Finance

Research Centers & Faculty Publications Making Impact

Our faculty pursue solutions to the world's most significant challenges through their research and collaborations.  We have built Centers and Labs to bridge academia and industry promoting research with the greatest impact in the application of finance. 

Research Centers

Featured Faculty Publications and Working Papers
Paul Asquith

Paul Asquith

Gordon Y Billard Professor of Finance

Featured Publications

Lessons in Corporate Finance: A Case Studies Approach to Financial Tools, Financial Policies, and Valuation, 2nd Edition.

Asquith, Paul, and Lawrence A. Weiss. Hoboken, New Jersey: John Wiley & Sons, Inc., 2019.

Lessons in Finance: Basic Tools.

Weiss, Lawrence A. and Paul Asquith. Cambridge, MA: CreateSpace Independent Publishing Platform, 2014.

"The Market for Borrowing Corporate Bonds."

Asquith, Paul, Andrea Au, Thomas Covert and Parag Pathak. Journal of Financial Economics Vol. 107, No. 1 (2013): 155-182.

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Hui Chen

Hui Chen

Nomura Professor of Finance

Featured Publications

"Demand for Crash Insurance, Intermediary Constraints, and Risk Premia in Financial Markets."

Chen, Hui, Scott Joslin, and Sophie Ni. Review of Financial Studies Vol. 32, No. 1 (2019): 228-265. Download Paper.

"Quantifying Liquidity and Default Risks of Corporate Bonds over the Business Cycle."

Chen, Hui, Rui Cui, Zhiguo He, and Konstantin Milbradt. Review of Financial Studies Vol. 31, No. 3 (2018): 852-897. Appendix. Download Paper.

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Maryam Farboodi

Maryam Farboodi

Jon D. Gruber Career Development Associate Professor

Featured Publication

"Comments on Network Reactions to Banking Regulation."

Farboodi, Maryam. Journal of Monetary Economics Vol. 89, (2017): 68-70.

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Leonid Kogan

Leonid Kogan

Nippon Telegraph & Telephone Professor of Management

Featured Publications

"Left Behind: Creative Destruction, Inequality, and the Stock Market."

Kogan, Leonid, Dimitris Papanikolaou, and Noah Stoffman. Journal of Political Economy Vol. 128, No. 3 (2020): 855-906. Online Appendix. SSRN.

"Common Fund Flows: Flow Hedging and Factor Pricing."

Dou, Winston Wei, Leonid Kogan, and Wei Wu. The Journal of Finance. Forthcoming.

"Measuring the 'Dark Matter' in Asset Pricing Models."

Chen, Hui, Winston Wei Dou and Leonid Kogan. The Journal of Finance Vol. 79, No. 2 (2024): 843-902. SSRN.

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Tong Liu

Tong Liu

Judy C. Lewent (1972) and Mark Shapiro Career Development Assistant Professor of Finance

Featured Publications

"Bargaining with Private Equity: Implications for Hospital Prices and Patient Welfare."

Liu, Tong, MIT Sloan Working Paper 6736-21. Cambridge, MA: MIT Sloan School of Management, December 2021.

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Andrew W. Lo

Andrew W. Lo

Charles E. and Susan T. Harris Professor

Featured Publications

"Estimation of Clinical Trial Success Rates and Related Parameters."

Wong, Chi Heem, Kien Wei Siah, and Andrew W. Lo. Biostatistics Vol. 20, No. 2 (2019): 273-286.

"Hedge Fund Holdings and Stock Market Efficiency."

Cao, Charles, Bing Liang, Andrew W. Lo, and Lubomir Petrasek. Review of Asset Pricing Studies Vol. 8, No. 1 (2018): 77-116. SSRN Preprint.

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Deborah J. Lucas

Deborah J. Lucas

Sloan Distinguished Professor of Finance

Featured Publications

"Inventory of Support for Fossil Fuels—Estimating the Support Component of Loan Guarantees and Preferential Loans."

Lucas, Deborah J., MIT Sloan Working Paper 5400-17. Cambridge, MA: MIT Sloan School of Management, December 2019.

"Fiscal Consequences of the Federal Reserve’s Balance Sheet."

Lucas, Deborah J., MIT Sloan Working Paper 5402-17. Cambridge, MA: MIT Sloan School of Management, September 2017.

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Robert C. Merton

Robert C. Merton

School of Management Distinguished Professor of Finance

Featured Publications

"Customers and Investors: A Framework for Understanding the Evolution of Financial Institutions."

