About

Terry A. Marsh is Professor Emeritus of Finance at UC Berkeley Haas School of Business. He has served on the finance faculty at Berkeley Haas until 2005 and is a former chair of the Finance Group. Marsh has an extensive academic background, including positions as an Associate Professor at MIT, a Visiting Professor of Economics at the University of Tokyo, and a National Fellow at the Hoover Institution at Stanford University. His research interests encompass capital markets, corporate finance, accounting, econometrics, and statistics. Marsh has contributed to the understanding of asset pricing, market behavior, and financial modeling through numerous publications and studies. He is also the co-founder and CEO of Quantal International and an adviser to Strike Protocols Inc., with a career that includes significant roles in academia, industry, and advisory boards.

Research topics

• Economics
• Financial economics
• Monetary economics
• Political Science
• Econometrics
• Business
• Finance
• Mathematics
• Accounting

Selected publications

• Overnight Post-Earnings Announcement Drift and SEC Form 8-K Disclosures

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

  articleOpen accessSenior author
  PublisherDOI

• Australian initial public offerings and US venture capital: different structures for similar early-stage funding?

  Journal of Accounting Literature · 2023-05-31

  article1st authorCorresponding

  Purpose Australian Securities Exchange (ASX) initial public offerings (IPOs) are an important source of early-stage capital and have also driven a substantial increase in main-board listed companies post-millennium. By contrast, Australian venture capital (VC) funding has remained largely dormant. The opposite has occurred in the US: IPOs have fallen by half, and VC funding has surged. The authors examine the reason for this divergence between ASX IPO and US VC systems that, with their supporting ecosystems, have many features in common and function similarly. The authors explore the potential factors that could explain the US VC surge vis-à-vis Australia's VC stagnation. Design/methodology/approach The authors’ analysis is predominantly qualitative. The authors describe the Australian listing process and its similar features and functions as for the prototypical VC. The authors also describe the developments in US VC driving its recent exceptional surge and highlight that such developments have not yet materialised on the Australian scene, where early-stage IPOs have served as a substitute. Findings The ASX's structure and ecosystem have been critical to its success in fostering early-stage main-board listings. While the US has succeeded in alternatively growing VC, there is an increasing concern that the latter has occurred partially because valuations are stretched, tax concessions for carried-interest capital gains are too high and corporate control benefits are becoming increasingly diluted. These developments could have important implications for Australia, where VC structures are currently being reviewed. Originality/value To the best of the authors’ knowledge, no prior study has attempted to bridge the broad differences in IPO and VC funding trends for early-stage companies in Australia and the USA.

  PublisherDOI

• Funding Innovation with Earlier stage IPOs or Venture Capital: Australia compared with the U.S.

  SSRN Electronic Journal · 2022-01-01 · 2 citations

  articleOpen access1st authorCorresponding
  PublisherDOI

• Asset prices, midterm elections, and political uncertainty

  Journal of Financial Economics · 2021 · 84 citations

  Senior authorCorresponding
  • Political Science
  • Economics
  • Financial economics
  PublisherDOI

• ASX small firm/microcap listings: the IPO ‘Pop’ and two decades of subsequent returns

  Accounting and Finance · 2021 · 4 citations

  • Business
  • Monetary economics
  • Economics

  Abstract We examined IPO discounts and average returns for all available ASX (de)/listed IPOs from 1999 to 2019. We found that the average 18.45 percent offering discount was close to that observed in the US, as were the discount time series behaviour and distribution. Furthermore, the average annualised return on a market‐weighted portfolio of the ASX small/microcap IPOs, from close‐of‐listing‐day price to delisting or 31 December 2019, is 18.62 percent compared to 2.28 percent for large‐caps. Small/microcap post‐listing return differentials were highest for listings filed in Western Australia, and for the metals and mining and software industries.

