Darius Palia

Professor and Thomas A. Renyi Endowed Chair in Banking

Area of expertise

Finance & Economics

973-353-5981 dpalia@business.rutgers.edu Curriculum Vitae

Thomas A. Renyi Endowed Chair in Banking

Founding Director, Rutgers Financial Institutions Center

Website: https://sites.rutgers.edu/darius-palia/

Professor Palia is an internationally renowned scholar in law and economics, banking, and corporate governance. He earned a PhD in Finance from the Stern School of Business at New York University, and he has been on the faculty of Princeton University, Columbia Business School, the University of Chicago, and UCLA.

Dr. Palia has published extensively in the top finance journals (e.g., J. of Finance, J. of Financial Economics, RAND J., and Review of F. Studies), as well as in the top law and economics journals (e.g., American Law & Econ. Review, Harvard Business Law Review, J. of Corporation Law, J. of Empirical Legal Studies, and J. of Law & Economics). His work is extensively cited by other scholars and he is the Associate Editor of the J. of Financial and Quantitative Analysis. He is often quoted in newspaper articles and magazines. He continues to be invited to present his research to the faculty of top Universities, at the major academic meetings, and at the prestigious National Bureau of Economic Research conferences. He has worked as an expert in both federal and state courts. As Founding Director of the Financial Institutions Center, he organizes and participates in panels that include CEOs and other senior executives of financial institutions as well as senior regulators.

Executive MBA Experience

Professor Darius Palia, Thomas A. Renyi Endowed Chair in Banking and Professor of Finance at RBS, presents, Banks, Financial Crises and the Fed: A Scientific Investigation, a course that makes the Finance program— ranked #6 globally by BusinessWeek —even stronger. He leverages his vast publishing record by presenting this hard-hitting module that explores the theory and reality of financial crises. Using data, he examines the role of banks and the Fed in the most recent financial crisis, making the inclusion of this module a testament to the timeliness of the Rutgers EMBA curriculum.

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Academic degrees

Ph.D., New York University

Doctoral student is recognized for exceptional teaching

Monday, April 30, 2018

Media Mentions

Federal Reserve Richmond. Are CEOs Overpaid? Darius Palia

Monday, April 08, 2019

Financial Review, Shiller's CAPE: Market Efficiency and Risk, Valentin Dimitrov

Tuesday, October 02, 2018

Harvard Law School Forum, Are Merger Clauses Value Relevant to Target and Bidder Shareholders? Darius Palia

Monday, July 09, 2018

Legal Theory Blog, Appraisal Arbitrage and Shareholder Value, by Darius Palia and colleagues

Tuesday, November 14, 2017

Is Say on Pay All About Pay? Darius Palia and colleagues post in Harvard Law School Forum

Monday, October 30, 2017

Publications

Journal Publications

Appraisal Arbitrage and Shareholder Value, with Scott Callahan and Eric Talley, Journal of Law, Finance and Accounting, forthcoming
Is Say on Pay all About Pay? The Impact of Performance, with Jill Fisch and Steven Davidoff Solomon, Harvard Business Law Review, forthcoming
Short-Term Debt and Bank Risk, with Brian Du, Journal of Financial and Quantitative Analysis, forthcoming
Differential Access to Capital from Financial Institutions by Minority Entrepreneurs, Journal of Empirical Legal Studies, December 2016
The Wolf at the Door: The Impact of Hedge Fund Activism on Corporate Governance, with John C. Coffee, Jr., Journal of Corporation Law, Spring 2016
Ex Ante Choice of Jury Waiver Clauses in Mergers, with Robert Scott, American Law and Economics Review, Fall 2015
Dodd-Frank and Credit Ratings, with Valentin Dimitrov and Leo Tang, Journal of Financial Economics, March 2015
Heterogeneous Background Risks and Portfolio Choice: Evidence from Micro-Level Data, with Yaxuan Qi and Yangru Wu, Journal of Money, Credit and Banking, December 2014
Private Equity Alliances in Mergers, with Tae-Nyun Kim, Journal of Empirical Finance, June 2014
Corporate Governance and Firm Performance: Evidence From Large Governance Changes, with N. Chidambaran and Yudan Zeng, Financial Decisions, Summer 2012
Are Initial Returns and Underwriting Spreads in Equity Issues Complements or Substitutes?, with Dongcheol Kim and Anthony Saunders, Financial Management, Winter 2010
The Impact of Commercial Banks on Underwriting Spreads: Evidence from Three Decades, with Dongcheol Kim and Anthony Saunders, Journal of Financial and Quantitative Analysis, December 2008
Choosing to Co-Finance: An Analysis of Project Specific Alliances in the Film Industry, with Abraham Ravid and Natalia Reisel, Review of Financial Studies, April 2008 --Lead article
Founders Versus Non-Founders in Large Companies: Financial Incentives and the Call for Regulation, with Abraham Ravid and Chia-Jane Wang, Journal of Regulatory Economics, October 2007
Evidence of Jointness in the Terms of Relationship Lending, with Ivan Brick, Journal of Financial Intermediation, January 2007
The Impact of Capital Requirements and Managerial Compensation on Bank Charter Value, with Robert Porter, Review of Quantitative Finance and Accounting, November 2004 --Lead article
Securitizing Accounts Receivables, with Ben Sopranzetti, Review of Quantitative Finance and Accounting, January 2004
Contemporary Issues in Regulatory Risk Management of Commercial Banks, with Robert Porter, Financial Markets, Institutions and Instruments, November 2003
The Impact of the Manager-Shareholder Conflict on Acquiring Bank Returns, with Marcia Cornett, Gayane Hovakimian, and Hassan Tehranian, Journal of Banking and Finance, January 2003
Are There Bank Effects in Borrower Cost of Funds? Evidence From a Matched Sample of Borrowers and Banks, with Glenn Hubbard and Ken Kuttner, Journal of Business, October 2002 --Lead article
The Endogeniety of Managerial Compensation in Firm Valuation: A Solution, Review of Financial Studies, Fall 2001
The Impact of Regulation on CEO Labor Markets, RAND Journal of Economics, Spring 2000
Managerial Ownership and Firm Performance: A Re-Examination Using Productivity Measurement, with Frank Lichtenberg, Journal of Corporate Finance, December 1999
--In top 5 most downloaded papers from the Journal of Corporate Finance in 1999-2000
--Summarized in CFA Digest, Charlottesville, Spring 2000
Understanding the Determinants of Managerial Ownership and the Links Between Ownership and Firm Performance, with Charles Himmelberg and Glenn Hubbard, Journal of Financial Economics, September 1999
--Journal of Financial Economics All-Star Paper, based on citations per year in all articles ever published in the journal, gets 10.4 citations per year
--Won the Western Finance Association Corporate Finance Award for best paper, 1998
--Reprinted in Empirical Corporate Finance, edited by M. Brennan, Edward Elgar Publishing, 2000
A Re-Examination of the Conglomerate Merger Wave in the 1960s: An Internal Capital Markets View, with Glenn Hubbard, Journal of Finance, June 1999
--Nominated for Journal of Finance’s Brattle Prize for best paper Corporate Finance
--Summarized in Economic Intuition, Montreal, 1999
The Political Economy of Branching Restrictions and Deposit Insurance, with Nicholas Economides and Glenn Hubbard, Journal of Law and Economics, October 1996
Benefits of Control, Managerial Ownership, and the Stock Returns of Acquiring Firms, with Glenn Hubbard, RAND Journal of Economics, Winter 1995
Executive Pay and Performance, with Glenn Hubbard, Journal of Financial Economics, September 1995
--Reprinted in The Economics of Executive Compensation, edited by K. Murphy and K. Hallock, Edward Elgar Publishing, 2000
Recent Evidence on Bank Mergers, Financial Markets, Institutions and Instruments, December 1994
The Managerial, Regulatory and Financial Determinants of Bank Merger Premiums, Journal of Industrial Economics, March 1993

