Finance Seminar（2021-06)

Topic: The Political Economy of Anti-Bribery Enforcement

Speaker: Lauren Cohen, Harvard Business Schooland NBER

Time: Wednesday, 17 March,08:00–09:30AM Beijing Time

Location: Microsoft Teams Online Conference Room

Abstract:

In this paper, we examine the influence of political motives on regulatory enforcement against bribes. Using case-level data from the Securities and Exchange Commission and Department of Justice, we show that in the year leading up to U.S. Senate elections, the probability of FCPA enforcement actions increases significantly for foreign firms, spiking 23% (t=3.04), but not U.S. firms. We use exogenous variation in the timing and geographic location of U.S. Congressional elections to establish identification of our effects at the fine geographic level. We see parallel trends leading up, and following, elections, and placebo tests in time – and for other investigations, show no such patterns. Moreover, the actions appear to be related to measures of economic interest and political interest at these local levels.

Introduction:

Lauren Cohen is the L.E. Simmons Professor in the Finance & Entrepreneurial Management Units at Harvard Business School and a Research Associate at the National Bureau of Economic Research. He is an Editor of the Review of Financial Studies, along with being a past Editor of Management Science. Professor Cohen teaches in the MBA, Executive Education, and Doctoral Programs at the Harvard Business School. He is a Designer and Chair of the HarvardX Fintech course, along with the HBS Executive Education course Building a Legacy: Family Office Wealth Management.

Dr. Cohen frequently advises government organizations in the US and abroad, and his research has been published in the top journals in Finance and Economics. It is also frequently profiled in various media outlets including The Wall Street Journal, The New York Times, and The Washington Post. Dr. Cohen received a PhD in finance and an MBA from the University of Chicago in 2005. He earned dual undergraduate degrees from the University of Pennsylvania - a BSE from the Wharton School and a BA in economics from the College of Arts & Sciences in 2001.

http://laurenhcohen.com/

Your participation is warmly welcomed!