Upcoming FTG Events

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35th Meeting at Carnegie Mellon University (Fall 2026)

25

Sep

35th Meeting at Carnegie Mellon University (Fall 2026)


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From: September 25, 2026 - To: September 26, 2026

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Carnegie Mellon University

The 35th FTG Member Meeting will take place at Carnegie Mellon University on September 25–26, 2026. The local...

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3rd Asian FTG Conference

10

Dec

3rd Asian FTG Conference


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From: December 10, 2026 - To: December 11, 2026

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Hong Kong University

The 3rd Annual Finance Theory Group Winter Conference will be held at The University of Hong Kong on...

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36th Meeting at UT Dallas (Spring 2027)

07

May

36th Meeting at UT Dallas (Spring 2027)


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From: May 7, 2027 - To: May 8, 2027

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UT Dallas

Details will be available soon.

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Featured Papers

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Lack of market transparency can impair the liquidity provision of non-standard liquidity suppliers and make liquidity demand increasing in illiquidity. This can yield strategic complementarities and induce multiple equilibria. Then an initial dearth of liquidity may degenerate into a liquidity rout (as in a “flash crash”) and traders faced with...


The transition towards an intangible-intensive economy reshapes financial system by creating a self-perpetuating savings glut in the production sector. As intangibles become increasingly important, firms hoard liquidity to finance investment in intangibles of limited pledgeability. Firms' savings feed cheap leverage to financial intermediaries and allow intermediaries to bid up asset...

Andrey Malenko, Nadya Malenko


Traditionally, fund managers cast votes on behalf of fund investors. Recently, there is a shift toward "pass-through voting," with funds offering investors a choice: delegate votes to the fund or vote themselves. We develop a framework to study the implications of voting choice. While it helps reflect heterogeneous investor preferences,...

Finance Theory Insights

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Issue 10 (September 2026)

Finance Theory Insights

Issue 10 (September 2026)

Benefits of Coordination and Consequences of Coordination Failures

Logo Finance Theory Group

One of the central themes in corporate finance concerns the benefits of coordination and the consequences of coordination failures. Such trade-offs influence many important aspects of corporate decision-making, such as the failure of firms, incentives to engage in activism, and the compensation of senior executives. A key channel through which they operate is the underlying contractual setting confronting firms.

 

For example, two of the papers in this issue address trade-offs involving the failure of firms. “Filing for Bankruptcy Early Can Keep a Firm Alive Longer” highlights the incentive for creditors to run and how automatic stay provisions after a bankruptcy filing, as well as clawback provisions, influence decisions prior to bankruptcy. The automatic stay increases the post-bankruptcy payoff to discourage running prior to bankruptcy, while clawback provisions also weaken the incentive to run. Hence, bankruptcy rules can affect the timing of bankruptcy. “The Hidden Logic of Letting Firms Fail” focuses on the fire-sale externality among banks and how reorganization affects others. Whether one should encourage liquidation or, alternatively, discourage it—as illustrated by the eviction moratorium that arose during COVID-19—depends upon the health of the banks. There can be competing externalities in a crisis due to differences in bank collateral constraints. Under some conditions, liquidation should be subsidized, while under others it should be taxed.

 

“Leader-Follower Dynamics in Shareholder Activism” examines situations in which there is “wolf pack activism,” in which blockholders coordinate actions tacitly. A larger stake held by one activist can incentivize other holders to accumulate additional shares, even without explicit coordination. Finally, “Too Much, Too Soon, for Too Long: Why Competition Alone Cannot Fix CEO Pay” examines how the market for executive compensation can systematically produce overcompensation due to spillovers related to punishment in the marketplace. This suggests a rationale for noncompete clauses that restrict an executive’s outside option.

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September 1, 2026

10th Issue of FT Insights


We are pleased to announce that the 10th Issue of FT Insights is now available. This issue explores...

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May 9, 2026

2026 Best JMP Prize Winners


We are pleased to announce the recipients of the 2026 FTG Best Theory Job Market Paper Prize.Winner: Hanjoon...

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April 14, 2026

2026 New Members


The FTG is pleased to welcome our new members:Alex Maciocco (UC Irvine → Indiana), Alexander Ober (Rice), Elu...

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Working Paper Series

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