Viral Acharya's Publications

Climate Change and Pandemics

• "Why Did Bank Stocks Crash During COVID-19?" with Rob Engle, Maximilian Jager and Sascha Steffen, Review of Financial Studies, Volume 37, Issue 9, September 2024, Pages 2627-2684 (lead article)
  Download PDF Download Online Appendix
  -A related op-ed "Are Bank Credit Lines the New Source of Financial Fragility?" (with Sascha Steffen), International Banker, November 2021

• "Climate Stress Testing" with Richard Berner, Robert Engle, Hyeyoon Jung, Johannes Stroebel, Xuran Zeng and Yihao Zhao, Annual Review of Financial Economics, Vol. 15: 291-326, 2023.
  Download PDF

• "Vaccine Progress, Stock Prices, and the Value of Ending the Pandemic" (with Timothy Johnson, Suresh Sundaresan and Steven Zheng), November 2020, revised October 2023, forthcoming, Management Science (earlier titled as "The Value of a Cure: An Asset-Pricing Perspective")
  Download PDF Download Online Appendix
  Download Vaccine Progress Indicator (VPI) time-series

Banking - Liquidity, Crises, Systemic Risk, Regulation, Diversification of Loan Portfolios 

• "Financial Vulnerability and Risks to Growth in Emerging Markets" (with Soumya Bhadury and Jay Surti), June 2020, revised August 2020, forthcoming, the Indian Economic Journal (IEJ), Vol. 72, Issue 3, 2024), to celebrate the outstanding achievements of Dr. C. Rangarajan, Former Governor of Reserve Bank of India
  Download PDF Download Financial Vulnerability Indexes (FVI)

• "Monetary Easing, Lack of Investment and Financial Instability" (with Guillaume Plantin, Pietro Reggiani and Iris Yao), forthcoming, Journal of Financial Intermediation (prepared for Festschrift in Honor of Douglas Gale), October 2016, revised July 2024
  Download PDF

• "Exorbitant Privilege? Quantitative Easing and the Bond Market Subsidy of Prospective Fallen Angels" (with Ryan Banerjee, Matteo Crosignani, Tim Eisert and Renee Spigt), February 2022, revised March 2024, forthcoming, Journal of Financial Economics
  Download PDF

• "Fiscal Stimulus, Deposit Competition, and the Rise of Shadow Banking: Evidence from China" (with Jun 'QJ' Qian, Yang Su and Zhishu Yang), November 2016, revised December 2023, forthcoming, Management Science (earlier titled "In the Shadow of Banks: Wealth Management Products and Issuing Banks' Risk in China")
  Download PDF Download Online Appendix

• "Contingent Credit Under Stress" (with Maximilian Jager and Sascha Steffen), November 2023, revised April 2024, forthcoming, Annual Review of Financial Economics
  Download PDF

• "Regulating Carry Trades: Evidence from Foreign Currency Borrowing of Corporations in India" (with Siddharth Vij), conditionally accepted, Review of Economic Studies, August 2018, revised October 2023 (earlier titled "Foreign Currency Borrowing of Corporations as Carry Trades: Evidence from India")
  Download PDF Download Appendix

• "Sovereign Debt and Economic Growth when Government is Myopic and Self-interested" with Raghuram Rajan and Jack Shim, Journal of International Economics - Special Issue of NBER International Seminar on Macroeconomics 2023, Vol. 150 (2024), 103906
  Download PDF Download Slides (August 2023 version)

• "Monetary Easing, Leveraged Payouts and Lack of Investment" (with Guillaume Plantin), forthcoming, Management Science, August 2019, revised May 2023
  Download PDF

• "Liquidity, Liquidity Everywhere, Not A Drop To Use - Why Flooding Banks With Central Bank Reserves May Not Expand Liquidity" (with Raghuram Rajan), Journal of Finance, 2024, Volume 79, Issue 5, 2943-2991.
  Download PDF Download Online Appendix
  - Covered in Wall Street Journal, 24 January 2022; New York Times, 27 January 2022.