Merton, Robert C., and Richard T. Thakor. Journal of Financial Intermediation Vol. 39, (2019): 4-18. SSRN Preprint.

"IPE at 20: Time for retirement ‘SeLFIES’?"

Merton, Robert C., and Arun Muralidhar. Investments and Pensions Europe, April 2017.

"An Effective DC Plan for Uncovered Workers: The Flex MMM Model."

Merton, Robert C., Arun S. Muralidhar. Industry Voices, Plansponsor, February 8, 2017.

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Lira Mota

Lira Mota

Class of 1958 Career Development Assistant Professor

Featured Publications

"The Savings of Corporate Giants."

Darmouni, Olivier and Lira Mota, MIT Sloan Working Paper 6725-20. Cambridge, MA: MIT Sloan School of Management, April 2022.

"The Corporate Supply of (Quasi) Safe Assets."

Mota, Lira, MIT Sloan Working Paper 6724-21. Cambridge, MA: MIT Sloan School of Management, March 2021.

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Stewart Myers

Stewart Myers

Robert C. Merton (1970) Professor of Financial Economics, Emeritus

Featured Publications

"A Theory of Risk Capital."

Erel, Isil, Stewart Myers and James A. Read, Jr. Journal of Financial Economics Vol. 118, No. 3 (2015): 620-635.

"Finance, Theoretical and Applied."

Myers, Stewart. Annual Review of Financial Economics Vol. 7, (2015): 1-34.

Fundamentals of Corporate Finance.

Myers, Stewart. Boston, MA: Irwin/McGraw-Hill, 2013.

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Christopher J. Palmer

Christopher J. Palmer

Associate Professor, Finance

Featured Publications

"How Quantitative Easing Works: Evidence on the Refinancing Channel."

Di Maggio, Marco, Amir Kermani, and Christopher John Palmer. Review of Economic Studies Vol. 87, No. 3 (2020): 1498-1528. Pre-publication Version. Appendix. Data and Code. Slides. VoxEU. Forbes. NBER Digest. MIT News.

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Jonathan A. Parker

Jonathan A. Parker

Robert C. Merton (1970) Professor of Financial Economics

Featured Publications

"Why Don't Households Smooth Consumption? Evidence from a 25 Million Dollar Experiment."

Parker, Jonathan A. American Economic Journal: Macroeconomics Vol. 9, No. 4 (2017): 153-183. Publisher Page. Online appendix.

"Valuation, Adverse Selection and Market Collapses."

Fishman, Michael J., and Jonathan A. Parker. The Review of Financial Studies Vol. 28, No. 9 (2015): 2575-2607. Download Paper.

"Optimal Expectations."

Brunnermeier, Markus K. and Jonathan A. Parker. American Economic Review Vol. 95, No. 4 (2005): 1092-1118. JSTOR.

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Lawrence D. W. Schmidt

Lawrence D. W. Schmidt

Victor J. Menezes (1972) Career Development Assistant Professor of Finance

Featured Publications

"Runs on Money Market Mutual Funds."

Schmidt, Lawrence D. W., Allan Timmermann, and Russ Wermers. American Economic Review Vol. 106, No. 9 (2016): 2625-2657. Author Disclosures. Appendix. Data Set.

"Climbing and Falling Off the Ladder: Asset Pricing Implications of Labor Market Event Risk."

Schmidt, Lawrence D.W., MIT Sloan Working Paper 5500-16. Cambridge, MA: MIT Sloan School of Management, March 2022.

"An Empirical Test of Pricing Kernel Monotonicity."

Beare, Brendan K., and Lawrence D. W. Schmidt. Journal of Applied Econometrics Vol. 31, No. 2 (2016): 338-356. Supplement.

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Antoinette Schoar

Antoinette Schoar

Stewart C. Myers-Horn Family Professor of Finance

Featured Publications

"The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico."

Bruhn, Miriam, Dean Karlan, and Antoinette Schoar. Journal of Political Economy Vol. 126, No. 2 (2018): 635-687.

"The Globalization of Angel Investments: Evidence Across Countries."

Lerner, Josh, Antoinette Schoar, Stanislav Sokolinski, and Karen Wilson. Journal of Financial Economics Vol. 127, No. ` (2018): 1-20.

"Loan Originations and Defaults in the Mortgage Crisis: The Role of the Middle Class."

Adelino, Manuel, Antoinette Schoar, and Felipe Severino. Review of Financial Studies Vol. 29, No. 7 (2016): 1635-1670.

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Kerry Y. Siani

Kerry Y. Siani

Class of 1958 Career Development Assistant Professor

Featured Publications

"​Bond Market Stimulus: Firm-Level Evidence from 2020-21."

