My research interests are in the areas of Corporate Finance, Corporate Governance, and Law and Finance. I worked extensively in the banking and finance industry after completing my MBA from the Indian Institute of Management Calcutta and developed a fine understanding of a broad range of topics in finance.
Select Working Papers
The Inside Job: Share pledges by Insiders and Earnings Management (Job Market Paper)
The study creates the first comprehensive database of share pledges by insiders in the U.S. to reveal the prevalence of this practice and its role in encouraging earnings management. I find that during the fiscal years 2006 to 2014, insiders at one of every three S&P1500 firms pledged their ownership in the firm as collateral to obtain loans. I exploit a 2012 market-wide advisory against share pledges by Institutional Shareholder Services, the largest proxy advisory firm, as a quasi-natural experiment. A difference-in-differences estimation reveals that after the shock, insiders curtailed share pledge activity by approximately 40% and firms with share pledges reduced earnings manipulation by an average 15% of their reported profits. These results suggest that share pledges distort the incentives of insiders and motivate them to inflate earnings.
On the Value Implications of Insider Pledging of Shares
(Outstanding Doctoral Student Paper Award, Southern Finance Association 2018)
Insiders often pledge their ownership in the firm to offer collateral for either their personal loans or loans to the firm. Pledging of shares modifies their payoff structure without altering their control rights. This modification in the payoff structure can influence the incentives of controlling shareholders and have real effects on the firm's performance and value. Using hand-collected data from India, the study finds that share pledges can have contrasting effects on firm value and performance. Share pledges for personal loans reduce the effective ownership of controlling shareholders and destroy firm value. In contrast, share pledges for the firm's loans increase the firm's access to external credit and add value to firms with limited access to debt finance or high growth opportunities.
Outstanding Doctoral Student Paper Award, Southern Finance Association 2018
Carey Fellowship, 2017
Zwisler Fellowship, 2015
Graduate Fellowship, 2013
Paul M. Van Arsdell Sr. Award in Finance for Excellence in Teaching, 2015