Welcome to my homepage!
I am a Professor in the Finance
Group of Berlin's Humboldt University.
I received my "Habilitation" in the year 2007 at the
University of Vienna. From 2007 to 2011, I taught at MIT's
Sloan School of Management, and at Vienna's Institute for
These pages contain information about my academic research
and teaching, as well as my applied work.
My main responsibility in teaching
are courses on asset pricing and portfolio management at the
bachelor and master level. Before moving to Berlin, I taught
similar courses at MIT. To stay up-to-date, I regularly
co-organize a conference
on portfolio management.
My academic research concerns
financial markets as a part of the economy that affects
non-financial markets, such as product or labor markets. Here
is a list of my research areas and abstracts of some
Finance & product markets:
In this area, a representative contribution is my analysis of the effect of the maturity structure of a firm's debt on its output pricing, i.e. the dynamic limited liability effect. The analysis shows that firms lower their prices prior to an increase in the amount of debt due. They do so in order to increase their exposure to demand shocks. The additional exposure raises the value of the option to default on debt obligations.
In this area, a recent working paper shows that the risk exposure of a firm's owners and workers depends on the way competing firms respond to productivity shocks by changing the scale of their output. Competitor inflexibility appears to be a risk factor: the sales of firms with more inflexible competitors respond more strongly to aggregate sales shocks. As a consequence, competitor inflexibility also affects the stability of firms' total wage- and dividend-payments. Firms with relatively flexible competitors appear to smoothen both wages and dividends, but an increase in competitor inflexibility is associated with less dividend-smoothing and more wage-smoothing.
Finance & politics:
In this area, a representative contribution is a (forthcoming) paper analyzing government-owned banks' government financing. We analyze government-owned banks' lending to their owners, using data about banks that are all owned by similarly structured local government in a single country (Austria). The analysis yields evidence that such lending was used to transfer revenues from the banks to the governments. Some of the evidence is particularly pronounced in localities where incumbent politicians face significant competition for reelection.
My academic research is closely linked to my interests in applying finance theory in consulting/policy work.
You can reach me by sending a message to stompera at hu-berlin dot de.