Jose Liberti
Jose Maria Liberti

Visiting Professor of Finance

Print Overview

Jose Maria Liberti is VProfessor of Finance at Kellogg School of Management, Northwestern University and William M. Scholl Professor of Finance at Kellstadt Graduate School of Business, DePaul University. He is also a research fellow of the European Banking Center at Tilburg University. He also holds an affiliation with both the Heizer Center for Private Equity and Venture Capital, and the Center for Family Enterprises at Kellogg School of Management.

Jose Maria was previously Assistant Professor of Finance at London Business School, Visiting Assistant Professor at The University of Chicago Booth School of Business and Associate Professor of Finance at Tilburg University. He has also taught at IAE Aix-en-Provence Graduate School of Management, Wisconsin School of Business at the University of Wiscosin-Madison and the Indian School of Business.

Jose Maria has served as an economic consultant at the Argentinean Ministry of Economics, Work and Public Services. Before continuing with his graduate studies, Jose Maria worked at Citibank N.A. as a Corporate Financial Advisor and in the Risk Management and Investment Banking Divisions in Buenos Aires and New York.

Jose Maria's research lies in the boundaries of corporate finance, financial intermediation and organizational economics. Part of his attention has been drawn to understand how incentives, allocation of authority and types of information are used in the actual decision-making process of individuals Recent work has examined the role rotation among agents as a mechanism to alleviate moral hazard in communication and how sharing on public information may impact coordination problems among borrowers. His work has been published at the Journal of Finance, Review of Financial Studies, Journal of Financial Economics, Management Science and the Journal of Financial and Quantitative Analysis. Jose Maria received the Brattle Award (First Prize) for the best paper in corporate finance awarded annually by the American Finance Association. He has also received twice the Brattle Distinguished paper award. His work has been presented at numerous universities and governmental bodies around the world.

Liberti was born in Buenos Aires, Argentina. He received a bachelor's and master's degree in economics from the Universidad de San Andres (UdeSA), in Buenos Aires. He moved to the United States in 1998 and earned both a Masters and a PhD in Economics from The University of Chicago.

An award-winning teacher at Kellogg School Management and DePaul University, he teaches graduate elective courses in Mergers & Acquisitions, Global Entrepreneurial Finance and Corporate Restructuring both at the MBA and Executive MBA levels.

Print Vita
Ph.D., 2005, Economics, University of Chicago
M.A., 2001, Economics, University of Chicago
M.A., 1995, Economics, Universidad de San Andres
B.A., 1994, Economics, Universidad de San Andres

Academic Positions
William M. Scholl Professor of Finance, Finance, Charles H. Kellstadt Graduate School of Business, DePaul University, 2015-present
Associate Professor of Finance, Finance, Charles H. Kellstadt Graduate School of Business, DePaul University, 2012-2015
Visiting Associate Professor of Finance, Finance, Kellogg School of Management, Northwestern University, 2010-2015
Visiting Associate Professor of Finance, Finance, Booth School of Business, The University of Chicago, 2013-2013
Associate Professor of Finance, Finance, CentER, Tilburg University, 2010-2013
Assistant Professor of Finance, Finance, Charles H. Kellstadt Graduate School of Business, DePaul University, 2007-2012
Visiting Assistant Professor of Finance, Finance, Kellogg School of Management, Northwestern University, 2005-2007
Assistant Professor of Finance, Finance, Institute of Finance and Accounting, London Business School, 2003-2006

Print Research
Research Interests

Empirical Corporate Finance, Financial Intermediation, Organizational Economics, Theory of the Firm

