Research Areas

Areas: Corporate Finance; Entrepreneurial Finance, Venture Capital, and Private Equity; Financial Intermediation; Household Finance; Climate and ESG

• Are lemons sold first? Dynamic signaling in the mortgage market, with Kris Gerardi and Barney Hartman-Glaser, Journal of Financial Economics 132 (2019) 1-25. [Article]
• Firm age, investment opportunities, and job creation, with Song Ma and David Robinson, Journal of Finance 72 (2017) 999-1038. [Article]
• Loan originations and defaults in the mortgage crisis: The role of the middle class, with Antoinette Schoar and Felipe Severino, Review of Financial Studies 29 (2016) 1635-1670. [Article]

Areas: Asset Pricing; Macro Finance; Climate and ESG

• Socially responsible investing in good and bad times, with Di (Andrew) Wu and Amir Yaron, Review of Financial Studies 35 (2022) 2067-2099. [Article]
• Risk preferences and the macroeconomic announcement premium, with Hengjie Ai, Econometrica 86 (2018) 1383-1430. [Article]
• Risks for the long run: A potential resolution of asset pricing puzzles, with Amir Yaron, Journal of Finance 59 (2004) 1481-1509. [Article]

Areas: Corporate Finance

• How does hedge fund activism reshape corporate innovation?, with Wei Jiang, Song Ma, and Xuan Tian, Journal of Financial Economics 130 (2018) 237-264. [Article]
• Hedge fund activism, corporate governance, and firm performance, with Wei Jiang, Frank Partnoy, and Randall Thomas, Journal of Finance 63 (2008) 1729-1775. [Article]
• Competing theories of financial anomalies, with J.B. Heaton, Review of Financial Studies 15 (2002) 575–606. [Article]

Areas: Asset Pricing

• Consumption-Based Asset Pricing, Part 1: Classic Theory and Tests, Measurement Issues, and Limited Participation, with Robert Litzenberger, and Tingyan Jia, Annual Review of Financial Economics 7 (2015) 35-83. [Article]
• An intertemporal asset pricing model with stochastic consumption and investment opportunities, Journal of Financial Economics 7 (1979) 265-296. [Article]
• Prices of state-contingent claims implicit in option prices, with Robert Litzenberger, Journal of Business 51 (1978) 621-651. [Article]

Areas: Asset Pricing, Macro Finance

• Common shocks in stocks and bonds, with Hao Pang, Journal of Financial Economics 142 (2021) 880-904. [Article]
• Stock returns over the FOMC cycle, with Annette Vissing-Jorgensen and Adair Morse, Journal of Finance 74 (2019) 2201-2248. [Article]
• Expected returns in Treasury bonds, with Pavol Povala, Review of Financial Studies 28 (2015) 2859-2901. [Article]

Areas: Asset Pricing, Macro Finance, Household Finance

• Structuring mortgages to macroeconomic stability, with John Campbell and Joao Cocco, Journal of Finance 76 (2021) 2525-2576. [Article]
• Borrow now, pay even later: A quantitative analysis of student debt payment plans, with Michael Boutros and Francisco Gomes, Working Paper. [Article]
• Demand elasticities nominal rigidities and asset prices, Working Paper. [Article]

Areas: Behavioral Finance; Financial Intermediation; Corporate Finance

• Transparency and talent allocation in money management, with Günter Strobl, Review of Financial Studies 33 (2020) 3889-3924. [Article]
• Overconfidence, compensation contracts, and capital budgeting, with J. B. Heaton and Terrance Odean, Journal of Finance 66 (2011) 1735-1777. [Article]
• Learning to be overconfident, with Terrance Odean, Review of Financial Studies 14 (2001) 1-27. [Article]

Areas: Corporate Finance; Behavioral Finance; Climate and ESG

• Presidential address: Corporate finance and reality, Journal of Finance 77 (2022) 1975-2049. [Article]
• The economic implications of corporate financial reporting, with Cam Harvey and Shiva Rajgopal, Journal of Accounting and Economics 40 (2005) 3-73. [Article]
• How big are the tax benefits of debt?, Journal of Finance 55 (2000) 1901-1941. [Article]

Areas: Asset Pricing; Corporate Finance; Entrepreneurial Finance, Venture Capital, and Private Equity; Behavioral Finance; FinTech

