Itay Goldstein

Itay Goldstein
  • Joel S. Ehrenkranz Family Professor, Professor of Finance, Professor of Economics
  • Chairperson, Finance Department

Contact Information

  • office Address:

    2253 Steinberg-Dietrich Hall
    3620 Locust Walk
    Philadelphia, PA 19104

Research Interests: corporate finance, feedback effects between financial markets and real economy, financial fragility and crises, financial institutions, financial markets

Links: CV, Personal Website, Google Scholar, Scopus Profile

Overview

Itay Goldstein is the Joel S. Ehrenkranz Family Professor and a Professor of Finance at the Wharton School of the University of Pennsylvania. He has been on the faculty of the Wharton School since 2004 and holds a secondary appointment as a Professor of Economics.

Professor Goldstein currently serves as the Chairperson of the Finance Department and is also the Co-Director of the Stevens Center for Innovation in Finance and the Director of the Wharton Initiative on Financial Policy and Regulation. Prior to that, he was the coordinator of the Ph.D. program in Finance and, in 2022, received the Provost’s Award for Distinguished PhD Teaching and Mentoring.

Professor Goldstein earned his Ph.D. in Economics in 2001 from Tel Aviv University. He is an expert in the areas of corporate finance, financial institutions, and financial markets, focusing on financial fragility and crises and on the feedback effects between firms and financial markets. His research has been published in top academic journals, including the American Economic Review, the Journal of Finance, the Journal of Financial Economics, the Journal of Political Economy, the Review of Economic Studies, and the Review of Financial Studies. His research has also been featured in the Economist, Wall Street Journal, Financial Times, Bloomberg, Forbes, National Public Radio, and other popular press.

Professor Goldstein was the Executive Editor of the Review of Financial Studies from 2018 to 2024. He is a Research Associate at the National Bureau of Economic Research. He was the co-founder and the first president of the Finance Theory Group, served as a director of the American Finance Association, the Western Finance Association, and the Financial Intermediation Research Society, and is now the Vice President of the Western Finance Association.

Professor Goldstein has served as an academic advisor in various policy institutions, including the Federal Reserve Banks of New York, Philadelphia, and Richmond, the Bank of Canada, the Bank for International Settlements, the Committee for Capital Markets Regulation, and the International Monetary Fund. He is a frequent speaker in academic and policy forums around the world and has been a keynote speaker in leading academic conferences.

Education

PhD, Tel-Aviv University, 2001; MA, Tel-Aviv University, 1998; BA, Tel-Aviv University, 1994.

Academic Positions Held

Joel S Ehrenkranz Family Professor, Professor of Finance, Professor of Economics

Other Positions (Selected)

Academic Advisor, Bank of Canada, 2015-; Visiting Scholar, Federal Reserve Bank of Richmond, 2013; Academic Consultant, Federal Reserve Bank of New York, 2011- ; Academic Consultant, Committee on Capital Markets Regulation 2010-2012; Visiting Scholar, Federal Reserve Bank of Philadelphia, 2005- ; Visiting Scholar, Princeton University, 2000-2001; Economist, Bank of Israel, 1998-2000.

Professional Leadership (Selected)

Co-founder and Inaugural President of the Finance Theory Group; Executive Editor of the Review of Financial Studies; Previously Editor at Management Science and the Journal of Financial Intermediation; Co-organizer of Wharton Conferences on Liquidity and Financial Crises; Director of the American Finance Association; Director of the Western Finance Association; Previously Director of the Financial Intermediation Research Sociey; Elected Member of FARFE (Foundation for the Advancement of Research in Financial Economics); Member of FARFE Prize Committee, 2010.

Selected Press Coverage

Economist, Financial Times, National Public Radio, Forbes, Bloomberg, Ruters, TheStreet.com, Morningstar.

