Finance Seminar with Elena Simintzi, The University of North Carolina & Kenan-Flagler Business School

The Department of Finance is proud to announce the upcoming seminar with Elena Simintzi, The University of North Carolina & Kenan-Flagler Business School.

Elena Simintzi will present: Big Data and the Rise of Large Firms: A Labor Market Channel

Abstract:
This paper explores the impact of web-based platforms on the redistribution of labor towards large firms. In particular, we analyze the impact of disclosing employee productivity information through GitHub, the world's largest software management platform. GitHub tracks and publicly displays real-time individual contributions made to the platform. In 2016, a policy change enabled GitHub users to display their total contributions more accurately on their profiles. Following this update, employees with 1 standard deviation higher GitHub contributions-based productivity witnessed a 4.7\% increase in job transitions to large firms, predominantly at the expense of smaller companies. While productive individuals left small firms for senior roles in larger companies, the latter retained them through internal promotions. The departure of productive workers led to an overall reduction in employment growth, productivity, and firm value for small firms with more treated employees. Our findings highlight the role of platform-driven information in fueling the significance of large firms in recent years.

Location:
Solbjerg Plads 3
2000 Frederiksberg
Room: SPs03