• "Zombie Credit and (Dis-)Inflation: Evidence from Europe" with Matteo Crosignani, Tim Eisert and Christian Eufinger, Journal of Finance, 79(3), 1883-1929, 2024.
  Download PDF Download Online Appendix
  - Related blog post at Liberty Street Economics, Federal Reserve Bank of New York

• "The Anatomy of the Transmission of Macroprudential Policies" (with Katherina Bergant, Matteo Crosignani, Tim Eisert and Fergal McCann), Journal of Finance, 77(5), October 2022, 2533-2575 (lead article).
  Download PDF (August 2022 version) Download Online Appendix

• "Zombie Lending: Theoretical, International and Historical Perspectives" (with Matteo Crosignani, Tim Eisert and Sascha Steffen), Annual Review of Financial Economics, 14, 2022.
  Download PDF (August 2022 version)

• "Dividends and Bank Capital in the Financial Crisis of 2007-09" (with Irvind Gujral, Nirupama Kulkarni and Hyun Shin), Journal of Financial Crises, 4(2), 2022, 1-39.
  Download PDF (December 2020 version)

• "Bank Use of Sovereign CDS in the Eurozone Crisis: Hedging and Risk Incentives" (with Yalin Gunduz and Timothy Johnson), Journal of Financial Intermediation, Volume 50, April 2022.
  Download PDF (February 2022 version)

• "Kicking the Can Down the Road: Government Interventions in the European Banking Sector" (with Lea Borchert, Maximilian Jager, Sascha Steffen), Review of Financial Studies, Volume 34, Issue 9, September 2021, Pages 4090 – 4131.
  Download PDF Download Data on Government Interventions in the European Banking Sector

• "Credit Lines and the Liquidity Insurance Channel" (with Heitor Almeida, Filippo Ippolito and Ander Perez), Journal of Money, Credit and Banking, May 2021, 53(5), 901-938.
  Download PDF
  

• "Lender of Last Resort, Buyer of Last Resort, and a Fear of Fire Sales in the Sovereign Bond Market" (with Diane Pierret and Sascha Steffen), Financial Markets, Institutions, and Instruments, May 2021
  Download PDF

• "Does the Lack of Financial Stability Impair the Transmission of Monetary Policy?" (with Bjorn Imbierowicz, Sascha Steffen and Daniel Teichmann), Journal of Financial Economics, 138(2), November 2020, Pages 342-365
  Download PDF     Download Appendix
  

• "Bank Lines of Credit as Contingent Liquidity: Covenant Violations and their Implications" (with Heitor Almeida, Filippo Ippolito and Ander Perez), Journal of Financial Intermediation, October 2020, Volume 44
  Download PDF
  

• "Risk-Sharing and the Creation of Systemic Risk" (with Aaditya Iyer and Rangarajan K Sundaram), Journal of Risk and Financial Management, 2020, 13(8), 183.
  Download PDF

• "Capital Flow Management with Multiple Instruments" (with Arvind Krishnamurthy), 2019, Central Banking, Analysis, and Economic Policies Book Series, in: Álvaro Aguirre & Markus Brunnermeier & Diego Saravia (ed.), Monetary Policy and Financial Stability: Transmission Mechanisms and Policy Implications, Edition 1, Volume 26, Chapter 6, pages 169-203, Central Bank of Chile.
  Download PDF
  

• "Whatever It Takes: The Real Effects of Unconventional Monetary Policy" (with Tim Eisert, Christian Eufinger and Christian Hirsch), Review of Financial Studies, 2019, 32(9): 3366-3411.
  Download PDF
  - Covered in New York Times, (August 19, 2016)

• "On Reaching for Yield and the Coexistence of Bubbles and Negative Bubbles" (with Hassan Naqvi), Journal of Financial Intermediation, 2019, 38:1-10 (lead article).
  Download PDF
  

• "Real Effects of the Sovereign Debt Crises in Europe: Evidence from Syndicated Loans" (with Tim Eisert, Christian Eufinger and Christian Hirsch), Review of Financial Studies, 2018, 31(8), 2855-2896.
  Download PDF
  