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Research

Refereed Publications | Other Papers | Selected Working Papers

REFEREED PUBLICATIONS

  1. On ESG Investing: Heterogeneous Preferences, Information, and Asset Prices with Alexandr Kopytov, Lin Shen, and Haotian Xiang, Journal of Finance, forthcoming
  2. Market Feedback: Evidence from the Horse’s Mouth with Bibo Liu and Liyan Yang, Journal of Financial Economics, vol. 180, article 104255, June 2026
  3. Information Sharing in Financial Markets with Yan Xiong and Liyan Yang, Journal of Financial Economics, vol. 163, article 103967, January 2025
  4. Utility Tokens as a Commitment to Competition with Deeksha Gupta and Ruslan Sverchkov, Journal of Finance, vol. 79(6), pp. 4197-4246, December 2024
  5. Liquidity Transformation and Fragility in the US Banking Sector with Qi Chen, Zeqiong Huang, and Rahul Vashishtha, Journal of Finance, vol. 79(6), pp. 3985-4036, December 2024
  6. Bank Heterogeneity and Financial Stability with Alexandr Kopytov, Lin Shen, and Haotian Xiang, Journal of Financial Economics, vol. 162, article 103934, December 2024
  7. Corporate Responses to Stock Price Fragility with Richard Friberg and Kristine Hankins, Journal of Financial Economics, vol. 153, article 103795, March 2024
  8. The Real Effects of Modern Information Technologies: Evidence from the EDGAR Implementation with Shijie Yang and Luo Zuo, Journal of Accounting Research, vol. 61(5), pp. 1699-1733, December 2023
  9. Optimal Deposit Insurance with Eduardo Davila, Journal of Political Economy, vol. 131(7), pp. 1676-1730, July 2023
  10. Bank Transparency and Deposit Flows with Qi Chen, Zeqiong Huang, and Rahul Vashishtha, Journal of Financial Economics, vol. 146(2), pp. 475-501, November 2022
  11. Commodity Financialization and Information Transmission with Liyan Yang, Journal of Finance, vol. 77(5), pp. 2613-2667, October 2022
  12. Financial Fragility in the COVID-19 Crisis: The Case of Investment Funds in Corporate Bond Markets with Antonio Falato and Ali Hortacsu, Journal of Monetary Economics, vol. 123, pp. 35-52, October 2021
  13. Mutual Fund Flows and Fluctuations in Credit and Business Cycles with Azi Ben-Rephael and Jaewon Choi, Journal of Financial Economics, vol. 139(1), pp. 84-108, January 2021
  14. Credit Rating Inflation and Firms’ Investments with Chong Huang, Journal of Finance, vol. 75(6), pp. 2929-2972, December 2020
  15. Monetary Stimulus and Bank Lending with Indraneel Chakraborty and Andrew MacKinlay, Journal of Financial Economics, vol. 136(1), pp. 189-218, April 2020
  16. Good Disclosure, Bad Disclosure with Liyan Yang, Journal of Financial Economics, vol. 131(1), pp. 118-138, January 2019
  17. Government Guarantees and Financial Stability with Franklin Allen, Elena Carletti, and Agnese Leonello, Journal of Economic Theory, vol. 177, pp. 518-557, September 2018
  18. Stress Tests and Information Disclosure with Yaron Leitner, Journal of Economic Theory, vol. 177, pp. 34-69, September 2018
  19. Housing Price Booms and Crowding-Out Effects in Bank Lending with Indraneel Chakraborty and Andrew MacKinlay, Review of Financial Studies, vol. 31(7), pp. 2806-2853, July 2018
  20. Investor Flows and Fragility in Corporate Bond Funds with Hao Jiang and David Ng, Journal of Financial Economics, vol. 126(3), pp. 592-613, December 2017
