Luke Taylor

Luke Taylor
  • Associate Professor of Finance

Contact Information

  • office Address:

    2321 Steinberg-Dietrich Hall
    3620 Locust Walk
    Philadelphia, PA 19104

Research Interests: corporate finance, corporate governance, entrepreneurship, financial fragility and crises, learning, portfolio management

Links: Personal Website

Overview

Education

PhD and MBA, University of Chicago Graduate School of Business, 2009; AB, Princeton University, 2001

Academic Positions Held

Wharton: 2008-present.

Other Positions

Business Analyst, McKinsey and Company, 2001-2003

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Research

  • Ryan Heath Peters and Luke Taylor (Forthcoming), Intangible Capital and the Investment-q Relation.

    Abstract: Including intangible capital significantly changes how we evaluate theories of investment. We show that including intangible capital in measures of investment and Tobin's q produces a stronger investment-q relation, especially in macroeconomic data and in firms that use more intangibles. These results lend support to the classic q theory of investment, and they call for the inclusion of intangible capital in proxies for firms' investment opportunities. However, including intangible capital also makes the investment-cash flow relation almost an order of magnitude stronger, which supports newer investment theories. The classic q theory performs better in settings with more intangible capital.

  • Lubos Pastor, Robert F. Stambaugh, Luke Taylor (2015), Scale and Skill in Active Management, Journal of Financial Economics, 116, pp. 23-45.

    Abstract: We empirically analyze the nature of returns to scale in active mutual fund management. We find strong evidence of decreasing returns at the industry level. As the size of the active mutual fund industry increases, a fund?s ability to outperform passive benchmarks declines. At the fund level, all methods considered indicate decreasing returns, though estimates that avoid econometric biases are insignificant. We also find that the active management industry has become more skilled over time. This upward trend in skill coincides with industry growth, which precludes the skill improvement from boosting fund performance. Finally, we find that performance deteriorates over a typical fund?s lifetime. This result can also be explained by industry-level decreasing returns to scale.

Teaching

Current Courses

  • FNCE750 - Venture Capital And The Finance Of Innovation

    This course covers the finance of technological innovation, with a focus on the valuation tools useful in the venture capital industry. These tools include the "venture capital method," comparables analysis, discounted cash flow analysis, contingent-claims analysis. The primary audience for this course is finance majors interested in careers in venture capital or in R&D-intensive companies in health care or information technology.

    FNCE750001 ( Syllabus )

    FNCE750002 ( Syllabus )

    FNCE750003 ( Syllabus )

Past Courses

  • FNCE250 - Venture Capital and the Finance of Innovation

    This course covers the finance of technological innovation, with a focus on the valuation tools useful in the venture capital industry. These tools include the "venture capital method," comparables analysis, discounted cash flow analysis, contingent-claims analysis. The primary audience for this course is finance majors interested in careers in venture capital or in R&D-intensive companies in health care or information technology.

  • FNCE750 - Venture Capital and the Finance of Innovation

    This course covers the finance of technological innovation, with a focus on the valuation tools useful in the venture capital industry. These tools include the "venture capital method," comparables analysis, discounted cash flow analysis, contingent-claims analysis. The primary audience for this course is finance majors interested in careers in venture capital or in R&D-intensive companies in health care or information technology.

In the News

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Activity

Latest Research

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In the News

Will Dropbox Be the Unicorn That Proves Itself?

The Dropbox IPO is expected to be one of the biggest tech stock offerings since Snap in 2017. How will it fare?

Knowledge @ Wharton - 2018/03/19
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