Arthur G. Korteweg

Associate Professor of Finance

Phone: (650) 498-6993


Personal Homepage:

CV: KortewegCV

Academic Areas: Finance

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.

A common feature to Arthur's work is the development of novel econometric methods that have broad applicability in finance and economics, and to apply these methods to important problems in financial economics.

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


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

Ph.D., Finance, University of Chicago Graduate School of Business, 2007

MBA, University of Chicago Graduate School of Business, 2007

MA, Economics, Tilburg University, 2001

Professional Experience

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

Selected Publications

Working Papers

  • Risk-adjusting the Returns to Venture Capital
  • An Empirical (S,s) Model of Dynamic Capital Structure
  • Structural Models of Capital Structure: A Framework for Model Evaluation and Testing
  • Estimating Loan-to-Value and Foreclosure Behavior
  • Does it Pay to Invest in Art? A Selection-corrected Returns Perspective

Awards and Honors

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

Courses Taught


  • Member: American Finance Association, American Economic Association