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Anat R. Admati
Anat R. Admati
Professor, Finance
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AnatR.Admati
George G.C. Parker Professor of Finance and Economics
Professor of Management Science and Engineering (by courtesy), School of Engineering
Professor of Economics (by courtesy), School of Humanities and Sciences
Robert & Marilyn Jaedicke Faculty Fellow for 2015-16
Academic Area: 
Finance

Bio

Anat Admati is the George G.C. Parker Professor of Finance and Economics at the Graduate School of Business, Stanford University. She has written extensively on information dissemination in financial markets, trading mechanisms, portfolio management, financial contracting, and, most recently, on corporate governance and banking.

Since 2010, she has been active in the policy debate on financial regulation, particularly capital regulation, writing research and policy papers and commentary. She is a coauthor of the book, The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It. She was also named by Time Magazine as one of the 100 most influential people in the world and by Foreign Policy Magazine as one of the 100 global thinkers in 2014.

Professor Admati received her BS from the Hebrew University in Jerusalem and her MA, MPhil and PhD from Yale University. She is the recipient of a Sloan Research Fellowship, a Batterymarch Fellowship, and multiple research grants. She is a fellow of the Econometric Society, and has served as a board member of the American Finance Association and on multiple editorial boards. She also serves on the FDIC Systemic Resolution Advisory Committee.

 

Academic Degrees

  • PhD, Yale University, 1983
  • MA, Yale University, 1981
  • BSc, Hebrew University, Jerusalem, 1979

Academic Appointments

  • George G.C. Parker Professor of Finance and Economics, Stanford GSB, 2009-present.
  • Joseph McDonald Professor of Finance and Economics, Stanford GSB, 2000-2009
  • Professor by Courtesy, Department of Management Science and Engineering and Department of Economics, Stanford University, 2004-present
  • Visiting Professor of Economics, Tel-Aviv University, Economics, 1997-1998
  • Professor of Finance and Economics, Stanford GSB, 1992-2000
  • Associate Professor of Finance and Economics, Stanford GSB, 1986-1992
  • Visiting Associate Professor of Finance, Tel-Aviv University, Recanati School of Management, 1989-1990
  • Assistant Professor of Decision Sciences, Stanford GSB, 1983-1986

Awards and Honors

  • Michelle R. Clayman Faculty Fellow, Stanford GSB, 2013-2014
  • Fellow of the Econometric Society, 2004-present.
  • Alfred A. Sloan Research Fellowship, September 1987-September 1989
  • Batterymarch Fellowship, July 1987-July 1988
  • Prize for the best paper in the first volume of the Review of Financial Studies, for "A Theory of Intraday Trading Patterns: Volume and Price Variability" (with Paul Pfleiderer), 1987
  • Q-Group grant (with Paul Pfleiderer), 1989
  • Co-winner of NYSE Prize for the. Best Paper in the RFS-WFA-NYSE Market Microstructure Symposium, 1990 for "Sunshine Trading and Financial Market Equilibrium" (with Paul Pfleiderer)
  • Runner up for the Barclays Global Investors/Michael Brennan prize for the Best Paper in Volume 13 of the Review of Financial Studies, 2001, for "Forcing Firms to Talk: Financial Disclosure Regulation and Externalities" (with Paul Pfleiderer)
  • Board of Directors, American Finance Association, 1995-1998
  • Robert M. and Anne T. Bass Fellowship, AY 1990-1991
  • James and Doris McNamara Fellowship, Stanford GSB, AY 1993-1994
  • NSF grant, 1993-1995 (with Paul Pfleiderer)
  • Business School Trust Fellowship, Stanford Graduate School of Business, 2004-2005, 2009-2010, 2011-2012

