Peter M. DeMarzo

Stanford Graduate School of Business

Professor of Finance

655 Knight Way

Stanford, CA 94305-5015

United States

http://www.stanford.edu/people/pdemarzo

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue

Cambridge, MA 02138

United States

SCHOLARLY PAPERS

31

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19,241

CITATIONS
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501

Scholarly Papers (31)

1.

The Pooling and Tranching of Securities: A Model of Informed Intermediation

Review of Financial Studies, Forthcoming
Number of pages: 43 Posted: 06 Jul 2004
Peter M. DeMarzo
Stanford Graduate School of Business
Downloads 1,416 (9,086)
Citation 107

Abstract:

pooling, tranching, financial intermediation, adverse selection, asymmetric information, mortgage backed securities, asset backed securities, security design

2.

Debt Overhang and Capital Regulation

Rock Center for Corporate Governance at Stanford University Working Paper No. 114, MPI Collective Goods Preprint, No. 2012/5
Number of pages: 42 Posted: 30 Mar 2012
Stanford Graduate School of Business, Stanford Graduate School of Business, Max Planck Institute for Research on Collective Goods and Stanford Graduate School of Business
Downloads 1,316 (7,982)
Citation 6

Abstract:

capital regulation, financial institutions, capital structure, “too big to fail,” systemic risk, bank equity, debt overhang, underinvestment, recapitalization, deleveraging, bankruptcy costs, Basel

3.

The Leverage Ratchet Effect

Forthcoming, Journal of Finance, Preprints of the Max Planck Institute for Research on Collective Goods Bonn 2013/13, Rock Center for Corporate Governance at Stanford University Working Paper No. 146
Number of pages: 53 Posted: 02 Aug 2013 Last Revised: 18 Sep 2017
Stanford Graduate School of Business, Stanford Graduate School of Business, Max Planck Institute for Research on Collective Goods and Stanford Graduate School of Business
Downloads 1,145 (14,326)

Abstract:

capital structure, leverage, agency costs of debt, dynamic capital structure, tradeoff theory of capital structure, capital regulation, bank equity, debt overhang, under-investment, recapitalization, deleveraging, bankruptcy costs

4.

Optimal Long-Term Financial Contracting with Privately Observed Cash Flows

Number of pages: 44 Posted: 07 Jul 2004
Peter M. DeMarzo and Michael J. Fishman
Stanford Graduate School of Business and Kellogg School of Management - Department of Finance
Downloads 820 (21,849)
Citation 32

Abstract:

Optimal contracting, security design, capital structure, debt maturity, agency, moral hazard, principal agent, dynamic programming, incentives, cash flow diversion, asset substitution, default, credit line, compensating balance, debt, equity, dividend policy

5.

Persuasion Bias, Social Influence, and Uni-Dimensional Opinions

MIT Sloan Working Paper No. 4339-01; Stanford University Graduate School of Business Research Paper No. 1719
Number of pages: 56 Posted: 11 Dec 2001
Peter M. DeMarzo, Jeffrey Zwiebel and Dimitri Vayanos
Stanford Graduate School of Business, Stanford Graduate School of Business and London School of Economics
Downloads 753 (18,032)
Citation 49

Abstract:

Persuasion, Social Influence, Uni-Dimensional Opinions, Social Networks, Belief Formation, Bounded Rationality, Hierarchies, Communication

A Continuous-Time Agency Model of Optimal Contracting and Capital Structure

Number of pages: 46 Posted: 30 Jun 2004
Peter M. DeMarzo and Yuliy Sannikov
Stanford Graduate School of Business and University of California, Berkeley - Department of Economics
Downloads 661 (31,416)
Citation 18

Abstract:

Optimal contracting, security design, capital structure, debt maturity, agency, moral hazard, principal agent, continuous time, incentives, cash flow diversion, asset substitution, default, credit line, compensating balance, debt, equity, dividend policy

A Continuous-Time Agency Model of Optimal Contracting and Capital Structure

NBER Working Paper No. w10615
Number of pages: 47 Posted: 28 Jul 2004
Peter M. DeMarzo and Yuliy Sannikov
Stanford Graduate School of Business and University of California, Berkeley - Department of Economics
Downloads 67 (292,195)
Citation 18

Abstract:

7.

Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital Regulation: Why Bank Equity is Not Socially Expensive

Max Planck Institute for Research on Collective Goods 2013/23, Rock Center for Corporate Governance at Stanford University Working Paper No. 161, Stanford University Graduate School of Business Research Paper No. 13-7
Number of pages: 77 Posted: 04 Nov 2013 Last Revised: 12 Jan 2016
Stanford Graduate School of Business, Stanford Graduate School of Business, Max Planck Institute for Research on Collective Goods and Stanford Graduate School of Business
Downloads 689 (607)
Citation 48

Abstract:

capital regulation, financial institutions, capital structure, 'too big to fail,' systemic risk, bank equity, contingent capital, Basel, market discipline

8.

Optimal Trading by a 'Large Shareholder'

AFA 2002 Atlanta Meetings
Number of pages: 48 Posted: 11 Jul 2001
Peter M. DeMarzo and Branko Urosevic
Stanford Graduate School of Business and Universitat Pompeu Fabra - Faculty of Economic and Business Sciences
Downloads 518 (42,606)
Citation 10

Abstract:

9.
Downloads 515 ( 44,286)
Citation 44

Agency and Optimal Investment Dynamics

13th Annual Utah Winter Finance Conference
Number of pages: 29 Posted: 11 Mar 2003
Peter M. DeMarzo and Michael J. Fishman
Stanford Graduate School of Business and Kellogg School of Management - Department of Finance
Downloads 515 (43,733)
Citation 44

Abstract:

Agency and Optimal Investment Dynamics

The Review of Financial Studies, Vol. 20, Issue 1, pp. 151-188, 2007
Posted: 29 Feb 2008
Peter M. DeMarzo and Michael J. Fishman
Stanford Graduate School of Business and Kellogg School of Management - Department of Finance

Abstract:

10.
Downloads 512 (40,809)
Citation 7

Abstract:

Endogenous Information Flows and the Clustering of Announcements

Rock Center for Corporate Governance Working Paper No. 17
Number of pages: 42 Posted: 29 Sep 2008 Last Revised: 29 Sep 2009
Viral V. Acharya, Peter M. DeMarzo and Ilan Kremer
New York University - Leonard N. Stern School of Business, Stanford Graduate School of Business and Independent
Downloads 343 (72,064)
Citation 14

Abstract:

disclosure, disclosure dynamics, strategic disclosure, disclosure timing, earnings announcement, stochastic volatility, skewness

Endogenous Information Flows and the Clustering of Announcements

NYU Working Paper No. FIN-08-028
Number of pages: 42 Posted: 09 Mar 2009
Viral V. Acharya, Peter M. DeMarzo and Ilan Kremer
New York University - Leonard N. Stern School of Business, Stanford Graduate School of Business and Independent
Downloads 60 (309,879)
Citation 14

Abstract:

Endogenous Information Flows and the Clustering of Announcements

NBER Working Paper No. w16485
Number of pages: 36 Posted: 25 Oct 2010
Viral V. Acharya, Peter M. DeMarzo and Ilan Kremer
New York University - Leonard N. Stern School of Business, Stanford Graduate School of Business and University of Warwick
Downloads 25 (439,152)
Citation 14

Abstract:

Endogenous Information Flows and the Clustering of Announcements

CEPR Discussion Paper No. DP6985
Number of pages: 44 Posted: 02 Dec 2008
Viral V. Acharya, Peter M. DeMarzo and Ilan Kremer
New York University - Leonard N. Stern School of Business, Stanford Graduate School of Business and Independent
Downloads 6 (547,343)
Citation 14
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Abstract:

disclosure, disclosure dynamics, disclosure timing, earnings announcement, skewness, stochastic volatility, strategic disclosure