• Momentum turning points, with Christian Goulding and Michele Mazzoleni, Journal of Financial Economics 149 (2023) 378-406. [Article]
• False (and missed) discoveries in financial economics, with Yan Liu, Journal of Finance 75 (2020) 2503-2553. [Article]
• Presidential address: The scientific outlook in financial economics, Journal of Finance 72 (2017) 1399-1440. [Article]

Areas: Asset Pricing; Macro Finance

• Empirical characteristics of dynamic trading strategies: The case of hedge funds, with William Fung, Review of Financial Studies 10 (1997),275-302. [Article]
• Margin regulation and stock market volatility, with Merton H. Miller, Journal of Finance 45 (1990) 3-29. [Article]
• Estimation of response probabilities from augmented retrospective observations, with Charles Manski and Daniel McFadden, Journal of the American Statistical Association 80 (1985) 651-662. [Article]

Areas: Asset Pricing; Macro Finance; Financial Intermediation; Behavioral Finance

• Commonality in credit spread changes: Dealer inventory and intermediary distress, with Zhiguo He and Zhaogang Song, Review of Financial Studies 35 (2022) 4630-4673. [Article]
• Rational sentiment and financial frictions, with Fernando Mendo, Working Paper. [Article]
• The risk of risk-sharing: Diversification and boom-bust cycles, Working Paper. [Article]

Areas: Corporate Finance; Entrepreneurial Finance, Venture Capital, and Private Equity; Financial Intermediation; Household Finance; Behavioral Finance; FinTech

• On the rise of FinTechs: Credit scoring using digital footprints, with Tobias Berg, Valentin Burg, and Ana Vanjak, Review of Financial Studies 33 (2020) 2845-2897. [Article]
• Understanding bank runs: The importance of depositor-bank relationships and networks, with Rajkamal Iyer, American Economic Review 102 (2012) 1414-45. [Article]
• Venture capital and the professionalization of start-up firms: Empirical evidence, with Thomas Hellmann, Journal of Finance 57 (2002) 169-197. [Article]

Areas: Macro Finance; Corporate Finance; Financial Intermediation; Household Finance; Climate and ESG

• Financing durable assets, American Economic Review 109 (2019) 664-701. [Article]
• Collateral and capital structure, with S. Viswanathan, Journal of Financial Economics 109 (2013) 466-492. [Article]
• Capital reallocation and liquidity, with Andrea L. Eisfeldt, Journal of Monetary Economics 53 (2006) 369-399. [Article]

Areas: Entrepreneurial Finance, Venture Capital, and Private Equity; Household Finance; Climate and ESG; Corporate Finance

• Financial literacy in the age of green investment, with Anders Anderson, Review of Finance 26 (2022) 1551-1584. [Article]
• Firm age, investment opportunities, and job creation, with Song Ma and David Robinson, Journal of Finance 72 (2017) 999-1038. [Article]
• Optimism and economic choice, with Manju Puri, Journal of Financial Economics 86 (2007) 71-99. [Article]

Areas: Corporate Finance; Household Finance

• Screening using a menu of contracts: a structural model for lending markets, Working Paper. [Article]
• Screening using a menu of contracts in imperfectly competitive and adversely selected markets, Working Paper. [Article]

Areas: Market Structure and Design; Financial Intermediation; Corporate Finance

• Adverse selection and endogenous information, Working Paper. [Article]
• Screening costly information, Working Paper. [Article]

Areas: Corporate Finance; Financial Intermediation; Market Structure and Design

• Financial intermediary capital, with Adriano Rampini, Review of Economic Studies 86 (2019) 413-455. [Article]
• Collateral and capital structure, with Adriano Rampini, Journal of Financial Economics 109 (2013) 466-492. [Article]
• Strategic trading when agents forecast the forecast of others, with Douglas Foster, Journal of Finance 51 (1996) 1437-1478. [Article]

Areas: Corporate Finance; Entrepreneurial Finance, Venture Capital, and Private Equity

• The slow diffusion of earnings inequality, with Isaac Sorkin. Journal of Labor Economics (2023) forthcoming. [Article]
• Entrepreneurial spillovers across coworkers, Working Paper. [Article]
• Pay, productivity and management, with Nicholas Bloom, Scott Ohlmacher, and Cristina Tello-Trillo, Working Paper. [Article]