Photo of Joao F. Gomes

Joao F. Gomes

Howard Butcher III Professor of Finance

Research Interests: macroeconomics and financial markets, quantitative corporate finance, corporate investment and financing

Links: CV

Contact Information

Address: 2329 Steinberg-Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104
Email: gomesj@wharton.upenn.edu
Office: (215) 898-3666

Overview

Education

PhD, University of Rochester, 1997; MA University of Rochester, 1996; BA, New University of Lisbon, Portugal, 1991

Academic Positions Held

Wharton: 1997-present (named James G. Campbell, Jr. Associate Professor of Finance in 2008)

Professor Gomes expertise is in the areas of macroeconomics and financial markets where he has taught several courses to undergraduate, MBA and doctoral students both at Wharton and around the world.

His recent research covers the determinants of the corporate investment and financing decisions of firms and the links to movements in financial markets, and to monetary and fiscal policies. He has also examined the role of financial leverage in determining the cost of capital, the causes of performance variation across asset classes, and the quantitative importance of financial market imperfections on corporate decisions and economic cycles.

Professor Gomes’ research has been presented and discussed at major academic conferences and seminar series around the world and is published in the top rated academic journals in both economics and finance.  He has won several awards including the Smith Breeden Prize for Best Asset Pricing Paper published in the Journal of Finance, with a study on the links between leverage and returns, and was nominated for the Brattle Prize for Best Corporate Finance Paper in the same journal, with earlier work on the performance of conglomerates.

Professor Gomes's previous appointments include a professorship at the London Business School. In addition, he has visited several other universities and research centers, including the University of British Columbia in Canada, the New University of Lisbon in Portugal, and the Federal Reserve Bank of Minneapolis. Early in his career he has also served as an ad-hoc economic advisor to the Ministry of Industry of Portugal.

Research


  • Joao F. Gomes (Work In Progress), Leverage and Equity Risk: Better Estimates.
  • Joao F. Gomes (Work In Progress), The Macroeconomic Implications of Corporate Income Taxes.
  • Joao F. Gomes, Vito Gala (Under Review), Beyond Q: Investment Without Asset Prices.    Abstract  Related Materials
  • Joao F. Gomes, Urban Jermann, Lukas Schmid (Under Review), Sticky Leverage.    Abstract
  • Colin Ward, Joao F. Gomes, M. Yasser Boualam (Draft), Understanding the Behavior of Distressed Stocks.  Abstract
  • Joao F. Gomes, Lukas Schmid (Under Revision), Equilibrium Credit Spreads and the Macroeconomy;.    Abstract
  • Joao F. Gomes, Lukas Schmid (2010), Levered Returns, Journal of Finance, 2010.  Abstract
  • Joao F. Gomes, Leonid Kogan, Motohiro Yogo (2009), Durability of Output and Expected Stock Returns, Journal of Political Economy, 117 (5), 941 - 986.  Abstract  Related Materials
  • Joao F. Gomes, Amir Yaron, Lu Zhang (2006), Asset Pricing Implications of Firms' Financing Constraints, Review of Financial Studies, Vol. 19 (No. 4), 1321 - 1356.  Abstract  Related Materials
  • Joao F. Gomes, Amir Yaron, Lu Zhang (2004), Asset Prices and Business Cycles with Costly External Finance, Review of Economic Dynamics, 2004.  Abstract
  • Joao F. Gomes, Dmitry Livdan (2004), Optimal Diversification: Reconciling Theory and Evidence, Journal of Finance, 2004.  Abstract
  • Joao F. Gomes, Leonid Kogan, Lu Zhang (2003), Equilibrium Cross-Section of Returns, Journal of Political Economy, 2003.  Abstract
  • Joao F. Gomes, Frank Schorfheide, Yongsung Chang (2002), Learning By Doing as a Propagation Mechanism, American Economic Review, 2002.  Abstract
  • Joao F. Gomes (Draft), Financing Investment - Technical Appendix.    Related Materials
  • Joao F. Gomes, Jeremy Greenwood, Sergio Rebelo (2001), Equilibrium Unemployment, Journal of Monetary Economics, 2001.  Abstract
  • Joao F. Gomes (2001), Financing Investment, American Economic Review, 2001.  Abstract

Awards And Honors

In The News

Teaching

I teach several courses on macroeconomics and financial markets to Masters and Doctoral level students. I also teach in several of Wharton's Executive Education programs

Courses

Previous

  • FNCE396 - Finance in Europe

    This is a short seminar on finance in Europe. Its objective is to bring students, academics and several industry experts together to study financial markets, practice, and institutions in Europe. Course Content: The course will primarily examine following areas: 1.Current challenges in European markets and Euro zone 2.Political economy of European Union 3.Alternative Investments 4.Investment Banking & Cross Border Mergers and Acquisitions We will cover the above topics by studying practice and transactions in Europe with a comparison to USA and rest of the world. This is a half unit course and it is designed for Wharton MBAs. Exceptionally motivated undergraduate students are also welcome to take the course.

  • FNCE399 - Supervised Study in Finance

    Integrates the work of the various courses and familiarizes the student with the tools and techniques of research.

  • FNCE613 - Macroeconomics and the Global Economic Environment

    This course is required of all students except those who, having prior training in macroeconomics, money and banking, and stabilization policy at an intermediate or advanced level, can obtain a waiver by passing an examination. The purpose of FNCE 613 is to train the student to think systematically about the current state of the economy and macroeconomic policy, and to be able to evaluate the economic environment within which business and financial decisions are made. The course emphasizes the use of economic theory to understand the workings of financial markets and the operation and impact of government policies. Specifically, the course studies the determinants of the level of national income, employment, investment, interest rates, the supply of money, inflation, exchange rates, and the formulation and operation of stabilization policies.

  • FNCE937 - Applied Quantitative Methods in Finance

    Finance 937 uses numerical tools to address a variety of issues in finance. The course has two main objectives. First, it seeks to provide the students with useful quantitative tools to understand and produce frontier research in finance. Second, it applies these tools to advanced topics in both corporate finance and asset pricing. A special emphasis is placed on new and recent research.