Third annual conference

The Third Annual Conference of The Paul Woolley Centre for the Study of Capital Market Dysfunctionality was held at the London School of Economics from 10-12 June 2010.

The conference comprised of seven sessions:

1. Financial Markets and the Real Economy: Empirical Evidence
2. Financial Markets and the Real Economy: Information and Investments
3. Financial Markets and the Real Economy: Instability
4. Delegated Portfolio Management -- Theory
5. Delegated Portfolio Management - Empirics
6. Credit Markets and the Macroeconomy
7. Financial Institutions and Contracts

The programme can be downloaded here|.

Session 1: Financial Markets and the Real Economy - Information and Investments

• Learning from stock prices and economic growth
  Joel Peress (INSEAD)
  Discussant: Thierry Foucault (HEC Paris)
• Information aggregation and investment decisions
  Elias Abagli (Harvard University)
  Christian Hellwig (UCLA)
  Aleh Tsyvinski (Yale University)
  Discussant: Amil Dasgupta (LSE)

Session 2: Financial Markets and the Real Economy - Instability

• Trading frenzies and their impact on real investment
  Itay Goldstein (University of Pennsylvania)
  Emre Ozdenoren (London Business School)
  Kathy Yuan (LSE)
  Discussant: Johan Hombert (HEC Paris)
• Blockholders versus short sellers: a model of bear raids
  Naveen Khanna (Michigan State University)
  Rich Matthews (Duke University)
  Discussant: Alexander Guembel (University of Toulouse)
• Rollover risk and credit risk
  Zhiguo He (University of Chicago)
  Wei Xiong (Princeton University)
  Discussant: James Dow (London Business School)

Session 3: Financial Markets and the Real Economy - Empirical Evidence

• Takeover activity and target valuations: feedback loops in financial markets
  Alex Edmans (University of Pennsylvania)
  Itay Goldstein (University of Pennsylvania)
  Wei Jiang (Columbia University)
  Discussant: Gordon Phillips (University of Maryland)
• The impact of shareholders on corporate investments: evidence from mutual fund holdings
  Roni Kisin (University of Chicago)
  Discussant: Dong Lou (LSE)

Session 4: Delegated Portfolio Management - Theory

• The delegated Lucas-tree
  Ron Kaniel (Duke University)
  Peter Kondor (Central European University)
  Discussant: Pietro Veronesi (University of Chicago)
• Rewarding trading skills without inducing gambling
  Igor Marakov (London Business School)
  Guillaume Plantin (London Business School)
  Discussant: Andrea Prat (LSE)

Session 5: Delegated Portfolio Managment - Empirics

• Organizational structure and fund performance: pension funds vs. mutual funds
  Russell Jame (Goizueta Business School)
  Discussant: Ian Tonks (University of Exeter)
• Connected stocks
  Miguel Anton (LSE)
  Christopher Polk (LSE)
  Discussant: Narayan Naik (London Business School)

Session 6: Credit Markets and the Macroeconomy

• Credit supply and the price of housing
  Giovanni Favara (HEC Lausanne, Swiss Finance Institute, IMF)
  Jean Imbs (HEC Lausanne, Swiss Finance Institute, IMF)
  Discussant: Jack Favilukis (LSE)
• Managing credit booms and busts
  Olivier Jeanne (John Hopkins University)
  Anton Korinek (University of Maryland)
  Discussant: Dimitri Vayanos (LSE)

Session 7: Financial Institutions and Contracts

• Risk-sharing or risk-taking? Financial innovation, margin requirements and incentives
  Bruno Biais (Toulouse School of Economics)
  Florian Heider (European Central Bank)
  Marie Hoerova (European Central Bank)
  Discussant: Simon Gervais (Duke University)
• Optimal interventions in markets with adverse selection
  Thomas Philippon (NBER and CEPR)
  Vasiliki Skreta (New York University)
  Discussant: Florian Heider (European Central Bank)
• The maturity rat race
  Markus Brunnermeier (Princeton University)
  Martin Oehmke (Columbia University)
  Discussant: Catherine Casamatta (Toulouse School of Economics)