Finance
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- October 2021
- Article
And the Children Shall Lead: Gender Diversity and Performance in Venture Capital
By: Paul A. Gompers and Sophie Calder-WangWith an overall lack of gender and ethnic diversity in the innovation sector documented in Gompers and Wang (2017), we ask the natural next question: Does increased diversity lead to better firm performances? In this paper, we attempt to answer this question using a unique dataset of the gender of venture capital partners’ children. First, we find strong evidence that parenting more daughters leads to an increased propensity to hire female partners by venture capital firms. Second, using an instrumental variable set-up, we also show that improved gender diversity, induced by parenting more daughters, improves deal and fund performances. These effects concentrate overwhelmingly on the daughters of senior partners than junior partners. Taken together, our findings have profound implications on how the capital markets could function better with improved diversity.
- October 2021
- Article
And the Children Shall Lead: Gender Diversity and Performance in Venture Capital
By: Paul A. Gompers and Sophie Calder-WangWith an overall lack of gender and ethnic diversity in the innovation sector documented in Gompers and Wang (2017), we ask the natural next question: Does increased diversity lead to better firm performances? In this paper, we attempt to answer this question using a unique dataset of the gender of venture capital partners’ children. First, we find...
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- October 2021
- Article
Fintech Borrowers: Lax Screening or Cream-Skimming?
By: Marco Di Maggio and Vincent YaoPersonal credit is the fastest-growing segment of the consumer credit market, mainly driven by fintech lenders' staggering expansion. We study this market using a unique individual-level data, which covers most of the top fintech and traditional lenders, and provides detailed information about borrowers' credit histories. We show that fintech borrowers are significantly more likely to default than neighbor individuals with the same characteristics borrowing from traditional financial institutions. Fintech borrowers are more likely to experience only a short-lived reduction in the cost of credit, because their total indebtedness increases more than non-fintech borrowers a few months after loan origination. However, we show that fintech lenders' pricing strategy is likely to take this into account.
- October 2021
- Article
Fintech Borrowers: Lax Screening or Cream-Skimming?
By: Marco Di Maggio and Vincent YaoPersonal credit is the fastest-growing segment of the consumer credit market, mainly driven by fintech lenders' staggering expansion. We study this market using a unique individual-level data, which covers most of the top fintech and traditional lenders, and provides detailed information about borrowers' credit histories. We show that fintech...
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- October 2021
- Article
Changing Gambling Behavior through Experiential Learning
By: Shawn A. Cole, Martin Abel and Bilal ZiaThis paper tests experiential learning as a debiasing tool to reduce gambling in South Africa, through a randomized field experiment. The study implements a simple, interactive game that simulates the odds of winning the national lottery through dice rolling. Participants first roll one die until they obtain a six, followed by two dice until they roll 2 sixes. They are then informed that the probability of winning the lottery jackpot is equivalent to rolling all sixes with nine dice. The results show that individuals who need many attempts to roll 2 sixes play the lottery significantly less than the control group, while those who need fewer attempts adopt the opposite behavior. These findings provide practical guidance for designing interventions to give individuals brief experiences that correct biases in their beliefs.
- October 2021
- Article
Changing Gambling Behavior through Experiential Learning
By: Shawn A. Cole, Martin Abel and Bilal ZiaThis paper tests experiential learning as a debiasing tool to reduce gambling in South Africa, through a randomized field experiment. The study implements a simple, interactive game that simulates the odds of winning the national lottery through dice rolling. Participants first roll one die until they obtain a six, followed by two dice until they...
About the Unit
Our strategy is to assemble and nurture a faculty whose interests and skills complement each other, and who work well together:
a) to produce a broad range of finance-related research that is published in top-tier scientific and practitioner journals, and that addresses issues of present and future importance to managers (including regulators and policy makers);
b) to develop highly-relevant and intellectually rigorous MBA and executive education courses; and
c) to mentor future academics through the Business Economics doctoral program.
Our applied focus and access to business organizations are major advantages which are reinforced by our students and our case-based approach. We have a faculty with broad expertise, and we have resources, field contacts, and institutional support, all of which we can leverage to do richer work and be more productive than we could at other institutions.
Recent Publications
And the Children Shall Lead: Gender Diversity and Performance in Venture Capital
- October 2021 |
- Article |
- Journal of Financial Economics
Fintech Borrowers: Lax Screening or Cream-Skimming?
- October 2021 |
- Article |
- Review of Financial Studies
Changing Gambling Behavior through Experiential Learning
- October 2021 |
- Article |
- World Bank Economic Review
Pacific Lake and the Rise of Professional Capital in Search Funds
- September 2021 |
- Case |
- Faculty Research
Helena Divišová (A) and (B) Case Supplements
- September 2021 |
- Supplement |
- Faculty Research
Ensuring Your Family’s Future: The Alagil Family Office (B)
- September 2021 |
- Supplement |
- Faculty Research
Ensuring Your Family’s Future: The Alagil Family Office
- September 2021 |
- Case |
- Faculty Research