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The Effect of Long-termism on Firm Value£ºEvidence from a Natural Experiment

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The Effect of Long-termism on Firm Value£ºEvidence from a Natural Experiment

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We provide causal evidence that long-termism positively impacts firm value.Leveraging the SEC¡¯s 2016 Tick Size Pilot Program as an exogenous shock that promotes long-termism, we find that firms exp-osed to the program experience an increase in valuation.

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