• "Lending Implications of U.S Bank Stress Tests: Costs or Benefits?" (with Allen Berger and Raluca Roman), Journal of Financial Intermediation 2018, Vol. 34, 58-90
  Download PDF
  

• "Bank Capital and Dividend Externalities" (with Hanh Le and Hyun-Song Shin), Review of Financial Studies, 2017, 30(3), 988-1018.
  Download PDF
  - Covered in Wall Street Journal, 16 September 2016

• "Measuring Systemic Risk" (with Lasse Pedersen, Thomas Philippon and Matt Richardson), Review of Financial Studies, 2016 30: 2-47
  Download PDF (July 2016 version)
  Download PDF of the related piece "How to Calculate Systemic Risk Surcharges" (in NBER publication on Quantifying Systemic Risk, 2011, ed. by Joseph Haubrich and Andrew Lo)
  Download PDF of "Analyzing Systemic Risk of the European Banking Sector", with Sascha Steffen, prepared for Handbook on Systemic Risk, editors J.-P-Fouque and J. Langsam.
  Systemic Risk rankings of the US Financial Institutions
  Systemic Risk rankings including non-US Financial Institutions  Download Presentation

• "Banks' Financial Reporting and Financial System Stability" (with Stephen Ryan), Journal of Accounting Research., 2016, 54(2): 277-340 (lead article).
  Download PDF (January 2016 Version)
  

• "The Dark Side of Liquidity Creation: Leverage and Systemic Risk" (with Anjan Thakor), Journal of Financial Intermediation, 2016, 28:4-21 (lead article).
  Download PDF(January 2016 Version)
  

• "How do Global Banks Scramble for Liquidity? Evidence from the Asset-Backed Commercial Paper Freeze of 2007" (with Gara Afonso and Anna Kovner), Journal of Financial Intermediation, 2017, 30:1-34 (lead article).
  Download PDF (Dec 2015 version)
  

• "Cash Holdings and Bank Compensation" (with Hamid Mehran and Rangarajan K Sundaram), Economic Policy Review of the Federal Reserve Bank of New York - Behavioral Risk Management in the Financial Services Industry: The Role of Culture, Governance and Financial Reporting 2016, 22(1), 77-84
  Download PDF (June 2015 version)
  

• "Dealer Financial Conditions and Lender of Last Resort Facilities" (with Michael Fleming, Warren Hrung and Asani Sarkar), Journal of Financial Economics, 2017, 123(1), 81-107
  Download PDF (August 2016 version)

• "Caught Between Scylla and Charybdis? Regulating Bank Leverage When There is Rent-Seeking and Risk-Shifting" (with Hamid Mehran and Anjan Thakor), Review of Corporate Finance Studies, 2016, 5(1), 36-75.
  Download PDF     

• "The Greatest Carry Trade Ever? Understanding Eurozone Bank Risks" (with Sascha Steffen), Journal of Financial Economics, 2015, 115, 215-236 (lead article).
  Download PDF     Download Slides     Download Online Appendix

• "A Pyrrhic Victory? - Bank Bailouts and Sovereign Credit Risk" (with Itamar Drechsler and Philipp Schnabl), Journal of Finance, 2015, 69(6), 2689-2739.
  Download PDF    Download Appendix
  Download Presentation
  - A short non-technical summary of the paper can be found in "A Tale of Two Overhangs: The Nexus of Financial Sector and Sovereign Credit Risks", Banque de France Financial Stability Review, 16, April 2012.
  
       - First Prize for L. Glucksman Institute Research Award at Stern School of Business, NYU for 2010-2011

• "A Crisis of Banks as Liquidity Providers" (with Nada Mora), Journal of Finance, 2015, 70(1), 1-44 (lead article).
  Download PDF     Download Online Appendix     Download Slides
  - Earlier circulated as "Are Banks Passive Liquidity Backstops? Deposit Rates and Flows During the 2007-2009 Crisis" (with Nada Mora), November 2011, revised June 2012.

