Martin Schmalz
@martincschmalz.bsky.social
Professor of Finance, Economics, and Real Estate
University of Oxford @ox.ac.uk
Martin Schmalz is a German financial economist. He is a professor of Finance, Economics, and Real Estate at the University of Oxford's Saïd Business School.
Source: Wikipedia
Economics
62%
Business
35%
The Proxy Advice Industry and Common Owners' Coordination
High levels of common ownership may reduce firms’ incentives to compete. The empirical relevance of this concern is controversial, in part because there are no
papers.ssrn.com
Overlooked aspect of @ftc @afergusonftc interest in proxy advisers: coordination mechanism for common owners. ISS recommendations tend to support director interlocks, mergers, and the lessening of incentives to compete in high-CO firms
cc @matt_levine
papers.ssrn.com/sol3/papers....
cc @matt_levine
papers.ssrn.com/sol3/papers....
How can LLMs extract property quality? What role does contract design play in addressing information problems?
Listen: open.spotify.com/episode/4fV1...
Watch: youtu.be/D31LfMYDGfQ
So Hye's website: www.sohyeyoon.com
#RealEstate #PropTech #Economics
Listen: open.spotify.com/episode/4fV1...
Watch: youtu.be/D31LfMYDGfQ
So Hye's website: www.sohyeyoon.com
#RealEstate #PropTech #Economics
Her research explores two approaches:
- Revenue-sharing contracts that include profit share
- AI analysis of listing descriptions for quality signals
These strategies show potential to reduce iBuyer losses.
- Revenue-sharing contracts that include profit share
- AI analysis of listing descriptions for quality signals
These strategies show potential to reduce iBuyer losses.
iBuyers face two information gaps:
- Seller urgency levels (hassle costs)
- Subtle quality issues only homeowners know
Using repeat sales data, So Hye shows how these gaps create adverse selection patterns.
- Seller urgency levels (hassle costs)
- Subtle quality issues only homeowners know
Using repeat sales data, So Hye shows how these gaps create adverse selection patterns.
When Zillow shut down its iBuying program in 2021, questions arose about the viability of instant home buying.
New research from So Hye Yoon (Princeton job market candidate) examines a key challenge: information asymmetry.
Cloe Garnache hosts this episode of The Property Pod 👇
New research from So Hye Yoon (Princeton job market candidate) examines a key challenge: information asymmetry.
Cloe Garnache hosts this episode of The Property Pod 👇
Brian notes commercial PACE has been adopted by two-thirds of U.S. states across the political spectrum.
Could this work in UK/Europe? They discuss the challenges.
#PACEFinancing #RealEstate
Could this work in UK/Europe? They discuss the challenges.
#PACEFinancing #RealEstate
Cameron's Florida research finds:
20-25% home value increase from residential PACE improvements
50% reduction in insurance premiums
60% of funds go to disaster-proofing, not energy efficiency
Only 2% take-up rate: room for growth ➡️
20-25% home value increase from residential PACE improvements
50% reduction in insurance premiums
60% of funds go to disaster-proofing, not energy efficiency
Only 2% take-up rate: room for growth ➡️
How? PACE loan repayments run with the property like taxes, not with the owner.
When the property sells, the new owner assumes remaining payments. Tenants pay their share of the loan through the tax bill, just as they benefit from lower energy costs. ➡️
When the property sells, the new owner assumes remaining payments. Tenants pay their share of the loan through the tax bill, just as they benefit from lower energy costs. ➡️
Brian explains two market failures blocking green investments:
Payback periods (15-20 yrs) often exceed property hold periods (10 yrs).
Landlords fund upgrades but tenants capture energy savings.
PACE addresses both through its structure. ➡️
Payback periods (15-20 yrs) often exceed property hold periods (10 yrs).
Landlords fund upgrades but tenants capture energy savings.
PACE addresses both through its structure. ➡️
Why don't landlords make green investments, even when they could boost property value?
New episode The Property Pod with Brian Lancaster & Cameron LaPoint explores PACE financing.
YT: youtu.be/-uV8MleO080
Spotify: open.spotify.com/episode/04gq...
➡️
New episode The Property Pod with Brian Lancaster & Cameron LaPoint explores PACE financing.
YT: youtu.be/-uV8MleO080
Spotify: open.spotify.com/episode/04gq...
➡️
PSA: if you contact me about doing research under my guidance, do some research without my guidance first.
For example, on the topic of what kind of research I could possibly provide guidance for.
For example, on the topic of what kind of research I could possibly provide guidance for.
The Term Structure of the Price of Variance Risk
Abstract. We empirically investigate the term structure of variance risk pricing and how it varies over time. We estimate the aversion to variance risk in
academic.oup.com
Yay! "The Term Structure of the Price of Variance Risk" is out in print -- thanks to the amazing co-authors -- Marianne Andries, Thomas Eisenbach, and R Jay Kahn. academic.oup.com/rof/advance-...
A better description might be: the indexers vote against pro-competitive incentives, in the rare case those are proposed.
Tesla Board Chair Denholm: Musk pay package less about compensation and more about voting influence
Tesla Board Chair Robyn Denholm joins 'Squawk Box' to discuss details of her letter to shareholders, what to expect from this year's annual meeting, details of CEO Elon Musk's pay package, Tesla's…
youtu.be
Elon @elonmusk is wrong here:
youtu.be/MBzdfamdauI?...
The "index funds" don't always vote with ISS & Glass Lewis recommendations. E.g. the Big 3 killed Peltz's pro-competition campaign at DuPont by voting against the proxy adviser's recommendation. ericposner.com/martin-schma...
youtu.be/MBzdfamdauI?...
