Jonathan B. Berk

Jonathan B. Berk
Professor, Finance
Contact Info
JonathanB.Berk
The A.P. Giannini Professor of Finance
Academic Area: 
Finance

Research Statement

Jonathan Berk’s research is primarily theoretical in nature and covers a broad range of topics in finance including delegated money management; asset pricing (the relation between stock returns and characteristics of the firm, such as accounting numbers, investment, firm size, etc.); valuing the firm’s growth potential, the firm’s capital structure decision, and the interaction between labor markets and financial markets. He has also explored individual rationality in an experimental setting.

Bio

Jonathan Berk is the A.P. Giannini Professor of Finance at the Stanford Graduate School of Business (GSB). His research is primarily theoretical in nature and covers a broad range of topics in finance, including delegated money management; the pricing of financial assets; valuing a firm’s growth potential; the capital structure decision; and the interaction between labor markets and financial markets. He has also explored individual rationality in an experimental setting.

Professor Berk has coauthored two finance textbooks: Corporate Finance and Fundamentals in Finance. The first edition of Corporate Finance is the most successful first edition textbook ever published in financial economics, and is a standard text in almost all top MBA programs around the world. At the GSB, he teaches courses in Institutional Money Management and Critical Analytical Thinking.

Professor Berk’s research is internationally recognized and has won numerous awards, including the Stephen A. Ross Prize in Financial Economics, the TIAA-CREF Paul A. Samuelson Award, the Smith Breeden Prize, Best Paper of the Year in the Review of Financial Studies, and the FAME Research Prize. His article, “A Critique of Size-Related Anomalies,” was selected as one of the two best papers ever published in the Review of Financial Studies, and was also honored as one of the 100 seminal papers published by Oxford University Press. In recognition of his influence on the practice of finance, he has received the Graham and Dodd Award of Excellence, the Roger F. Murray Prize, and the Bernstein Fabozzi/Jacobs Levy Award.

He served as an associate editor of the Journal of Finance from 2000-2008, is currently an associate editor of the Journal of Portfolio Management, and is a research associate at the National Bureau of Economic Research. Also, he is a member of the board of directors of the Financial Management Association.

Professor Berk received his PhD in finance from Yale University. Before joining Stanford he was the Sylvan Coleman Professor of Finance at Haas School of Business at the University of California, Berkeley. He was born and grew up in Johannesburg, South Africa.

Academic Degrees

  • PhD, Yale University, 1990
  • MA, MPhil, Yale University, 1989
  • B.A. in Physics, Rice University, 1984

Awards and Honors

  • Fellow, Financial Management Association
  • “A Critique of Size Related Anomalies” selected as one of 100 seminal papers published in the history of Oxford University Press
  • “A Critique of Size Related Anomalies” selected as one of the two best papers ever published in The Review of Financial Studies
  • Bernstein-Fabozzi/Jacobs Levy Award, Journal of Portfolio Management, 2006 (“Five Myths of Active Portfolio Management”)
  • TIAA-CREF Paul A. Samuelson Award, 2005 (“Mutual Fund Flows and Performance in Rational Markets”)
  • FAME Research Prize, 2003 (“Mutual Fund Flows and Performance in Rational Markets”)
  • Roger F. Murray Prize (3rd Place), The Institute for Quantitative Research in Finance, 2003 (“Mutual Fund Flows and Performance in Rational Markets”)
  • Best Paper, Utah Winter Finance Conference, 2003 (“Mutual Fund Flows and Performance in Rational Markets”)
  • Honorable Mention (Teaching), Evening MBA program, 2000-2001
  • Honorable Mention (Teaching), Evening MBA program, 1999-2000
  • Smith Breeden Prize (Distinguished Paper), Journal of Finance, 1999 (“Optimal Investment, Growth Options and Security Returns”)
  • Graham and Dodd Award of Excellence, Financial Analysts Journal, 1997 (“Does Size Really Matter?”)
  • Best Paper, Review of Financial Studies, 1995 (“A Critique of Size Related Anomalies”)
  • First Prize, 1996 Roger F. Murray Prize Competition, The Institute for Quantitative Research in Finance (“Does Size Really Matter?”)
  • Second Prize, Chicago Quantitative Alliance Third Annual Academic Competition, 1996 (“Optimal Investment, Growth Options and Security Returns”)
  • Richard D. Irwin Doctoral Fellowship, 1990