• "Unintended Consequences of LOLR Facilities: The Case of Illiquid Leverage" (with Bruce Tuckman), IMF Economic Review, 2014, 62(4), 606-655, and presented at the 14th IMF Jacques Polak conference in honor of Stanley Fischer
  Download PDF (Sep 2014 version)     Download Online Appendix     Download Slides

• "Testing Macroprudential Stress Tests: The Risk of Regulatory Risk Weights" (with Rob Engle and Diane Pierret), Carnegie-Rochester Public Policy Conference Volume of the Journal of Monetary Economics, 2014, 65, 36-53.
  Download PDF     Download Appendix     Download Slides

  - Executive summary on voxeu.org

• "The Growth of a Shadow Banking System in Emerging Markets: Evidence from India" (with Hemal Khandwala and Sabri Oncu), Journal of International Money and Finance, 2013, 39, 207-230.
  Download PDF
• "A Proposal for the Resolution of Systemically Important Assets and Liabilities: The Case of the Repo Market", 2013, International Journal of Central Banking, 9(1), 291-350, with Sabri Oncu, presented at the Federal Reserve Board of Governors conference Central Banking: Before, During and After the Crisis, in honor of Don Kohn, former Vice Chairman of the Board of Governors on March 23-24, 2012
  Download Presentation
• "Sovereign Debt, Government Myopia and the Financial Sector" (with Raghuram Rajan), 2013, the Review of Financial Studies, 26(6), 1526-1560.
  Download PDF
  
       - National Stock Exchange of India (NSE) Best Paper Prize at the Indian School of Business Center for Analytical Finance (CAF) conference, July 2012
     - A Presentation on "Dynamics of Debt, Growth and Taxation", at CFS Symposium on Banking, Liquidity and Monetary Policy, Frankfurt, September 2013
     Download PDF
• "Securitization Without Risk Transfer" (with Philipp Schnabl and Gustavo Suarez), Journal of Financial Economics, 2013, 107, 515-536 (lead article)
  Download PDF    Download ABCP data used in the paper    (README)
• "Precautionary Hoarding of Liquidity and Inter-Bank Markets: Evidence from the Sub-prime Crisis" (with Ouarda Merrouche), 2013, Review of Finance, 17(1), 107-160.
  Download PDF
• "Governments as Shadow Banks: The Looming Threat to Financial Stability", 2012, Texas Law Review, 90, 1745, Symposium on Reshaping Capital Markets and Institutions
  Download PDF
• "Capital Shortfall: A New Approach to Ranking and Regulating Systemic Risks" (with Robert Engle and Matthew Richardson), 2012, American Economic Review Papers and Proceedings, 102(3), 59-64.
  Download PDF
• "The Seeds of a Crisis: A Theory of Bank Liquidity and Risk Taking over the Business Cycle" (with Hassan Naqvi), 2012, Journal of Financial Economics, 106(2), 349-366.
  Download PDF
  - Best Conference Paper (Goldman Sachs International) Award at the European Finance Association Meetings, 2010
  - The 2011 Inaugural TCFA (The Chinese Finance Association) Award for the Best Paper on Global Financial Markets
  - Related essay "Bank Liquidity and Bubbles: Why Central Banks Should Lean against Liquidity" (with Hassan Naqvi), in New Perspectives on Asset Price Bubbles: Theory, Evidence and Policy, edited by Douglas Evanoff, George Kaufman and A.G. Malliaris, Oxford University Press, 2012.
  
  
• “Robust Capital Regulation” (with Hamid Mehran, Til Schuermann and Anjan Thakor), 2012, Current Issues in Economics and Finance, Federal Reserve Bank of New York, May issue.
  Download PDF

• "Imperfect Competition in the Inter-Bank Market for Liquidity as a Rationale for Central Banking" (with Denis Gromb and Tanju Yorulmazer), American Economic Journal: Macroeconomics, 2012, 4(2), 184-217.
  Download PDF    Download Online Appendix (March 2011 Version)

