisions. More recently, his work has focused on understanding how local labor markets affect firms. In particular, he studies the impact of local demographics on the ability of firms to innovate and to grow. His work has appeared in top finance journals like the Journal of Finance, the Review of Financial Studies, and the Journal of Financial Economics. More information can be found on his personal website at https://francoisderrien.com.