Associate Professor of Finance
Smeal College of Business
The Pennsylvania State University

Office Phone: 814-863-5456
Mail: 348 Business Building, University Park, PA 16802

Peter Iliev

Vita     SSRN page     Working Papers     Notes     Teaching    


  • Gustafson, Matthew and Peter Iliev, 2017, The Effects of Removing Barriers to Equity Issuance. Journal of Financial Economics, forthcoming. [Internet Appendix]

    A deregulation allowed small firms to accelerate public equity issuance. Post-deregulation, treated firms shift towards public equity, and increase their investment.
  • Charles, Cao, Peter Iliev and Raisa Velthuis, 2017, Style drift: Evidence from small-cap mutual funds. Journal of Banking and Finance 78, 42-57.

    Small-cap funds allocate on average 27% of their portfolio to mid- and large-cap stocks. They expose their investors to unanticipated risks, do not deliver superior alphas, but charge larger fees (relative to mid- and large-cap funds).
  • Iliev, Peter, Karl Lins, Darius Miller and Lukas Roth, 2015, Shareholder Voting and Corporate Governance Around the World, Review of Financial Studies 28 (8), 2167-2202.
    (Editor's Choice/Lead Article)

    Systematic study of shareholder voting across countries. Investors exercise greater corporate governance when they fear expropriation the most; voting is linked with director turnover and merger completion.
  • Iliev, Peter and Michelle Lowry, 2015, Are Mutual Funds Active Voters? Review of Financial Studies 28(2), 446-485. [Internet Appendix]

    Characterizes funds' vote decisions as stemming from the direction and precision of their signal relative to that of proxy advisers. Funds with lower costs of collecting information and higher benefits from voting are three to seven times less likely to follow ISS.
  • Iliev, Peter, Darius Miller and Lukas Roth, 2014, Uninvited U.S. Investors? Economic Consequences of Involuntary Cross-listings, Journal of Accounting Research 52 (2), 473-519. [Internet Appendix]
    (Re-published in the Virtual Issue on International Accounting Research, Journal of Accounting Research, Winner of IIROC-DeGroote Annual Conference Best Paper Award 2010)

    An SEC deregulation intended to increase the competitiveness of U.S. capital markets lead to a significant destruction of foreign firm value.
  • Iliev, Peter and Ivo Welch, 2013, A Model of Operational Slack: The Short-Run, Medium-Run, and Long-Run Consequences of Limited Attention, Journal of Law, Economics, and Organization 29 (1), 2-34.
    (Lead Article, Runner-up for the 2012 Oliver E. Williamson Prize for Best Article in Law, Economics and Organization)

    Studies institutions, such as firms, in which multiple projects can require attention at unpredictable times. The model can explain over-investment and the diversification discount even when managers are not agency-conflicted.
  • Iliev, Peter, 2010, The Effect of SOX Section 404: Costs, Earnings Quality and Stock Prices, Journal of Finance 65 (3), 1163-1196. [Internet Appendix]

    Exploits a natural quasi-experiment to isolate the effects that were uniquely due to the Sarbanes-Oxley Act. Section 404 led to conservative reported earnings, but also imposed real costs reducing the market value of small firms.

Working Papers

  • Iliev, Peter and Svetla Vitanova, The Effect of the Say-on-Pay in the U.S.

    Uses that U.S. firms with a public float under $75 million did not have to hold a Say-on-Pay vote to quantify the effects of the new rule.  As implemented, the regulation did not decrease CEO pay but led to an increase in the general support for directors.
  • Bhandari, Tara, Peter Iliev and Jonathan Kalodimos, Public versus Private Provision of Governance: The Case of Proxy Access.

    Finds that the private provision of proxy access is an active governance channel but it is not efficiently delivering proxy access at the firms that need it most.
  • Iliev, Peter and Michelle Lowry, Venturing Beyond the IPO: Financing of Newly Public Firms by Pre-IPO Investors.

    Contrary to generally-held notions, we find that many VCs take an active investing role in firms after the IPO. VCs serve as financial intermediaries using their superior information to select among a large pool of infromationally asymmetric firms.

Notes / Permanent Working Papers


  • Instructor at Penn State (Smeal)

    –  Financial Management of the Business Enterprise
    –  Financial Markets and Institutions
  • Teaching Assistant at Brown

    –  Financial Institutions
    –  Corporate Finance
    –  Investments

Current class schedules: University Registrar webpage.

Teaching materials: ANGEL (password protected).

Final grades: eLion.