  PublisherOA PDFDOI

• Asset pricing on earnings announcement days

  Journal of Financial Economics · 2021 · 33 citations

  Senior authorCorresponding
  • Economics
  • Financial economics
  • Econometrics
  PublisherDOI

• Submission to the Inquiry into the Development of the Australian Corporate Bond Market

  Bond University Research Portal (Bond University) · 2020-05-27

  articleOpen accessSenior author

  Following a referral on 6 February 2020 from the Treasurer, The Hon Josh Frydenberg MP, the Standing Committee on Tax and Revenue will inquire into and report on the Development of the Australian Corporate Bond Market.<br/><br/>The Committee invited interested persons and organisations to make a submission addressing the terms of reference by Thursday, 28 May 2020.<br/><br/><b>Terms of Reference</b><b><br/></b>Preamble<br/>Australian companies may issue bonds as a means of raising debt finance. Over the last decade Australian Governments have made amendments to the regulatory regime for corporate debt to facilitate a deeper and more active retail corporate bond market. However the Australian retail bond market remains small in comparison to similar countries and, in terms of amount of debt raised, Australian-based businesses make greater use of offshore bond markets.<br/><br/>The Inquiry will examine:<br/>- the tax treatment of corporate bonds for both issuers and investors to determine whether there are any impediments in the tax system to the issue of corporate bonds compared to other forms of debt financing for business; <br/>- related impediments within the Corporations Act to the further development of the corporate bond market, including how they interact with the tax system; and<br/>- comparable policy settings in other jurisdictions, with a focus on those jurisdictions that are major sources of debt finance for companies operating in Australia.<br/>

  PublisherOA PDF

• Asset Pricing around Earnings Announcement Days

  SSRN Electronic Journal · 2020-01-01

  articleOpen accessSenior author
  PublisherDOI

• Cryptocurrency and Blockchains: <i>Retail to Institutional</i>

  The Journal of Investing · 2019-09-20 · 15 citations

  articleSenior author

  A reduction in cost of traditional financial intermediation was one of the main motivations cited by Satoshi Nakamoto in a 2008 proposal for “… an electronic payment system based on cryptographic proof instead of trust.” We begin here with some back-of-the-envelope calculations of these potential cost savings and benefits from the customer perspective. We then discuss the public blockchain ledger and various solutions to two important problems that are constraints on the public blockchain’s trustless consensus, viz. “mining” costs in proof-of-work and governance issues. We speculate that foreseeable institutional implementations will often involve integration of permissioned blockchains with public blockchains. We then discuss exchanges for trading cryptocurrencies, the second component of the crypto blockchains, and in particular their “teething problems,” along with the evolution of a subset of them into increasingly “industrial strength” entities. We suggest that with a more industrial strength infrastructure in place, self-executing smart contracts are virtually natural counterparts for more traditional passive investment products. We end with a discussion of Security Token Offerings (STOs) and the newer Initial Coin Offerings (ICOs): STOs are an interesting hybrid between the ICOs and traditional IPOs; they could conceivably pave the way to a long-time-coming “direct electronic IPO” market. <b>TOPICS:</b>Currency, indexing exchange-traded, exchanges/markets/clearinghouses <b>Key Findings</b> • A set of crypto exchanges is evolving into institutional-strength entities with law-of-one-price, clearing and settlement, custody services, and user algorithms to deal with <i>fake</i> inflated trade volumes. • Pure public blockchains with well-known “blockchain trilemma” problems like high energy consumption, low performance, governance shortcomings, and no clear “how-to-pay” mechanism for ledger-updating in non-crypto applications are inexorably leading toward hybrid public/permissioned blockchain networks. • Despite their rocky start, STOs and ICOs are leading to direct or electronic IPO markets while smart contracts running on blockchains with securities trading identifiers and data seem ideal vehicles for administering passive investment products.

  PublisherDOI

• Guest editorial

  Studies in Economics and Finance · 2019-05-30 · 2 citations

  editorial1st authorCorresponding
  PublisherDOI

Frequent coauthors

• Kam Fong Chan

  9 shared

• Rand Kwong Yew Low

  University of Queensland

  8 shared

• Paul Pfleiderer

  7 shared

• Takao Kobayashi

  Hamamatsu Medical Center

  6 shared

• Robert C. Merton

  5 shared

• Niklas Wagner

  4 shared

• Allan W. Kleidon

  4 shared

• Eric Rosenfeld

  4 shared

Education

• Ph.D., Graduate School of Business

  University of Chicago

  1981

Awards & honors

• Jacobs-Levy Prize for one of best four papers in the 2016 Jo…
• Yamaichi Fellow, University of Tokyo, 1993-94
• Member, Presidential Commission on Market Mechanisms (the “B…
• National Fellow, Hoover Institution, Stanford University, 19…
• Batterymarch Fellowship, 1984-85