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Arthur G. Korteweg

Associate Professor, Finance
ArthurG.Korteweg
Associate Professor of Finance
Academic Area: 
Finance

Research Statement

Arthur's research is in the areas of corporate capital structure and private equity, as well as alternative assets more generally. In his capital structure work, Arthur uses insights from dynamic models to quantify the size and relative importance of economic frictions in explaining firms’ capital structure decisions. In recent work he has estimated the magnitude of the benefits and costs of leverage for publicly traded corporations, their target capital structures, and the thresholds at which firms decide to refinance. He is currently working on methods for comparing and testing dynamic models of the firm. Arthur’s research in private equity focuses on the endogenous trading of illiquid assets. In particular, he has estimated the risk and return trade-off to investments in Venture Capital funds and entrepreneurial firms, the evolution of loan-to-value distributions and home price indices of residential real estate during the recent subprime crisis, and investors’ optimal portfolio allocations to art. Current work is on quantifying the degree of persistence in Venture Capital and Leveraged Buyout funds. In other work, Arthur has considered pricing and investment decisions when investors do not know the true parameters and models but instead have to learn about them over time. For example, he has shown that parameter and model uncertainty matter for corporate bond prices, as well as for investor portfolio decisions when investors learn about stock return predictability over time.

Research Interests

  • Capital structure
  • Venture capital
  • Private equity
  • Alternative assets
  • Entrepreneurship

Bio

Arthur Korteweg is an Associate Professor of Finance at the Stanford University Graduate School of Business. After graduating cum laude with a Master’s degree in Economics from Tilburg University in the Netherlands, Arthur went on to get his MBA and PhD from the University of Chicago Booth School of Business, where he was also a lecturer from 2005 to 2007. He joined Stanford in 2007. 

Arthur teaches corporate finance and entrepreneurial finance in the MBA program.

Academic Degrees

  • PhD in Finance, University of Chicago Graduate School of Business, 2007
  • MBA, University of Chicago Graduate School of Business, 2007
  • MA in Economics, Tilburg University, 2001

Academic Appointments

  • At Stanford since 2007
  • Lecturer, University of Chicago Graduate School of Business, 2005-2007

Awards and Honors

  • Favorite Professor, John S Knight Journalism Fellowships, 2013
  • Brattle Group Prize for Distinguished Paper, Journal of Finance, 2011
  • Younger Family Faculty Scholar, 2011
  • Trust Faculty Scholar, Stanford GSB, 2010
  • TA distinction in Executive MBA program, University of Chicago GSB, 2006

Courses Taught

Degree Courses

2013-14

The focus of this course is to apply the fundamental ideas and tools of corporate finance to real-world corporate decisions. This course (in either its basic or accelerated format) is designed to be the second course in a standard finance...

This is a course about the financial decision-making process for start-up firms. The course takes a two-pronged approach: First, we develop tools and concepts of corporate finance related to modeling, valuation, control, and investment decisions...

2012-13

The focus of this course is to apply the fundamental ideas and tools of corporate finance to real-world corporate decisions. This course (in either its basic or accelerated format) is designed to be the second course in a standard finance...

This course is focused on the financial decision-making process for start-up firms. The course takes a two-pronged approach: First, we analyze principles of corporate finance, valuation, control of firms, and investment decisions with an eye...

Stanford Case Studies

Illuminate Ventures: Raising a Venture Fund | E473
Shai Bernstein, Arthur Korteweg, Sara Rosenthal2013

Stanford University Affiliations

Stanford GSB

  • Affiliation commas wrapper

    Faculty, Center for Entrepreneurial Studies

Service to the Profession

Member

  • American Finance Association
  • American Economic Association