David Thesmar is the Franco Modigliani Professor of Financial Economics and a Professor of Finance at MIT Sloan. He is an expert in behavioral finance, financial intermediation, corporate finance and governance, and has published his work in major economics and finance academic journals. Before coming to MIT, David was a professor of finance at HEC Paris. David has held various economic adviser positions for the French government and the ECB. David is an academic advisor for CFM, a large quantitative hedge fund.
This paper investigates the causes of the quality anomaly by exploring two potential explanations - the “risk view” and the “behavioral view”.