Publications

Journal Articles

The Compelling Case for Stronger and More Effective Leverage Regulation in Banking
Anat R. Admati. Journal of Legal Studies . 2014, Vol. 43, Issue 3, Pages s35 - s61.
Financial Regulation Reform: Politics, Implementation and Alternatives
Anat R. Admati. North Carolina Banking Institute. November 2013, Vol. 18, Pages 71-81.
Liability Holding Companies
Anat R. Admati, Peter Conti-Brown, Paul Pfleiderer. UCLA Law Review. 2012, Vol. 59, Issue 4, Pages 853-913.
The Wall Street Walk and Shareholder Activism: Exit as a Form of Voice
Anat R. Admati, Paul Pfleiderer. Review of Financial Studies. 2009, Vol. 22, Pages 2245-2285.
Broadcasting Opinions with an Overconfident Sender
Anat R. Admati, Paul Pfleiderer. International Economic Review. 2004, Vol. 45, Issue 2, Pages 467-498.
A review of “Capital Ideas and Market Realities: Option Replication, Investor Behavior, and Stock Market Crashes,” by Bruce I. Jacobs
Anat R. Admati. Journal of Economic Literature. December 2000, Vol. 38, Issue 4, Pages 936-991.
Forcing Firms to Talk: Financial Disclosure Regulation and Externalities
Anat R. Admati, Paul Pfleiderer. Review of Financial Studies. 2000, Vol. 13, Issue 3, Pages 479-519.
Does It All Add Up? Benchmarks and the Compensation of Active Portfolio Managers
Anat R. Admati, Paul Pfleiderer. The Journal of Business. 1997, Vol. 70, Issue 3, Pages 323-350.
Large Shareholder Activism, Risk Sharing, and Financial Market Equilibrium
Anat R. Admati, Paul Pfleiderer, Josef Zechner. Journal of Political Economy. 1994, Vol. 102, Issue 6, Pages 1097-1130.
Robust Financial Contracting and the Role of Venture Capitalists
Anat R. Admati, Paul Pfleiderer. Journal of Finance. 1994, Vol. 49, Issue 2, Pages 371–402.
Trading on Information in Financial Markets
Anat R. Admati, Paul Pfleiderer. The New Palgrave Dictionary of Money and Finance. Palgrave Macmillan, 1993.
Trading Volume
Anat R. Admati, Paul Pfleiderer. The New Palgrave Dictionary of Money and Finance. Palgrave Macmillan, 1993.
Joint Projects Without Commitment
Anat R. Admati, Motty Perry. Review of Economic Studies. 1991, Vol. 58, Issue 2, Pages 259-276.
Sunshine Trading and Financial Market Equilibrium
Anat R. Admati, Paul Pfleiderer. Review of Financial Studies. 1991, Vol. 4, Issue 3, Pages 443-481.
Direct and Indirect Sale of Information
Anat R. Admati, Paul Pfleiderer. Econometrica. 1990, Vol. 58, Issue 4, Pages 901-928.
Divide and Conquer: A Theory of Intraday and Day-of-the-Week Mean Effects
Anat R. Admati, Paul Pfleiderer. Review of Financial Studies. 1989, Vol. 2, Pages 189–223.
Information in Financial Markets: The Rational Expectations Approach
Anat R. Admati. Frontiers of Modern Financial Theory: Volume 2 (Financial Markets and Incomplete Information). Rowman and Littlefield Publishers, 1989, Pages 139–152.
A Theory of Intraday Patterns: Volume and Price Variability
Anat R. Admati, Paul Pfleiderer. Review of Financial Studies. 1988, Vol. 1, Issue 1, Pages 3-40.
Selling and Trading on Information in Financial Markets
Anat R. Admati, Paul Pfleiderer. American Economic Review. 1988, Vol. 78, Issue 2, Papers and Proceedings of the One-Hundredth Annual Meeting of the American Economic Association, Pages 96–103.
Strategic Delay in Bargaining
Anat R. Admati, Motty Perry. Review of Economic Studies. 1987, Vol. 54, Issue 3, Pages 345-364.
Viable Allocations of Information in Financial Markets
Anat R. Admati, Paul Pfleiderer. Journal of Economic Theory. 1987, Vol. 43, Issue 1, Pages 76-115.
A Monopolistic Market for Information
Anat R. Admati, Paul Pfleiderer. Journal of Economic Theory. 1986, Vol. 39, Issue 2, Pages 400–438.
On Timing and Selectivity
Anat R. Admati, Sudipto Bhattacharya, Paul Pfleiderer, Stephen A. Ross. Journal of Finance. 1986, Vol. 41, Issue 3, Pages 715-730.
A Noisy Rational Expectations Equilibrium for Multi-Asset Securities Markets
Anat R. Admati. Econometrica. 1985, Vol. 53, Issue 3, Pages 629-657.
Interpreting the Factor Risk Premia in the Arbitrage Pricing Theory
Anat R. Admati, Paul Pfleiderer. Journal of Economic Theory. 1985, Vol. 35, Issue 1, Pages 191–195.
Measuring Investment Performance in a Rational Expectations Equilibrium Model
Anat R. Admati, Stephen A. Ross. Journal of Business. 1985, Vol. 58, Issue 1, Pages 1-26.

