FAIRR Research Seminar with Thomas Lambert (RSM Rotterdam)

Place : Lille Campus
Time : 10:30AM - 12:00PM 
Speaker : Thomas Lambert (RSM Rotterdam) 

Abstract : How do firms manage liquidity in populist-led countries? Using close elections involving populists, we test two hypotheses: populism prompts firms to either (i) increase cash holdings due to political risk and economic nationalism, or (ii) reduce cash reserves due to business friendliness. We find contrasting outcomes based on the variant of populism: right-wing populism leads firms, particularly those with valuable investment opportunities and volatile cash flows, to reduce cash holdings, while left-wing populism drives firms to expand cash reserves. We also examine the consequences for corporate investment and employment. Our findings provide new insights into the implications of populism for firm-level outcomes and corporate finance.

Biography : Thomas Lambert is Associate Professor of Finance and Academic Director of the MSc in Finance and Investments at the Rotterdam School of Management, Erasmus University. His research interests are in Corporate Finance, Entrepreneurship, FinTech, and Political Economy. His work has been presented at major conferences around the world, including the NBER Summer Institute, AEA, EFA, SFS Cavalcade and FIRS meetings, and published in leading academic journals, including the Economic Journal and Management Science. He received several grants, including a Veni grant from the Dutch Research Council (NWO). Thomas holds a PhD degree in Finance from the Université catholique de Louvain, an MA in Economics from the Université catholique de Louvain and has been a visiting scholar at the London Business School and HEC Paris. He was also awarded the 2016 Banque de France Foundation Prize for the best thesis in Monetary and Financial Economics and the 2020 ERIM Prize for Outstanding Performance by a Young Researcher.