DANIEL A. RETTL

Visiting Assistant Professor of Finance




The University of Texas at Austin
McCombs School of Business
Department of Finance
2110 Speedway
Stop B6600
Austin, TX 78712




RESEARCH INTERESTS

Empirical Corporate Finance, Labor and Finance, Investments

Information Acquisition, Bond Market Efficiency

PUBLICATIONS

Refinancing, Profitability, and Capital Structure, with AndrŠs Danis and Toni Whited, Journal of Financial Economics, 2014, Vol 114(3), pages 424-443.
  • Winner of the 2014 Jensen Prize (second place) for best papers published in the Journal of Financial Economics in Corporate Finance and Organizations.
  • Research Excellence Award 2014, School of Business and Economics, Humboldt University of Berlin.

  • WORKING PAPERS

    The Stability of Dividends and Wages: Effects of Competitor Inflexibility, with Alex Stomper and Josef Zechner

    European Finance Association (2016), Western Finance Association (2016), SFS Cavalcade (2016)

    We analyze global data about electricity generation and document that the risk exposure of a firmís owners and its workers depends on competitorsí ability or willingness to change their output in response to productivity shocks. Competitor inflexibility appears to be a risk factor: the sales of firms with more inflexible competitors respond more strongly to aggregate sales shocks. As a consequence, competitor inflexibility also affects the stability of firmsí payments to shareholders and workers. Firms with relatively flexible competitors appear to smoothen both wages and payouts to shareholders, but an increase in competitor inflexibility is associated with less payout-smoothing and more wage-smoothing. Our evidence supports the idea that labor productivity risk associated with competitor inflexibility should be borne by firmsí shareholders, rather than by their workers.

    Information Acquisition Costs and Credit Spreads, with Marcin Jaskowski

    FMA Annual Meeting (2016), French Finance Association (2016)

    This paper investigates the relevance of information acquisition costs for corporate bond spreads. Information acquisition costs are an important market friction that affects how much information will be acquired by investors, their subsequent portfolio allocations, and consequently, market prices. We exploit the staggered introduction of SECís EDGAR database and the SECís XBRL initiative to examine how bond markets respond to reductions in information acquisition costs. Our main results highlight that these costs matter: lower information acquisition costs are associated with a decline in credit spreads of 5 to 8 percent relative to their average levels. The magnitude of this decline varies with bond features related to information sensitivity. Moreover, we provide evidence that is consistent with the notion that liquidity plays an important part in the documented decline in credit spreads.

    TEACHING

    FIN 357 Business Finance, The University of Texas at Austin

    MGT 6432 Corporate Financial Policy, Vanderbilt University

    Advanced Corporate Finance, Humboldt University Berlin

    Case Seminar Advanced Corporate Finance (with Tim Adam), Humboldt University Berlin

    Fixed-Income and Credit Derivatives, University of Applied Sciences bfi Vienna

    Corporate Finance, WU Vienna University of Economics and Business

    Fall 2016

    Spring 2016

    Fall 2014 - Summer 2016

    Summer 2015 - Summer 2016

    Fall 2011 - Fall 2015

    Fall 2009 - Summer 2012



    Copyright © 2007-2016 Daniel Rettl.