Working Papers

Do Minimum Wage Increases Cause Financial Stress to Small Businesses? Evidence from 15 Million Establishments (with Sudheer Chava and Alex Oettl)
(Coming Soon)

-- Research Workshop on Expanding Opportunities Through Economic Development and Workforce Development Initiatives 2018 (Scheduled)

The Dark Side of Technological Progress? Impact of E-Commerce on Employees at Brick-and-Mortar Retailers (with Sudheer Chava, Alex Oettl, and Linghang Zeng)
(Coming Soon)

-- Midwest Finance Association 2018 (Invited Session), ABFER 2018 (Scheduled),  CICF 2018 (Scheduled)

Health Care Costs, Worker Mobility, and Firm Leverage: Evidence from State Health Mandates (with S Lakshmi Naaraayanan)

(Under Revision, Coming Soon)

-- SFS Cavalcade-Asia Pacific 2017 ,  AFA PhD Poster Session 2018, Midwest Finance Association 2018, Asian Finance Association 2018 (Scheduled)

How financial constraints affect incumbent supplier firms choice of extending more trade credit vis-`a-vis offering price discounts when facing an increased threat of entry by competitors? Threatened incumbent supplier firms may extend more trade credit, ex-ante, to defend their market power, or they may reduce prices or both. I test these predictions by exploiting plausibly exogenous, staggered removals of product level entry barriers for Indian manufacturing firms, and find that an average incumbent supplier firm extends 11% more trade credit and lowers price by 8.6% with an increased threat of entry. Interestingly, firms with deeper pockets offer longer terms on trade credit, while constrained firms rely on price discounts. Also, I find that financially constrained customers to take credit offers while unconstrained customers take price discounts. I further confirm my results using various proxies of financial constraints and policy changes in the country that improved access to finance. Thus emphasize the role of trade credit as a strategic tool to defend market power, when firms face financial constraints.
-- ABFER 2016, Pacific-Basin Finance Journal Best Paper Award  at AsFA 2016, FIRS 2017, SFS Cavalcade 2017, CFEA 2017, Emerging Market Finance 2017 


Do Debt Contract Enforcement Costs Affect Financing and Asset Structure? (with Radhakrishnan Gopalan and Abhiroop Mukherjee)

--  The Review of Financial Studies, 2016, 29(10): 2774-2813

-- The Journal of Financial Economics, 2017,  124(1): 195-221