Lagaras research focuses on corporate restructuring and entrepreneurship

Spyros Lagaras took “working your way through school” to a whole new level.

“In Greece, large banks that are government-run use a transparent hiring process that starts with an entrance exam that assesses English proficiency, math, and economics,” said Lagaras, who joins Gies as an assistant professor of finance this fall. “My mom signed up my twin brother and me without telling us. I knew English and math but had no idea about economics, yet I did surprisingly well on it.”

At 19, the Athens native found himself working in the credit risk department of the largest commercial bank in Greece during The Great Recession of 2010 while earning a “back-up” undergraduate degree in electrical engineering and computer science as well as an MBA and master’s degree in finance. What he learned about market dynamics during this time made him hungry to know more.

“I’m a naturally curious and ambitious person, and I looked for opportunities to learn,” said Lagaras, who in 2012 took a leave of absence from the bank to pursue his PhD at Gies College of Business.

Lagaras’ dissertation explored how corporate restructuring such as bankruptcy or mergers and acquisitions impacts both employees and shareholders.

“I looked at the tension between what’s good for a company and its shareholders versus its employees, specifically the difference between the ability of workers of various skill levels to continue to be part of the labor force,” said Lagaras, who analyzed the Brazilian labor market, which has a trove of data on every citizen, including salaries and job transitions. “Low-skilled workers bear the brunt of these restructurings and find it very difficult to find a new position of comparable pay, which has important anti-trust policy implications.”

In 2018, Lagaras joined the faculty of the Katz Graduate School of Business at University of Pittsburgh as an assistant professor of finance. While there, he examined the impact of technological shifts in the labor market on the decision of many to become entrepreneurs. He and his coauthors used US Internal Revenue Service tax returns to better understand the impact of the gig economy on individuals’ career choices.

“Entrepreneurship is an important driver of economic growth in the US because these new kinds of companies account for the majority of its new job creation and much of its innovation,” said Lagaras. “Our research found that making the shift to entrepreneurship is easier to attain for those already operating within the gig economy. They can apply the general business skills they’ve learned to an entrepreneurial venture.”

After six years at Pitt, Lagaras couldn’t pass up the opportunity to return to his alma mater. He is now extending his research on entrepreneurship in the post-pandemic era. He is exploring the disproportionate increase in female entrepreneurs after the pandemic, theorizing that entrepreneurship allows them more flexibility to manage the pandemic-driven increase in childcare responsibilities.

“This is such a strong research school – if you love research this is the environment you want to be in with all the resources you need,” said Lagaras. “The College has grown exponentially since I was last here. Access to data and research support are critical for increasing your productivity and impact.”

Lagaras is looking forward to working with Gies faculty from every field in finance.

“You get different perspectives and the opportunity to truly collaborate,” said Lagaras. “As my research agenda evolves, I know I’ll have the ability to partner with theorists who can complement my empirical work.”

This spring, Lagaras will teach FIN 525: Private Equity/Venture Capital as well as a doctoral degree course on advanced empirical methods in finance.

“There are so many opportunities for students to learn by taking them through the creation of a company from inception to launch,” said Lagaras, who looks forward to being involved in campus initiatives that promote entrepreneurship. “I am excited to teach the next generation of business leaders everything from startup financing and valuation to critical thinking and advanced negotiation skills, which are all fundamental tools for success.”