Jess Cornaggia

Color portrait of Jess Cornaggia

Professor of Finance

Department Finance
Office Address 311 Business Building
Phone Number 814-863-2390
Email Address jnc29@psu.edu

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Education

Ph D, The University of Texas at Dallas, 2009

Courses Taught

FIN 597 – Special Topics (1.5)

FIN 601 – Ph D Dis Full-Time
NO DESCRIPTION.

FIN 407 – Mult Fin Mgmt (3)
Analysis of the international aspects of managerial finance; emphasis on the impact of the international financial environment on firm operations.

FIN 855 – Global Finance (2)
This course provides a broad exploration of international finance in the context of how a corporate strategic manager analyzes the complexities of international financial markets. In particular, the course develops a tool-kit of techniques to a) understand global market interconnectivity, b) value international financial instruments and c) analyze risk, hedging, and asset pricing strategies to secure strategic competitive advantage. Building on these insights students will gain a deep understanding of exchange rates, risk management, forecasting, and international capital flows. More specifically students will study foreign exchange markets, hedging strategies using forward and future instruments, purchasing power parity, the eurocurrency market, international portfolio management, and the overall financial management of the international firm. Students will recognize, identify and apply the following core international finance concepts and analytical strategy tools: 1. The economics of foreign trade, the Law of One Price, and Purchasing Power Parity 2. The mechanism of Capital Flows and the effect on a country's "current account" vs. its "capital account"3. The foreign exchange market and its influence on the pricing of tradeable goods 4. How exchange rates affect consumers vs. manufacturers of tradeable goods 5. How interest rates are determined, inflation forecasting, and how interest rate expectations influence strategic decision-making for both the firm and the individual market actor. 6. How financial instruments such as forwards, futures, swaps, and options mitigate risk and reduce earnings uncertainty 7. How to build and manage a diversified international portfolio which maximizes return relative to a multinational corporation's specific risk profile.

Selected Publications

Cornaggia J., Cornaggia K., Israelsen R., "Credit Rating Agency Fees: Pay to Play or Pay for Work?." Review of Financial Studies, vol. 36, no. 5, 2023, pp. 2004-2045
Cornaggia J., Cornaggia K., Israelsen R., "Where the Heart Is: Information Production and the Home Bias." Management Science, vol. 66, no. 12, 2020, pp. 61
Cornaggia J., Cornaggia K., Israelsen R., "Credit Ratings and the Cost of Municipal Financing." Review of Financial Studies, vol. 31, no. 6, 2018, pp. 2038-2079
Cornaggia J., Li J., "The Value of Access to Finance: Evidence from M&A." Journal of Financial Economics, 2017, pp. 131 (1) 232-250
Cornaggia J., Butler A., Gurun U., "Do Local Capital Market Conditions Affect Consumers' Borrowing Decisions?." Management Science, vol. 63, no. 12, 2017, pp. 4175-4187
Cornaggia J., Cornaggia K., Hund J., "Credit Ratings across Asset Classes: A Long-Term Perspective." Review of Finance, vol. 21, no. 2, 2017, pp. 465-509
Cornaggia J., Cornaggia K., Bruno V., "Does Regulatory Certification Affect the Information Content of Credit Ratings?." Management Science, vol. 62, no. 6, 2016, pp. 1578-1597
Cornaggia J., Cornaggia K., Xia H., "Revolving Doors on Wall Street." Journal of Financial Economics, vol. 120, no. 2, 2016, pp. 400-419
Cornaggia J., Mao Y., Wolfe B., Tian X., "Does Banking Competition Affect Innovation?." Journal of Financial Economics, vol. 115, no. 1, 2015, pp. 189-209
Cornaggia J., "Does Risk Management Matter? Evidence from the U.S. Agricultural Industry." Journal of Financial Economics, vol. 109, no. 2, 2013, pp. 419-440
Cornaggia J., Cornaggia K., "Estimating the Costs of Issuer-Paid Credit Ratings." Review of Financial Studies, vol. 26, no. 9, 2013, pp. 2229-2269
Cornaggia J., Butler A., Grullon G., Weston J., "Corporate Financing Decisions, Managerial Market Timing, and Real Investment." Journal of Financial Economics, vol. 101, no. 3, 2011, pp. 666-683
Cornaggia J., Butler A., "Does Access to External Finance Improve Productivity? Evidence from a Natural Experiment." Journal of Financial Economics, vol. 99, no. 1, 2011, pp. 184-203

Research Impact and Media Mentions

"Editor's Blog", Review of Finance, Journal or Magazine
"Lure of Wall Street Cash Said to Skew Credit Ratings", Bloomberg, Internet

Editorships

Journal of Banking and Finance, Associate Editor, (www.journals.elsevier.com/journal-of-banking-and-finance/editorial-board), June 2016 - Present
Management Science, Associate Editor, (pubsonline.informs.org/page/mnsc/editorial-board), January 2016 - Present