Endogenous Information Flows and the Clustering of Announcements

CEPR Discussion Paper No. DP8680
Number of pages: 38 Posted: 22 Dec 2011
Viral V. Acharya, Peter M. DeMarzo and Ilan Kremer
New York University - Leonard N. Stern School of Business, Stanford Graduate School of Business and Independent
Downloads 6 (547,343)
Citation 14
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Abstract:

disclosure dynamics, disclosure timing, disclosure,, earnings announcement, skewness, stochastic volatility, strategic disclosure

12.
Downloads 377 ( 65,018)
Citation 29

Relative Wealth Concerns and Financial Bubbles

Number of pages: 35 Posted: 05 Dec 2005
Peter M. DeMarzo, Ron Kaniel and Ilan Kremer
Stanford Graduate School of Business, University of Rochester - Simon Business School and Independent
Downloads 219 (117,256)
Citation 29

Abstract:

bubbles, relative, wealth, overlapping, generations

Relative Wealth Concerns and Financial Bubbles

Sixteenth Annual Utah Winter Finance Conference
Number of pages: 35 Posted: 01 Nov 2006
Peter M. DeMarzo, Ron Kaniel and Ilan Kremer
Stanford Graduate School of Business, University of Rochester - Simon Business School and Independent
Downloads 158 (158,957)
Citation 29

Abstract:

Relative Wealth Concerns and Financial Bubbles

The Review of Financial Studies, Vol. 21, No. 1, pp. 19-50, 2008
Posted: 26 Jun 2008
Peter M. DeMarzo and Ron Kaniel
Stanford Graduate School of Business and University of Rochester - Simon Business School

Abstract:

13.

Diversification as a Public Good: Community Effects in Portfolio Choice

Twelfth Annual Utah Winter Finance Conference; Texas Finance Festival
Number of pages: 50 Posted: 02 Mar 2002
Peter M. DeMarzo, Ron Kaniel and Ilan Kremer
Stanford Graduate School of Business, University of Rochester - Simon Business School and Independent
Downloads 343 (70,933)
Citation 37

Abstract:

public good, community, diversification, portfolio choice, home bias

14.

Comments of 71 Concerned Economists: Using Procurement Auctions to Allocate Broadband Stimulus Grants

Number of pages: 16 Posted: 15 Apr 2009 Last Revised: 08 Jun 2014
New York University - Stern School of Business, Berkley Center for Entrepreneurial Studies, Stanford University - Department of Economics, Stanford Graduate School of Business, American University - Washington College of Law, The Brattle Group, University of Maryland, Baltimore County - Department of Public Policy, Stanford University - Department of Economics, Stanford University, Columbia University, University of Maryland - Department of Economics, University of California, Los Angeles (UCLA) - Department of Economics, University of Colorado at Boulder - College of Engineering and Applied Science, University of Zurich - Department of Economics, Stanford Graduate School of Business, University of Pennsylvania - Wharton School, University of Michigan, Georgetown University - Department of Economics, University of Zurich, University of Maryland - Robert H. Smith School of Business, Harvard University - Technology & Operations Management Unit, University of Oxford, Smith School, Stanford University - The Hoover Institution on War, Revolution and Peace, affiliation not provided to SSRN, affiliation not provided to SSRN, University of California, Berkeley - Business & Public Policy Group, University of North Texas, Massachusetts Institute of Technology (MIT) - Department of Economics, Clemson University, University of Texas at Austin - Department of Economics, affiliation not provided to SSRN, University of Florida - Warrington College of Business Administration, Public Utility Research Center, Ohio State University (OSU) - Economics, National Economic Research Associates Inc. (NERA) (Deceased), Independent, Penn State University, Massachusetts Institute of Technology (MIT) - Computer Science and Artificial Intelligence Laboratory (CSAIL), Technology Policy Institute, Stanford University - Department of Economics, Hong Kong University of Science & Technology (HKUST), Georgetown University - Department of Strategy/Economics/Ethics/Public Policy, Massachusetts Institute of Technology (MIT) - Economics, Finance, Accounting (EFA), Stanford University, Stanford University - Department of Economics, Stanford University, California Institute of Technology - Division of the Humanities and Social Sciences, Northwestern University - Department of Economics, University of Chicago - Department of Economics, Columbia University - Columbia Business School, Toulouse School of Economics, University of Colorado at Boulder - Department of Economics, Boston University - Department of Finance & Economics, Massachusetts Institute of Technology (MIT) - Sloan School of Management, Georgetown University, Stanford University - Stanford Graduate School of Business, Chapman University - Economic Science Institute, University of Maryland - Department of Economics, University of Minnesota - Twin Cities - Carlson School of Management, Technology Policy Institute, Northwestern University - Department of Managerial Economics and Decision Sciences (MEDS), University of Nevada, Las Vegas - College of Business - Department of Economics, University of California, Berkeley, Ohio State University (OSU) - Economics, Charles River Associates (CRA) and Stanford Institute for Economic Policy Research
Downloads 252 (88,520)
Citation 1