  21. Incentives for Information Production in Markets where Prices Affect Real Investment with James Dow and Alexander Guembel, Journal of the European Economic Association, vol. 15(4), pp. 877-909, August 2017
  22. Feedback Effects, Asymmetric Trading, and the Limits to Arbitrage with Alex Edmans and Wei Jiang, American Economic Review, vol. 105(12), pp. 3766-3797, December 2015
  23. Government Intervention and Information Aggregation by Prices with Philip Bond, Journal of Finance, vol. 70(6), pp. 2777-2811, December 2015
  24. Information Diversity and Complementarities in Trading and Information Acquisition with Liyan Yang, Journal of Finance, vol. 70(4), pp. 1723-1765, August 2015
  25. Speculation and Hedging in Segmented Markets with Yan Li and Liyan Yang, Review of Financial Studies, vol. 27(3), pp. 881-922, March 2014
  26. Trading Frenzies and Their Impact on Real Investment with Emre Ozdenoren and Kathy Yuan, Journal of Financial Economics, vol. 109(2), pp. 566-582, August 2013
  27. The Real Effects of Financial Markets: The Impact of Prices on Takeovers with Alex Edmans and Wei Jiang, Journal of Finance, vol. 67(3), pp. 933-971, June 2012
  28. Self-Fulfilling Credit Market Freezes with Lucian Bebchuk Review of Financial Studies, vol. 24(11), pp. 3519-3555, November 2011
  29. Learning and Complementarities in Speculative Attacks with Emre Ozdenoren and Kathy Yuan, Review of Economic Studies, vol. 78(1), pp. 263-292, January 2011
  30. Payoff Complementarities and Financial Fragility: Evidence from Mutual Fund Outflows with Qi Chen and Wei Jiang, Journal of Financial Economics, vol. 97(2), pp. 239-262, August 2010
  31. Market-Based Corrective Actions with Philip Bond and Edward Simpson Prescott, Review of Financial Studies, vol. 23(2), pp. 781-820, February 2010
  32. Activist Arbitrage: A Study of Open-Ending Attempts of Closed-End Funds with Michael Bradley, Alon Brav, and Wei Jiang, Journal of Financial Economics, vol. 95(1), pp. 1-19, January 2010
  33. Directors’ Ownership in the U.S. Mutual Fund Industry with Qi Chen and Wei Jiang, Journal of Finance, vol. 63(6), pp. 2629-2677, December 2008
  34. Manipulation and the Allocational Role of Prices with Alexander Guembel, Review of Economic Studies, vol. 75(1), pp. 133-164, January 2008
  35. The Positive Effects of Biased Self-Perceptions in Firms with Simon Gervais, Review of Finance, vol. 11(3), pp. 453-496, September 2007
  36. Price Informativeness and Investment Sensitivity to Stock Price with Qi Chen and Wei Jiang, Review of Financial Studies, vol. 20(3), pp. 619-650, May 2007
  37. An Information Based Trade off Between Foreign Direct Investment and Foreign Portfolio Investment with Assaf Razin, Journal of International Economics, vol. 70(1), pp. 271-295, September 2006
  38. Demand Deposit Contracts and the Probability of Bank Runs with Ady Pauzner, Journal of Finance, vol. 60(3), pp. 1293-1328, June 2005
  39. Strategic Complementarities and the Twin Crises Economic Journal, vol. 115, pp. 368-390, April 2005
  40. The Choice of Exchange Rate Regime and Speculative Attacks with Alex Cukierman and Yossi Spiegel, Journal of the European Economic Association, vol. 2(6), pp. 1206-1241, December 2004
  41. Contagion of Self-Fulfilling Financial Crises Due to Diversification of Investment Portfolios with Ady Pauzner, Journal of Economic Theory, vol. 119(1), pp. 151-183, November 2004