Giannetti, Mariassunta, Jose Maria Liberti and Jason Sturgess. 2017. Information Sharing and Manipulation: Evidence from a Credit Registry Expansion. The Review of Financial Studies. 30(9): 3269–3304.
Liberti, Jose Maria. Forthcoming. Initiative, Incentives and Soft Information. Management Science.
Calomiris, Charlie, Mauricio Larrain, Jose Maria Liberti and Jason Sturgess. 2016. Which Creditors’ Rights Reforms Drive Financial Deepening and Economic Development. Journal of Applied Corporate Finance. 28(4)
Jagannathan, RaviJose Maria Liberti, Binying Liu and Iwan Meier. 2017. A Firm’s Cost of Capital. Annual Review of Financial Economics. 9(259-282)
Calomiris, Charlie, Mauricio Larrain, Jose Maria Liberti and Jason Sturgess. 2017. How Collateral Laws Shape Lending and Sectoral Activity. Journal of Financial Economics. 123(1): 163–188.
Liberti, Jose Maria and Jason Sturgess. Forthcoming. The Anatomy of a Credit Supply Shock: Evidence from an Internal Credit Market. Journal of Financial and Quantitative Analysis.
Hertzberg, Andrew, Jose Maria Liberti and Daniel Paravisini. 2010. Public Information and Coordination: Evidence From a Credit Registry Expansion. Journal of Finance. 65(3)
Hertzberg, Andrew, Jose Maria Liberti and Daniel Paravisini. 2010. Information and Incentives Inside the Firm: Evidence from Loan Officer Rotation. Journal of Finance. 65(3)
Liberti, Jose Maria and Atif Mian. 2010. Collateral Spread and Financial Development. Journal of Finance. 65(1)
Liberti, Jose Maria and Atif Mian. 2009. Estimating the Effect of Hierarchies on Information Use. Review of Financial Studies. 22(10)
Working Papers
Liberti, Jose Maria, Andrew Sutherland and Jason Sturgess. 2018. Economics of Voluntary Information Sharing.
Liberti, Jose Maria, Amit Seru and Vikrant Vig. 2017. Information, Credit and Organization.
Liberti, Jose Maria and Mitchell A. Petersen. 2017. Information: Hard and Soft.
Book Chapters
Ioannidou, Vasso, Jose Maria Liberti, Thomas Mosk and Jason Sturgess. 2018. "Intended and Unintended Consequences of Government Credit Guarantee Programs." In Finance and Investment: The European Case, edited by Colin Mayer, Stefano Micossi, Marco Onado, Marco Pagano and Andrea Polo, Oxford University Press.
Liberti, Jose Maria and Jason Sturgess. 2013. "Uncovering Collateral Constraints, in Understanding Banks in Emerging Markets: Observing, Asking or Experimenting?." In E-book, edited by Thorsten Beck, Ralph De Haas and Steven Ongena.
DiTella, Rafael, Jose Maria Liberti and Sarah Mcara. 2017. Media Markets Down South: The Case of Goldman Sachs’ Investment in Grupo Clarín.
DiTella, Rafael, Jose Maria Liberti and Sarah Mcara. 2017. “Clarín Lies!”: Media Bias, Post-Truth, and Populism in Argentina's Media Wars.

Print Teaching
Teaching Interests

Mergers & Acquisitions, LBOs, Corporate Restructuring, Global Entrepreneurial Finance

Full-Time / Evening & Weekend MBA
Mergers and Acquisitions, LBOs and Corporate Restructuring (FINC-448-0)

The course involves analysis of corporate restructuring strategies including mergers, acquisitions, hostile takeovers and the market for corporate control, financial re-capitalization, leveraged buyouts, management buyouts, going-private decisions, fiduciary duties (Business Judgment Rule, Revlon Mode, Enhanced Scrutiny), reorganization under bankruptcy (Chapter 11, Chapter 7, 363 Sales, Pre-Packaged Bankruptcy), the role of private equity, and other methods of restructuring (spin-offs, split-ups, carve-outs and tracking stock). Transactions are examined from the perspectives of both the corporation and capital markets. Common "arbitrage" trading strategies involving corporate transactions and limits to arbitrage will also be discussed.

The course integrates the corporate governance and agency dimensions, financial and strategic management aspects, and legal and accounting considerations into a unified framework for investigating issues such as, pre-merger planning, fact-finding, accounting and tax implications, anti-trust problems, post-merger integration, and short-term and long-term shareholder wealth consequences of financial and organizational restructuring transactions. It combines applied theoretical approach with the case study method through detailed analysis of domestic and global restructuring deals. The course is designed so as to create an interface or link between the academic and the practitioner perspectives of various dimensions of corporate restructuring process.

Financial topics include:

- Accretion vs. Dilution Analysis
- The P/E Problem in Acquisitions
- Strategic vs. Financial Acquisitions
- The Role of Private Equity Firms in Acquisitions
- Structuring Offers and Forms of Payment: Cash vs. Stock; Fixed vs. Floating Stock Payments
- Hedging In M&A: Earn-Outs, Collars and Price Guarantees
- Defense Tactics
- Hostile Takeovers and the Role of Activist Shareholders
- Merger of Equals
- Corporate Restructuring: Spin-Offs, Split-Ups, Equity Carve-Outs and Tracking Stock
- Recapitalization of Troubled Companies: Out-of-Court, In-Court and Pre-Packaged Bankruptcy Procedures, Chapter 11 vs. Chapter 7 vs. 363 Sales
- Distressed Debt Investment
- LBOs Modeling and Valuation
- Asset Backed Securities
- The Role of Risk Arbitrageurs and Limits to Arbitrage

Who Should Take This Course?
This course is aimed at students planning to work for investment banks and corporate advisory firms involved in business restructuring and turnarounds, mergers and acquisitions, and financial reorganization transactions. It offers a comprehensive strategic perspective, a framework of conceptual and theoretical paradigms, and applied tools for deal design and corporate valuations that may facilitate students establishing their own consulting and advisory services.

