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Chicago Booth faculty wins record number of awards at American Finance Association Conference


Six faculty members at the University of Chicago Booth School of Business received awards for their research from the American Finance Association at the group’s annual conference Jan. 6-8. The six awards represent the most winners from the same institution ever honored by the AFA in a single year.

In the 24 years that the best paper awards have been given, 36 scholars from Chicago Booth have been winners, which is more than any other business school.

In addition to this year’s winners, Luigi Zingales, Robert C. McCormack Professor of Entrepreneurship and Finance at Chicago Booth, was elected president-elect of the Association and 2014 program chair.

Marianne Bertrand, Chris P. Dialynas Professor of Economics, and Adair Morse, associate professor of finance, received the Brattle Group First Prize for the best paper in corporate finance published in the Journal of Finance for their paper “Information Disclosure, Cognitive Biases and Payday Borrowing,” which shows how psychology-guided information disclosure can induce borrowers to lower their use of high-cost debt available at payday loan stores.

Associate Professors Zhiguo He and Stavros Panageas each won the Smith Breeden First
Prize for the top paper in the Journal of Finance in any area other than corporate finance. Professor He was honored for his paper “Rollover Risk and Credit Risk,” co-written by Wei Xiong from Princeton, which shows that deterioration in debt market liquidity leads to an increase in not only the liquidity premium of corporate bonds but also credit risk.

Panageas received the award for his paper “Technological Growth and Asset Pricing,” co-written with Nicolae Garleanu from the University of California, Berkeley and Jianfeng Yu from the University of Minnesota Carlson School of Management. They examined a process that can help explain stylized asset-valuation patterns around major technological innovations. More important, it can help provide a unified, investment-based theory for numerous welldocumented facts related to excess-return predictability.

Lubos Pastor, Charles P. McQuaid Professor of Finance, and Pietro Veronesi, Roman Family Professor of Finance, won the Smith Breeden Distinguished Paper Prize for their research into “Uncertainty About Government Policy and Stock Prices.” Joint research by Professors Pastor and Veronesi also received the Smith Breeden Prize in 2003.

Their winning research this year looks at how changes in government policy affect stock prices. They found that stock prices should fall at the announcements of policy changes, on average. They also found that the jump risk premium associated with policy decisions is generally positive.

In addition to winning this year’s Brattle Group Prize, Professor Bertrand received the 2004 Elaine Bennett Research Prize, awarded by the American Economic Association to recognize outstanding research by a woman at the beginning of her career. She also received the 2012 Society of Labor Economists’ Rosen Prize for outstanding contributions to labor economics. She is a Fellow of the American Academy of Arts and Sciences.

Professor Morse has done recent research that has been instrumental in redirecting the debate on tax reform in Greece, and her work on fraud helped to shape the bounty provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act. This past summer she won the Commonwealth Fund Prize for a best paper at the European Finance Association. Earlier in her career she won the Jensen Prize (second prize) for the best paper in corporate finance.

Professor He received the 2012 Outstanding Paper Award from the Swiss Finance Institute and The Chinese Finance Association (TCFA) best paper award in 2012. He is a faculty research fellow at the National Bureau of Economic Research. His work focuses on agency frictions in corporate finance and implications of financial intermediaries in capital markets.

Professor Panageas studies asset pricing and macroeconomics. He is a faculty research fellow at the National Bureau of Economic Research and has been a visiting scholar at the Federal Reserve Bank of Minneapolis and London School of Economics. Earlier in his career he was a fixed income quantitative analyst for Fidelity Investments.

Professor Pastor has been awarded numerous prizes for his research, including the Smith Breeden Prize, the Barclays Global Investors Prize, the NASDAQ Award, the Goldman Sachs Asset Management Prize, the Fama/DFA Prize, the Whitebox Advisors Selected Research Prize and the Q Group Award. In addition to his work on the effects of political uncertainty on asset prices he has written on a broad range of topics such as liquidity risk, stock price bubbles, stock volatility, performance evaluation and portfolio choice.

Professor Veronesi has also received many awards for his work, including honors from the Western Finance Association for the best paper on capital formation, the Smith Breeden Prize for best paper in the Journal of Finance, the Fama/DFA Prize for the best paper in the Journal of Financial Economics and the Barclays Global Investors Prize for Best Paper from the European Finance Association, prizes he shared with Pastor, and the Michael Brennan/Barclays Global Investors Prize for best paper in the Review of Financial Studies.

Besides his interest in governments and asset prices, Professor Veronesi also does research on stock and bond valuation under uncertainty, bubbles and crashes, stock return predictability, as well as CEO compensation and incentives. He also currently serves as co-editor of the Review of Financial Studies.

Chicago Booth is one of the leading business schools in the world. The school's faculty includes many renowned scholars and its graduates include many business leaders across the U.S. and worldwide. The Chicago approach to management education is distinguished by how it leverages fundamental knowledge, its rigor and its practical application to business challenges.

For more information visit www.ChicagoBooth.edu.