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Kathleen Hagerty
Kathleen Hagerty

FINANCE
First Chicago Professorship in Finance

Print Overview
Kathleen M. Hagerty holds the First Chicago Professorship in Finance and was Senior Associate Dean: Faculty and Research from 2005-2010.

Professor Hagerty has published widely in finance and economics journals. Her work has studied the micro-structure of securities markets, disclosure regulation, insider trading regulation and the effectiveness of self-regulatory organizations. She received a Bradley Foundation Research Fellowship and received the D.P. Jacobs Prize for the Most Significant Paper in the Journal of Financial Intermediation.

She has been a member of the editorial board of the Review of Financial Studies and the Journal of Financial Markets. She received her Ph.D. from Stanford University.



Areas of Expertise
Contract Theory
Corporate Finance
Corporate Capital Structure
Derivative Securities and Markets (Futures, Options, Commodities)
Financial Engineering
Information Economics
Insider Trading
Regulation of Financial Markets
Risk Management
Print Vita
Education
PhD, 1985, Economics, Stanford University
MBA, 1979, University of California, Berkeley
MS, 1977, Operations Research, University of California, Berkeley
BA, 1975, Mathematics, University of California, Berkeley

Academic Positions
First Chicago Professor of Finance, Department of Finance, Kellogg School of Management, Northwestern University, 2001-present
Senior Associate Dean for Faculty and Research, Kellogg School of Management, Northwestern University, 2005-2010
Co-Director, Center of Financial Institutions and Markets, Kellogg School of Management, Northwestern University, 2000-2005
Committee Member, Program and Curriculum Review Committee, Graduate School, Northwestern University, 1999-2002
Mechthild Nemmers Professor of Finance, Department of Finance, Kellogg School of Management, Northwestern University, 1998-2001
Department Chair, Department of Finance, Kellogg School of Management, Northwestern University, 1998-2000
Professor of Finance, Department of Finance, Kellogg School of Management, Northwestern University, 1997-1998
Associate Professor of Finance, Department of Finance, Kellogg School of Management, Northwestern University, 1992-1997
Council Chair, Northwestern University Program Review Council , Northwestern University, 1995-1996
Council Member, Northwestern University Program Review Council , Northwestern University, 1993-1996
Finance PhD Program Coordinator, Department of Finance, Kellogg School of Management, Northwestern University, 1991-1994

Conference Presentations

 
Print Research
Research Interests
Microstructure of financial markets, security market regulation, disclosure, insider trading, industrial organization, derivatives