Olivier Darmouni and Kerry Siani. Center for Economic and Policy Research Press Discussion Paper No. 17191.

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David Thesmar

David Thesmar

Franco Modigliani Professor of Financial Economics

Featured Publications

"Sticky Expectations and the Profitability Anomaly."

Bouchaud, Jean-Philippe, Philipp Krueger, Augustin Landier, and David Thesmar. Journal of Finance Vol. 74, No. 2 (2019): 639-674. Download Paper.

"The Real Effects of Bank Capital Requirements."

Fraisse, Henri, Mathias LÉ, and David Thesmar. Management Science Vol. 66, No. 1 (2020): 5-23. Supplement. Download Paper.

"Wholesale Funding Dry-Ups."

Perignon, Christophe, David Thesmar, and Guillaume Vuillemey. Journal of Finance Vol. 73, No. 2 (2018): 575-617. Download Paper.

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Adrien Verdelhan

Adrien Verdelhan

Stephens Naphtal Professor of Finance

Featured Publications

"Deviations from Covered Interest Rate Parity."

Du, Wenxin, Alexandre Tepper, and Adrian Verdelhan. Journal of Finance Vol. 73, No. 3 (2018): 915-957. Appendix. Download Paper.

"The Share of Systematic Risk in Bilateral Exchange Rates."

Verdelhan, Adrien. Journal of Finance Vol. 73, No. 1 (2018): 375-418. SSRN Preprint.

"Common Risk Factors in Currency Markets."

Lustig, Hanno, Nick Roussanov and Adrien Verdelhan. Review of Financial Studies Vol. 24, No. 11 (2011): 3731-3777. Download Paper.

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Emil Verner

Emil Verner

Albert F. (1942) & Jeanne P. Clear Career Development Associate Professor in Global Management

Featured Publications

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Jiang Wang

Jiang Wang

Mizuho Financial Group Professor

Featured Publications

"​Dynamic Portfolio Execution."

Tsoukalas, Gerry, Jiang Wang, and Kay Giesecke. Management Science Vol. 65, No. 5 (2019): 2015-2040.

"Early Peek Advantage? Efficient Price Discovery with Tiered Information Disclosure."

Hu, Grace Xing, Jun Pan, and Jiang Wang. Journal of Financial Economics Vol. 126, No. 2 (2017): 399-421. Download Paper.

"Market Selection."

Kogan, Lenoid, Stephen Ross, Jiang Wang, and Mark Westerfield. Journal of Economic Theory Vol. 168, (2017): 209-236.

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Haoxiang Zhu

Haoxiang Zhu

Gordon Y Billard Associate Professor of Finance

Featured Publications

"​Are CDS Auctions Biased and Inefficient?"

Zhu, Haoxiang, and Songzi Du. Journal of Finance Vol. 27, No. 6 (2017): 2589-2628. SSRN Preprint. Appendix.

"Mortgage Dollar Roll."

Song, Zhaogang and Haoxiang Zhu. Review of Financial Studies Vol. 32, No. 8 (2019): 2955-2996. SSRN Preprint.

"Non-Fundamental Speculation Revisited."

Yang, Liyan, and Haoxiang Zhu. Journal of Finance Vol. 72, No. 6 (2017): 2759-2772. SSRN Preprint.

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Egor Matveyev

Egor Matveyev

Senior Lecturer and Research Scientist in Finance

Featured Publications

"Misvaluation of Investment Options."

Lyandres, Evgeny, Egor Matveyev, and Alexei Zhdanov, MIT Sloan Working Paper 5235-17. Cambridge, MA: MIT Sloan School of Management, April 2017.

"The Labor Market for Corporate Directors."

Matveyev, Egor, Working Paper. December 2016.

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Matthew Rhodes-Kropf

Matthew Rhodes-Kropf

Visiting Associate Professor, Finance

Featured Publications

"Financing Risk and Innovation."

Nanda, Ramana and Matthew Rhodes-Kropf. Management Science Vol. 63, No. 4 (2017): 901-918.

"Financing Entrepreneurial Experimentation."

Nanda, Ramana, and Matthew Rhodes-Kropf. In Innovation Policy and the Economy, Vol. 16, 1-23. Chicago, IL: University of Chicago Press, 2016.

"Regional Variation in Venture Capital: Causes and Consequences."

Ramana Nanda and Matthew Rhodes-Kropf. In Moving to the Innovation Frontier, edited by Christian Keuschnigg. Washington, DC: March 2016.

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