Mathias Kronlund

Associate Professor of Finance and Paul M. Van Arsdell, Sr. Fellow

Contact

4029 Business Instructional Facility

515 Gregory Dr

Champaign, IL 61820

217-244-2631

kronlund@illinois.edu

Listings

Educational Background

Ph.D., Finance, Booth School of Business, University of Chicago, 2011
M.S., Industrial Engineering & Management, AALTO University, 2006

Positions Held

Associate Professor of Finance, Finance, University of Illinois at Urbana-Champaign, 2024 to present
Assistant Professor of Finance, Finance, University of Illinois at Urbana-Champaign, 2012-2020
McKinsey & Company, 2005
Finnish Broadcasting Company, 2001-2004

Recent Publications

Almeida, H., Irani, R., & Kronlund, M. (2024). How Do Short-Term Incentives Affect Long-Term Productivity? Review of Financial Studies, Oxford University Press (OUP). link >
Almeida, H., Fos, V., Hsu, P., Kronlund, M., & Tseng, K. (2024). Innovation Under Pressure. Journal of Financial and Quantitative Analysis. link >
Kim, H., Kim, W., & Kronlund, M. (2023). Do Corporations Retain Too Much Cash? Evidence from a Natural Experiment. Review of Financial Studies, 36 (7), 2839-2877. link >
Choi, J., Kronlund, M., & Oh, J. (2022). Sitting bucks: Stale pricing in fixed income funds. Journal of Financial Economics, 145 (2), 296-317. link >

Other Publications

Articles

Kronlund, M., Pool, V., Sialm, C., & Stefanescu, I. (2021). Out of sight no more? The effect of fee disclosures on 401(k) investment allocations. Journal of Financial Economics, 141 (2), 644-668. link >
Kronlund, M. (2020). Do bond issuers shop for favorable credit ratings? Management Science, 66 (12), 5944-5968. link >
Choi, J., & Kronlund, M. (2018). Reaching for Yield by Corporate Bond Mutual Funds. Review of Financial Studies, 31 (5), 1930-1965.
Almeida, H., Fos, S., & Kronlund, M. (2016). The Real Effects of Share Repurchases. Journal of Financial Economics. link >

Presentations

Kronlund, M. (2024). Silent Swing: Do Open-End Funds Tilt Holdings Valuations in Response to Flows? Northern Finance Association Annual Meetings, Northern Finance Association.
Kronlund, M. (2024). Growth-promoting Bonuses and Mergers and Acquisitions. European Finance Association Annual Conference, European Finance Association.

Working Papers

Choi, J., Kronlund, M., & Oh, J. Silent Swing: Do Open-End Funds Tilt Holdings Valuations in Response to Flows.
Bakke, T., Kronlund, M., Mahmudi, H., & Virani, A. Growth-Promoting Bonuses and Mergers and Acquisitions. link >
Kronlund, M., & Gao, X. Does Equity Compensation Cause Firms to Manage EPS. link >
Kronlund, M., & Sandy, S. Does Shareholder Scrutiny Affect Executive Compensation? Evidence from Say-on-Pay Voting. link >
Kalay, A., & Kronlund, M. The Market Reaction to Stock Split Announcements: Earnings Information After All. link >

Honors and Awards

List of Teachers Ranked as Excellent by Their Students, University of Illinois, 2024-2024

Grants

Gies Merit-Based Research Grant: "Bond Market Structure, Default Recovery, and Demand Elasticities", Gies College of Business, 2025 to present

Service

Referee, Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Review of Finance, Management Science, Journal of Financial and Quantitative Analysis, Review of Finance, 2012-2025

Research Interests

Corporate finance: firms' investment and payout policies, corporate short-termism, corporate governance and executive compensation
Investments: mutual funds, bond markets, credit ratings

Current Courses

Advanced Corporate Finance (FIN 321) Theories of firms' investment and financing decisions are covered. Topics include dividend policy, capital budgeting, capital structure, bankruptcy, long- term debt and leasing decisions.
Applied Financial Econometrics (FIN 552) The aim of this course is to equip students with a working knowledge of important econometric techniques necessary to understand and interpret financial market data. The course covers time-series and cross-sectional properties of asset returns, predictability of equity returns, empirical tests of asset pricing models, modelling time-varying volatility. The interplay between asset pricing theories, statistical assumptions and relevant econometric techniques is explored in the context of published empirical work, including classical papers as well as a more recent research.
Individual Study and Research (FIN 590) Directed reading and research.
Empirical Analysis in Finance (FIN 592) Designed to train the student in the conduct of empirical work in Finance. Covers the major tools and databases needed to replicate the results of published academic papers and to conduct original research.