Kimberly Cornaggia

Color portrait of Kimberly Cornaggia

Professor of Finance

Department Finance
Office Address 306 Business Building
Phone Number 814-865-2243
Email Address

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Professor Cornaggia conducts empirical research concerned with predicting, measuring, and resolving financial distress. She has particular interest in the efficacy of credit rating agencies as information intermediaries, the role of ratings in regulatory and contractual requirements, and the real effects of ratings on debt issuers. Related interests include the impact of accounting conservatism on common performance and risk metrics, and the information environment of municipal debt markets. She earned her Bachelor of Science at the University of Nebraska, where she studied actuarial science, economics, insurance, and finance. She earned her Ph.D. in Finance at Purdue University, and has since enjoyed academic appointments at the College of William and Mary, New York University, American University, and Indiana University. Dr. Cornaggia has taught a wide array of courses at the graduate and undergraduate levels including corporation finance, corporate restructuring, equity valuation, multinational finance, and capital markets. Non-academic experience includes analyzing asset-backed securities markets and the credit ratings industry for the Office of Economic Analysis at the US Securities and Exchange Commission, first in 2003-2004 and later in 2007-2008.


Ph D, Finance, Purdue University, 2000

BS, Actuarial Science & Finance, University of Nebraska, 1994

Courses Taught

FIN 405 – Adv Financial Mgmt (3)
An examination of the development and application of decision rules for major long-term financial and investment problems of the firm.

Comprehensive course in corporate finance and the strategic implications of various financial decisions.

FIN 601 – Ph D Dis Full-Time

The course provides an integrative study of financial management utilizing applied problems and case studies. It is intended to provide both depth and breadth to studentsÀ knowledge of corporate finance. This course gives an overview of the key concepts, tools, and principles of both strategy formulation and competitive analysis utilized by the successful corporate manager. Students will analyze the dynamic business environment that successful corporate financial managers must navigate to enhance organizational performance. The skill of decision analysis is presented and then applied by focusing on how managerial decision-making affects the performance of the modern corporate enterprise. Specific topics include capital investment decision making, value creation, strategic cost management, financial performance metrics, strategic financial planning and control, strategic restructuring and growth strategies, corporate governance, and ethics.

Selected Publications

Cornaggia K., Hund J., Nguyen G., Ye Z., "Opioid Crisis Effects on Municipal Finance." Review of Financial Studies, vol. forthcoming, 2021,
Cornaggia J., Cornaggia K., Israelsen R., "Where the Heart Is: Information Production and the Home Bias." Management Science, vol. 66, no. 12, 2020, pp. 5532-5557
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 K., Krishnan G., Wang C., "Managerial Ability and Credit Ratings." Contemporary Accounting Research, vol. 34, no. 4, 2017, pp. 2094-2122
Cornaggia J., Cornaggia K., Hund J., "Credit Ratings across Asset Classes: A Long-term Perspective." Review of Finance, vol. 21, no. 1, 2017, pp. 465-509
Bruno V., Cornaggia J., Cornaggia K., "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 K., Franen L., Simin T., "Bringing Leased Assets onto the Balance Sheet." Journal of Corporate Finance, vol. 22, 2013, pp. 345-360
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 K., Demirtas O., "Initial Credit Ratings and Earnings Management." Review of Financial Economics, vol. 22, no. 4, 2013, pp. 34-45
Cornaggia K., "Financial Distress and Bankruptcy." (John Wiley & Sons), 2010
Cornaggia K., Heron R., Lie E., "Financial Restructuring in Fresh Start Chapter 11 Reorganizations." Financial Management, vol. 38, no. 4, 2009, pp. 727-745
Cornaggia K., Hertzel M., Officer M., Li Z., "Inter-firm Linkages and the Wealth Effects of Financial Distress along the Supply Chain." Journal of Financial Economics, vol. 87, no. 2, 2008, pp. 374-387
Cornaggia K., Denis D., "Chapter 11: Duration, Outcome, and Post-Reorganization Performance." Journal of Financial and Quantitative Analysis, vol. 42, no. 1, 2007, pp. 101-118
Cornaggia K., Franzen L., Simin T. T., "Measuring Distress Risk: The Effect of R&D Intensity." Journal of Finance, vol. 62, no. 6, 2007, pp. 2331-2368