When Corporations Issue Debt
The corporate debt market has doubled in size since the financial crisis, now accounting for nearly 50 percent of US GDP.
The corporate debt market has doubled in size since the financial crisis, now accounting for nearly 50 percent of US GDP.
Adapted from “Global Value Chains in Developing Countries: A Relational Perspective from Coffee and Garments,” by Laura Boudreau of Columbia Business School, Julia Cajal Grossi of the Geneva Graduate Institute, and Rocco Macchiavello of the London School of Economics.
Work Breaks Don't Signal Career Brakes: Lee Georgs ’03
We propose a tractable model of dynamic investment, spinoffs, financing, and risk management for a multi-division firm facing costly external finance. Our analysis formalizes
We propose a theory of banking in which banks cannot perfectly control deposit flows. Facing uninsurable loan and deposit shocks, banks dynamically manage lending, wholesale funding, deposits, and equity. Deposits create value by lowering funding costs. However, when the bank is undercapitalized and at risk of breaching leverage requirements, the marginal value of deposits can turn negative as deposit inflows, by raising leverage, increase the likelihood of costly equity issuance.
This paper studies systemic risk in the interbank market. We first establish that in the German interbank lending market, a few large banks intermediate funding flows between many smaller periphery banks. We then develop a network model in which banks trade off the costs and benefits of link formation to explain these patterns. The model is structurally estimated using banks' preferences as revealed by the observed network structure before the 2008 financial crisis.
Professor Donna M. Hitscherich currently serves as a senior lecturer of Finance, director of the Private Equity Program, and a Bernstein Faculty Leader at the Sanford C. Bernstein & Co. Center for Leadership and Ethics at Columbia Business School. Professor Hitscherich’s courses include Corporate Finance as well as the elective courses Business Law, Mergers and Acquisitions, and Advanced Corporate Finance. In 2002, she was nominated for the Dean’s Award for Innovation in the MBA Curriculum for her presentation of the Advanced Corporate Finance course.
Professor Takatoshi Ito, Director of CJEB’s Program on Public Pension and Sovereign Funds, appeared on Bloomberg and discussed his outlook for Bank of Japan policy ahead of the central bank's meeting.
Takatoshi Ito is one of Japan premier economists. A professor at the prestigious University of Tokyo, he is the author or co-author of several books on the Japanese and global economy. He served in the Japanese government as Deputy Vice Minister for International Finance in the Ministry of Finance and was a member of Japan’s Council on Economic and Fiscal Policy. He has been a senior advisor in the research department of the International Monetary Fund and has taught at Harvard University and the University of Minnesota.
Professor Donna M. Hitscherich currently serves as a senior lecturer of Finance, director of the Private Equity Program, and a Bernstein Faculty Leader at the Sanford C. Bernstein & Co. Center for Leadership and Ethics at Columbia Business School. Professor Hitscherich’s courses include Corporate Finance as well as the elective courses Business Law, Mergers and Acquisitions, and Advanced Corporate Finance. In 2002, she was nominated for the Dean’s Award for Innovation in the MBA Curriculum for her presentation of the Advanced Corporate Finance course.
Patrick Bolton is the David Zalaznick Professor of Business. He joined Columbia Business School in July 2005. He received his PhD from the London School of Economics in 1986 and holds a BA in economics from the University of Cambridge and a BA in political science from the Institut d'Etudes Politiques de Paris. He began his career as an assistant professor at the University of California at Berkeley and then moved to Harvard University, joining their economics department from 1987-1989. He was Chargé de Recherche at the C.N.R.S.
Lawrence R. Glosten is the S. Sloan Colt Professor of Banking and International Finance at Columbia Business School. He is also co-director (with Merritt Fox and Ed Greene) of the Program in the Law and Economics of Capital Markets at Columbia Law School and Columbia Business School and is an adjunct faculty member at the Law School. He has been at Columbia since 1989, before which he taught at the Kellogg Graduate School of Management at Northwestern University, and has held visiting appointments at the University of Chicago and the University of Minnesota.
Professor Jian Li joined Columbia Business School in 2021. She graduated with a PhD from the Joint Program of Financial Economics at the University of Chicago. Her research interest lies at the intersection of macroeconomics and finance. She is particularly interested in how financial intermediaries affect the real economy and how different types of financial institutions can contribute to financial instability.
Yiming Ma is an Associate Professor in the Finance Division at Columbia Business School. She received her Ph.D. in Finance from the Stanford Graduate School of Business in 2018 and a B.A. in Economics & Mathematical and Global Affairs from Yale University in 2013.
Bob Herz’s current activities include serving on the boards of directors and various board committees of Fannie Mae ( Chairman of Audit Committee), Morgan Stanley (Chairman of Audit Committee), Workiva Inc., Paxos, and the Sustainability Accounting Standards Board Foundation, on the Independent Investment Committee of UNOPS, on several advisory boards, as an Ambassador for the International Integrated Reporting Council, and as a member of the Audit Committee Chair Advisory Council of the National Association of Corporate Directors. He is also an executive in residence at Columbia Busi
Professor Moon is a Partner and Managing Director of Morgan Stanley Private Equity. He initially joined Morgan Stanley Private Equity in 1998 and was promoted to Managing Director in 2002. He serves on the Investment Committee of Morgan Stanley Capital Partners. Prior to rejoining Morgan Stanley Private Equity in 2008, he was a Managing Director of Riverstone Holdings LLC where he served on the Investment Committees of the Carlyle/Riverstone Global Energy & Power Funds III and IV. Previously, Prof.
Xavier Giroud is the Stefan H. Robock Professor of Finance and Economics at Columbia Business School. He is also a Research Associate at the National Bureau of Economic Research (NBER) and a Research Fellow at the Centre for Economic Policy Research (CEPR).