• "Fire-sale FDI" (with Hyun-Song Shin and Tanju Yorulmazer), 2011, Korean Economic Review, 27(2), 163-202.
  Download PDF
• "A Model of Liquidity Hoarding and Term Premia in Inter-Bank Markets," (with David Skeie), presented at the Carnegie Rochester Conference Series on Public Policy, November 2010, and published in the Journal of Monetary Economics, 2011, 58(5), 436-447.
  Download PDF
  
  
• "Market Failures and Regulatory Failures: Lessons from Past and Present Crises," in "Financial Sector Regulation and Reforms in Emerging Markets," edited by Masahiro Kawai and Eswar Prasad, Brookings Institution Press, Washington, DC, 2010 (with Thomas Cooley, Matthew Richardson and Ingo Walter)
  Download PDF (Dec 2009 version)
  
  
• "Do Global Banks Spread Global Imbalances? The Case of Asset-Backed Commercial Paper during the Financial Crisis of 2007-09,"
  IMF Economic Review, 58, 2010, 37-73 (with Philipp Schnabl)
  Download PDF (April 2010 version)
  
  
• "Manufacturing Tail Risk: A Perspective on the Financial Crisis of 2007-09,"
  Foundations and Trends® in Finance, Vol. 4: No. 4, 247-325, 2010 (with Thomas Cooley, Matthew Richardson and Ingo Walter)
  Download PDF (Feb 2010 version)
  
  
• "Crisis Resolution and Bank Liquidity,"
  Review of Financial Studies, 24(6), 2011, 2166-2205 (with Hyun-Song Shin and Tanju Yorulmazer)
  Download PDF (Jan 2010 version) (earlier "Fire Sales, Foreign Entry and Bank Liquidity")
  
  
• "Finance and Efficiency:  Do Bank Branching Regulations Matter?"
  2011, Review of Finance, 15(1), 135-172 (with Jean Imbs and Jason Sturgess)
  Download PDF (Feb 2010 version)
  Download Addendum

• "Causes of the Financial Crisis," with Matthew Richardson, 2009
  Critical Review, 21(2-3): 195-210.
  Download PDF
  
  
• "Systemic Risk and Deposit Insurance Premium," with Joao Santos and Tanju Yorulmazer,
  Economic Policy Review, Federal Reserve Bank of New York, 16(1), 2010, 89-99
  Download PDF (August 2009 version)
  
  
• "A Theory of Systemic Risk and Design of Prudential Bank Regulation,"
  Journal of Financial Stability, 5(3), 2009, 224-255.
  Download PDF (January 2009 version)
  Download PDF(Unabridged version, 2001)
  
  -- This paper was awarded the Lehman Brothers Fellowship Award for Excellence in Finance Research for 2000-2001
  (awarded to one final-year doctoral student from NYU, Columbia, Wharton, MIT, Harvard, and Chicago).
  
  
• "Cash-in-the-Market Pricing and Optimal Resolution of Bank Failures,"
  Review of Financial Studies, 21, 2008, 2705-2742 (with Tanju Yorulmazer)
  Download PDF (June 2006 version, earlier "Cash-in-the-Market Pricing and Optimal Bank Bailout Policy")
  
  
• "Information Contagion and Bank Herding,"
  Journal of Money, Credit and Banking, 40(1), 2008, 215-231 (with Tanju Yorulmazer)
  Download PDF (earlier "Information Contagion and Inter-Bank Correlation in a Theory of Systemic Risk" and "A Theory of Procyclical Bank Herding")
  
  
• "Too Many to Fail - An Analysis of Time-inconsistency in Bank Closure Policies,"
  Journal of Financial Intermediation, Jan 2007, 16(1), 1-31 (lead article, with Tanju Yorulmazer)
  Download PDF (April 2006 version)
  
  
• "Should Banks Be Diversified? Evidence from Individual Bank Loan Portfolios,"
  Journal of Business, May 2006, 79(3), 1355-1412 (with Anthony Saunders and Iftekhar Hasan)
  Download PDF (May 2004 version)
  
  
• "Is the International Convergence of Capital Adequacy Regulation Desirable?"
  Journal of Finance, Vol 58(6), December 2003, 2745-2781
  Download PDF
  