If a student does not meet the prerequisite requirements, s/he may take this course only if the permission of the instructor is given. An understanding of financial options will be assumed.

Global Entrepreneurial Finance (FINC-477-0)

**This course was formerly known as FINC-945-0**

Global Entrepreneurial Finance is designed to intersect three areas of interest:

(A) Entrepreneurial Finance and Private Equity including Entrepreneurial Buyouts
(B) Family and Closely-Held Firms
(C) International Finance with special emphasis on cross-border valuation and access to finance

By nature, this course is a finance course that deals with entrepreneurial, family, and closely-held firms in an international context including both developed and emerging market countries where institutions and property rights are weak. The core question behind the course is this: How do entrepreneurial managers, family firms, closely held firms and those who finance them design and execute transactions that effectively match opportunities and resources in an international context?

An overreaching insight of this course is that the notions of risk and reward are as important in privately-held as in publicly held firms. In privately-held firms and closely-held firms, however, entrepreneurs and financiers are often forced to make assumptions based on incomplete data. The course will provide you with the tools necessary to value companies domiciled in countries around the world. The aim of the course is for students to understand the motivations, decision processes, transaction execution, and valuation consequences of financial, business, and organizational restructuring done by buyouts, family firms and closely-held firms in an international context. The course facilitates developing the ability to plan, evaluate, and execute transactions using financial modeling and quantitative techniques. The course does not deal with venture capital, early-stage financing or entrepreneurship concepts.

Topics Covered Include:

- Valuing Cash Flows in an International Context: Cross-Border Valuation
- Assessment of Country Risk and Expropriation Risk. Legal Issues
- Capital Structure Decisions: Comparison of Different Sources of Capital
- Impact of Funding Sources on Performance: Private Placements and Rule 144a
- Private Equity Terms and Mechanics
- Contracting Problems and Deal Structures. Negotiating Deals
- Entrepreneurial Buyouts and Private Equity
- LBO Modeling and Valuation
- Real Options in International Settings
- Valuation of Subscription and Franchise Businesses
- Public vs. Private Equity: The Decision of Where to List a Stock
- The Importance of ADRs and GDRs: Capital Flight
- Valuation of Family Firms and Closely-Held Firms: Control Premium, Minority Discount and Illiquidity Discount
- Partnering with Public and Private Investors
- Control-Enhancement Mechanisms: The Role of Dual Class Shares and Pyramidal Ownership

Who Should Take This Course?
Global Entrepreneurial Finance is aimed at students who plan to start a business at some point in their careers, students who plan to work for or finance an entrepreneurial firm, and/or students who plan to work for an established firm. All these aspects are developed in an international context framework where institutions play a he role in shaping financial decisions. The course is helpful not just for students who plan to work in international firms, but students who plan to work in their home countries can also learn a great deal by comparing and contrasting opportunities, financing contexts, and legal structures across different countries.

The course is also designed for students who may be involved in family firms and closely held companies in a variety of roles, including founders, shareholders, or managers of their own family's firm, as well as non-family managers and employees, investors or business partners (e.g. private equity investors, strategic buyers or financial b

Executive MBA
Global Corporate Restructuring (FINCX-448-0)
The course provides students with the unique finance problems, governance and management issues faced by family firms, and to the ways in which these issues can be addressed. The course provides students with a framework for analyzing how family ownership, control, and management affect value, and whether and how more value can be created for the various stakeholders in family firms. (formerly known as Entrepreneurial Family Firms, Growth Equity & Corp Restructuring).

Mergers, Acquisitions and Other Reorganization Methods (FINCX-940-0)

Executive Education
Family Enterprise Boards: A Program for Current and Prospective Directors

Family businesses are uniquely complex enterprises. This program empowers current and future directors of family-owned businesses to navigate the challenges posed by those organizations while learning to design, engage and lead boards that leverage their companies’ strategic advantages.

View Program