Brattle Distinguished Paper Prize to Jungsuk Han
Feb. 15, 2019
Congratulations Jungsuk Han whose paper 鈥淭he Paradox of Financial Fire Sales: The Role of Arbitrage Capital in Determining Liquidity鈥, written with James Dow, was awarded Brattle Distinguished Paper Prize.
Jungsuk鈥檚 paper explores the mechanisms of financial fire sales. During a crisis, prices become less informative as specialist investors become more constrained. Non-specialist investors, worrying about potential adverse selection, become less unwilling to supply capital to support the price. The stabilizing mechanism of capital from non-specialist investors fails which in turn increases the risk of financial fire sales.
The Brattle Group Prizes are awarded annually for outstanding academic papers in the field of corporate finance. They are chosen by the associate editors of The Journal of Finance from papers published in The Journal during the prior year. The Journal of Finance is widely regarded as one of the world鈥檚 top three journals in finance.