|Asst Prof Suman Banerjee |
Division of Banking & Finance
College of Business (Nanyang Business School)
Phone: (+65)6790 6237
- PhD (Finance) The University of Iowa 1999
- MA (Economics) The University of Iowa 1998
- MA (Economics) The University of Delhi 1992
- BSc (Economics) University of Calcutta 1989
|Dr. Suman Banerjee is an assistant professor of finance at the Nanyang Business School at Nanyang Technological University in Singapore. Before joining NBS in December 2007, Dr. Banerjee was an assistant professor of finance at the A. B. Freeman School of Business at Tulane University in New Orleans, USA. His research interests include financial modeling with applications to areas of corporate finance such as corporate control, mergers and acquisitions, product market - financial market inter-linkages and energy finance.
Dr. Banerjee received the Caeserea Award for the best paper in risk management from the prestigious Western Finance Association in 2002. He was honored as a Junior Research Fellow by the Indian University Grants' Commission in 1993 and given the Honorary Fellowship by the Beta Gamma Sigma in 1999. He has obtained several other merit-based awards in the course of his academic career.
|My research examines the implications of market microstructure for corporate behavior. For both research areas the implications of the evolution of asset prices are important, but the microstructure implications have been largely missing from the existing corporate finance literature. Such an omission is unimportant if corporate finance models work well in the sense of explaining the observed behavior of firms, but this is not the case. The proliferation of anomalies and the changing cast of factors needed to explain even partial firm behaviors like dividend payments, all suggest that success is not yet within our grasp.
I found that the existing corporate finance literature ignores the central fact that market microstructure focuses on: prices of assets that they issue to raise investible funds evolve in markets. Markets have two important functions- liquidity and price discovery - and these functions are important for asset pricing, and hence, for the corporations that issue the assets. My research link these to concepts to our more basic constructs of firm behavior, and I will suggest that corporate finance models need to be recast in broader terms to incorporate the transactions costs of liquidity and the risks of price discovery. I found that information is not symmetric nor is equilibrium revealing. The symmetric information-based corporate finance models do not work because they assume that the underlying problems of liquidity and price discovery have been completely solved.
|Research Grant |
- RCC (2008-) [by Ministry of Education (MOE)]
- Start Up Grant (2008-) [by School Research Fund, University Research Fund]
|Current Projects |
- Cross Holding and Collusion
- Evolution of The Global Corporate Governance Practices: Understanding The Past Governance Practices to Design Effective Governance Mechanism For The Future
- Fat Tails and Slumping Shoulders: Kurtosis and the Market Microstructure of Daily Stock Return
- Suman Banerjee, Vladimir Gatchev, Paul Spindt. (2007). Stock market liquidity and firm dividend. Journal of Financial and Quantitative Analysis, 42(2), 369-397.
- Suman Banerjee, Tom Noe. (2006). Exotics and electrons: Electric power crises and financial risk management. Journal of Business, 79(5), 2659-2696.
- Mukarram Attari, Suman Banerjee, Tom Noe. (2006). Crushed by a rational stampede: Strategic share dumping and shareholder insurrection. Journal of Financial Economics, 79(1), 181-222.