Awards and Honors
Finance Association Honors Six Faculty Members
Six faculty members received awards for their research from the American Finance Association at the group's annual conference in January, the most winners from the same institution honored by the AFA in a single year. Pictured, from left: Marianne Bertrand, Adair Morse, Zhiguo He, Stavros Panageas, Lubos Pastor, and Pietro Veronesi.
Photos by Beth Rooney and Chris Lake
In addition to the award winners, Luigi Zingales, Robert C. McCormack Professor of Entrepreneurship and Finance and David G. Booth Faculty Fellow, was elected president of the AFA and 2014 program chair.
Marianne Bertrand, Chris P. Dialynas Distinguished Service 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." The research shows how psychology-guided information disclosure can induce borrowers to lower their use of high-cost debt available at payday loan stores.
Zhiguo He, associate professor of finance, and Stavros Panageas, associate professor of finance and Robert King Steel Faculty Fellow, 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 recognized for his paper, "Rollover Risk and Credit Risk," cowritten with a colleague at 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. He also won the Swiss Finance Institute 2012 Outstanding Paper Award for his paper, "A Macroeconomic Framework for Quantifying Systemic Risk," cowritten with a colleague from Northwestern University.
Stavros Panageas received the Smith Breeden First Prize for his paper, "Technological Growth and Asset Pricing," cowritten with colleagues at the University of California, Berkeley, and 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 importantly, it can help provide a unified, investment-based theory for numerous well-documented facts related to excess-return predictability.
Lubos Pastor, Charles P. McQuaid Professor of Finance, and Pietro Veronesi, Roman Family Professor of Finance, received the Smith Breeden Distinguished Paper Prize for their research into, "Uncertainty About Government Policy and Stock Prices." Pastor and Veronesi also received the Smith Breeden Prize for joint research 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, and that the jump risk premium associated with policy decisions is generally positive. - Chicago Booth Staff
Photo of Zingales by Chris Lake
Hofmann Wins SAGE Young Scholars Award
Wilhelm Hofmann, assistant professor of behavioral science, received a SAGE Young Scholars Award, sponsored by the Foundation for Personality and Social Psychology and SAGE Publications. The award recognizes outstanding young researchers in personality and social psychology. Hofmann joined Chicago Booth in 2010 and teaches courses on managing in organizations. - Chicago Booth Staff
Hassan Receives Excellence Award in Global Economic Affairs
Tarek Hassan, assistant professor of finance, won the Excellence Award in Global Economic Affairs from the Kiel Institute for the World Economy. The award recognizes young economists for their work in the field and provides intellectual, financial, and administrative support for their research. Hassan joined Chicago Booth in 2009 and teaches courses in investment. - Chicago Booth Staff
Photo by Dan Dry