Carola Frydman
Carola Frydman

Visiting Associate Professor of Finance

Print Overview

Carola Frydman is a Visiting Associate Professor of Finance at the Kellogg School of Management. Professor Frydman’s research focuses on American financial history. Recent research projects examine the evolution of financial markets prior to the Great Depression, with special emphasis on the role of financial intermediaries for firm growth, and on financial crises. In earlier work, she studied the long-run trends in executive compensation, the market for managers, and corporate governance. Her work has been featured in The Wall Street Journal, the New York Times, and The Economist.

Professor Frydman is on leave from Boston University. From 2006 to 2011, she was an Assistant Professor of Finance at the MIT Sloan School of Management where she taught corporate finance in both the MBA and executive education programs. Professor Frydman holds a Ph.D. in Economics from Harvard University, and B.A. and M.A. degrees in Economics from Universidad de San Andres, Argentina. She is a Faculty Research Fellow at the National Bureau of Economic Research.

Areas of Expertise
Banking and Financial Institutions
Corporate Finance
Corporate Governance
Economics of Organizations
Management Compensation

Print Vita
Ph.D., 2006, Economics, Harvard University
M.A., 2004, Economics, Harvard University
M.A., 2000, Economics, Universidad de San Andrés
B.A., 1999, Economics, Universidad de San Andrés , Universidad de San Andrés, summa cum laude

Academic Positions
Assistant Professor, Economics, Boston University, 2011-present
Faculty Research Fellow, National Bureau of Economic Research, National Bureau of Economic Research (NBER), 2007-present
Visiting Associate Professor of Finance, Kellogg School of Management, Northwestern University, 2013-2014
Assistant Professor of Finance, Sloan School of Management, Massachusetts Institute of Technology, 2006-2013
Visiting Scholar, National Bureau of Economic Research, University of Cambridge, 2009-2010

Other Professional Experience
Local Arrangements Committee, Economic History Associations Meeting, 2010-2011
Program Committee Member, American Finance Association Meetings, 2010-2010
Program Committee Member, Western Finance Association Meetings, 2009-2010
Early Career Women in Finance Conference, Women in Finance Conference, 2009-2009
Program Committee Member, Western Finance Association Meetings, 2007-2007

Grants and Awards
Grant, Spender Foundation (#201100083) and National Bureau of Economic Research, Jan. 2011 - Dec. 2012
Nevins Prize, 2006
Dissertation Fellowship, Economic History Association, 2005-2006
Graduate Society Dissertation Completion Honorary Fellowship, 2005-2006
Dissertation Completion Fellowship, National Science Foundation, 2004-2006
Pre-Dissertation Award, Economic History Association, 2004-2005
Thomas Cochran Dissertation Fellowship in Economic and Business History, 2004-2005
Certificate for Excellence in Teaching, Harvard University, Spring 2003/04, Fall 2003
Doctoral Fellow, Multidisciplinary Program in Inequality and Social Policy, 2002-2005
Amalia Lacroze de Fortabat Fellowship, Harvard University, 2001-2003
Dillon Fellowship Fund, Harvard University, 2001-2002
Graduate School of Arts and Sciences Grant, Harvard University, 2000-2005
Gold Medal, Highest GPA, Unversidad de San Andres, 1999

Print Research
Benmelech, Efraim and Carola Frydman. Forthcoming. Military CEOs. Journal of Financial Economics.
Frydman, Carola and Raven Molloy. 2012. Pay Cuts for the Boss: Executive Compensation in the 1940s. Journal of Economic History. 72(1): 225-251.
Frydman, Carola and Raven Molloy. Forthcoming. The Effect of Tax Policy on Executive Compensation: Evidence from Postwar Reforms. Review of Financial Studies. 23: 2099-2138.
Frydman, Carola and Raven E. Saks. 2010. Executive Compensation: A New View from a Long-Term Perspective, 1936-2005. Review of Financial Studies. 23: 2099-2138.
Frydman, Carola and Raven E. Saks. 2010. Executive Compensation: A New View from a Long-Term Perspective, 1936-2005. Review of Financial Studies. 23: 2099-2138.
Frydman, Carola. 2009. Learning From the Past: Trends in Executive Compensation over the Twentieth Century. CESifo Economic Studies. 55: 458-481.
Frydman, Carola. 2007. The Evolution of the Market for Corporate Executives across the Twentieth Century. Journal of Economic History.: 488-492.
Working Papers
Frydman, Carola and Hilt Eric. 2010. Predators or Watchdogs? Bankers on Corporate Boards in the Era of Finance Capitalism.
Frydman, Carola and Raven Molloy. 2010. The Compression in Top Income Inequality in the 1940s.
Frydman, Carola. 2007. Rising Through the Ranks. The Evolution of the Market for Corporate Executives, 1936-2003.
Boustan, Leah P., Carola Frydman and Robert Margo. 2014. Human Capital in History. University of Chicago Press.

Print Teaching
Full-Time / Part-Time MBA
Finance II (FINC-431-0)
This course covers the basic financial knowledge needed to run a firm—whether the firm is a multi-billion dollar international conglomerate or a three-person start up. Using a combination of lectures and business cases, we will examine how firms fund their projects (capital structure), how they manage the risks that arise (risk management), and how they allocate the return on their investments (payout policy). This course is designed both for managers who will initially specialize in a different functional area (e.g., marketing, operations) and for managers who will be directly involved in making or analyzing these decisions (e.g., future senior executives, general managers, investment bankers, consultants, securities analysts, money managers, investment advisors).

This version of Finance II is designed for students who took Finance I in or after Fall 2014.

Accelerated Corporate Finance (FINC-440-0)

This course counts toward the following majors: Analytical Finance, Finance

Corporate finance covers the financial knowledge you need to run a firm, whether the firm is a multi-billion dollar international conglomerate or a three-person start up. Accelerated Corporate Finance will combine the material from Finance 1 and Finance 2 in an intensive one-quarter course. We will cover valuation (discounted cash flow, multiples, and real options), capital structure (how firms finance themselves and how they manage risk), and payout policy (should firms return capital to investors and if so how). For more details, you should read the descriptions of Finance 1 and Finance 2. The logical concepts will be covered in class, technical skills and intuition will be developed in class and through online exercises, and then the logic and tools will be applied to a set of valuation, financing, risk management, and payout cases. Given the pace of the course, students are expected to be prepared to put in the extra effort in class and outside of class. Basic finance knowledge (discounting) and accounting is assumed

Pre-requisite: Business Analytics I (DECS-430). Business Analytics II (DECS-431) and Accounting for Decision Making (ACCT-430) are recommended and may be taken concurrently.