Jean-Marie A. Meier

      Finance PhD student
      London Business School
      Sussex Place
      London NW1 4SA
      United Kingdom

      Mobile: +44 (0) 74 1468 3125

      Interests: Corporate Finance, International Finance, Innovation, Political Economy.

      Curriculum Vitae

      I am on the academic job market and available for interviews at the ASSA/AFA meeting.

Summary: Regulatory integration of international capital markets causes large increases in external financing, investment, employment and firm size.

Abstract: I examine the real and financial effects of regulatory integration of international capital markets using a unique policy plan proposed by the European Union. This policy plan creates a common market for financial services and capital, through, e.g., passporting rights. For identification, I exploit the interaction of two staggered sets of events—regulations are passed at the European level but implemented individually by each country. Over the course of its implementation, regulatory integration more than doubles external financing for publicly listed firms and causes large increases in investment, employment, and firm size. The effects are stronger for firms that are more dependent on external finance. These results highlight the importance of regulatory integration of international capital markets for firms’ financing decisions and real outcomes.

Working Papers

with Henri Servaes; R&R, Review of Financial Studies.

AFA, Christmas Meeting of German Economists Abroad, EFA, European Center for Corporate Control Studies Conference, SFI Corporate Finance Workshop, TADC.

Summary: Fire sales are not as bad as widely thought since buyers gain substantially from them.

Abstract: Firms that buy distressed assets in fire sales earn excess returns that are two percentage points higher than in regular acquisitions. Returns are higher when the seller’s industry has fewer firms, is in poor financial health, and has less redeployable assets. This suggests that buyers can take advantage of fire sales by distressed companies needing to sell assets while restructuring, and that the overall welfare losses associated with fire sales are smaller than previously thought. These results have implications for policy makers evaluating the merits of bailouts as a tool to prevent potential welfare losses associated with fire sales.

"The Impact of Institutions on Innovation"

with Alexander Donges and Rui C. Silva.

Conferences: CAGE/HEDG, ASSA (scheduled), German Economic Association Annual Meeting, DIIE Research Symposium, TADC.

Summary: Inclusive institutions are a first-order determinant of innovation.

Abstract: This paper studies the impact of institutional reforms on innovation. We use the timing and geography of the French occupation of different regions of Germany after the French Revolution of 1789 as an exogenous shock to the institutions of those regions. Combining novel county-level data on Imperial Germany with data on patents per capita, we show that counties whose institutions are more inclusive as a result of the French occupation become more innovative. The institutional reforms that are associated with comparing a county with no occupation to a county with the longest occupation, result in a 129% increase in the number of patents per capita. This result is robust to alternative explanations, such as reverse causality, human capital and financial development. Our findings point to institutions as a first order determinant of innovation and highlight the role of innovation as a key mechanism through which institutions may lead to economic growth.