The "index funds" don't always vote with ISS & Glass Lewis recommendations. E.g. the Big 3 killed Peltz's pro-competition campaign at DuPont by voting against the proxy adviser's recommendation. ericposner.com/martin-schma...
Frankfurter Allgemeine Zeitung
zeitung.faz.net
Enron, Wirecard, Adler, Signa -- warum werden Investoren regelmäßig von Bilanzbetrügern überrascht? Warum versagt der Markt für Wirtschaftsprüfung?
Und was könnten Regulierer und Aufsichtsräte tun, um das Marktversagen zu beheben?
Mein Op-Ed in der FAZ: zeitung.faz.net/data/483/rea...
Und was könnten Regulierer und Aufsichtsräte tun, um das Marktversagen zu beheben?
Mein Op-Ed in der FAZ: zeitung.faz.net/data/483/rea...
Both theoretical and data science/empirical skills are needed.
1) continuation of Amel-Zadeh et al.
2) public procurement auction data collection
3) general equilibrium theory and simulations along the lines of Schmalz & Zame
I'll hire post-docs and research assistants for my ERC "DICACO" project on the social consequences of diversification.
Email me your CV and short motivation if you think this might be for you.
Details:
Email me your CV and short motivation if you think this might be for you.
Details:
Which market failure is it that prevents centralized exchange of information on invoice factoring?
The efficiency gains from preventing (alleged) double pledging fiascos like First Brands seem clear. So why don't they get realized?
And, yes, this *could* be done with #blockchain -- but why.
The efficiency gains from preventing (alleged) double pledging fiascos like First Brands seem clear. So why don't they get realized?
And, yes, this *could* be done with #blockchain -- but why.
Lots of discussion about disclosing genAI contributions in research.
Are we sure we want to debate this before having concluded authors should disclose their direct and indirect *funding* sources, along with sanctions mechanisms for non-compliers?
Are we sure we want to debate this before having concluded authors should disclose their direct and indirect *funding* sources, along with sanctions mechanisms for non-compliers?
www.hsgac.senate.gov
ICYMI Sen Blumenthal's report on KPMG's auditing of various banks is titled "This industry is a joke". That's not Blumenberg's personal opinion but a quote ***from an auditor***, from internal communications.
www.hsgac.senate.gov/wp-content/u...
www.hsgac.senate.gov/wp-content/u...
onlinelibrary.wiley.com
I'm old enough to remember that when I presented our paper on the effect of political pressures on central banks on inflation almost ten years ago, the establishment told me not to worry about the U.S. Fed, because professionalism of their staff.
onlinelibrary.wiley.com/doi/abs/10.1...
onlinelibrary.wiley.com/doi/abs/10.1...
What are the competitive effects of having a common auditor?
ht to Francine McKenna
ht to Francine McKenna
Harald's research suggests that simple nudges may create spillover effects into other energy behaviors. But which behaviors and why? 🤔
Spotify: open.spotify.com/episode/2x13...
YouTube: youtu.be/xAX5XlFUeOc
#RealEstate #Sustainability #BehavioralEconomics 2/2
Spotify: open.spotify.com/episode/2x13...
YouTube: youtu.be/xAX5XlFUeOc
#RealEstate #Sustainability #BehavioralEconomics 2/2
🧵 Ep4 of The Property Pod: Would you expect that informing tenants about hot water usage could lead to much broader savings?
University of Zurich economist Harald Mayr (@haraldmayr.com) explores behavioral interventions in energy conservation.
1/2➡️
University of Zurich economist Harald Mayr (@haraldmayr.com) explores behavioral interventions in energy conservation.
1/2➡️
tagesschau 20:00 Uhr, 21.08.2025
Die 20-Uhr-Ausgabe der tagesschau im Livestream und früher auf Abruf: https://ardmediathek.de/tagesschau und https://tagesschau.de
Themen der tagesschau-Sendung:
00:00 Guten Abend
00:21…
youtu.be
I kid you not. The German news, after lamenting the unfavorable outcome of the tariff negotiations.
"But maybe there is a consolation: other countries like India and Switzerland got punished with even higher tariffs."
youtu.be/0bdA3Vvb-S4?...
"But maybe there is a consolation: other countries like India and Switzerland got punished with even higher tariffs."
youtu.be/0bdA3Vvb-S4?...
Kenneth S Rogoff (@krogoff) on X
Almost a decade ago I was the Harvard economist that said that bitcoin was more likely to be worth $100 than 100k. What did I miss? I was far too optimistic about the US coming to its senses about sensible...
x.com
That's why you come to Oxford, not Harvard. I've said for many years that mainstream economists are wrong in claiming #Bitcoin had no fundamental value.
Academic economists tend to confound what they think is socially useful with what is factually true.
x.com/krogoff/stat...
Academic economists tend to confound what they think is socially useful with what is factually true.
x.com/krogoff/stat...
I haven't read the paper, but it seems fair to say the common ownership literature has quite powerful enemies by now. capmktsreg.org/wp-content/u...
Note: MLex reports BlackRock cites a "Harvard study" across 52 industries over 24 years, showing "no evidence that common ownership has an anticompetitive impact on prices" - but it appears to be this CCMR report: capmktsreg.org/wp-content/u...
Mlex article: www.mlex.com/mlex/article...
8/8
Mlex article: www.mlex.com/mlex/article...
8/8
BlackRock spokesperson tells MLex the case is based on "absurd theory that coal companies conspired with their shareholders to reduce coal production," claiming "forced divestment" would raise energy prices
7/8➡️
7/8➡️
Research context: Ederer's new study (accepted by Review of Economic Studies) estimates common ownership "raises aggregate profits by $1.133 trillion...but lowers consumer surplus by $2.399 trillion" in 2021
6/8➡️
6/8➡️