Dr Grzegorz Pawlina
BSc, MSc Warsaw (SGH); MSc, PhD Tilburg
Lecturer
Department
Accounting and Finance
Office Hours
By appointment
Professional Role
Deputy Director of Masters Programmes
Current Teaching
- AcF 404: Introduction to Financial Markets
- AcF 504: Financial Markets
Research Interests
Real options, dynamic corporate finance, investment under uncertainty and competition, housing finance
Current Research
My research is concentrated in the following areas:
Interactions between Corporate Financing and Investment Decisions
The research objective is to understand the relationship between corporate financing and investment decisions. For example, one of my projects (Pawlina, 2010) deals with the effect of debt renegotiability on the level of inefficiency of the investment policy pursued by the shareholders. It is shown that shareholders’ option to renegotiate debt in a period of financial distress exacerbates Myers’ (1977) underinvestment problem at the time of the firm’s expansion. This additional underinvestment is eliminated by granting creditors the entire bargaining power.
Real Options, Product Market Structure, and Project Flexibility
The objective of this research is to investigate how product market competition/project flexibility influence the optimal exercise policy of corporate growth options and affect the valuation of a firm. I use dynamic investment models of a firm and apply game- and decision-theoretical concepts to solve the firm's optimal stopping problem - see Pawlina and Kort (2003, 2005, 2006) Huisman et al (2004), and Kort, Murto and Pawlina (2010).
Investment, Ownership, and Capital Market Imperfections
We investigate the investment-cash flow sensitivity of a large sample of the UK listed firms and confirm that investment is strongly cash flow-sensitive. Subsequently, we show that this suboptimal investment policy is mainly a result of agency problems (i.e., when managers with high discretion overinvest), and less of asymmetric information when managers owning equity are underinvesting if the market (erroneously) demands too high a risk premium - see Pawlina and Renneboog (2005).
Research Grants
"Investment and Financing Policy of Corporations and Households" (ESRC research grant RES-062-23-0078, 10/2006-09/2009, budget: £242,268; joint with B. Lambrecht)
Other awards
Marie Curie visiting doctoral fellowship at ECARES, Brussels (European Commission, contract HPMT-CT-2000-00134, 02/2003-07/2003)
Doctoral fellowship at CentER, Tilburg (European Commission, ACE Phare grants P-98-2040-S and P-97-9285-S, 09/1999-08/2002)
Profile
Journal article (16)
Conference contribution (1)
Selected publications (10)
View all publications (18)
Publications
- Lambrecht Bart and Pawlina Grzegorz, 2012, 'A theory of net debt and transferable human capital', Review of Finance
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View PDF - Cunha M Ricardo, Lambrecht Bart and Pawlina Grzegorz, 2011, 'Household liquidity and incremental financing decisions: theory and evidence', Journal of Business Finance and Accounting, vol 38, no. 7-8, pp. 1016-1052.
View details | View PDF - Pawlina Grzegorz, 2010, 'Underinvestment, capital structure and strategic debt restructuring', Journal of Corporate Finance, vol 16, no. 5, pp. 679-702.
View details | View PDF - Lambrecht Bart and Pawlina Grzegorz, 2010, 'Corporate finance and the (in)efficient exercise of real options', Multinational Finance Journal, vol 14, no. 1/2, pp. 129-156.
View details | View PDF - Kort Peter M, Murto Pauli and Pawlina Grzegorz, 2010, 'Uncertainty and stepwise investment.', European Journal of Operational Research, vol 202, no. 1, pp. 196-203.
View details | View PDF - Pawlina Grzegorz and Kort Peter M, 2010, 'Strategic quality choice under uncertainty: a real options approach', Manchester School, vol 78, no. 1, pp. 1-19.
View details | View PDF - Pawlina Grzegorz and Kort Peter M, 2006, 'Real options in an asymmetric duopoly: who benefits from your competitive disadvantage?', Journal of Economics and Management Strategy, vol 15, no. 1, pp. 1-35.
View details | View PDF - Pawlina Grzegorz and Renneboog Luc D R, 2005, 'Is investment-cash flow sensitivity caused by agency costs or asymmetric information? Evidence from the UK', European Financial Management, vol 11, no. 4, pp. 483-513.
View details | View PDF - Pawlina Grzegorz and Kort Peter M, 2005, 'Investment under uncertainty and policy change', Journal of Economic Dynamics and Control, vol 29, no. 7, pp. 1193-1209.
View details | View PDF - Pawlina Grzegorz and Kort Peter M, 2003, 'Strategic capital budgeting: asset replacement under market uncertainty', OR Spectrum, vol 25, no. 4, pp. 443-479.
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