Finance Seminar（2021-05)

Topic: Cloud Computing and Industry Dynamics in China

Speaker: Yao Lu, Tsinghua University

Time: Wednesday, 10 March,15:30-17:00 Beijing Time

Location: Room 217, Guanghua Building 2

Abstract:

We study the impacts of cloud computing on industry dynamics in China. Using a novel and comprehensive dataset of all firm registrations in China which tracks both entry and exit of firms, we find that cloud computing has led to increases in firm entry and exit. Our findings suggest that the introduction of cloud computing lowers the entry and exit costs of entrepreneurs. We also find that the number of existing firms in the affected industries by cloud computing has a great increase after the cloud computing boom. Moreover, the adjustment of firm entry and exit by cloud computing has led to the changes in the financing decisions of equity investors, especially for venture capitalists, where financing funds have shifted towards to the web-based industries. Besides, the web-based industries affected by cloud computing becomes more competitive and younger. Overall, the results suggest that cloud computing can accelerate industry dynamics in China.

Introduction:

Dr. Yao LU is Professor in Finance in the School of Economics and Management at Tsinghua University. She received her Ph.D. in Business Economics from University of Michigan-Ann Arbor in 2009, Masters in Statistics with Financial Engineering Concentration from Stern School of Business at New York University, and BA in Economics from the Central University of Finance and Economics.

Her research areas include Corporate Finance, Labor and Finance, Mergers and Acquisitions, Corporate Governance, Law and Finance, Financial Market Development, Corporate Governance Reforms and International Financial Markets. Dr. Lu teaches Corporate Finance, Mergers and Acquisitions, Corporate Governance and Finance Seminar in the School of Economics and Management at Tsinghua University.

She currently serves as the Associate Editor of Pacific-Basin Finance Journal.

http://www.sem.tsinghua.edu.cn/en/luyao

Your participation is warmly welcomed!