  
• "Competition Among Banks, Capital Requirements and International Spillovers,"
  Economic Notes - Review of Banking, Finance and Monetary Economics, 30(3), 2001, pp. 337-358

Asset Pricing - Causes and Effects of Time-variations in Liquidity, Credit Risk, Disclosure and Insider Trading

• "Foreign Fund Flows and Equity Prices During COVID-19: Evidence from India"(with Ravi Anshuman and Kiran Kumar), Emerging Markets Finance and Trade, 2022, 59(8), 2422-2439.
  Download PDF (September 2022 version)
  - In part based on earlier papers "Information and Price Pressure Effects of Unexpected Foreign Fund Flows" and "Foreign Funds Flows and Stock Returns: Evidence from an Emerging Market")
  Download PDF     Download Appendix (May 2019 version)

• "Economics with Market Liquidity Risk" (with Lasse Pedersen), Critical Financial Review., 2019, 8(1-2), 111-125.
  Download PDF

• "Liquidity Risk and Correlation Risk:  A Clinical Study of the General Motors and Ford Downgrade of 2005" (with Stephen Schaefer and Yili Zhang), Quarterly Journal of Finance, 2015, 5(2), 1-51.
  Download PDF (October 2014 Version)

• "Counterparty risk externality: Centralized versus over-the-counter markets" (with Alberto Bisin), Journal of Economic Theory, 2014, 149, 153-182.
  Download PDF (March 2013 version)

• "Limits to Arbitrage and Hedging: Evidence from Commodity Markets" (with Lars Lochstoer and Tarun Ramadorai), Journal of Financial Economics 2013, 109, 441-465 (earlier titled as "Does Hedging Affect Commodity Prices? The Role of Producer Default Risk")
  Download PDF      Download online appendix      Download firm-level hedging and aggregate default-risk data used in the paper

  - Best Paper Award, the Viz Risk Management Prize on Energy Markets, Securities, and Prices, at the European Finance Association Meetings, 2009
  

• "Liquidity Risk of Corporate Bond Returns: A Conditional Approach"(with Yakov Amihud and Sreedhar Bharath), Journal of Financial Economics, 110(2), 2013, 358-386.
  Download PDF (October 2012 version)
• "A Theory of Arbitrage Capital" (with Hyun-Song Shin and Tanju Yorulmazer), 2013, Review of Corporate Financial Studies, 2(1), 62-97.
  Download PDF


• "Endogenous Information Flows and the Clustering of Announcements"
  American Economic Review, 2011, 101(7), 2955-79 (with Peter DeMarzo and Ilan Kremer)
  Download PDF
• "Rollover Risk and Market Freezes"
  Journal of Finance, 66, 2011, 1175-1207 (with Douglas Gale and Tanju Yorulmazer)
  Download PDF (October 2010 version)
• "Leverage, Moral Hazard and Liquidity"
  Journal of Finance, 66, 2011, 99-138 (with S. Viswanathan)
  Download PDF (Mar 2010 version) (earlier titled as "Moral Hazard, Collateral and Liquidity")
  Download Addendum
• "More Insiders, More Insider Trading: Evidence from Private Equity Buyouts"
  Journal of Financial Economics, 98(3), 2010, 500-523 (with Timothy Johnson)
  Download PDF (October 2009 version)
  
  
• "Does Industry-wide Distress Affect Defaulted Firms? - Evidence from Creditor Recoveries"
  Journal of Financial Economics, 85(3), 2007, 787-821 (with Sreedhar Bharath and Anand Srinivasan). Earlier titled as "Understanding the Recovery Rates of Defaulted Securities"
  Download PDF (April 2006 version)
  Journal of Financial Economics Best Paper in Capital Markets and Asset Pricing, Second (Fama/DFA) Prize, 2007
  
  
• "Insider Trading in Credit Derivatives"
  Journal of Financial Economics, 84(1), 2007, 110-141 (with Timothy Johnson)
  Download PDF (December 2005 version)
  
