Professor Korteweg's research revolves around the empirical study of economic decisions by corporations and individuals in a dynamic world.

Arthur's work can be broadly divided into three strands. The first strand focuses on firms’ dynamic capital structure decisions, using insights from structural models to learn about the size and relative importance of economic frictions in explaining firms’ capital structure decisions. He has worked on estimating the magnitude of benefits and costs of leverage for publicly traded corporations, and the relation between leverage and expected stock returns. Currently he is working on methods for comparing structural models of the firm.

Arthur's second line of work studies the endogenous trading of illiquid assets. In particular, he has explored the risk and return trade-off to venture capital investments in entrepreneurial firms, and the loan-to-value distribution and home price indices of residential real estate over the recent subprime crisis.

Lastly, Arthur explores the economics of prices and investment decisions when investors do not know the true parameters and models but instead have to learn about them over time. For example, he shows that parameter and model uncertainty matter for corporate bond prices, and for investor portfolio decisions when investors learn about stock return predictability over time.

A common feature to Arthur's work is the development of novel econometric methods that have broad applicability in finance and economics, and to apply these methods to important problems in financial economics.

Arthur Korteweg is an Associate Professor of Finance at the Stanford University Graduate School of Business. After graduating cum laude with a Master’s degree in Economics from Tilburg University in the Netherlands, Arthur went on to get his MBA and PhD from the University of Chicago Graduate School of Business. He joined Stanford in 2007.

Arthur teaches corporate finance and entrepreneurial finance in the MBA program.