 

OTHER ACADEMIC PUBLICATIONS

  1. What Drives Money Competition: Comparative Advantage in Payments versus Reserves with Ming Yang and Yao Zeng, American Economic Association Papers and Proceedings, vol. 116, pp. 439-445, May 2026
  2. Fragility of Financial Markets with Chong Huang and Liyan Yang, Annual Review of Financial Economics, vol. 17, pp. 27-48, December 2025
  3. The Role of Theory in Finance Research, The Financial Review, vol. 60(3), pp. 657-666, August 2025
  4. The Next Chapter of Big Data in Finance with Chester Spatt and Mao Ye, Review of Financial Studies, vol. 38(3), pp. 605-622, March 2025
  5. Information in Financial Markets and Its Real Effects, Review of Finance, vol. 27(1), pp. 1-32, February 2023
  6. Stress Tests Disclosure: Theory, Practice, and New Perspectives with Yaron Leitner, in Handbook of Financial Stress Testing, edited by J. Doyne Farmer, Alissa M. Kleinnijenhuis, Til Schuermann, and Thom Wetzer (Cambridge University Press), pp. 208-223, April 2022
  7. COVID-19 and Its Impact on Financial Markets and the Real Economy with Ralph Koijen and Holger Mueller, Review of Financial Studies, vol. 34(11), pp. 5135-5148, November 2021
  8. Big Data in Finance with Chester Spatt and Mao Ye, Review of Financial Studies, vol. 34(7), pp. 3213-3225, July 2021
  9. To FinTech and Beyond with Wei Jiang and G Andrew Karolyi, Review of Financial Studies, vol. 32(5), pp. 1647-1661, May 2019
  10. The Interplay among Financial Regulations, Resilience, and Growth with Franklin Allen and Julapa Jagtiani, Journal of Financial Services Research, vol. 53 (2-3), pp. 141-162, June 2018
  11. Information Disclosure in Financial Markets with Liyan Yang, Annual Review of Financial Economics, vol. 9, pp. 101-125, December 2017
  12. Comment on “Redemption Risk and Cash Hoarding by Asset Managers” by Morris, Shim, and Shin Journal of Monetary Economics, vol. 89, pp. 88-91, August 2017
  13. Financial Regulation in Europe: Foundations and Challenges with Thorsten Beck and Elena Carletti, in Economics without Borders: Economic Research for European Policy Challenges, edited by Richard Blundell et al. (Cambridge University Press), pp. 470-511, April 2017
  14. Enhancing Prudential Standards in Financial Regulations with Franklin Allen, Julapa Jagtiani, and William Lang, Journal of Financial Services Research, vol. 49(2-3), pp. 133-151, June 2016
  15. Bayesian Persuasion in Coordination Games with Chong Huang, American Economic Review Papers and Proceedings, vol. 106(5), pp. 592-596, May 2016
  16. Three Branches of Theories of Financial Crises with Assaf Razin, Foundations and Trends in Finance, vol. 10(2), pp. 113-180, December 2015
  17. Moral Hazard and Government Guarantees in the Banking Industry with Franklin Allen, Elena Carletti, and Agnese Leonello, Journal of Financial Regulation, vol. 1(1), pp. 30-50, March 2015
  18. Corporate Finance Theory: Introduction to Special Issue with Dirk Hackbarth, Journal of Corporate Finance, vol. 29, pp. 535-541, December 2014
  19. Should Banks’ Stress Test Results be Disclosed? An Analysis of the Costs and Benefits with Haresh Sapra, Foundations and Trends in Finance, vol. 8, pp. 1-54, March 2014
  20. The Real Effects of Financial Markets with Philip Bond and Alex Edmans, Annual Review of Financial Economics, vol. 4, pp. 339-360, December 2012
  21. Empirical Literature on Financial Crises: Fundamentals vs. Panic  in The Evidence and Impact of Financial Globalization, edited by Gerard Caprio (Elsevier, Amsterdam), pp. 523-534, December 2012

SELECTED WORKING PAPERS

  1. Market Feedback about Emerging Technologies, with Sean Cao, Jie He, and Yabo Zhao
  2. Earnings Information Spillovers and Depositor Contagion, with Qi Chen, Rahul Vashishtha, and Benda Yin
  3. AI-Powered Trading, Algorithmic Collusion, and Price Efficiency, with Winston Dou and Yan Ji
  4. Financial Market Fragility in the Era of AI Planning, with Winston Dou and Yan Ji
  5.  Human Edge, Machine Limits: AI-Human Competition in Financial Markets, with Winston Dou, Zigang Li, and Liyan Yang,
  6. Target Allocation Funds, Strategic Complementarities, and Market Fragility, with Chuck Fang
  7. Bank Diversification and Lending Resiliency, with Michael Gelman and Andrew MacKinlay
  8. Monetary Policy in the Age of Universal Banking, with Michael Gelman and Andrew MacKinlay
  9. Open Banking under Maturity Transformation, with Chong Huang and Liyan Yang
  10. Payments, Reserves, and Financial Fragility, with Ming Yang and Yao Zeng

Teaching

All Courses

  • FNCE2320 - International Banking

    This course focuses on international financial institutions, especially the activities of global, systemically important banks. We will examine how current and historical events are reshaping the industry and highlight the basic analytics of managing a bank's exposure to liquidity, credit, market and reputational risk. Most classes will begin with discussion of a current event related to course topics. Three team projects will be assigned that will give you deeper exposure to analytic techniques related to the course. Throughout the semester, we will discuss public policy issues facing the international financial system. In addition to course prerequisites, FNCE 1010 is recommended.