Publications

Journal Articles

Jonathan B. Berk, Jules H. van Binsbergen. Financial Analyst Journal. May 2017, Vol. 73, Issue 2, Pages 25-32.
Jonathan B. Berk, Cambell R. Harvey, David Hirshleifer. Journal of Economic Perspective. January 2017, Vol. 31, Issue 1, Pages 231-244.
Jonathan B. Berk, Jules H. van Binsbergen. Journal of Portfolio Management. 2017, Vol. 42, Pages 131-139.
Jonathan B. Berk, Jules H. van Binsbergen, Binying Liu. Forthcoming: Journal of Finance. 2017.
Jonathan B. Berk, Jules H. van Binsbergen. Forthcoming: Annual Review of Financial Economics. 2017.
Jonathan B. Berk, Jules H. van Binsbergen. Forthcoming: Journal of Financial Economics. March 14, 2015.
Jonathan B. Berk, Jules H. van Binsbergen. Forthcoming: Journal of Financial Economics. August 14, 2014.
Jonathan B. Berk, Johan Walden. Review of Asset Pricing Studies. 2014, Vol. 3, Issue 1, Pages 1-37.
Jonathan B. Berk, Richard Stanton, Josef Zechner. Journal of Finance. 2009, Vol. 65, Pages 891-925.
Jonathan B. Berk, Richard Stanton. Journal of Finance. 2007, Vol. 62 , Issue 2, Pages 529-556.
Jonathan B. Berk. Journal of Portfolio Management. 2005, Vol. 31, Issue 3, Pages 27-31.
Jonathan B. Berk, Richard C. Green. Journal of Political Economy. 2004, Vol. 112, Issue 6, Pages 1269-1295.
Jonathan B. Berk, Richard C. Green, Vasant Naik. Review of Financial Studies. 2004, Vol. 17, Pages 1-35.
Jonathan B. Berk. Journal of Finance. 2000, Vol. 55, Pages 407-427.
Jonathan B. Berk. American Economic Review. 1999, Vol. 89, Pages 1319-1326.
Jonathan B. Berk, Richard C. Green, Vasant Naik. The Journal of Finance. 1999, Vol. 54, Pages 1153-1607.
Jonathan B. Berk. Financial Analysts Journal. 1997, Vol. 53, Pages 12-18.
Jonathan B. Berk. Journal of Economic Theory. 1997, Vol. 73, Pages 245-257.
Jonathan B. Berk. Economic Theory. 1997, Vol. 9, Pages 441-451.
Jonathan B. Berk, Eric Hughson, Kirk Vandezande. American Economic Review. 1996, Vol. 86, Pages 954-970.
Jonathan B. Berk. Review of Financial Studies. 1995, Vol. 8, Pages 275-286.
Jonathan B. Berk, Harald Uhlig. Journal of Economic Theory. 1993, Vol. 59, Pages 275-287.
Jonathan B. Berk, Lynn Bartholomew, Richard Roll. The Housing Finance Review. 1988, Vol. 7, Pages 31-46.
Jonathan B. Berk, Richard Roll. Journal of Real Estate Finance and Economics. 1988, Vol. 1, Pages 163-184.

Books

Jonathan B. Berk, Peter M. DeMarzo, Jarrad Harford Boston: Prentice Hall, 2015.
Jonathan B. Berk, Peter M. DeMarzo Boston: Pearson Prentice Hall, 2014.

Teaching

Degree Courses

2016-17

This course covers the foundations of finance with an emphasis on applications that are vital for corporate managers. We will discuss many of the major financial decisions made by corporate managers, both within the firm and in their interactions...

This experiential course will focus on how to make a business decision correctly. The theory will focus on common behavior biases and mistakes. Students will practice making business decisions by analyzing a business case each week.

This experiential course will focus on how to make a business decision correctly. The theory will focus on common behavior biases and mistakes. Students will practice making business decisions by analyzing a business case each week.

2015-16

This experiential course will focus on how to make a business decision correctly. The theory will focus on common behavior biases and mistakes. Students will practice making business decisions by analyzing a business case each week.

This course is an introductory PhD level course in financial economics. We begin with individual choice under uncertainty, then move on to equilibrium models, the stochastic discount factor methodology, no-arbitrage pricing and corporate finance...

Stanford Case Studies

Ameritor Mutual Funds: The \"Dead Man Funds\" | F276
Jonathan Berk, Debra Schifrin2011
T. Rowe Price, Building Wealth for the Long Term | F273
Jonathan Berk, Nate Blair2009

Conferences, Talks, and Speaking Engagements

  • Video: Are Mutual Fund Managers Skilled?
    Jonathan Berk turns the efficient market hypothesis, which popularized the belief that mutual fund managers were "monkey investors" who consistently perform worse than the overall market, on its head to prove that mutual fund managers are in fact highly skilled investors.

Service to the Profession

  • Director, American Finance Association, 2013-2016
  • Director, Western Finance Association, 2014-2016
  • Academic Director, Financial Management Association, 2010-2013
  • Advisory Board, The Journal of Portfolio Management, 2009-present

Insights by Stanford Business

July 9, 2014
Research says top managers are good at what they do, yet most investors can’t benefit from it.
December 1, 2008
A finance professor argues that preventing financial crises means creating policies that align bankers' incentives with the public interest.

School News

April 1, 2009
Professors Anat Admati, Jonathan Berk, Charles Jones, Dale Miller, Jesper Sørensen, and Sarah Soule, have been honored with new academic titles.