Abstract:

15.

Risking Other People's Money: Gambling, Limited Liability, and Optimal Incentives

Number of pages: 38 Posted: 12 Sep 2013
Peter M. DeMarzo, Dmitry Livdan and Alexei Tchistyi
Stanford Graduate School of Business, University of California, Berkeley and University of Illinois at Urbana-Champaign - Department of Finance
Downloads 233 (87,161)
Citation 3

Abstract:

16.

Relative Wealth Concerns and Technology Bubbles

Number of pages: 28 Posted: 17 Feb 2005
Peter M. DeMarzo, Ron Kaniel and Ilan Kremer
Stanford Graduate School of Business, University of Rochester - Simon Business School and Independent
Downloads 226 (111,206)
Citation 28

Abstract:

Bubble, technology, relative wealth, Joneses, herding, over-investment

Portfolio Liquidation and Security Design with Private Information

Stanford University Graduate School of Business Research Paper No. 15-24
Number of pages: 54 Posted: 07 Apr 2015 Last Revised: 10 Nov 2015
Peter M. DeMarzo, David Morris Frankel and Yu Jin
Stanford Graduate School of Business, Iowa State University and Shanghai University of Finance and Economics
Downloads 143 (173,169)
Citation 5

Abstract:

Security design, asymmetric information, adverse selection, simple debt, informational sensitivity, tranching

Portfolio Liquidation and Security Design with Private Information

Number of pages: 30 Posted: 25 Apr 2011
Peter M. DeMarzo
Stanford Graduate School of Business
Downloads 72 (280,637)
Citation 5

Abstract:

security design, signaling, securitization, pooling, tranching, ABS, asset-backed securities

18.
Downloads 207 (124,323)
Citation 20

Bidding with Securities: Auctions and Security Design

14th Annual Utah Winter Finance Conference Paper
Number of pages: 37 Posted: 25 Aug 2004
Peter M. DeMarzo, Ilan Kremer and Andrzej Skrzypacz
Stanford Graduate School of Business, Independent and Stanford University - Stanford Graduate School of Business
Downloads 171 (148,351)
Citation 20

Abstract:

Bidding with Securities: Auctions and Security Design

NBER Working Paper No. w10891
Number of pages: 39 Posted: 22 Nov 2004
Peter M. DeMarzo, Ilan Kremer and Andrzej Skrzypacz
Stanford Graduate School of Business, Independent and Stanford University - Stanford Graduate School of Business
Downloads 36 (387,995)
Citation 20

Abstract:

19.

Discounting Tax Shields and the Unlevered Cost of Capital

Number of pages: 13 Posted: 13 Oct 2009
Peter M. DeMarzo
Stanford Graduate School of Business
Downloads 202 (85,821)

Abstract:

WACC, Tax shields, valuation, unlevered, cost of capital

20.

Dynamic Agency and the Q Theory of Investment

Journal of Finance, Forthcoming
Number of pages: 70 Posted: 30 Apr 2012
Peter M. DeMarzo, Michael J. Fishman, Zhiguo He and Neng Wang
Stanford Graduate School of Business, Kellogg School of Management - Department of Finance, University of Chicago - Booth School of Business, and NBER and Columbia Business School - Finance and Economics
Downloads 167 (138,852)
Citation 39

Abstract:

21.

