Dimitris Papanikolaou
Dimitris Papanikolaou

Associate Professor of Finance

Print Overview

Professor Papanikolaou joined the faculty at the Kellogg School of Management in 2007, after completing his Ph.D. in Finance at the MIT Sloan School of Management. His research interests include theoretical and empirical asset pricing, macroeconomics and contract theory. Professor Papanikolaou is currently working on the effects of technological shocks on the cross-section of risk-premia and firms' investment decisions. Professor Papanikolaou is a Zell Center Faculty Fellow. Trained in finance and economics, he also holds a B.A. from University of Piraeus (Greece), and an M.Sc. from the London School of Economics (UK).

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Print Vita
PhD, 2007, Financial Economics, Massachusetts Institute of Technology
MS, 2001, Finance, Economics, London School of Economics
BA, 2000, Economics, Finance, University of Piraeus

Academic Positions
Assistant Professor of Finance, Kellogg School of Management, Northwestern University, 2007-present

Grants and Awards
Roger F. Murray Prize (second place), The Q Group, 2011

Print Research
Research Interests
Asset pricing, macroeconomics

Kogan, Leonid and Dimitris Papanikolaou. Forthcoming. Growth Opportunities, Technology Shocks and Asset Prices. Journal of Finance.
Eisfeldt, Andrea and Dimitris Papanikolaou. 2013. Organization Capital and the Cross-Section of Expected Returns. Journal of Finance. 68(4): 1365-1406.
Kogan, Leonid and Dimitris Papanikolaou. 2013. Firm Characteristics and Stock Returns: The Role of Investment-Specific Shocks. Review of Financial Studies. Doi: 10.1093/rfs/hht026
Panousi, Vasia and Dimitris Papanikolaou. 2012. Investment, Idiocyncratic Risk, and Ownership. Journal of Finance. 67(3): 1113-1148.
Kogan, Leonid and Dimitris Papanikolaou. 2012. Economic Activity of Firms and Asset Prices. Annual Review of Financial Economics. 4: 361-384.
Papanikolaou, Dimitris. 2011. Investment Shocks and Asset Prices. Journal of Political Economy. 119(4): 639-685.
Ang, Andrew, Dimitris Papanikolaou and Mark Westerfield. 2013. Portfolio Choice with Illiquid Assets. Management Science.
Kogan, Leonid and Dimitris Papanikolaou. 2010. Growth Opportunities and Technology Shocks. American Economic Review: Papers and Proceedings. 100(2): 532-536.
Working Papers
Kogan, Leonid, Dimitris Papanikolaou, Amit Seru and Noah Stoffman. 2012. Technological Innovation, Resource Allocation and Growth.
Kondo, Jiro E. and Dimitris Papanikolaou. 2011. Financial Relationship and the Limits to Arbitrage.
Makarov, Igor and Dimitris Papanikolaou. 2010. Sources of Systematic Risk.
Kogan, Leonid, Dimitris Papanikolaou, Amit Seru and Noah Stoffman. 2010. Technological Innovation: Winners and Losers.
Papanikolaou, Dimitris and Jiro Kondo. 2013. Innovation Cycles.
Fuchs, William, Brett Green and Dimitris Papanikolaou. 2013. Adverse Selection, Slow Moving Capital and Misallocation.

Print Teaching
Teaching Interests
Full-Time / Part-Time MBA
Investments (FINC-460-0)

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

This course aims at developing key concepts in investment theory from the perspective of a portfolio manager rather than an individual investor. The goal of this class is to provide you with a structure for thinking about investment theory and show you how to address practical investment problems in a systematic manner. Instead of focusing on pure theoretical models, the emphasis is given on the empirical facts observed in asset prices in worldwide capital markets, understanding whether they manifest new dimension of systematic risk, and how to design smart portfolios to take advantage of multiple sources of systematic risk.

Topics include capital allocation and optimal portfolio selection; diversification, risk, and various models linking risks with returns, such as, the CAPM, the Fama-French 3-Factor Model (‘value’ and ‘size’ investing), ‘momentum investing’ and the Carhart’s 4-Factor Model, and Ross’s multifactor APT to account for multiple sources of systematic risk; risk-adjusted returns, measures of fund performance, and various trading strategies used by Hedge Funds; market efficiency (including empirical anomalies and behavioral finance). Among other topics, impact of borrowing constraint and transaction costs and illiquidity; risk management issues, such as, portfolio insurance; Bond valuation and the term structure of interest rates; the Black-Scholes/Merton option pricing model; etc. may be covered as time permits.

This is a quantitative course. We discuss many cases, but case studies will require ability to do statistical analysis similar to what might be applied in practice. The course develops an applied analytical framework of financial investments. Therefore students interested in this course are expected to have sound knowledge of Statistics and Regression Analysis.