Finance and the Real Economy

Martin Schmalz's empirical research identifies interactions between the financial sector and the real economy. Recent work at the intersection of finance and industrial organisation shows that product prices consumers pay are affected by the ownership of firms by large diversified financial institutions, and by the involvement of these institutions in the corporate governance of their portfolio firms.

Mr Schmalz's theoretical work contributes insights to both asset pricing and corporate finance by generalising the neoclassical model with respect to agents' preferences and beliefs.

Martin Schmalz's research has been published in all of the top-three finance journals and has been featured in various newspaper and online outlets, including The New York Times, Slate, The Economist, The Wall Street Journal, Financial Times, Bloomberg, The New Yorker, The Atlantic, Forbes, Fortune and many others. More information on his research can be found at twitter.

Martin C. Schmalz is a financial economist at the University of Michigan's Stephen M. Ross School of Business. He was named the Harry H. Jones Research Scholar and serves as an Assistant Professor in the finance area. He teaches a PhD course in corporate finance theory and a case-based MBA elective "Valuation," for which he won a Ross Teaching Excellence Award. Previously, he taught the "Financial Management" core to BBA and evening MBA students. Mr Schmalz holds a PhD in Economics from Princeton University.