Cecilia Bustamante

Dr. M. Cecilia Bustamante is an assistant professor of finance at the Robert H. Smith School of Business at the University of Maryland. Her research interests include applied dynamic corporate finance, industrial organization, and the asset pricing implications of corporate decisions. Her recent work elaborates on how competitive pressures in product markets affect corporate investment decisions and firms' exposure to systematic risk. Cecilia has also studied the underlying determinants of waves in public equity offerings, and is currently analyzing how to reward CEOs optimally depending on the investment opportunities that firms may have.

Fearless Idea 7: Embrace Competition

People who study financial economics regularly assume that the markets in which firms sell their products are perfectly competitive, or alternatively that firms operate in isolation. This all-or-nothing thinking is unrealistic. “The most prominent public firms in the United States usually operate in industries that are oligopolies,” says Smith School finance professor M. Cecilia Bustamante. In a forthcoming paper, she explores whether the degree of competition in which firms operate has any impact on their asset prices. Read more...

Subscribe to RSS - Cecilia Bustamante
Robert H. Smith School of Business