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Steven Grenadier

Steven Grenadier
Professor, Finance
StevenGrenadier
William F. Sharpe Professor of Financial Economics
John S. Osterweis Faculty Fellow for 2013-14
Academic Area: 
Finance

Research Statement

Steven Grenadier’s research focuses on applying option pricing theory to real investment analysis. Topics have included industry boom and bust cycles, real option signaling games, continuous-time stochastic games, valuing complex lease contracts, and commercial real estate equilibrium models.

Bio

Steven Grenadier is the William F. Sharpe Professor of Financial Economics at Stanford Graduate School of Business. He currently chairs the finance group at Stanford. He received his BS from the University of California at Berkeley and his PhD from Harvard University. His research focuses on applying option pricing theory to real investment analysis. Topics have included industry boom and bust cycles, real option signaling games, continuous-time stochastic games, valuing complex lease contracts, and commercial real estate equilibrium models. He is an Editor of the Journal of Real Estate Finance and Economics.  He teaches courses in quantitative investment analysis. He is a consulting Financial Economist with Financial Engines, and a former director of Nicholas Applegate Institutional Funds, AQR Funds, and E*Trade Funds.

Academic Degrees

  • PhD, Harvard University, 1992
  • BS, University of California, Berkeley, 1987

Academic Appointments

  • At Stanford since 1992

Awards and Honors

  • Dissertation award from the American Real Estate and Urban Economics Association, 1992

Publications

Journal Articles

Investment Busts, Reputation, and the Temptation to Blend in with the Crowd
Steven Grenadier, Andrey Malenko, Ilya A. Strebulaev. Journal of Financial Economics. January 2014, Vol. 111, Issue 1, Pages 137-157.
Real Options Signaling Games with Applications to Corporate Finance
Steven Grenadier, Andrey Malenko. Review of Financial Studies. 2011, Vol. 24 , Issue 12, Pages 3993-4036.
Stock and Bond Returns with Moody Investors
Geert Bekaert, Eric Engstrom, Steven Grenadier. Journal of Empirical Finance. December 2010, Vol. 17, Issue 5, Pages 867-894.
A Bayesian Approach to Real Options: The Case of Distinguishing Between Temporary and Permanent Shocks
Steven Grenadier, Andrey Malenko. Journal of Finance. 2010, Vol. 65, Issue 5, Pages 1949-1986.
Investment Under Uncertainty and Time-Inconsistent Preferences
Steven Grenadier, Neng Wang. Journal of Financial Economics. April 2007, Vol. 84, Issue 1, Pages 2-39.
Investment Timing, Agency and Information
Steven Grenadier, Neng Wang. Journal of Financial Economics. March 2005, Vol. 75, Issue 3, Pages 493–533.
An Equilibrium Analysis of Real Estate Leases
Steven Grenadier. Journal of Business. 2005, Vol. 78, Issue 4, Pages 1173-1214.
Option Exercise Games: An Application to the Equilibrium Investment Strategies of Firms
Steven Grenadier. Review of Financial Studies. 2002, Vol. 15, Issue 3, Pages 691-721.
Option Exercise Games: The Intersection of Real Options and Game Theory
Steven Grenadier. Journal of Applied Corporate Finance. 2000, Vol. 13, Issue 2, Pages 99-107.
Information Revelation Through Option Exercise
Steven Grenadier. Review of Financial Studies. 1999, Vol. 12, Issue 1, Pages 95-129.
Investment in Technological Innovations: An Option Pricing Approach (with Allen Weiss)
Steven Grenadier. Journal of Finanical Economics. 1997, Vol. 44, Issue 3, Pages 397-416.
The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets
Steven Grenadier. Journal of Finance. 1996, Vol. 51, Issue 5, Pages 1653–1679.

Books

Game Choices: The Intersection of Real Options and Game Theory
Steven Grenadier London: Risk Books, 2000.

Book Chapters

Equilibrium with Time-to-Build: A Real-Options Approach
Steven Grenadier. Project Flexibility, Agency, and Competition: New Developments in the Theory and Applications of Real Options. Oxford University Press, 2000, Pages 275-296.

Working Papers

Timing Decisions in Organizations: Communication and Authority in a Dynamic Environment
Steven Grenadier, Andrey Malenko, Nadya Malenko2014

Courses Taught

Degree Courses

2014-15

FINANCE 341: Modeling for Investment Management

This course will combine practical and up-to-date investment theory with modeling applications. Understanding beautiful theory, without the ability to apply it, is essentially useless. Conversely, creating state-of-the-art spreadsheets that apply...

2013-14

FINANCE 341: Modeling for Investment Management

This course will combine practical and up-to-date investment theory with modeling applications. Understanding beautiful theory, without the ability to apply it, is essentially useless. Conversely, creating state-of-the-art spreadsheets that apply...

2012-13

FINANCE 341: Modeling for Investment Management

This course will combine practical and up-to-date investment theory with modeling applications. Understanding beautiful theory, without the ability to apply it, is essentially useless. Conversely, creating state-of-the-art spreadsheets that apply...

2011-12

FINANCE 341: Modeling for Investment Management

This course will combine practical and up-to-date investment theory with modeling applications. Understanding beautiful theory, without the ability to apply it, is essentially useless. Conversely, creating state-of-the-art spreadsheets that apply...

GSBGEN 202: Critical Analytical Thinking

The Critical Analytical Thinking (CAT) course provides a setting for students to further develop and hone the skills needed to analyze complex issues and make forceful and well-grounded arguments. In 16-18 person sections, you will analyze,...

2010-11

FINANCE 341: Modeling for Investment Management

This course will combine practical and up-to-date investment theory with modeling applications. Understanding beautiful theory, without the ability to apply it, is essentially useless. Conversely, creating state-of-the-art spreadsheets that apply...

GSBGEN 202: Critical Analytical Thinking

Critical Analytical Thinking (CAT) will address issues that transcend any single discipline or function of management. In 14-16 person sections, you will analyze, write about, and debate fundamental issues, questions, and phenomena that arise in...

Stanford University Affiliations

Greater Stanford University

  • Affiliation commas wrapper

    Stanford University Faculty Senate, 2011 -