Articles
Bond, Philip and Kathleen Hagerty. 2010. Preventing Crime Waves. American Economic Journal: Microeconomics. 3(2): 1-24.
AbstractLink
DeMarzo, Peter, Michael J. Fishman and Kathleen Hagerty. 2005. Self Regulation and Government Oversight. Review of Economic Studies. 72(3): 687-706.
AbstractLink
Fishman, Michael J. and Kathleen Hagerty. 2003. Mandatory vs. Voluntary Disclosure in Markets with Informed and Uninformed Customers. Journal of Law, Economics, & Organization. 19(1): 45-63.
AbstractLink
Hagerty, Kathleen. 2000. Review of "Derivatives: A PowerPlus Picture Book" by Mark Rubenstein. Review of Financial Studies. 13(1): 253-256.
Hagerty, Kathleen. 1999. Review of "Investment Intelligence from Insider Trading" by N.Nejat Seyhun. Journal of Economic Literature. 37(3): 1194-1195.
DeMarzo, Peter, Michael J. Fishman and Kathleen Hagerty. 1998. The Optimal Enforcement of Insider Trading Regulations. Journal of Political Economy. 106(3): 602-632.
AbstractLink
Fishman, Michael J. and Kathleen Hagerty. 1995. The Incentive to Sell Financial Market Information. Journal of Financial Intermediation. 4(2): 95-115.
AbstractLink
Fishman, Michael J. and Kathleen Hagerty. 1995. The Mandatory Disclosure of Trades and Market Liquidity. Review of Financial Studies. 8(3): 637-676.
AbstractLink
Hagerty, Kathleen, Aharon Ofer and Daniel Siegel. 1993. Managerial Compensation and Incentives to Engage in Shortsighted Behavior.
Fishman, Michael J. and Kathleen Hagerty. 1992. Insider Trading and the Efficiency of Stock Prices. RAND Journal of Economics. 23(1): 106-122.
AbstractLink
Hagerty, Kathleen. 1991. Equilibrium Bid-Ask Spreads in Markets with Multiple Assets. Review of Economic Studies. 58(194): 237-257.
AbstractLink
Fishman, Michael J. and Kathleen Hagerty. 1990. The Optimal Amount of Discretion to Allow in Disclosure. Quarterly Journal of Economics. 105(2): 427-444.
AbstractLink
Fishman, Michael J. and Kathleen Hagerty. 1989. Disclosure Decisions By Firms and the Competition for Price Efficiency. Journal of Finance. 44(3): 633-646.
Reprinted in:
The Theory of Corporate Finance, edited by Michael J. Brennan, vol. 2, 255-268. Cheltenham Glos, UK: Edward Elgar Publishing, 1996.
AbstractLink
Hagerty, Kathleen and Daniel Siegel. 1988. On the Observational Equivalence of Managerial Contracts Under Conditions of Moral Hazard and Self-Selection. Quarterly Journal of Economics. 103(2): 425-428.
AbstractLink
Hagerty, Kathleen and William P. Rogerson. 1987. Robust Trading Mechanisms. Journal of Economic Theory. 42(1): 94-107.
AbstractLink
Working Papers
DeMarzo, Peter, Michael J. Fishman and Kathleen Hagerty. 2007. Reputations, Investigations and Self Regulation.
Abstract
Book Chapters
Fishman, Michael J. and Kathleen Hagerty. 1998. "Mandatory Disclosure." In New Palgrave Dictionary of Economics and the Law, edited by P. Newman, MacMillan Press.
Hagerty, Kathleen and Robert McDonald. 1996. "Brokerage, Market Fragmentation and Security Market Regulation." In Industrial Organization and Regulation of the Securities Industry, edited by Andrew W. Lo, 35-56. Chicago: NBER, University of Chicago Press.
Hagerty, Kathleen and Robert McDonald. 1996. "Brokerage, Market Fragmentation, and Security Market Regulation: Authors' Reply." In Industrial Organization and Regulation of the Securities Industry, edited by Andrew W. Lo, 60-62. Chicago: NBER, University of Chicago Press.
Bhattacharya, Sudipto and Kathleen Hagerty. 1987. "Dealerships, Trading Externalities and General Equilibrium." In Contractual Arrangements for Intertemporal Trade, edited by Edward C. Prescott and Neil Wallace, 81-104. Minneapolis: University of Minnesota Press.
Abstract
Conference Proceedings
Hagerty, Kathleen, Serguei Saavedra and Brian Uzzi. 2011. "Synchronicity, Instant Messaging, and Peformance Among Financial Traders.".

 
Print Teaching
Teaching Interests
Derivatives, investments
Full-Time / Part-Time MBA
Fixed Income Securities (FINC-464-0)

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

This advanced course is designed for students seeking a sophisticated understanding of fixed income valuation and hedging methods, and a basic familiarity with the major markets and instruments. Tools include duration, convexity, yield curve models, option pricing models and value at risk, which are used to understand pricing and hedging of forwards, futures and swaps, asset-backed securities and other fixed income derivatives. This information is most useful for students planning a career in sales and trading, portfolio management, banking or financial consulting. The course also surveys some of the institutional features of these markets.

Derivatives Markets I (FINC-465-0)

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

This course covers the use and pricing of forwards and futures, swaps and options. Specific topics include strategies for speculation and risk management, no-arbitrage pricing for forward contracts, the binomial and Black-Scholes option pricing models and applications of pricing models in other contexts.