James Dow
Professor of Finance
MA (Cambridge) PhD (Princeton)
Professor James Dow’s main research interests are the effect of limited arbitrage capital on stock price dynamics, financial fire sales, and bubbles. He has also worked on executive compensation and the role of financial markets on corporate resource allocation decisions. He has served as Editor of the Review of Economic Studies.
He held positions at the University of Pennsylvania and the European University Institute in Florence.
Professor Dow has published in the Journal of Political Economy, The Review of Economic Studies, Econometrica, The Journal of Finance, and The Review of Financial Studies.
His consulting experience includes advice on valuation, the cost of capital, and corporate governance, and expert testimony.
- jdow@london.edu
- +44 (0)20 7000 8260
- James Dow CV
- Corporate finance
- Executive compensation and succession
- Organisational change
- Arbitrage, information and financial markets
2021
Failing to forecast real events
Dow J; Bond P
Journal of Financial Economics 2021 Vol 142:3 p 1001-1016
Hysteresis in price efficiency and the economics of slow-moving capital
Dow J; Han J; Sangiorgi F
Review of Financial Studies 2021 Vol 34:6 p 2857-2909
2018
The paradox of financial fire sales: the role of arbitrage capital in determining liquidity
Dow J; Jungsuk H
Journal of Finance 2018 Vol 73:1 p 229-274
2017
Incentives for information production in markets where prices affect real investment
Dow J; Goldstein I; Guembel A
Journal of the European Economic Association 2017 Vol 15:4 p 877-909
2015
Contractual incompleteness, limited liability and bubbles
Dow J; Han J
Journal of Financial Economics 2015 Vol 116:2 p 383-409
2013
Boards, CEO entrenchment, and the cost of capital
Dow J
Journal of Financial Economics 2013 Vol 110:3 p 680-695
2008
Noise trade
Dow J; Gorton G
in the New Palgrave Dictionary of Economics, Durlauf S N and Blume L E (eds.)
2006
European corporate bond markets: transparency, liquidity, efficiency
Biais B; Declerck F; Dow J; Portes R; Thadden E-L von
City of London and CEPR, May 2006, pp75
2005
CEO compensation, change and corporate strategy
Dow J; Raposo C
Journal of Finance 2005 December Vol 60:6 p 2701-2727
Equilibrium investment and asset prices under imperfect corporate control
Dow J; Krishnamurthy A; Gorton G
American Economic Review 2005 June Vol 95:3 p 659-681
2003
Informed trading, investment and economic welfare
Dow J; Rahi R
Journal of Business 2003 Vol 76:3 p 439-454
What is systematic risk?: moral hazard, initial shocks and propagation
Dow J
Monetary and Economic Studies 2000 December Vol 18:1 p 1-24
1998
Arbitrage, hedging and financial innovation
Dow J
Review of Financial Studies 1998 Vol 11:4 p 739-755
Comments on 'Banks, markets and the allocation of risk in an economy' by M Hellwig
Dow J
Journal of Institutional and Theoretical Economics 1998 Vol 154:1 p 346-351
1997
Noise trading, delegated portfolio management and economic welfare
Dow J; Gorton G
Journal of Political Economy 1997 October Vol 105:5 p 1024-1050
Stock market efficiency and economic efficiency: is there a connection?
Dow J; Gorton G
Journal of Finance 1997 July Vol 52:3 p 1087-1129
1995
Lending resumption in a reputational model of sovereign debt
Dow J; Cole H L; English W B
International Economic Review 1995 May Vol 36:2 p 365-385
Profitable informed trading in a simple general equilibrium model of asset pricing
Dow J; Gorton G
Journal of Economic Theory 1995 November Vol 67:2 p 327-369
Nash equilibrium under Knightian uncertainty: breaking down backward induction
Dow J; Werlang S R da C
Journal of Economic Theory 1994 December Vol 64:2 p 304-324
1993
Return on the market and the social discount rate: a note on welfare in an overlapping generations model
Dow J; Gorton G
Economics Letters 1993 November Vol 43:1 p 23-26
Trading, communication and the response of asset prices to news
Dow J; Gorton G
Economic Journal 1993 Vol 103:418 p 639-646
1992
Ex-ante non-optimality of the Dempster-Shafer updating rule for ambiguous beliefs
Dow J; Werlang S R da C
in Moses Y ed., Proceedings of the 4th Conference on Theoretical Aspects of Reasoning about Knowledge, p 163-166, Morgan Kaufman, 1992
Excess volatility of stock prices and Knightian uncertainty
Dow J; Werlang S R da C
European Economic Review 1992 January Vol 36 p 631-638
Homothetic preferences
Dow J; Werlang S R da C
Journal of Mathematical Economics 1992 Vol 21 p 389-394
Uncertainty aversion, risk aversion and the optimal choice of portfolio
Dow J; Werlang S R da C
Econometrica 1992 January Vol 60:1 p 197-204
1991
Search decisions with limited memory
Dow J
Review of Economic Studies 1991 January Vol 58:1 p 1-14
2019
Why is capital slow moving? Liquidity hysteresis and the dynamics of informed capital
Dow J; Han J; Sangiorgi F
Social Sciences Research Network
2016
Collateralization, market incompleteness and asset overvaluation
Dow J; Han J
Social Sciences Research Network
2013
Incentives for information production in markets where prices affect real investment
Dow J; Goldstein I; Guembel A
IFA Working Paper
2006
Commitment to overinvest and price informativeness
Dow J; Goldstein I; Guembel A
IFA Working Paper
1993
Knightian-rational expections, inflationary inertia and money neutrality
Dow J; Ribeiro J; Simonsen M
Working Paper
1986
Arbitrator and negotiator behaviour under an appellate system
Aschenfelter O; Dow J; Gallagher D
Working Paper
Teaching portfolio
Our teaching offering is updated annually. Faculty and programme material are subject to change.
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Masters Degrees core courses
A key part of our Masters programmes curriculum.
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Corporate Finance and Valuation
Why do companies make the investment and financial decisions they do? Understand the principles of project appraisal and firm valuation, financial structure and pay-out policy, using real-life case studies. Assess the merits of real investments; Compute corporate and project-level costs of capital ;Value corporate targets using discounted cash-flow and multiples-based methods ;Analyse financial structure decisions and credit risk at a quantitative level ;Understand the incentive effects of leverage decisions and the role of information in financial decisions ; Analyse corporate payout policy.
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Corporate Finance and Valuation
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PhD Seminar in Financial Economics III
Financial Economics III / Corporate Finance
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PhD Seminar in Financial Economics III