Murray Z Frank

About

Murray Z. Frank is a Professor of Finance at the University of Minnesota, working in the Finance Department. His research interests include the impact of machine learning on finance, empirical corporate capital structure, and the effect of taxation on corporate financing and investment. He has recently been exploring the implications of artificial intelligence and its growth in the age of self-improving AI.

Research topics

• Finance
• Economics
• Business
• Financial system
• Monetary economics
• Mathematics

Selected publications

• How does the stock market absorb shocks?

  Journal of Financial Economics · 2018-04-09 · 121 citations

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• Corporate capital structure actions

  Journal of Banking & Finance · 2019-07-19 · 35 citations

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• Financing Corporate Growth

  Review of Financial Studies · 2020 · 21 citations

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  Abstract Considerable research tackles the aggregate impact of debt financing. We show that equity is more important for firm growth than generally understood. A dollar of equity issuance is associated with an extra $\$0.93$ of real assets, whereas a dollar of debt issuance is associated with an extra $\$0.14$. Firms issue equity first, then increase real assets, and, finally, issue debt while repurchasing equity. We explain this sequence using a model in which debt is tax preferred relative to…

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• The Pecking Order Theory of Capital Structure

  Oxford Research Encyclopedia of Economics and Finance · 2020-10-27 · 14 citations

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  The pecking order theory of corporate capital structure developed by states that issuing securities is subject to an adverse selection problem. Managers endowed with private information have incentives to issue overpriced risky securities. But they also understand that issuing such securities will result in a negative price reaction because rational investors, who are at an information disadvantage, will discount the prices of any risky securities the firm issues. Consequently, firms follow a pe…

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• Empirical corporate capital structure

  Edward Elgar Publishing eBooks · 2024-02-06 · 9 citations

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  Corporate capital structure has been a key, challenging puzzle for finance for more than 50 years. Why do firms use the observed financing methods? The literature has developed useful ideas and a much-improved sense of the relevant facts to solve this puzzle. Taxes, the need to fund investments, and informational imperfections all play a role in the capital structure decisions of firms. Many other factors may also be significant, at least under some circumstances. Currently, no generally accepte…

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Frequent coauthors

• Vidhan K. Goyal

  42 shared

• Thanasis Stengos

  13 shared

• Tao Shen

  Hohai University

  10 shared

• Werner Antweiler

  University of British Columbia

  8 shared

• Ali Sanati

  7 shared

• Hong Chen

  Shihezi University

  7 shared

• Tracy Yue Wang

  University of Minnesota

  5 shared

• Charles Bram Cadsby

  University of Guelph

  5 shared

Awards & honors

• President of the Midwest Finance Association (2017-2018)
• co-founder and organizer of Virtual Corporate Finance Wednes…

Similar researchers at University of Minnesota

• Robert Goldsteinh-58
• Andrew Wintonh-45