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Faculty Publications

Finance Faculty Research Profiles

The Department of Finance faculty are continually engaged in innovative research and are dynamic participants in the academic community. Check back for updated spotlights on our faculty to learn more about their research.

Tom Berry
Professor Thomas Berry

Professor Tom Berry

  • Associate Professor
  • Department of Finance
  • Phone: (312) 362-8360
  • Email:

I’ve always been interested in how information impacts decisions. Information is the lifeblood of decisions so it intersects all areas of finance but my main interest is the "human" reaction to information, which most people call behavioral finance.
I am currently working on a project about the relationship between innovation and ownership structure.  
It isn’t so much integrating specific research into the classroom but trying to teach a research, or scientific, way of thinking to students. They need to see that it is data not anecdotes that should drive decisions.
Informed local trading prior to earnings announcements (Journal of Financial Markets)
Do individual investors have better information about local stocks? Our results demonstrate that they do. Large trading imbalances by investors living close to a firm's headquarters predict the stock's earnings announcement return. Stocks with the most net buying by local investors average significantly higher market-adjusted announcement returns than stocks with the most net selling by local investors. This return difference is pronounced for small- and medium-sized firms, but absent among large firms, which have significant analyst coverage. Local investors' information advantage comes at the expense of nonlocal traders.

Public Information Arrival (Journal of Finance)
We develop a measure of public information flow to financial markets and use it to document the patterns of information arrival, with an emphasis on the intraday flows. The measure is the number of news releases by Reuter's News Service per unit of time. We find that public information arrival is nonconstant, displaying seasonalities and distinct intraday patterns. Next we relate our measure of public information to aggregate measures of intraday market activity. Our results suggest a positive, moderate relationship between public information and trading volume, but an insignificant relationship with price volatility.

Lamont Black
Professor Lamont Black

Professor Lamont Black

  • Assistant Professor
  • Department of Finance
    Phone: (312) 362-5617
  • Email:
My primary research interest is in banking. My research focuses on bank risk, bank regulation and small business lending.
I am working on a securitization paper focused on the commercial real estate market. We compare loans held by banks with those funded by commercial mortgage-backed securities (CMBS).

I am also working on a small business lending paper called “craft lending.” We show that small banks focus on mid-sized loans when faced with greater competition from large banks.
I teach money and banking, so there are a number of connections to my research. I like to explain how some of the banking theories relate to recent changes in the U.S. banking sector.
Bank loan supply responses to Federal Reserve emergency liquidity facilities (Journal of Money, Credit, and Banking)
The Federal Reserve injected unprecedented liquidity into banks during the recent crisis through the discount window and Term Auction Facility. We examine the use and effectiveness of these facilities. We find that recipient banks increased their lending overall, both short- and long-term, and in most loan categories. The facilities resulted in enhanced lending at expanding banks and reduced declines at contracting banks. Small banks increased small business lending and large banks increased large business lending. There were no significant changes in loan quality or loan contract terms by either large or small banks.

The Cross-Market Spillover of Economic Shocks through Multimarket Banks (Journal of Financial Intermediation)
This study investigates the mortgage lending of banks operating in multiple U.S. metropolitan areas during the housing market collapse of 2007–09. We show that multimarket banks reduced local portfolio lending in response to high overall mortgage delinquencies in their other markets, consistent with the view that local economic shocks can be transmitted to other regions through banks’ internal capital markets. This spillover was greatest when the bank lacked a branch presence and when the market was highly peripheral to the bank in terms of its total mortgage lending. These effects were not fully offset by securitization or other portfolio lenders.

Faculty Publications

Our faculty have written and/or edited a number of scholarly texts, and regularly contribute to journals within their discipline. Learn more about their research below.

For more news in Faculty Research, visit the Driehaus College of Business Faculty Research page or individual Faculty Profiles. 

  • Berry, T. D., Junkus, J. C. (2015). Social Responsibility Investing:  A Review of the Critical Issues. Managerial Finance, 41, 1176-1201.
  • Black, L. K., Rosen, R. (2016). Monetary Policy, Loan Maturity, and Credit Availability. International Journal of Central Banking.
  • Black, L. K., Correa, R., Huang, X., Zhou, H. (2016). The Systemic Risk of European Banks during the Financial and Sovereign Debt Crises. Journal of Banking & Finance.
  • Eckblad, M., Black, L. K., Ugunro, E. (2015, October (4th Quarter/Autumn)). Deepening the Foundations of Risk Management. Chicago Fed Letter, 345.
  • Liberti, J. M. Uncovering Collateral Constraints (book).
  • Crane, A., Michenaud, S., Weston, J. P. (2016). The Effect of Institutional Ownership on Payout Policy: Evidence from Index Thresholds. Review of Financial Studies, The, 29, 1377-1408. **Lead Article, Review of Financial Studies
  • Grullon, G., Michenaud, S., Weston, J. P. (2015). “The Real Effects of Short-Selling Constraints”. Review of Financial Studies, The, 28, 1737-1767.
  • Sturgess, J. (2015). The Role of Institutional Investors in Voting: Evidence from the Securities Lending Market. Journal of Finance, 70, 2309-2346.
  • Sturgess, J., Liberti, J. M. (in press). The Anatomy of a Credit Supply Shock: Evidence from an Internal Credit Market. Journal of Financial and Quantitative Analysis.
  • Sturgess, J., Liberti, J. M. (in press). How Collateral Laws Shape Lending and Sectoral Activity. Journal of Financial Economics.
  • Sturgess, J. (2016). Multinational Firms, Internal Capital Markets, and the Value of Global Diversification. Quarterly Journal of Finance, 6.
  • Codina, R., Vu, J. The Net Liquid Assets and the Liquidity of Academy of Economics and Finance Journal, 6, 9.