  • FNCE3900 - Advanced Seminar

    The objective of this course is to introduce undergraduates to finance research. It will integrate the work of the various finance courses and familiarize the student with the tools and techniques of research. This research course will give undergraduate students a financial framework that they can build on at Wharton and throughout their careers. Participants will be named Measey Foundation Marshall Blume Undergraduate Research Fellows.

  • FNCE3990 - Independent Study

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

  • FNCE6110 - Corporate Finance

    This course serves as an introduction to business finance (corporate financial management and investments) for both non-majors and majors preparing for upper-level course work. The primary objective is to provide the framework, concepts, and tools for analyzing financial decisions based on fundamental principles of modern financial theory. The approach is rigorous and analytical. Topics covered include discounted cash flow techniques; corporate capital budgeting and valuation; investment decisions under uncertainty; capital asset pricing; options; and market efficiency. The course will also analyze corporate financial policy, including capital structure, cost of capital, dividend policy, and related issues. Additional topics will differ according to individual instructors.

  • FNCE7030 - Advanced Corp Finance

    The objective of this course is to study the major decision-making areas of managerial finance and some selected topics in financial theory. The course reviews the theory and empirical evidence related to the investment and financing policies of the firm and attempts to develop decision-making ability in these areas. This course serves as an extension of FNCE 6110. Some areas of financial management not covered in FNCE 6110 are covered in FNCE 7030. These may include leasing, mergers and acquisitions, corporate reorganizations, financial planning, and working capital management, and some other selected topics. Other areas that are covered in FNCE 6110 are covered more in depth and more rigorously in FNCE 7030. These include investment decision making under uncertainty, cost of capital, capital structure, pricing of selected financial instruments and corporate liabilities, and dividend policy.

  • FNCE7320 - International Banking

    This course focuses on international financial institutions, especially the activities of global, systemically important banks. We will examine how current and historical events are reshaping the industry and highlight the basic analytics of managing a bank's exposure to liquidity, credit, market and reputational risk. Most classes will begin with discussion of a current event related to course topics. Three team projects will be assigned that will give you deeper exposure to analytic techniques related to the course. Throughout the semester, we will discuss public policy issues facing the international financial system. In addition to course prerequisites, FNCE 6130 is recommended.

  • FNCE8990 - Independent Study

    Independent Study Projects require extensive independent work and a considerable amount of writing. ISP in Finance are intended to give students the opportunity to study a particular topic in Finance in greater depth than is covered in the curriculum. The application for ISP's should outline a plan of study that requires at least as much work as a typical course in the Finance Department that meets twice a week. Applications for FNCE 8990 ISP's will not be accepted after the THIRD WEEK OF THE SEMESTER. ISP's must be supervised by a Standing Faculty member of the Finance Department.

  • FNCE9120 - Corp Fnce and Fin Instit

    This course provides students with an overview of the basic contributions in the modern theory of corporate finance and financial institutions. The course is methodology oriented in that students are required to master necessary technical tools for each topic. The topics covered may include capital structure, distribution policy, financial intermediation, incomplete financial contracting, initial and seasoned public offerings, market for corporate control, product market corporate finance interactions, corporate reorganization and bankruptcy, financing in imperfect markets, security design under adverse selection and moral hazard, and some selected topics.

  • FNCE9230 - Fin Econ Under Imp Info

    This course covers general equilibrium and rational expectations, foundations of the theory of information; learning from prices in rational expectations equilibrium models, moral hazard, adverse selection, and signaling bidding theories.

