Steven Grenadier

William F. Sharpe Professor of Financial Economics

John S. Osterweis Faculty Fellow for 2013-14

Phone: (650) 725-0706

Email: sgren@gsb.stanford.edu

Personal Homepage: http://www.stanford.edu/~sgren/

Academic Areas: Finance

Steven Grenadier’s research focuses on applying option pricing theory to real investment analysis. Topics have included the impact of competition and private information on option exercise decisions, the underpinnings of real estate cycles, the analysis of lease contracts, and the modeling of investment decisions of those with time-inconsistent preferences.

Bio

Steven Grenadier is the William F. Sharpe Professor of Financial Economics at the Stanford Graduate School of Business. He chaired the finance group at Stanford (2003-2006). 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 the impact of competition and private information on option exercise decisions, the underpinnings of real estate cycles, the analysis of lease contracts, and the modeling of investment decisions of those with time-inconsistent preferences. He is an Editor of the Journal of Real Estate Finance and Economics and a former Associate Editor of the Journal of Economic Dynamics and Control. He teaches courses in investments at the MBA level, and the theory of finance at the PhD level. 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 Univ., 1992; BS, Univ. of California, Berkeley, 1987.

Professional Experience

At Stanford since 1992.

Selected Publications

  • Real Options Signaling Games with Applications to Corporate Finance: Review of Financial Studies, Forthcoming, 2012
  • A Bayesian Approach to Real Options: The Case of Distinguishing Between Temporary and Permanent Shocks: Journal of Finance 65 with Andrey Malenko, 2010
  • Stock and Bond Pricing with Moody Investors: Forthcoming in the Journal of Empirical Finance with Geert Bekaert and Eric Engstrom, 2010
  • Investment Under Uncertainty and Time-Inconsistent Preferences: Journal of Financial Economics 84 with Neng Wang, 2007
  • Option Exercise Games: An Application to the Equilibrium Investment Strategies of Firms: Review of Financial Studies, 2002
  • Investment Timing, Agency and Information: Journal of Financial Economics 75 with Neng Wang, 2005
  • The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets: Journal of Finance 51, 1996
  • Information Revelation Through Option Exercise: Review of Financial Studies 12, 1999
  • Why Do Some Firms Give Stock Options To All Employees?: An Empirical Examination of Alternative Theories with Scott Schaefer: Journal of Financial Economics, Volume 76, Issue 1, April, Pages 99–133, 2005
  • Real Options Signaling Games with Applications to Corporate Finance: Review of Financial Studies, Forthcoming, 2012

Working Papers

  • Advising on option exercise decisions with Andrey Malenko and Nadya Malenko

Awards and Honors

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

Courses Taught

Affiliations