Finance is an applied branch of economics that studies the ways in which individuals, business entities, and other organizations allocate resources over time and make decisions in the presence of uncertainty.

The faculty in the finance area have wide-ranging expertise in all major areas of finance, including:

  • Asset pricing, or how security prices and interest rates are determined in the market.
  • Corporate finance, or how corporations raise capital and make investment decisions.

The faculty strive to produce a broad range of finance-related research that addresses topics of interest to academic researchers, practitioners, and policymakers. We communicate that research both through publication in scientific journals, and through the development of relevant and rigorous MBA and Executive Education programs. We also train and mentor future finance scholars through our PhD Program, which is regarded as one of the top finance doctoral programs worldwide.

Recent Journal Articles in Finance

Sumit Agarwal, Wenlan Qian, Amit Seru, Jian Zhang
Journal of Financial Economics. August
2020, Vol. 137, Issue 2, Pages 430–450

Using a comprehensive sample of credit card data from a leading Chinese bank, we show that government bureaucrats receive 16% higher credit lines than non-bureaucrats with similar income and demographics,...

Hanno Lustig, Robert Richmond
Review of Financial Studies. August
2020, Vol. 33, Issue 8, Pages 3492-3540

We relate the risk characteristics of currencies to measures of physical, cultural, and institutional distance. The currencies of countries which are more distant from other countries are more exposed to...

YiLi Chien, Hanno Lustig, Kanda Naknoi
Journal of Monetary Economics. June
2020, Vol. 112, Pages 129-144

Empirical moments of asset prices and exchange rates imply that pricing kernels are almost perfectly correlated across countries. Otherwise, observed real exchange rates would be too smooth for high Sharpe...

Christopher Hennessy, Akitada Kasahara, Ilya A. Strebulaev
Journal of Financial Economics. March
2020, Vol. 135, Issue 3, Pages 555–576

Absent theoretical guidance, empiricists have been forced to rely upon numerical comparative statics from constant tax rate models in formulating testable implications of trade-off theory in the context of natural...

Barney Hartman-Glaser, Benjamin Hébert
Journal of Finance. February
2020, Vol. 75, Issue 1, Pages 463-506

We model the widespread failure of contracts to share risk using available indices. A borrower and lender can share risk by conditioning repayments on an index. The lender has private...

Paul Pfleiderer
Economica. January
2020, Vol. 87, Issue 345, Pages 81-107

In this paper I discuss how theoretical models in finance and economics are used in ways that make them ‘chameleons’, and how chameleons devalue the intellectual currency and muddy policy...

Lin William Cong, Steven Grenadier, Yunzhi Hu
Journal of Financial Economics. January
2020, Vol. 135, Issue 1, Pages 1-15

We model a dynamic economy with strategic complementarity among investors and study how endogenous government interventions mitigate coordination failures. We establish equilibrium existence and uniqueness, and we show that one...

Adam M. Guren, Timothy James McQuade
The Review of Economic Studies. January
2020, Vol. 87, Issue 3, Pages 1331–1364

This article uses a structural model to show that foreclosures played a crucial role in exacerbating the recent housing bust and to analyse foreclosure mitigation policy. We consider a dynamic...

Paul Gompers, Will Gornal, Steven N. Kaplan, Ilya A. Strebulaev
Journal of Financial Economics. January
2020, Vol. 135, Issue 1, Pages 169-190

We survey 885 institutional venture capitalists (VCs) at 681 firms to learn how they make decisions. Using the framework in Kaplan and Strömberg (2001), we provide detailed information on VCs’...

Matteo Maggiori, Brent Neiman, Jesse Schreger
Journal of Political Economy (forthcoming). January

We establish currency as an important factor shaping global portfolios. Using a new securitylevel dataset, we demonstrate that investor holdings are biased toward their own currencies to such an extent...