Kimberly Cornaggia

Color portrait of Kimberly Cornaggia

Professor of Finance, Louis R. & Virginia A. Benzak Professor, Department Head

Department Finance
Office Address 352 Business Building
Phone Number 814-865-2243
Email Address kjr15@psu.edu

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Professor Cornaggia conducts empirical research related to corporate finance, credit risk, credit ratings, municipal finance, and student loans. 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. at Purdue University and has since enjoyed faculty appointments at Penn State University, 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 corporate 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 US Securities and Exchange Commission and Department of Justice.

Education

Ph D, Finance, Purdue University, 2000

BS, Actuarial Science & Finance, The University of Nebraska-Lincoln, 1994

Courses Taught

FIN 871 – STRAT FIN MGMT (2)
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 students' 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.

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.

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

FIN 571 – STRAT FIN MGMT (2)
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

Canayaz M., Cornaggia J., Cornaggia K., "Choose Your Battles Wisely: The Consequences of Protesting Government Procurement Contracts." Management Science (forthcoming), 2024
Cornaggia K., Hund J., Nguyen G., "The Price of Safety: The Evolution of Insurance Value in Municipal Markets." Management Science, vol. 70, no. 4, 2024
Cornaggia K., Li X., Ye Z., "Financial Effects of Remote Product Delivery: Evidence from Hospitals." Review of Financial Studies (forthcoming), vol. forthcoming, 2024
Cornaggia K., Xia H., "Who Mismanages Student Loans and Why?." Review of Financial Studies, vol. 37, no. 1, 2024, pp. 161-200
Cornaggia J., Cornaggia K., Israelsen R., "Rating Agency Fees: Pay to Play in Public Finance?." Review of Financial Studies, vol. 36, no. 5, 2023, pp. 2004-2045
Cornaggia K., Hund J., Nguyen G., Ye Z., "Opioid Crisis Effects on Municipal Finance." Review of Financial Studies, vol. 35, no. 4, 2022, pp. 2019-2066
Cornaggia K., Hund J., Nguyen G., "Investor Attention and Municipal Bond Returns." Journal of Financial Markets, vol. 60, 2022, pp. 1-27
(Lead Article)
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

Honors and Awards