PhD defence: Jakob Ahm Sørensen

In order to obtain the PhD degree, Jakob Ahm Sørensen has submitted his thesis entitled:

Essays on financial markets with frictions and belief distortions

The three essays of this thesis examine the role of frictions and belief distortions as determinants of asset prices and macroeconomic outcomes. Specifically, the first two chapters investigate how extrapolative beliefs can lead to a mispricing of risky assets and predictable financial crises, as investors become overoptimistic about the future state of the economy. The third chapter studies how the stable funding structure of insurance companies can account for their investments in illiquid corporate bonds, and how the liquidity premium on these corporate bonds in turn affect the pricing of insurance policies.

Primary Supervisor:
Professor Lasse Heje Pedersen
Department of Finance
Copenhagen Business School
 
Secondary Supervisors:
Professor Andrei Shleifer
Department of Economics
Harvard University
 
Professor Robin Greenwood
Finance Unit
Harvard Business School
 
Assessment Committee:
Professor Jens Dick-Nielsen (Chair)
Department of Finance
Copenhagen Business School
 
Professor Edith Hotchkiss
Department of Finance, Carroll School of Management
Boston College
 
Professor Huseyin Gulen
Krannert School of Management
Purdue University

Thesis:
The thesis will be available from research.cbs.dk

Reception:
The CBS PhD School will host a reception, which will take place immediately after the defence in FUHU - Faculty Club - Solbjerg Plads.