The next ISEG Research Seminar will take place on the 6th November. It will feature Ana Martins (ISEG), who will present the paper entitled "Sailing through Troubled Waters: Evidence from the APOIAR Program" (in collaboration with Fernando Ponzobbon and João Pereira dos Santos).
The seminar will be held from 13.00 to 14.00 in Lecture Theatre 4 (Quelhas, 4th Floor).
Free admission.
Abstract:
We exploit the assignment mechanism of the APOIAR Program, a generous initiative designed to support firms during the COVID-19 pandemic, to provide causal evidence on the impact of grants on firm performance in times of crisis. Using a regression discontinuity design and drawing on a combination of administrative datasets, we find that eligible firms experienced a short-term increase in profitability in 2021, though these effects did not persist into 2022. No significant differences were detected in revenue growth or cost reduction, indicating that the profitability increase stemmed from the subsidy. Firms allocated part of the support to rental payments and office supplies, including modest investments in digitalization. We observe no effects on firm survival or employment levels.