June 2014 JUANITA GONZALEZ-URIBE London School of Economics Phone: +569 746 954 89 Houghton Street, OLD M3. 111 [email protected] London WC2 A2A, UK http://www.lse.ac.uk/finance/people/profiles/juanitaGonzalezUribe.aspx Education Ph. D. Economics and Finance , Columbia University GSB M. Phil., Columbia University GSB M.Sc. in Economics, Universidad de los Andes B.A., Mathematics, Universidad de los Andes B.A., Cum Laude, Economics, Universidad de los Andes 2013 2009 2006 2006 2004 Research Experience Assistant Professor in Finance, London School of Economics Research Assistant Columbia University GSB Specialized Professional, Banco de la Republica Colombia Research Assistant, Department of Economics, Universidad de los Andes Junior Researcher, Banco de la Republica Colombia Research Assistant, Department of Economics, Universidad de los Andes 2013-present 2009-2012 2006-2007 2005-2006 2003-2004 2000-2003 Fields Empirical Corporate Finance, Entrepreneurial Finance, Private Equity and Innovation Teaching Corporate Finance 2013-present Conferences and Seminar Presentations Summer Conference University of Washington, EFA, NBER Innovation, Gerzensee, LBS Conference Private Equity, Banco de la Republica Colombia, Oxford Said Business School, Internal seminar LSE, Frontiers of Finance ConferenceWarwick University 2014 Copenhagen Business School, Duke University, University of North Carolina at Chapel Hill, University of Hawaii at Manoa, Harvard Business School, Wharton, London School of Economics, London Business School, Foster Business School, Federal Reserve Board, Universidad de Chile 9th Annual Corporate Finance Conference Washington University in St. Louis Ph. D. Poster Session, New York FED/NYU Stern Conference on the Role of Private Equity in the U.S Economy, 5th Annual Searle Center Conference on Innovation and Entrepreneurship. USPTO-Ewing Marion Kauffman Foundation-Northwestern University, Columbia GSB Finance, Universidad de los Andes Business, Universidad de los Andes Economics, Universidad Católica de Chile Business, Universidad Católica de Chile Economics, Columbia Ph D. Finance 2013 2012 Publications “On the Benefits and Costs of Job Reallocation in Colombia”, Revista Desarrollo y Sociedad No.57, Centro de Estudios sobre Desarrollo Económico (CEDE). This article measures gross creation, destruction, and reallocation of jobs inside the Colombian Manufacturing Industry between 1982 and 1998. We characterize job reallocation as a source of adjustment both in productivity dynamics and on workers welfare. Consistent with previous research, we find evidence of productivity enhancing factor reallocation. However, we also find evidence of significant welfare losses for displaced workers. Our most novel results are the negative effect of displacement, sector change and unemployment duration on post-job-change wages. The event of sector change seems to spur considerable sector specific skills losses which offset any potential positive effects of sector change, such as the purge of the displacement stigma. In brief, our results show that on balance, depreciation and stigma effects dominate productive search outcomes in the determination of post-unemployment wages. We conclude that at least a fraction of job reallocation is socially inefficient. “Liquidity Adjusted Value-at-Risk in Colombia” with Daniel Osorio, Financial Stability Report, Central Bank of Colombia, March 2007 “A Liquidity-Risk Measurement, Monitoring and Regulation Proposal for Colombia” with Daniel Osorio, Financial Stability Report, Central Bank of Colombia, September 2006 Research Papers “Venture Capital and the Diffusion of Knowledge” I estimate the impact of venture capital (VC) on knowledge diffusion by comparing patent citations before and after companies secure VC. I find that a patent’s citations increase following VC financing, particularly those made by other companies also financed by the same VC investor. Instrumental variables estimates exploiting variation in the assets of pension funds that allocate capital to VC suggest a causal interpretation of the findings. I argue that by certifying commercial value, VC facilitates knowledge diffusion and thus generates an externality on innovation. The findings help explain why VC is more effective in stimulating innovation than corporate R&D. “CEO contract horizon and innovation” joint with Moqi Xu Recent theoretical literature shows that commitment to long-term contracts is essential to motivate innovation in firms. Long contract horizons reduce managerial short-termism and increase investments in longer-term projects. An unexplored empirical prediction of this literature is that innovation exhibits a cyclical pattern reflecting changes in managers’ incentives along the life-span of the contract. When contracts start, long horizons set incentives to explore and invest in untested projects. As contracts near expiration, however, managers shift focus into exploiting existing innovation. We test this prediction by exploring the relation between CEO contract horizon and innovation. Based on a sample of 1,430 handcollected employment contracts, we find evidence consistent with the prediction: CEOs with more time to contract expiration produce higher quality and more general innovations, as measured by standard patent-based metrics such as citation count and generality. Consistent with long contract horizons allowing exploratory research, we find that the increase in innovation quality is accompanied by greater variety of patents both in terms of technology and citations, as well as larger investments in R&D. Our findings suggest that recent proposals to reduce entrenchment with legal upper limits on contract length, for example in the UK or Switzerland, can have negative real consequences. Work in progress “Information, Credit and Investment” joint with Daniel Osorio This paper explores a natural experiment to study the effect of public negative information about potential borrowers on access to credit and investment decisions. The experiment is made possible by the Colombian government’s decision to erase public information on past delinquent borrowers in 2008. This change in the public credit registry is used to identify the effect on access to credit using a difference-in-differences methodology that compares potential borrowers whose negative information was erased from the public registry, with potential borrowers who were not affected by the law. For the sample of borrowers that are firms, we estimate the elasticity of investment to new credit. “Business Accelerators: evidence from Start-Up Chile” joint with Michael Leatherbee This article explores whether business accelerators affect the subsequent performance of start-ups by studying the case of Start-Up Chile (SUP), an accelerator promoted by the Chilean government since late 2010. In SUP, selected participants receive a grant for U$40,000 (equity free), a one year work visa (i.e., the programme is open to Chilean and non-Chilean teams), and a space to work and interact with other teams for six months. On average, 800 businesses apply every four months for a total of 100 coveted spots in the program. All applications are evaluated by external judges, and the 100 companies with the best scores are selected by SUP. Using proprietary data on the characteristics of applicants and the ranking of external judges, we estimate the causal effect of SUP, by exploiting the discrete jump in the probability of selection around the 100-th company. Based on extensive web searches and surveys, we find little evidence that participation in SUP affects company performance.