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Sloan School of Management
E52-434, M.I.T.
Cambridge, MA
(617) 253-3763


Other Affiliations
Honors, Grants and Fellowships
Articles and Working Papers
Other Publications
  • "Informational Externalities and Welfare-Reducing Speculation", Journal of Political Economy, 95, December 1987, pp. 1123-1145.
  • "Takeover Threats and Managerial Myopia", Journal of Political Economy, 96, February 1988, pp. 61-80.
  • "The Task Force Report: The Reasoning Behind the Recommendations", (with Bruce Greenwald), Journal of Economic Perspectives, 2, Summer 1988, pp. 3-23.
  • "Employee Opportunism and Redundancy in Firms", (with Jonathan Feinstein), Journal of Economic Behavior and Organization, 10, December 1988, pp. 401-414.
  • "Cheap Talk and the Fed: A Theory of Imprecise Policy Announcements", American Economic Review, 79, March 1989, pp. 32-42.
  • "Overreactions in the Options Market", Journal of Finance, 44, September 1989, pp. 1011- 1023; also reprinted in Advances in Behavioral Finance, edited by Richard H. Thaler. New York: Russell Sage Foundation, 1993, pp.341-356.
  • "Efficient Capital Markets, Inefficient Firms: A Model of Myopic Corporate Behavior", Quarterly Journal of Economics, 104, November 1989, pp. 655-669.
  • "LDC Debt: Forgiveness, Indexation, and Investment Incentives", (with Kenneth Froot and David Scharfstein), Journal of Finance, 44, December 1989, pp. 1335-1350.
  • "Herd Behavior and Investment", (with David Scharfstein), American Economic Review, 80, June 1990, pp. 465-479.
  • "How Risky is the Debt in Highly Leveraged Transactions?", (with Steve Kaplan), Journal of Financial Economics, 27, September 1990, pp. 215-245.
  • "Transactional Risk, Market Crashes, and the Role of Circuit Breakers", (with Bruce Greenwald), Journal of Business, 64, October 1991, pp. 443-462.
  • "Exchange Rates and Foreign Direct Investment: An Imperfect Capital Markets Approach", (with Kenneth Froot), Quarterly Journal of Economics, 106, November 1991, pp. 1191-1217.
  • "Stock Price Distributions with Stochastic Volatility: An Analytic Approach", (with Elias Stein), Review of Financial Studies, 4, December 1991, pp. 727-752; also reprinted in Volatility: New Estimation Techniques for Pricing Derivatives, edited by Robert Jarrow. London: Risk Publications, 1998, pp. 325-339.
  • "Shareholder Trading Practices and Corporate Investment Horizons", (with Kenneth Froot and Andre Perold), Journal of Applied Corporate Finance, 5, Summer 1992, pp. 42-58.
  • "Convertible Bonds as 'Back Door' Equity Financing", Journal of Financial Economics, 32, August 1992, pp. 3-21.
  • "Herd on the Street: Informational Inefficiencies in a Market with Short-Term Speculation", (with Kenneth Froot and David Scharfstein), Journal of Finance, 47, September 1992, pp.1461-1484.
  • "Monetary Policy and Credit Conditions: Evidence from the Composition of External Finance", (with Anil Kashyap and David Wilcox), American Economic Review, 83, March 1993, pp. 78-98.
  • "The Evolution of Buyout Pricing and Financial Structure in the 1980's", (with Steve Kaplan), Quarterly Journal of Economics, 108, May 1993, pp. 313-357; also reprinted in slightly abridged form in Journal of Applied Corporate Finance, 6, Spring 1993, pp. 72-88.
  • "Risk Management: Coordinating Corporate Investment and Financing Policies", (with Kenneth Froot and David Scharfstein), Journal of Finance, 48, December 1993, pp. 1629-1658; also reprinted in The Theory of Corporate Finance, edited by Michael J. Brennan. Brookfield, Vermont: Edward Elgar Publishing, 1996.
