Email: prokopev@umich.edu, LinkedIn
Tel.: 734 450 3663
Email: prokopev@umich.edu, LinkedIn
Tel.: 734 450 3663
Ph.D. candidate in Finance
University of Michigan, Ross School of Business
on the 2026–2027 job market
Research interests:
Primary: information economics, climate finance, market microstructure
Secondary: delegated portfolio management, ratings
Working Papers
A Necessary Lie: Conflict of Interest in Investor-Paid Ratings (Job market paper)
Presentations: the 2026 FMA doctoral consortium (scheduled), University of Michigan, the Inter-Finance PhD Seminar
Investor payment is widely believed to eliminate conflicts of interest in information sales, including ratings. I show that this conventional wisdom does not hold when the information buyer is a delegated asset manager with market power and its own agency frictions. In contrast to small dispersed investors, a large fund with existing holdings is willing to purchase a biased rating that inflates their market value. The provider prefers to sell distorted ratings when market illiquidity erodes information rents but not distortion rents, which increase with clients’ market power. Although bias reduces the information content of ratings themselves, it can broaden their accessibility to investors and eventually improve price informativeness. As such, stricter regulation of rating providers can hurt overall market efficiency.
When climate-risk disclosures reduce green investment and welfare (with Snehal Banerjee)
Presentations: University of Michigan, the Inter-Finance PhD Seminar, the 2026 AES Annual Meeting*, the AFA 2027 Annual Meeting (scheduled)
Common wisdom suggests that greater climate-risk disclosure improves welfare. We show that this need not be true. A firm endogenously chooses whether to adopt a costly green project to maximize its stock price. When disclosure reveals the project’s climaterisk exposure (“greenness”), mandatory transparency reduces green adoption and can lower investor welfare. Costly voluntary disclosure can improve outcomes relative to both mandatory disclosure and no disclosure by balancing information benefits against adoption incentives. While information regulation alone cannot achieve the first-best, pairing full disclosure with green subsidies can. We explore implications for adoption of abatement technologies and hedging with climate derivatives.
Competition and Collusion Among Strategic Traders Who Face Uncertainty (with Snehal Banerjee and George Malikov)
Presentations: University of Western Ontario*, University of Michigan*, the 7th Future of Financial Information Conference*, the Third UIC Finance Conference*, the AFA 2026 Annual Meeting*, the Vienna Festival of Finance Theory 2026*, and the 53rd EFA Annual Meeting*
Conventional wisdom suggests that informed investors benefit from trading monopolistically. We show this can fail when investors face uncertainty about liquidity. In a Kyle (1985) framework, we compare profits under monopolistic and competitive equilibria when investors face uncertainty about liquidity trading volatility. While low uncertainty favors coordination, sufficiently high uncertainty reverses this: an individual investor's competitive profits can exceed total monopolistic profits. Endogenizing the collusion decision generates novel predictions: small increases in liquidity uncertainty can cause discrete jumps in trading volume, price volatility, and price informativeness.
Selected Work in Progress
Market Fragmentation and Price Informativeness (with Zhengge Zhou)
Presentations: the BAR Inaugural Global Conference; the 2024 FMA Annual Meeting, the 2025 AFA Annual Meeting (poster)
Green Bonds: Bridging Managerial Incentives and Environmental Goals (with Natasha Boreyko)