About

I am a professor of finance at Copenhagen Business School (on leave from University of Chicago). My research focuses on corporate finance, asset pricing, and financial economics. I have worked on topics such as the cost of capital, equity valuations, and the impact of financial crises on stock prices and growth expectations.

Research topics

• Economics
• Monetary economics
• Financial economics
• Finance
• Econometrics
• Geography
• International economics
• Business

Selected publications

• Interest Rates and Equity Valuations

  SSRN Electronic Journal · 2026-01-01

  preprintOpen access1st authorCorresponding
  PublisherDOI

• Interest Rates and Equity Valuations

  National Bureau of Economic Research · 2026-02-01

  reportOpen access1st authorCorresponding

  A large body of work has sought to measure the effect of interest rates on equity valuations.The challenge in doing so is that both are endogenous, and their comovement depends on the forces driving interest-rate changes.To address this problem, we develop and estimate a decomposition that splits movements in real rates into three structural drivers: changes in expected growth, risk, or "pure discounting."We show that only pure discount-rate shocks transmit one-for-one to equity valuations, with little or negative transmission of growth and risk shocks.Implementing our decomposition with a global panel of growth expectations and asset prices, we find a weak unconditional relation between valuations and real rates but a strong relation with the pure discounting component, which explains 80% of cross-country valuation changes since 1990.In the U.S., we find that 35% of the interest-rate decline is attributable to pure discounting, implying that only a fraction of the change in rates has passed through directly to equities.We use the decomposition to revisit evidence on the role of interest rates in explaining price variation, and to study higher-frequency returns, cross-sectional rate exposures, duration-matched equity premia, and reactions to monetary policy.

  PublisherDOI

• Interest Rates and Equity Valuations

  SSRN Electronic Journal · 2026-01-01

  preprintOpen access1st authorCorresponding
  PublisherDOI

• Code for: Corporate Discount Rates

  ICPSR Data Holdings · 2025-04-30

  datasetOpen access1st authorCorresponding

  The code in this replication package creates the figures and tables in the paper and the appendix of "Corporate Discount Rates."

  PublisherDOI

• Firms’ Discount Rates and Investment

  CBS Research Portal (Copenhagen Business School) · 2025-01-01

  articleOpen access1st authorCorresponding
  Publisher

• Corporate Discount Rates

  American Economic Review · 2025-05-30 · 17 citations

  article1st authorCorresponding

  We construct a dataset of firms’ discount rates (i.e., required returns to capital) and perceived cost of capital using corporate conference calls. The relation between discount rates and the cost of capital is far below the one-to-one mapping assumed in standard theory, as it takes many years for changes in the cost of capital to be incorporated into discount rates. This pattern leads to large and time-varying discount rate wedges that affect firm investment. Moreover, increasing discount rate wedges can account for the recent puzzle of “missing investment.” Cross-firm variation in market power and riskiness explains the evolution of wedges. (JEL D22, E43, G12, G31, G32)

  PublisherDOI

• Firms' Perceived Cost of Capital

  SSRN Electronic Journal · 2024-01-01 · 7 citations

  articleOpen access1st authorCorresponding
  PublisherDOI

• Firms' Perceived Cost of Capital

  SSRN Electronic Journal · 2024-01-01

  articleOpen access1st authorCorresponding
  PublisherDOI

• Sticky Discount Rates

  SSRN Electronic Journal · 2024-01-01 · 1 citations

  articleOpen access
  PublisherDOI

• Climate Capitalists

  National Bureau of Economic Research · 2024-09-01 · 9 citations

  reportOpen access1st authorCorresponding
  PublisherDOI

Frequent coauthors

• Ralph S. J. Koijen

  17 shared

• Lasse Heje Pedersen

  New York University

  8 shared

• Kilian Huber

  7 shared

• Eben Lazarus

  University College London

  7 shared

• Kilian Huber

  University of Luxembourg

  5 shared

• Emanuele Colonnelli

  5 shared

• Mihir Gandhi

  3 shared

• Andrea Frazzini

  Capital University

  3 shared

Education

• Ph.D., Finance

  University of Chicago

• B.A.

  Copenhagen Business School

Awards & honors

• 2024 Moskowitz Prize
• 2025 De La Vega Prize
• Fama-DFA Prize 2020 (second prize)
• Roger F Murray Price 2018