Peter Iliev

Assistant 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     Teaching     Pictures


  • 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: in cases of poor country-level institutions and controlling shareholders. Voting against management is linked with a greater number of directors that exit the board and with a lower probability of completing mergers.
  • 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 advisors. 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 overinvestment 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

  • Gustafson, Matthew and Peter Iliev, 2015, The Real Effects of Equity Issuance Frictions.

    Studies an exogenous deregulation allowing small firms to accelerate public equity issuance. Post-deregulation, treated firms double their reliance on public equity and increase their total annual equity issuance by 40%. This is accompanied by a 5.6 percentage point reduction in equity issuance costs, a 19% increase in investment, and a 12% decline in financial leverage.
  • Iliev, Peter and Svetla Vitanova, 2015, 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.  We find a positive market reaction to compliance with the Say-on-Pay rule. As implemented, the regulation did not decrease CEO pay,  but led to increase in the general support for directors.
  • Bhandari, Tara, Peter Iliev and Jonathan Kalodimos, 2015, Public versus Private Provision of Governance: The Case of Proxy Access, Working Paper..

    Uses a unique setting to study the tradeoffs between universal regulatory mandates and private contracting in the field of corporate governance. Benefits from the sudden announcements of the NYC Comptroller initiative and the Whole Foods innovation in challenging proxy access proposals. 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 Ivo Welch, 2015, Reconciling Estimates of the Speed of Adjustment of Leverage Ratios, Working Paper..

    We propose a non-parametric way to model leverage ratios and use this approach to reconcile a number of prominent papers in the literature. The best inference to be drawn from these estimators is that the true SOA is mildly negative (as suggested in Baker and Wurgler (2002) and Dittmar and Thakor (2007)).


  • 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.

Some Pictures


Peter Iliev

Toddler Maya (2012)


Peter Iliev

Paris (2010)


Peter Iliev

In the office (2008)


Peter Iliev

PhD cohort @ Brown (2004)