Richard Thakor

Richard T. Thakor

Assistant Professor


  • Ph.D. 2016
    Financial Economics, Massachusetts Institute of Technology (MIT)
  • M.S. 2015
    Management Research, Massachusetts Institute of Technology (MIT)
  • MSc 2008
    Finance and Economics, London School of Economics
  • B.A. 2007
    Economics and Psychology, Washington University in St. Louis


  • Financial Institutions
  • Healthcare Finance
  • R&D Investments
  • Corporate Finance


Richard T. Thakor is an Assistant Professor of Finance at University of Minnesota, Carlson School of Management. He is also a Research Affiliate at the MIT Laboratory for Financial Engineering (LFE). He joined the finance department at University of Minnesota in June 2016 after earning his PhD in Financial Economics from MIT. He also holds an M.S. in Management Research from MIT, an MSc in Finance and Economics from the London School of Economics (LSE), and a B.A. (summa cum laude) in Economics and Psychology from Washington University in St. Louis. Prior to earning his PhD, he worked in investment management as a Derivatives Trading Analyst. His research interests are in empirical and theoretical corporate finance, in the areas of managerial decision-making, R&D investments, healthcare finance, and the effects of financial frictions on firm project investments.

Selected Works & Activities.

  • Journal Articles
    Do mandatory disclosure requirements for private firms increase the propensity of going public? (with Cyrus Aghamolla). Journal of Accounting Research, forthcoming
  • Journal Articles
    IPO Peer Effects (with Cyrus Aghamolla). Journal of Financial Economics, forthcoming
  • Journal Articles
    No-fault Default, Chapter 11 Bankruptcy, and Financial Institutions (with Robert C. Merton). Journal of Banking and Finance, forthcoming
  • Journal Articles
    Competition and R&D Financing: Evidence from the Biopharmaceutical Industry (with Andrew W. Lo). Journal of Financial and Quantitative Analysis, forthcoming
  • Journal Articles
    Short-termism, Managerial Talent, and Firm Value. The Review of Corporate Finance Studies, forthcoming
  • Journal Articles
    The Effect of Cash Injections: Evidence from the 1980s Farm Debt Crisis (with Nittai Bergman and Rajkamal Iyer). The Review of Financial Studies 33 (11), 5092-5130 (2020)
  • Journal Articles
    Customers and Investors: A Framework for Understanding the Evolution of Financial Institutions (with Robert C. Merton). Journal of Financial Intermediation 39 (July), 4-18 (2019)
  • Journal Articles
    Risk and Reward in the Orphan Drug Industry (with Andrew W. Lo). The Journal of Portfolio Management 45(5), 30-45 (2019)
  • Journal Articles
    Just How Good an Investment is the Biopharmaceutical Sector? (with Nicholas Anaya, Yuwei Zhang, Christian Vilanilam, Kien Wei Siah, Chi Heem Wong, and Andrew W. Lo). Nature Biotechnology 35 (12), 1149–1157 (2017)
  • Working Papers
    Liquidity Windfalls and Reallocation: Evidence from Farming and Fracking
  • Working Papers
    Sharing R&D Risk in Healthcare via FDA Hedges (with Adam Jørring, Andrew W. Lo, Tomas J. Philipson, and Manita Singh)
  • Working Papers
    Optimal Financing for R&D-intensive Firms (with Andrew W. Lo)
  • Working Papers
    Trust in Lending (with Robert C. Merton)
  • Working Papers
    Paying off the Competition: Market Power and Innovation Incentives (with Xuelin Li and Andrew W. Lo)
  • Working Papers
    Merchants of Death: The Effect of Credit Supply Shocks on Hospital Outcomes (with Cyrus Aghamolla, Pinar Karaca-Mandic, and Xuelin Li)
  • Working Papers
    Trust, Transparency, and Complexity (with Robert C. Merton)
  • Teaching:

    • FINA 4221 Principles of Corporate Finance (Undergraduate)
    • FINA 6241 Corporate Financial Analysis and Decisions (MBA)
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