Fund Tradeoffs

Wharton Finance Faculty Research Fund Tradeoffs Ľubo š Pastor, Robert F. Stambaugh and Lucian A. Taylor Forthcoming in the Journal of Financial Economics Mutual funds manage tens of trillions of dollars, playing a major role in allocating capital in the economy. What drives these funds’ portfolio choices? Pastor, Stambaugh &Read More

Can the COVID Bailouts Save the Economy?

Wharton Finance Faculty Research Can the COVID Bailouts Save the Economy Vadim Elenev, Tim Landvoigt, Stijn Van Nieuwerburgh Wharton working paper This paper studies the effectiveness of policy interventions in the corporate debt market prompted by the COVID-19 crisis. The authors use a macroeconomic model mirroring actual programs that U.S.Read More

Real Anomalies

Wharton Finance Faculty Research Real Anomalies Christian C. Opp and Jules van Binsbergen Published in the Journal of Finance Firm managers take cues from how the market values their company's stock. Therefore, stock market mispricing, particularly when persistent, can lead overvalued (undervalued) firms to overinvest (underinvest). Opp & Binsbergen (2019)Read More