Firms’ Cost of Capital, Discount Rates, and Investment Conference
Recent events have generated interest in the relationship between financial prices, corporate discount rates, and investment. Stock market swings, secular interest rate declines, inflationary spikes, and large monetary policy interventions should in theory drive the cost of capital and discount rates, ultimately shifting investment. Research discussed at this conference shed light on the importance of these channels.
Presentations for the conference were 40 minutes in length, including questions. After each presentation, there was a 10-minute open discussion, moderated by the chair.
Agenda
Lunch
Please note that lunch may be eaten before and during the presentation.
Introduction
Niels Gormsen, University of Chicago
Kilian Huber, University of Chicago
Financial Markets and Firm Behavior
Itay Goldstein, University of Pennsylvania (Presenter)
Niels Gormsen, University of Chicago (Chair)
Break
Peter May Boardroom
Dynamics of Subjective Risk Premia
Stefan Nagel, University of Chicago (Presenter)
Niels Gormsen, University of Chicago (Chair)
Break
8th Floor Lounge
Corporate Valuation: An Empirical Comparison of Discounting Methods
David Thesmar, Massachusetts Institute of Technology (Presenter)
Niels Gormsen, University of Chicago (Chair)
Break
Peter May Boardroom
Borrowing Costs, Bank Health, and Local Economic Outcomes
Simon Gilchrist, New York University (Presenter)
Kilian Huber, University of Chicago (Chair)
Break
8th Floor Lounge
What Gets Measured Gets Managed: Investment and the Cost of Capital
Zhiguo He, University of Chicago (Presenter)
Kilian Huber, University of Chicago (Chair)
Break
Peter May Boardroom
Bond Market Stimulus: Firm-Level Evidence
Kerry Siani, Massachusetts Institute for Technology (Presenter)
Kilian Huber, University of Chicago (Chair)
Conference Dinner
Room 504
Continental Breakfast
Aggregation in Heterogeneous-Firm Models: Theory and Measurement
Christian Wolf, Massachusetts Institute of Technology (Presenter)
Matthew Rognlie, Northwestern University (Chair)
Break
Peter May Boardroom
Project Development with Delegated Bargaining: The Role of Inflated Hurdle Rates
John Graham, Duke University (Presenter)
Matthew Rognlie, Northwestern University (Chair)
Break
Peter May Boardroom
How Unconventional is Green Monetary Policy?
Monika Piazzesi, Stanford University (Presenter)
Matthew Rognlie, Northwestern University (Chair)
Working Lunch Session
8th Floor Lounge
Please note that lunch may be eaten before and during the presentation.
11:45 am – 12:35 pm – Capital Budgeting and Idiosyncratic Risk
Paul Decaire, Arizona State University (Presenter)
Matthew Rognlie, Northwestern University (Chair)