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.
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 Jour
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.
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).
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.
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.
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.
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.
Kairong Xiao is Roger F. Murray Associate Professor of Business at Columbia Business School. His research interests span financial intermediation, corporate finance, monetary economics, industrial organization, and political economy.
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.
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.
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 Jour
Lisa Yao Liu joined Columbia University in 2020. Her research interests include financial reporting regulations and information technologies, with a particular focus on auditing and ESG/stakeholder-related matters. Professor Liu uses different research methods including empirical archival methods, structural estimation, and field survey and interviews. Her research has been presented at leading conferences and published in the Journal of Accounting and Economics and the Journal of Accounting Research.
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.
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.
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.
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.
Kairong Xiao is Roger F. Murray Associate Professor of Business at Columbia Business School. His research interests span financial intermediation, corporate finance, monetary economics, industrial organization, and political economy.
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.