Books

The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It
Anat R. Admati, Martin Hellwig Princeton: Princeton University Press, 2013.

Working Papers

The Leverage Ratchet Effect | PDF
Anat R. Admati, Peter M. DeMarzo, Martin F. Hellwig, Paul Pfleiderer, December 312015
The Missed Opportunity and Challenge of Capital Regulation | PDF
Anat R. Admati, December 2015
The Parade of Bankers’ New Clothes Continues: 31 Flawed Claims Debunked | PDF
Anat R. Admati, Martin F. Hellwig, December 2015
Rethinking Financial Regulation: How Confusion Has Prevented Progress | PDF
Anat R. Admati, October 202015
The Compelling Case for Stronger and More Effective Leverage Regulation in Banking | PDF
Anat R. Admati, September 302014
Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital Regulation: Why Bank Equity is Not Expensive | PDF
Anat R. Admati, Peter M. DeMarzo, Martin Hellwig, Paul Pfleiderer, October 222013
Does Debt Discipline Bankers? An Academic Myth about Bank Indebtedness | PDF
Anat R. Admati, Martin F. Hellwig, February 182013
Forcing Firms to Talk: Financial Disclosure Regulation and Externalities | PDF
Anat R. Admati, Paul Pfleiderer1999
A Theory of Intraday Trading Patterns: Volume and Price Variability
Anat R. Admati, Paul Pfleiderer1988

Courses Taught

Degree Courses

2015-16

FINANCE 548: The Political Economy of Banking Regulation in US and Europe

The 2007-09 financial crisis exposed the extreme fragility of the financial system and the harm financial crises can cause. Have regulatory reforms in the US and Europe been effective and, if not, how and why? Does it matter if some institutions...

2014-15

FINANCE 332: Finance and Society

This interdisciplinary course will discuss the role of the financial system within the broader economy and the interactions between the financial industry and the rest of society. The course will provide an overview of the financial system, cover...

Stanford Case Studies

Liz Claiborne, Inc. | F255
Anat R. Admati, Paul Pfleiderer, George Noroian1995

Conferences, Talks, and Speaking Engagements

  • The Bankers' New Clothes
    Anat Admati exposes the flaws in the banking system that could trigger another financial collapse, and lays out a plan to fix it in her new book "The Bankers' New Clothes: What's Wrong with Banking and What to Do about It."

Service to the Profession

  • FDIC Systemic Resolution Advisory Committee
  • CFTC Market Risk Advisory Committee
  • Founding Member, President, Foundation for the Advancement of Research in Financial Economics, 2006-present
  • Fellow, The Econometric Society, 2005-present
  • Advisory Board Member, Journal of Financial Markets, 1998-present
  • Associate Editor, Journal of Finance, 1990-present
  • Associate Editor, Review of Financial Studies, 1987-1991

In the Media

Banks Plead Guilty, Pay Billions to Settle Currency Rigging Charges
KQED-Forum, May 21, 2015
Five of the world's largest banks including JPMorgan Chase and Citigroup will pay fines totaling $5.7 billion for manipulating foreign exchange rates. Four of the banks will plead guilty to U.S. criminal charges for their operation of a self-described "cartel" which regulators say defrauded consumers, investors and institutions around the world. We look at the settlement and its implications for future regulation of the global foreign exchange market.
Financial Crises are Man-Made Disasters
World Economic Forum, February 22, 2014
At the 2014 World Economic Forum, a Stanford GSB finance professor discussed actions to improve the safety of the international financial system.
We're All Still Hostages to the Big Banks
The New York Times, September 25, 2013
Writing in the New York Times, the finance professor says five years after Lehman Brothers' collapse, the global financial system is still no safer.
The Great Bank Escape
Project Syndicate, February 17, 2013
Anat Admati discusses why the global financial system remains "distorted and dangerous."
How to Strengthen the Banks
Washington Post, December 9, 2012
Anat Admati assesses what President Obama must do now.
Why the Bank Dividends Are a Bad Idea
Reuters, April 14, 2012
In a Reuters oped, Professor Anat Admati argues that bank dividend payouts to shareholders expose "the economy to unnecessary risks without valid justification."
Sizing up Banks' Capital Needs
Bloomberg, November 20, 2011
Fed Runs Scared with Boost to Bank Dividends
Bloomberg, March 24, 2011
Dividends Can Wait Until Banks Are Stronger
Financial Times, February 20, 2011
Bankruptcy Is Not an Option
New York Times, 12 7, 2010
What Jamie Dimon Won't Tell You
The Huffington Post, 12 4, 2010
What Jamie Dimon Won't Tell You: His Big Bank Would Be Dangerously Leveraged
The Baseline Scenario, 12 4, 2010
Letter to G20 Leaders: Much More Bank Equity Is Needed and Is Not Socially Costly
Financial Times, December 9, 2010

Insights by Stanford Business

writtenA Look Back at 2015
December 19, 2015
Explore Stanford Business stories from 2015, including pieces on technology, finance, and work-life balance.
writtenKat Taylor: Changing the Face of Philanthropy
June 17, 2015
A bank CEO explains what finance, food and climate change have to do with charitable giving.
writtenAnat Admati: Are Banks Safe Now?
May 19, 2015
A scholar and a former regulator both warn that safeguards are lacking to prevent another financial crisis.
writtenAnat Admati: The Economist Who Said “The Bankers Have No Clothes”
April 24, 2014
Recently named to Time magazine’s list of the 100 most influential people, the Stanford professor discusses her impact on global finance.
writtenAnat Admati: The Bankers’ Addiction to Borrowing
October 29, 2013
A finance professor says big banks need tougher capital regulations — for our sake, and for theirs.
written"What's Wrong With Banking and What to Do About It"
January 28, 2013
How, and why, Stanford's Anat Admati took on the banking system.
writtenDefusing a Ticking Time Bomb of Debt
May 14, 2012
Why bankers like leverage — and what that could mean for the global financial system.
writtenStanford Finance Forum Debates Bank Capital and Equity Levels
June 1, 2011
Boston Fed CEO Eric Rosengren says money market mutual funds are vulnerable to the European debt crisis.
writtenAnat Admati: Why Bank Equity Is Not Expensive
September 1, 2010
A finance professor says raising bank capital requirements would produce widespread social benefits as well.
writtenWhat's in it for Fund Managers?
September 1, 1996
Two scholars say it's time to ask if the people investing your money are properly motivated.

School News

writtenBeyond the Basics: Finance and Society Elective Teaches Students to Think About Broader Implications
April 17, 2015
New elective course encourages students to think about the broader implications of finance.

Companies & Organizations

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