Professor Hubbard is a specialist in public economics, managerial information and incentive problems in corporate finance, and financial markets and institutions. He has written more than 100 articles and books on corporate finance, investment decisions, banking, energy economics and public policy, including two textbooks, and has authored The Wall and the Bridge and coauthored Balance, The Aid Trap, and Healthy, Wealthy, and Wise.
Shiva Rajgopal is the Kester and Byrnes Professor of Accounting and Auditing at Columbia Business School. He has also been a faculty member at the Duke University, Emory University and the University of Washington. Professor Rajgopal’s research interests span financial reporting, earnings quality, fraud, executive compensation and corporate culture. His research is frequently cited in the popular press, including The Wall Street Journal, The New York Times, Bloomberg, Fortune, Forbes, Financial Times, Business Week, and the Economist.
Professor Luigi Rizzo is Vice Chairman of Investment Banking at Morgan Stanley, based in London.
Prior to Morgan Stanley, he held leadership positions at Bank of America and Goldman Sachs.
Professor Donna M. Hitscherich currently serves as a senior lecturer of Finance, director of the Private Equity Program, and a Bernstein Faculty Leader at the Sanford C. Bernstein & Co. Center for Leadership and Ethics at Columbia Business School. Professor Hitscherich’s courses include Corporate Finance as well as the elective courses Business Law, Mergers and Acquisitions, and Advanced Corporate Finance. In 2002, she was nominated for the Dean’s Award for Innovation in the MBA Curriculum for her presentation of the Advanced Corporate Finance course.
Matthias Breuer is an Associate Professor of Business in the Accounting Division of Columbia University’s Graduate School of Business. In his research, he examines issues of corporate transparency and information verification, with a particular focus on the role of regulation in addressing corporate information issues. His research has been recognized with multiple awards (e.g., the 2019 and 2021 Best Paper Awards of the American Accounting Association’s FARS Midyear Meetings), presented at leading universities and conferences, and published in reputable journals (e.g., the
Daniel Wolfenzon is the Nomura Professor of International Finance at Columbia Business School. He received a Masters and a PhD in economics from Harvard University and holds a BS in economics and a BS in mechanical engineering from MIT. Professor Wolfenzon previously taught at the University of Michigan, the University of Chicago and NYU. He is also a Faculty Research Fellow at the National Bureau of Economic Research. His research interests are in corporate finance and organizational economics.
Jay Dahya's primary areas of expertise are corporate finance, mergers and acquisitions, corporate governance, corporate valuation, and international financial markets. He has taught finance at the undergraduate, MBA, EMBA, and PhD level, and is the recipient of several teaching awards for his efforts in the classroom. His research has been published in leading finance journals including the Journal of Finance, Journal of Financial Economics, and Journal of Financial and Quantitative Analysis, among others.
Dave Tamburri is a Managing Partner of Health Enterprise Partners, L.P. Prior to joining HEP in 2009, Dave was a Vice President for Susquehanna Growth Equity, a private equity group focused on growth stage technology companies. He was formerly the President and Chief Operating Officer of Onward Healthcare, Inc., a Welsh, Carson, Anderson & Stowe portfolio company. Prior to Onward, Dave was an Executive Vice President of Pinnacor, Inc., a General Atlantic portfolio company, which went public.
Bob Herz’s current activities include serving on the boards of directors and various board committees of Fannie Mae ( Chairman of Audit Committee), Morgan Stanley (Chairman of Audit Committee), Workiva Inc., Paxos, and the Sustainability Accounting Standards Board Foundation, on the Independent Investment Committee of UNOPS, on several advisory boards, as an Ambassador for the International Integrated Reporting Council, and as a member of the Audit Committee Chair Advisory Council of the National Association of Corporate Directors. He is also an executive in residence at Columbia Busi
Professor Parinitha (Pari) Sastry is an assistant professor of finance at Columbia Business School. Her research focuses on climate change, financial intermediation, and real-estate markets. She received her B.A. from Columbia University and her finance Ph.D. from the Massachusetts Institute of Technology. She has worked previously at the Department of Treasury, Task Force on Climate-Related Financial Disclosures, Brookings Institution, and New York Fed.
Michael Grad is an Adjunct Professor at the Columbia GSB and received a Dean's Award for Teaching Excellence in 2011. Through December 2008, Professor Grad was an investment banker for 25 years with several Wall Street firms. His areas of expertise include financial sponsor banking, leveraged finance and LBOs, debt restructuring and bankruptcy, and M&A. Since the beginning of 2009, Professor Grad has been a Senior Managing Director in the Restructuring Group at AIG.
Daniel (Dongil) Keum is an Associate Professor of Management at Columbia Business School. His research interests lie in innovation, organizational structure, labor market policy, and their application to public policy formation. He holds a PhD from NYU Stern School of Business and an AB with high honors in economics and mathematics from Dartmouth College. Prior to pursuing a career in academia, Daniel worked at McKinsey & Company for four years. His primary industry experience is in retail, fashion, and corporate portfolio restructuring.
Professor Moon is a Partner and Managing Director of Morgan Stanley Private Equity. He initially joined Morgan Stanley Private Equity in 1998 and was promoted to Managing Director in 2002. He serves on the Investment Committee of Morgan Stanley Capital Partners. Prior to rejoining Morgan Stanley Private Equity in 2008, he was a Managing Director of Riverstone Holdings LLC where he served on the Investment Committees of the Carlyle/Riverstone Global Energy & Power Funds III and IV. Previously, Prof.
Professor Nissim earned his PhD in Accounting at the University of California, Berkeley, and joined Columbia Business School in 1997. He was granted tenure in 2005, and full professorship in 2007. He served as the Chair of the Accounting Division during the years 2006–2009 and 2014–2016.