Other Publications

Product Market Competition and CEO Pay Benchmarking, with Ivan Brick, in Handbook of Financial Econometrics, Mathematics, Statistics and Technology, edited by C.F. Lee, forthcoming
The Market for Corporate Control: Survey of the Empirical Evidence, Estimation Issues, and Potential Areas for Future Research, in Research Handbook on Mergers and Acquisitions, edited by Steven Davidoff and Claire Hill, 2016
Related Party Transactions and Corporate Governance, with Elizabeth Gordon and Elaine Henry, Advances in Financial Economics, September 2004 --Lead article
The Empirical Importance of Private Ownership for Economic Growth, with Edmund Phelps, in Finance, Research, Education, and Growth, edited by Luigi Paganetto and Edmund Phelps, Palgrave, New York, 2003
Federal Deposit Insurance: Economic Efficiency or Politics? with Nicholas Economides and Glenn Hubbard, Regulation, Washington D.C., December 1999
Market for Corporate Control, with Glenn Hubbard, New Palgrave Dictionary of Economics and the Law, 1997

Dissertations Supervised

Name: Da, Hengguo
Graduation Date: 2022/May

Name: Wu, Ge
Graduation Date: 2018/October
Thesis Title: Two Essays on Merger Clauses

Name: Porter, Robert
Graduation Date: 2004/May
Thesis Title: Regulatory Risk Management in Commercial Banking: An Empirical Investigation of Agency Theory

Name: Wang, Chia-Jane
Graduation Date: 2004/May
Thesis Title: CEO Compensation, Leverage and Corporate Board, and their Joint Impact on Firm Performance

Name: Yu, Wei
Graduation Date: 2007/October
Thesis Title: Two Essays on Subprime Mortgage Lending

Name: Zheng, Yudan
Graduation Date: 2007/October
Thesis Title: Corporate Governance and Firm Performance

Name: Kim, Tae-Nyun
Graduation Date: 2011/May
Thesis Title: Two Essays on Corporate Finance

Name: Du, Brian
Graduation Date: 2012/May
Thesis Title: An Examination of Rollover Risk and the Credit Crisis

Name: Dong, Gang
Graduation Date: 2012/May
Thesis Title: Essays in Banking and Finance: Securitization, Systemic Risk and Healthcare Reform

Name: Heo, Yuna
Graduation Date: 2015/May
Thesis Title: Two Essays in Banking and Finance

Executive Education Programs

Mini-MBA: Business Essentials

Our Mini-MBA: Business Essentials offers accomplished professionals an opportunity to maintain their career trajectory with an efficient, focused injection of modern concepts and strategy. We will empower you to contribute as a confident thought leader who has mastered today’s rapidly changing business landscape. Use this new know-how to contribute as a valued member of multi-functional teams and help shape organizational goals.

In Class program: $4995.00

Online program: $3495.00

Next Class Date

Mar 20 - Mar 24, 2023

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Professor Ben Sopranzetti in class with executive education students