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.
Professor Olivier Darmouni is a financial economist whose research interests span corporate finance, banking and industrial organization. He applies a variety of empirical methods to understand how frictions, in particular asymmetric information, affect credit markets. Prior to joining Columbia, Olivier graduated from a PhD in Economics from Princeton University.
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 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.
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 Tania Babina joined the Columbia Business School in 2016. She received a Ph.D. from the Kenan-Flagler Business School at the University of North Carolina. Her research is at the juncture of corporate finance, labor economics, and entrepreneurship. More broadly, she studies inter-relationship between human capital and firm investment, financing, and organizational choices. Her current research explores drivers of entrepreneurship and factors predicting entrepreneurial success. Long-term, she seeks to understand how human capital affects the nature of a firm and firm boundaries.
Professor Arzac is an expert on corporate finance and valuation. He teaches the advanced corporate finance courses in the MBA and Executive MBA programs, directs the Merger, Buyouts and Corporate Restructuring program for executives, and co-directs the Mergers and Acquisitions program for executives at London Business School. He is the author of the book Valuation for Mergers, Buyouts and Restructuring and has published many articles in finance and economics journals.
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.
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.
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.
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 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.
Michael Ewens is the David L. and Elsie M. Dodd Professor of Finance and co-director of the Private Equity Program. He is also a Research Associate at the National Bureau of Economic Research (NBER), Associate Editor of the Journal of Financial Economics, Associate Editor at the Review of Financial Studies, Assoicate Editor at Management Science, Associate Editor at the Journal of Corporate Finance, and co-editor of the Journal of Economics & Management Strategy. He received a Ph.D.
David has over 15 years of experience investing in distressed, special situations and all-weather credit strategies, including as a Partner and Portfolio Manager of Standard General, LP. and Sunago Capital Partners LP. He also serves as Executive Chairman of Turning Point Brands, Inc. (NYSE: TPB), a Director of National Cinemedia, Inc.
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).
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.
Since 2008, Robert Willens has been the president of his own tax and accounting service. Previously, he was a Managing Director in the Equity Research department at Lehman Brothers, Inc in New York for 20 years. Mr.
Professor Tania Babina joined the Columbia Business School in 2016. She received a Ph.D. from the Kenan-Flagler Business School at the University of North Carolina. Her research is at the juncture of corporate finance, labor economics, and entrepreneurship. More broadly, she studies inter-relationship between human capital and firm investment, financing, and organizational choices. Her current research explores drivers of entrepreneurship and factors predicting entrepreneurial success. Long-term, she seeks to understand how human capital affects the nature of a firm and firm boundaries.
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.
Charles W. Calomiris is Henry Kaufman Professor Emeritus of Financial Institutions in the Faculty of Business and Professor Emeritus of International and Public Affairs at Columbia Business School, Director of the Business School’s Program for Financial Studies Initiative on Finance and Growth in Emerging Markets, and a professor at Columbia’s School of International and Public Affairs. His research spans the areas of banking, corporate finance, financial history, and monetary economics.
Anne Heinrichs joined Columbia University in 2014 with PhD and MBA degrees from the University of Chicago and five years of work experience in investment banking, private equity and accounting. She is a CFA Charterholder and has financial advisor licenses in securities, derivatives and regulations. Professor Heinrichs develops a new elective course titled "Corporate Transactions and Financial Modelling" that she teaches to MBA and EMBA students in Spring.