News

Xavier Giroud: Do venture capitalists matter?
February 4, 2016

A new study co-authored by an MIT professor, Xavier Giroud, shows that venture capitalists do help startup firms by closely monitoring their development, and that the availability of direct airplane flights between the two parties helps improve that oversight.

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Deborah Lucas: Investors should worry about China's debt-burdened cities
February 2, 2016

Professor Deborah Lucas and MIT Center for Finance and Policy (CFP) Executive Director, Doug Criscitello, provide a commentary about China's impact on the equity and foreign-exchange markets.

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Haoxiang Zhu: Regulators hit ‘dark pools’ with more than $150 million in penalties
February 1, 2016

Professor Zhu discusses the stock trading venues known as “dark pools”, which are coming under renewed scrutiny from government regulators.

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Stewart Myers receives AFA Morgan Stanley Award for Excellence in Finance
January 4, 2016

Stewart Myers, Professor of Financial Economics at the MIT Sloan School of Management, has been named the recipient of the Morgan Stanley – American Finance Association (AFA) Award for Excellence in Finance for 2016. The award is granted bi-annually to an individual with significant career achievements and outstanding thought leadership in the field of financial economics. Candidates are evaluated based on the fundamental, sustained, and broad impact of their research.  

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Andrew Lo: FDA drug approvals need more heart, less logic
October 8, 2015

For terminal patients with no existing treatments, it seems to make sense to be more lenient and approve drugs that, in the end, may not be effective,” said Lo, director of the laboratory for financial engineering at the MIT Sloan School of Management. “There are desperate patients out there who view this differently than the regulators.”

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Robert Merton: Investors are reviewing fixed-income game plan
October 4, 2015

Robert C. Merton, 1997 Nobel laureate in economics and MIT Sloan School of Management distinguished professor of finance, cautions that asset owners concerned with pension liabilities should be paying more attention to long-term, rather than short-term, rates. 

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Andrew Lo: Funding plan targets drug development for rare diseases
September 24, 2015

A California congressman plans to file legislation next week that would create a more modest version of Lo’s plan: A $400 million fund to finance development of drugs for rare diseases — with the federal government acting as a backstop, providing financial guarantees to attract private investment. If it works, Lo said, taxpayers could profit and patients could get access to new treatments.

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Research Spotlight: The right level of liquidity a Q&A with Douglas Diamond
September 18, 2015

Is there an optimal level of bank liquidity and regulation? Visiting professor Douglas Diamond is trying to find out.   

Douglas Diamond came to the MIT Sloan Finance Group this fall as the Fischer Black Visiting Professor of Finance and will focus the bulk of his research and study on bank liquidity holdings and financial crises. Diamond, who is on leave from the University of Chicago’s Booth School of Business, recently spoke about his work and his plans.

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Rajkamal Iyer: Securities trading by banks crowds out traditional loans during crisis
August 26, 2015

During the economic crisis, we saw an interesting pattern of activity among commercial banks. As prices of securities dramatically dropped, banks purchased the securities, looking to make profits when the prices later increased. This had an effect on lending, as banks used their capital to buy securities rather than make loans. This despite the banks taking billions at the time from the Federal Reserve in liqudity support.

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Research Spotlight: How To Anticipate A Market Sell-Off
June 11, 2015

The ETF looks at Professor Mark Kritzman's research in systemic market risk and relates it to current emerging markets.

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Leonid Kogan: Don't Get Railroaded by Robos, Leverage Tech Now.
June 3, 2015

Professor Kogan spoke on Friday, May 29th at the Frontiers of Finance forum in New York, where he examined his scholarship into the connection between innovative patents and stock market fluctuations. In an interview afterwards, he addressed disruption in wealth management.

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Deborah Lucas: Congress Moving to Fair Value Accounting
May 29, 2015

Professor Deborah Lucas, Director of the MIT Center for Finance and Policy, discusses the U.S. economy and budget on “Bloomberg Surveillance.”

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Lily Fang: Gender Bias on Wall Street
May 5, 2015

Visiting MIT professor, Lily Fang says women in finance don’t use their personal connections. Men and women have different experiences when it comes to Wall Street careers. And those differences fascinate Professor Fang.

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Jean-Noel Barrot wins 2015 Kauffman Junior Faculty Fellowship
April 23, 2015

Professor Jean-Noel Barrot has received a 2015 Kauffman Junior Faculty Fellowship in Entrepreneurship Research (KJFF) from the Ewing Marion Kauffman Foundation.

Seven exceptional scholars comprise the sixth class of Kauffman Junior Faculty Fellows.  This $35,000 fellowship grant award recognizes their having begun to establish a record of scholarship and to exhibit the potential to make significant contributions to the body of research in the field of entrepreneurship.    

The award will be presented during the Annual Meeting of the Academy of Management in Vancouver, British Columbia in August.

Stewart Myers wins 2015 Onassis Prize for Finance
March 24, 2015

Professor Stewart Myers has won the 2015 Onassis Prize for Finance. Myers is best known for his influential research on capital structure and capital budgeting valuation. Throughout his distinguished career he has had a significant influence on the theory of banking and corporate finance and is notable for coining the term “real option”. 

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Ben Golub: 2015 shaping up as “dangerous” year for investment risk
March 19, 2015

MIT Sloan Alum and Finance Group Advisory Board member, Ben Golub of BlackRock Inc., believes 2015 could become a “dangerous” year to take investment risks.

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Mark Kritzman wins 2015 Bernstein Fabozzi/Jacobs Levy Outstanding Article Award
March 16, 2015

MIT Sloan Senior Lecturer, Mark Kritzman, has won a Bernstein Fabozzi/Jacobs Levy Outstanding Article Award.  This annual award recognizes research excellence in the theory and practice of portfolio management.  Honorees are chosen by subscriber vote on articles appearing in The Journal of Portfolio Management the prior year. Mark’s winning paper, co-authored with William Kinlaw and David Turkington (both of State Street) is entitled “The Divergence of High- and Low-Frequency Estimation:Causes and Consequences

(The Journal of Portfolio Management, Vol. 40,No. 5).

Stephen A. Ross receives the Deutsche Bank Prize in Financial Economics 2015
March 3, 2015

Professor Ross has received the Deutchse Bank Prize in Financial Economics 2015 for his groundwork and fundamental contributions to the analytical development of financial economics. For more than 25 years major models developed by him have marked the economic world. His models relate to the theory of asset pricing, the analysis of the term structure of interest rates, understanding option prices, and the basic structure of the principal-agent problem. The work of Stephen A. Ross has shaped today’s thinking in financial innovation, practice and policy.

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Leonid Kogan awarded the 2014 Amundi Smith Breeden Prize
February 3, 2015

Professor Leonid Kogan has won the 2014 Amundi Smith Breeden Prize (first prize) for the best paper in The Journal of Finance, which is the official publication of the American Finance Association and one of the most widely cited academic journals in finance as well as in economics. 

His winning paper (co-authored with D. Papanikolaou of Kellogg) is entitled, "Growth Opportunities, Technology Shocks, and Asset Prices."

The award was presented the first week of January in Boston, at the American Finance Association Annual Meeting.

Andrew Lo: Darwinian Behavioral Approach To Explain Markets?
January 8, 2015

Professor Andrew Lo talks to John Authers, Financial Times, about his theory applying Darwinian evolution to investment and markets. He suggests our aversion to risk is biological, and driven by the behaviour that allowed humans to avoid extinction. His ideas have profound implications for markets.

View the video interview here