Robust Option Pricing: Hannan and Blackwell Meet Black and Scholes

Number of pages: 37 Posted: 20 Mar 2006 Last Revised: 28 Jan 2016
Peter M. DeMarzo, Ilan Kremer and Yishay Mansour
Stanford Graduate School of Business, University of Warwick and Tel Aviv University
Downloads 158 (124,921)

Abstract:

Option Pricing, Replication, No arbitrage pricing, approachability, calibration, robust optimization, online algorithms

Relative Pay for Non-Relative Performance: Keeping Up with the Joneses with Optimal Contracts

Number of pages: 51 Posted: 29 Mar 2016 Last Revised: 07 Apr 2017
Peter M. DeMarzo and Ron Kaniel
Stanford Graduate School of Business and University of Rochester - Simon Business School
Downloads 91 (242,796)

Abstract:

contracting, externality, keeping up with Joneses, relative performance, moral hazard, peers

Relative Pay for Non-Relative Performance: Keeping Up with the Joneses with Optimal Contracts

CEPR Discussion Paper No. DP11538
Number of pages: 48 Posted: 03 Oct 2016
Peter M. DeMarzo and Ron Kaniel
Stanford Graduate School of Business and University of Rochester - Simon Business School
Downloads 1 (583,688)
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Abstract:

contract, Joneses, manager, pay performance, relative

23.

Leverage Dynamics Without Commitment

NBER Working Paper No. w22799
Number of pages: 57 Posted: 14 Nov 2016
Peter M. DeMarzo and Zhiguo He
Stanford Graduate School of Business and University of Chicago - Booth School of Business, and NBER
Downloads 0 (509,187)
Citation 1
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Abstract:

24.

Learning, Termination, and Payout Policy in Dynamic Incentive Contracts

Stanford University Graduate School of Business Research Paper No. 16-31
Number of pages: 84 Posted: 23 Jun 2016
Peter M. DeMarzo and Yuliy Sannikov
Stanford Graduate School of Business and Stanford GSB
Downloads 0 (70,933)
Citation 2

Abstract:

real options, inside information, moral hazard, dynamic contracts, payout policy, information rents

25.

Optimal Long-Term Financial Contracting

The Review of Financial Studies, Vol. 20, Issue 6, pp. 2079-2128, 2007
Posted: 26 Jun 2008
Peter M. DeMarzo and Michael J. Fishman
Stanford Graduate School of Business and affiliation not provided to SSRN

Abstract:

G30, G32, G35, D82, D86, D92

26.

Ownership Dynamics and Asset Pricing with a Large Shareholder

Journal of Political Economy, Vol. 114, pp. 774-815, August 2006
Posted: 01 Nov 2006
Peter M. DeMarzo and Branko Urosevic
Stanford Graduate School of Business and Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Abstract:

27.

Optimal Incentive Contracts When Agents Can Save, Borrow, and Default

Journal of Financial Intermediation, Vol. 8, Iss. 4
Posted: 02 Nov 1999
David S. Bizer and Peter M. DeMarzo
Lehman Brothers and Stanford Graduate School of Business

Abstract:

28.

Corporate Incentives for Hedging and Hedge Accounting

REVIEW OF FINANCIAL STUDIES, Vol 8 No 3
Posted: 25 Aug 1998
Peter M. DeMarzo and Darrell Duffie
Stanford Graduate School of Business and Stanford University - Graduate School of Business

Abstract:

29.

A Liquidity Based Model of Security Design

Posted: 25 Jul 1998
Peter M. DeMarzo and Darrell Duffie
Stanford Graduate School of Business and Stanford University - Graduate School of Business

Abstract:

Abstract:

On the Uniqueness of Fully Informative Rational Expectations Equilibria

Economic Theory, Vol. 13, Iss. 1, 1999
Posted: 05 Jan 1999
Peter M. DeMarzo and Costis Skiadas
Stanford Graduate School of Business and Northwestern University - Kellogg School of Management

Abstract:

Abstract: