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Finance

Finance at the Simon School deals with problems of corporate financial policy, individual consumption-investment choices, and capital market equilibrium in an uncertain environment. The principles of price theory, mathematics, and statistics provide the basis for analyzing these problems. In particular, close attention is given to investor-management behavior induced by utility maximization, how this behavior is affected by information, regulation, and contractual arrangements, and the implications of these considerations for systematic, measurable phenomena in financial markets. The methodological approach taken at the Simon School places strong emphasis on formal modeling of these problems and empirical testing of alternative theories.

Faculty and  Research Interests

• James A. Brickley: His research and teaching interests are in the economics of organizations, corporate governance and compensation policy, corporate finance, franchising, and banking.
• Gregg A. Jarrell: His interests include the economics of corporate control, economics of regulation, and applied corporate finance.
• Anzhela Knyazeva: Her recent research examines issues in payout, corporate governance, and firm investment decisions.
• Diana Knyazeva: Her research interests are in corporate finance with a focus on corporate governance, firm investment behavior, and analyst following.
• Leonard Kostovetsky: His papers focus on the way that political beliefs and connections affect the decisions of financial investors and corporate managers.
• John B. Long Jr.: His interests include portfolio theory, asset-pricing theory, financial aspects of business cycles, and applied price theory.
• Boris Nikolov: His recent research investigates the effects of real market frictions and agency conflicts on firms’ financing, cash holdings, and investment policy.
• G. William Schwert: His interests include portfolio and capital-market theory, econometrics, and time-series analysis and the effects of public regulation on business.
• Clifford W. Smith Jr.: His interests include option pricing, corporate financial policy, and financial intermediation.
• Jerold B. Warner: His interests include portfolio theory, capital markets, and corporate finance.
• Toni M. Whited: Her research deals with the effects of financial markets on firm capital budgeting decisions, measurement error econometrics, and dynamic capital structure.