  
• "When Does Strategic Debt-Service Affect Debt Spreads?"
  Economic Theory, Feb 2006, 1-16 (with Jing-zhi Huang, Marti G. Subrahmanyam, and Rangarajan K. Sundaram)
  (short version) April 2004 Download PDF
  (long version) April 2002, revised August 2002 Download PDF
  
  
• "Asset Pricing with Liquidity Risk,"
  Journal of Financial Economics, Vol. 77(2), August 2005, 375-410 (with Lasse Pedersen)
  Download PDF (July 2004 version)
  Journal of Financial Economics Best Paper for Capital Markets and Asset Pricing, First (Fama/DFA) Prize, 2005
  NYSE Award for the Best Paper in Equity Trading at the Western Finance Association Meetings, San Jose Cabo, Mexico, 2003
  First Prize for L. Glucksman Institute Research Award at Stern School of Business, NYU for 2002-2003
  First Prize for CDC Working Paper Award at Stern School of Business, NYU for 2003
• "Corporate Bond Valuation and Hedging with Stochastic Interest Rates and Endogenous Bankruptcy,"
  Review of Financial Studies, 15(5), 2002, pp. 1355-1383 (with Jennifer N. Carpenter)
  Second Prize for L. Glucksman Institute Research Award at Stern School of Business, NYU for 2000-2001
  First Prize for CDC Working Paper Award at Stern School of Business, NYU for 2000
  
  
• "Arbitrage-Free Pricing of Credit Derivatives with Rating Transitions,"
  Financial Analysts Journal, 58(3), 2002, pp. 28-44 (with Sanjiv R. Das and Rangarajan K. Sundaram)

Corporate Finance - Cash Management, Incentive Compensation, Bankruptcy Systems, Private Equity and Corporate Governance

• "Financing Infrastructure in the Shadow of Expropriation" (with Cecilia Parlatore and Suresh Sundaresan), forthcoming, Review of Financial Studies - earlier titled "A Model of Infrastructure Financing"
  Download PDF (Aug 2024 Version)


• "Competition for Managers and Corporate Governance" (with Marc Gabarro and Paolo Volpin), Journal of Law, Finance and Accounting, 2021, Vol. 6: No. 1, pp 179-219.
  Download PDF


• The risk of being a fallen angel and the corporate dash for cash in the midst of COVID (with Sascha Steffen), Review of Corporate Financial Studies, Volume 9, Issue 3, November 2020, Pages 430-471.
  (Long version) Download PDF
  (Short version) Download PDF, in COVID Economics: A Real Time Journal
  (Video) Short NBER presentation


• "Seeking Alpha: Excess Risk Taking and Competition for Managerial Talent" (with Marco Pagano and Paolo Volpin), Review of Financial Studies, 2016, 2565-2599 (lead article)
  Download PDF (April 2016 version)


• "Financial Dependence and Innovation: The Case of Public versus Private Firms" (with Zhaoxia Xu), Journal of Financial Economics, 2017, 124(2), 223-243 (lead article).
  Download PDF     Download Appendix


• "A Theory of Income Smoothing when Insiders Know More than Outsiders" (with Bart Lambrecht), Review of Financial Studies, 2015, 28: 2534-2574.
  Download PDF     Download Appendix


• "Credit Lines as Monitored Liquidity Insurance: Theory and Evidence" (with Heitor Almeida, Filippo Ippollito and Ander Perez), Journal of Financial Economics, 2014, 112, 287-319.
  Download PDF


• "Wrongful Discharge Laws and Innovation" (with Ramin Baghai and Krishnamurthy Subramanian), Review of Financial Studies, 2014, 27, 301-346.
  Download PDF    Download Appendix


• "Labor Laws and Innovation" (with Ramin Baghai and Krishnamurthy Subramanian), Journal of Law and Economics, 2013, 56, 997-1037.
  Download PDF    Download Appendix


• "Aggregate Risk and the Choice between Cash and Lines of Credit" (with Heitor Almeida and Murillo Campello), the Journal of Finance, 2013, 68, 2059-2116.
  Download PDF    Download Appendix    Download Slides
• "Corporate Governance and Value Creation: Evidence from Private Equity" 2013, Review of Financial Studies, 26(2), 368-402 (with Oliver Gottschalg, Moritz Hahn and Conor Kehoe)
  Download PDF


