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Paul Koch

Title: Kent Corporation Chair in Business / Professor
Department: Finance

Office: 3311 Gerdin Business Building
Phone number: (515) 294-2491


I teach undergraduate, MBA, and PhD students. I’ve taught courses on Futures and Options (Financial Risk Management), Investments, Econometrics, Empirical Asset Pricing, and International Finance. My research informs and enriches my teaching by attempting to advance our understanding of how capital markets operate to help allocate scarce resources. I conduct empirical asset pricing research on market anomalies, behavioral finance, investments, market microstructure, financial derivatives, and international finance. Market anomalies refer to tendencies for stock prices to behave in predictable but unusual ways that we do not fully understand, and which therefore challenge the major tenets of asset pricing theory. Market microstructure has to do with how traders interact in the context of a given market and regulatory environment to determine trading volume, market liquidity, trading costs, and return volatility. I am particularly interested in how the arrival of information is transmitted to asset prices through trading activity, which involves the interplay between different types of traders such as retail investors, corporate insiders, institutional investors, option traders, short sellers, and so forth. I am curious about whether and how these different types of investors trade on either public or private information, the relative information content and profitability of their trades, and the extent to which their respective behaviors may influence financial market activity, volatility, and price efficiency. I have investigated these issues across a variety of global financial markets. These issues often have important implications for financial regulatory policy by highlighting the potential costs, as well as benefits, of financial regulation.

Selected Publications

  • Ferhat Akbas, Ekkehardt Boehmer, Chao Jiang, and Paul Koch (2022-01-01) "Overnight returns, daytime reversals, and future stock returns", Journal of Financial Economics, Link to Paper
  • Brad Goldi, Chao Jiang, Paul Koch, and M. Babajide WIntoki (2022-01-01) "Indirect Insider Trading", Journal of Financial and Quantitative Analysis, Link to Paper
  • Ferhat Akbas and Chao Jiang (2020-01-01) "Insider Investment Horizon", Journal of Finance, 75 (3):1579-1627. Link to Paper
  • Henk Berkman and Joakim Westerholm (2020-01-01) "Inside the Director Network: When Directors Trade or Hold Inside, Interlock, and Unconnected Stocks", Journal of Banking and Finance, 118 (4):1-17. Link to Paper
  • Ferhat Akbas and Chao Jiang (2017-01-01) "The Trend in Firm Profitability and the Cross Section of Stock Returns", The Accounting Review, 92 (5):1-32. Link to Paper
  • Henk Berkman (2017-01-01) "DRIPs and the Dividend Pay Date Effect", Journal of Financial and Quantitative Analysis, 52 (4):1765-1795. Link to Paper
  • Chao Jiang and Ira Kawaller (2016-01-01) "Designing a Proper Hedge: Theory versus Practice", Journal of Financial Research, 39 (2, Summer):123-144. Link to Paper
  • Henk Berkman and Joakim Westerholm (2014-01-01) "Informed Trading through the Accounts of Children", Journal of Finance, 69 (1):363-404. Link to Paper
  • Ira Kawaller (2013-01-01) "Hedge Effectiveness Tests Revisited", Journal of Derivatives, 21 (1, Fall):1-12. Link to Paper
  • Ted Juhl and Ira Kawaller (2012-01-01) "The Effect of the Hedge Horizon on Optimal Hedge Size and Effectiveness when Prices are Cointegrated ", Journal of Futures Markets, 32 (9):837-876. Link to Paper
  • Henk Berkman, Laura Tuttle, and Ying Zhang (2012-01-01) "Paying Attention: Overnight Returns and the Hidden Cost of Buying at the Open", Journal of Financial and Quantitative Analysis, 47 (4):715-741. Link to Paper
  • Henk Berkman, Valentin Dimitrov, Prem Jain, and Sheri Tice (2009-01-01) "Sell on the News: Differences of Opinion, Short Sales Constraints, and Returns around Earnings Announcements ", Journal of Financial Economics, 92 (3):376-399. Link to Paper