  • "Monetary Policy and Bank Lending", (with Anil Kashyap), in Monetary Policy, edited by N. Gregory Mankiw. Chicago: University of Chicago Press, 1994, pp. 221-256.
  • "Credit Conditions and the Cyclical Behavior of Inventories", (with Anil Kashyap and Owen Lamont), Quarterly Journal of Economics, 109, August 1994, pp. 565-592.
  • "Internal versus External Capital Markets", (with Robert Gertner and David Scharfstein), Quarterly Journal of Economics, 109, November 1994, pp. 1211-1230.
  • "A Framework for Risk Management", (with Kenneth Froot and David Scharfstein), Harvard Business Review, 72, November-December 1994, pp. 91-102; also reprinted in Journal of Applied Corporate Finance, 7, Fall 1994, pp. 22-32.
  • "The Impact of Monetary Policy on Bank Balance Sheets", (with Anil Kashyap), Carnegie-Rochester Conference Series on Public Policy, 42, 1995, pp. 151-195.
  • "Prices and Trading Volume in the Housing Market: A Model with Downpayment Effects", Quarterly Journal of Economics, 110, May 1995, pp. 379-406.
  • "Monetary Policy and Credit Conditions: Evidence from the Composition of External Finance: Reply", (with Anil Kashyap and David Wilcox), American Economic Review, 86, March 1996, pp. 310-314.
  • "Rational Capital Budgeting in an Irrational World", Journal of Business, 69, October 1996, pp. 429-455.
  • "Internal Capital Markets and the Competition for Corporate Resources", Journal of Finance, 52, March 1997, pp. 111-133.
  • "Waves of Creative Destruction: Firm-Specific Learning-by-Doing and the Dynamics of Innovation", Review of Economic Studies, 64, April 1997, pp. 265-288.
  • " The Role of Banks in Monetary Policy: A Survey with Implications for the European Monetary Union", (with Anil Kashyap) Federal Reserve Bank of Chicago Economic Perspectives, 21, September/October 1997, pp. 2-19.
  • "Risk Management, Capital Budgeting and Capital Structure Policy for Financial Institutions: An Integrated Approach", (with Kenneth Froot), Journal of Financial Economics, 47, January 1998, pp. 55-82.
  • "A New Approach to Capital Budgeting for Financial Institutions", (with Kenneth Froot), Journal of Applied Corporate Finance, 11, Summer 1998, pp. 59-69.
  • "An Adverse Selection Model of Bank Asset and Liability Management with Implications for the Transmission of Monetary Policy", RAND Journal of Economics, 29, Autumn 1998, pp.466-486.
  • "Leverage and House-Price Dynamics in U.S. Cities", (with Owen Lamont), RAND Journal of Economics, Autumn 1999.
  • "A Unified Theory of Underreaction, Momentum Trading and Overreaction in Asset Markets", (with Harrison Hong), Journal of Finance, December 1999.
  • "Bad News Travels Slowly: Size, Analyst Coverage and the Profitability of Momentum Strategies", (with Harrison Hong and Terence Lim), Journal of Finance, February 2000.
  • "What Do A Million Observations on Banks Say About the Transmission of Monetary Policy?", (with Anil Kashyap), American Economic Review, forthcoming.
  • "The Dark Side of Internal Capital Markets: Divisional Rent-Seeking and Inefficient Investment", (with David Scharfstein), Journal of Finance, forthcoming.
  • "Banks as Liquidity Providers: An Explanation for the Co-Existence of Lending and Deposit-Taking", (with Anil Kashyap and Raghuram Rajan), January 1999.
  • "Differences of Opinion, Rational Arbitrage and Market Crashes", (with Harrison Hong), September 1999.
  • "Forecasting Crashes: Trading Volume, Past Returns and Conditional Skewness in Stock Prices ", (with Joseph Chen and Harrison Hong), November 1999.