Naveen Khanna

Biography

Naveen Khanna is the A.J. Pasant Endowed Chair Professor in Finance and Chairperson of the Finance Department. He came to the Broad School in 1994 after being a faculty member at the University of Michigan. In 1997, he visited the Kellogg School at Northwestern University where he had earned his Ph.D. In 2007 and again in 2008 he visited Duke University. In 2020 he visited the University of Southern California and in 2022 he is visiting UC-Berkeley and UC-Santa Barbara as a research scholar.

He is actively publishing in top Finance and Economics Journals including the Journal of Economic Theory, Rand Journal of Economics, Journal of Finance, Review of Financial Studies and Journal of Financial Economics, and is frequently invited to present his research at top universities around the country. His expertise includes Mergers and Acquisitions, Insider Trading, Information Cascades, Incentive Contracts, Product Market Competition, Board of Directors, Short Selling, Feedback Effect of Stock Prices, Venture Capital and Cyber Risk. His recent work is focused on understanding the effect of competition on reputational rents and how that can lead to posturing, predation, commitment-traps and the crowding out of skill.

In 2000, he was recognized by Business Week as the "favorite faculty member", and his course, Corporate Financial Strategies, as the "most favorite course". In 2002, 2004, 2006, 2007, 2009 and 2010, he has been honored as an "Outstanding Professor" by Broad MBA students. In 2016 he was recognized by Poets and Quants as the Favorite MBA Professor.

Selected Publications

“Skill versus Reliability in Venture Capital” (with Rich Mathews), Forthcoming Journal of Financial Economics.

“Posturing and Holdup in Innovation” (with Rich Mathews), Review of Financial Studies, 2016.

“Doing Battle with Short Sellers: The Conflicted Role of Block-holders in Bear raids” (with Rich Mathews), Journal of Financial Economics, 2012, Lead Article.

“Can Herding Improve Investment Decisions?” (With Rich Mathews), Rand Journal of Economics, 2011.

“Optimal debt contracts and product market competition with exit and entry” (with Mark Schroder), Journal of Economic Theory, 2010.

“Good IPOs drive in bad: Inelastic banking capacity in hot markets” (with Tom Noe and Ramana Sonti), Review of Financial Studies, 2008, Lead Article.

“Pricing, Exit, and Location Decisions of Firms: Evidence on the Role of Debt and Operating Efficiency” (with Sheri Tice), Journal of Financial Economics, 2005.

“Value Creating Stock Manipulation: Feedback Effect of Stock Prices on Firm Value” (with Ramana Sonti), Journal of Financial Markets, 2004, Lead Article .

"The Bright Side of Diversification" (with Sheri Tice), Journal of Finance, 2001.

"Strategic Responses of Incumbents to New Entry: The Effect of Ownership Structure, Capital Structure and Focus" (with Sheri Tice), Review of Financial Studies, 2000.

"The Effect of Organizational Form on Information Aggregation and Project Choice: The Problem of Informational Cascades in Teams" (with Steve Slezak), Journal of Economics and Management Strategy, 2000.

"Optimal Contracting with Moral Hazard and Cascading" Review of Financial Studies, 1998.

"Managers of Financially Distressed Firms: Villains or Victims?" (With Annette Poulsen), Journal of Finance, 1995.

"Why Negotiating with a Single Syndicate may be Preferred to Making Syndicates Compete" (with Rob Hansen), Journal of Business, 1994.

"Insider Trading, Outside Search and Resource Allocation: Why Firms and Society May Disagree on Insider Trading Restriction" (with Michael Bradley and Steve Slezak), Review of Financial Studies, 1994.