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Steven Grenadier
Steven Grenadier
Professor, Finance
Contact Info
+1 (650) 725-0706
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StevenGrenadier
The William F. Sharpe Professor of Financial Economics
Academic Area: 
Finance

Research Statement

Steven Grenadier’s research focuses on applying option pricing theory to real investment analysis. Topics have included industry boom and bust cycles, real option signaling games, continuous-time stochastic games, valuing complex lease contracts, and commercial real estate equilibrium models.

Bio

Steven Grenadier is the William F. Sharpe Professor of Financial Economics at Stanford Graduate School of Business. He currently chairs the finance group at Stanford. He received his BS from the University of California at Berkeley and his PhD from Harvard University. His research focuses on applying option pricing theory to real investment analysis. Topics have included industry boom and bust cycles, real option signaling games, continuous-time stochastic games, valuing complex lease contracts, and commercial real estate equilibrium models. He is an Editor of the Journal of Real Estate Finance and Economics.  He teaches courses in quantitative investment analysis. He is a consulting Financial Economist with Financial Engines, and a former director of Nicholas Applegate Institutional Funds, AQR Funds, and E*Trade Funds.

Academic Degrees

  • PhD, Harvard University, 1992
  • BS, University of California, Berkeley, 1987

Academic Appointments

  • At Stanford since 1992

Awards and Honors

  • R. Michael Shanahan Faculty Fellow for 2015-2016
  • John S. Osterweis Faculty Fellow, Stanford GSB, 2013-2014
  • Dissertation award from the American Real Estate and Urban Economics Association, 1992

Publications

Journal Articles

Timing Decisions in Organizations: Communication and Authority in a Dynamic Environment
Steven Grenadier, Andrey Malenko, Nadya Malenko. The American Economic Review. September 2016, Vol. 106, Issue 9, Pages 2552-2581.
Investment Busts, Reputation, and the Temptation to Blend in with the Crowd
Steven Grenadier, Andrey Malenko, Ilya A. Strebulaev. Journal of Financial Economics. January 2014, Vol. 111, Issue 1, Pages 137-157.
Real Options Signaling Games with Applications to Corporate Finance
Steven Grenadier, Andrey Malenko. Review of Financial Studies. 2011, Vol. 24 , Issue 12, Pages 3993-4036.
Stock and Bond Returns with Moody Investors
Geert Bekaert, Eric Engstrom, Steven Grenadier. Journal of Empirical Finance. December 2010, Vol. 17, Issue 5, Pages 867-894.
A Bayesian Approach to Real Options: The Case of Distinguishing Between Temporary and Permanent Shocks
Steven Grenadier, Andrey Malenko. Journal of Finance. 2010, Vol. 65, Issue 5, Pages 1949-1986.
Investment Under Uncertainty and Time-Inconsistent Preferences
Steven Grenadier, Neng Wang. Journal of Financial Economics. April 2007, Vol. 84, Issue 1, Pages 2-39.
Investment Timing, Agency and Information
Steven Grenadier, Neng Wang. Journal of Financial Economics. March 2005, Vol. 75, Issue 3, Pages 493–533.
An Equilibrium Analysis of Real Estate Leases
Steven Grenadier. Journal of Business. 2005, Vol. 78, Issue 4, Pages 1173-1214.
Option Exercise Games: An Application to the Equilibrium Investment Strategies of Firms
Steven Grenadier. Review of Financial Studies. 2002, Vol. 15, Issue 3, Pages 691-721.
Option Exercise Games: The Intersection of Real Options and Game Theory
Steven Grenadier. Journal of Applied Corporate Finance. 2000, Vol. 13, Issue 2, Pages 99-107.
Information Revelation Through Option Exercise
Steven Grenadier. Review of Financial Studies. 1999, Vol. 12, Issue 1, Pages 95-129.
Investment in Technological Innovations: An Option Pricing Approach (with Allen Weiss)
Steven Grenadier. Journal of Finanical Economics. 1997, Vol. 44, Issue 3, Pages 397-416.
The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets
Steven Grenadier. Journal of Finance. 1996, Vol. 51, Issue 5, Pages 1653–1679.

Books

Game Choices: The Intersection of Real Options and Game Theory
Steven Grenadier London: Risk Books, 2000.

Book Chapters

Equilibrium with Time-to-Build: A Real-Options Approach
Steven Grenadier. Project Flexibility, Agency, and Competition: New Developments in the Theory and Applications of Real Options. Oxford University Press, 2000, Pages 275-296.

Working Papers

Dynamic Coordination and Intervention Policy | PDF
Steven Grenadier, Lin William Cong, Yunzhi Hu2017
Optimal Capital Structure and Bankruptcy Choice: Dynamic Bargaining vs Liquidation
Steven Grenadier, Samuel Antill2017

Teaching

Degree Courses

2017-18

FINANCE 341: Modeling for Investment Management

This course will combine practical and up-to-date investment theory with modeling applications. Understanding beautiful theory, without the ability to apply it, is essentially useless. Conversely, creating state-of-the-art spreadsheets that apply...

2016-17

FINANCE 341: Modeling for Investment Management

This course will combine practical and up-to-date investment theory with modeling applications. Understanding beautiful theory, without the ability to apply it, is essentially useless. Conversely, creating state-of-the-art spreadsheets that apply...

2015-16

FINANCE 341: Modeling for Investment Management

This course will combine practical and up-to-date investment theory with modeling applications. Understanding beautiful theory, without the ability to apply it, is essentially useless. Conversely, creating state-of-the-art spreadsheets that apply...

Stanford University Affiliations

Greater Stanford University

  • Stanford University Faculty Senate, 2011 -

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