• "Cash Holdings and Credit Risk," (with Sergei Davydenko and Ilya Strebulaev), 2012, Review of Financial Studies, 25(12), 3572-3609
  Download PDF
• "The Internal Governance of Firms,"
  Journal of Finance, 66(3), 2011, 689-720 (lead article) (with Stew Myers and Raghuram Rajan)
  Download PDF (September 2010 version) Online Appendix
  -- This paper was awarded the III Jaime Fernandez de Araoz Award in Corporate Finance for 2009
  
  
• "Creditor Rights and Corporate Risk-taking,"
  Journal of Financial Economics, 2011, 102(1), 150-166 (with Yakov Amihud and Lubomir Litov)
  Download PDF (April 2010 version)
  
  
• "Cross-Country Variations in Capital-Structures: The Role of Bankruptcy Codes,"
  Journal of Financial Intermediation, 20 (2011), 25-54 (with Rangarajan K. Sundaram and Kose John)
  Download PDF (January 2010 version)

• "Corporate Governance Externalities"
  Review of Finance, 14(1), 2010, 1-33 (lead article, with Paolo Volpin)
  Download PDF (August 2008 version)
Best Paper Award on Corporate Governance awarded by the European Corporate Governance Institute, 2008.
Review of Finance Best Paper Award for 2009 (Deutsche Bank Prize in Financial Economics)


• "Bankruptcy Codes and Innovation"
  Review of Financial Studies, 2009, 22(12), 4949-4988 (with Krishnamurthy Subramanian)
  Download PDF (September 2008 version) Theoretical appendix
  Citibank Best Paper Award at the Summer Research Conference organized by the Center for Analytical Finance (CAF) at Indian Business School, 2007
  Second Runner-up Award for the Best Paper at the 13th Mitsui Life Symposium on "Value Creation: Financing and Organizing the Firm" at the University of Michigan, 2007
  
  
• "Managerial Hedging, Equity Ownership, and Firm Value"
  Rand Journal of Economics, 2009, 40(1), 47-77 (with Alberto Bisin)
  Download PDF (May 2008 version)
  
  
• "Private Equity versus Plc Boards in the U.K.: A Comparison of Practices and Effectiveness"
  Journal of Applied Corporate Finance, 21(1), 2009, 45-56 (with Conor Kehoe and Michael Reyner)
  Download PDF
  
  
• "Private Equity:  Boom and Bust?"
  Journal of Applied Corporate Finance 19(4), Fall 2007 (with Julian Franks and Henri Servaes)
  Download PDF
  
  
• "Is Cash Negative Debt? - A Hedging Perspective on Corporate Financial Policies"
  Journal of Financial Intermediation, 16(4), 2007, 515-554 (with Heitor Almeida and Murillo Campello)
  Download PDF (May 2006 version)
  
  
• "On the Optimality of Resetting Executive Stock Options"
  Journal of Financial Economics, 57(1), 2000, pp. 65-101 (with Kose John and Rangarajan K. Sundaram)
  First Prize as Journal of Financial Economics Best Paper (Jensen Prize) for Corporate Finance and Organizations, 2000
  First Prize for CDC Working Paper Award at Stern School of Business, NYU for 1999
  First Prize for L. Glucksman Institute Research Award at Stern School of Business, NYU for 1998-1999

General Equilibrium - Incomplete Markets, Financial Innovation, Integration of Markets, Implications for Corporate Finance

• "Optimal Financial-Market Integration and Security Design"
  Journal of Business, 78(6), 2006, 2397-2433 (with Alberto Bisin)
  Download PDF (May 2004 version)

Numerical Methods - Sampling, Monte Carlo, and Hidden Markov Models

• "Hybrid Quasi-Monte Carlo Methods for Valuation," December 1997,
  Technical mimeo, J.P.Morgan (available upon request) (with Julia Chislenko, Arnon Levy, and Jonathan Goodman)