  • FNCE9900 - Master's Thesis

    Master's Thesis

  • FNCE9950 - Dissertation

    Dissertation

  • INSP4997 - Senior Capstone

    This senior-year research course is designed to facilitate the completion of a thesis or project as part of the Huntsman Program's senior capstone experience. Students in the Huntsman Program should consult with the Huntsman Program advisors for more information.

Awards and Honors

  • Provost’s Award for Distinguished PhD Teaching and Mentoring, 2022

In the News

COLUMNS IN THE POPULAR PRESS

·       The Bright Side of Bank Diversification with Michael Gelman and Andrew MacKinlay, The Banker, August 2023

·       SVB: US Regulators Have Generated “A Moral Hazard” with Yao Zeng, The Banker, March 2023

·       The Real Effects of the Chinese Stock Market with Bibo Liu and Liyan Yang, Vox-China, September 2021

·       As Inflation Risk Rises, Banks Should Step Up Stress Tests, The Banker, August 2021

·       Lessons from Corporate Bond Market Fragility, The Banker, April 2021

·       Why We Should Worry about Trading Frenzies, The Banker, March 2021

·       Fintech and the New Financial Landscape with Julapa Jagtiani and Aaron Klein, Banking Perspectives, March 2019

·       The Current State and Future Challenges of Financial Regulation with Thorsten Beck and Elena Carletti, VoxEU, November 2016

·       Dark Side of Housing-Price Appreciation with Indraneel Chakraborty and Andrew MacKinlay, VoxEU, November 2013

·       Theories of Financial Crises with Assaf Razin, VoxEU, March 2013

·       How to Give Banks Confidence to Lend to Businesses with Lucian Bebchuk, Financial Times, December 2008

Knowledge at Wharton

Wharton Stories

Miscellaneous

PHD-LEVEL LECTURE NOTES

Mini Course on Financial Intermediation and Crises (Recent Slides)

Mini Course on Information in Financial Markets (Recent Slides)

Lecture on Information and Fragility in Financial Markets

Lecture on Information in Financial Markets and Its Real Effects

Lecture on Financial Markets, Information, and Real Investments

Lecture on Short Term Debt and Incentives in Banks

PhD course on Corporate Finance and Financial Institutions; covers theories of Corporate Finance, Financial Institutions, and Financial Markets:

New Syllabus (with references to lecture notes above and additional lecture notes on the following topics: Moral Hazard, Theory of the Firm, Capital Structure, Financial Contracting, Corporate Control, Financial Intermediation and Crises, Financial Markets, Feedback Effects)

 

KEYNOTE SPEECHES AND PANELS

SOME REPRESENTATIVE SLIDES

AI Trading in Financial Markets: An Emerging Research Agenda

Tracing the Sources of Fragility in the Financial System

Information in Financial Markets and Its Real Effects

Financial Innovation and Tokenization

Current Issues in Finance from Fragility to Technology

Amplification and Fragility in Financial Markets

The Role of Theory in Finance Research

FinTech and Decentralized Finance

Banking Fragility

Financial Fragility and Mutual Funds

Trading Frenzies and Real Effects

Corporate Finance and Financial Markets

Financial Market Feedback: Foundations and New Directions

FinTech Decentralization and Utility Tokens

Learning from Market Prices

Tradeoffs in Disclosure of Supervisory Information

Activity

In the News

Private Credit Risks and the Threat of Market Contagion

Wharton finance professor examines private credit market vulnerabilities, investor redemptions, liquidity risks, and the potential for broader financial instability.…Read More

Knowledge at Wharton - 6/24/2026
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Wharton Magazine

A Program for the Data-Driven Era
Wharton Magazine - 04/17/2026

Wharton Stories

On the right, Golden Gate Bridge. On the left, city by night.Wharton EMBA Students Share How They Benefit from a Bicoastal Program

Editor’s Note: Wharton launched a Global Cohort in 2023. One unique aspect of Wharton’s MBA Program for Executives is the opportunity for students to take classes on either coast. They can immerse themselves in the innovation ecosystem of Silicon Valley at our San Francisco campus, or they can come to…

Wharton Stories - 08/13/2019
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