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Working papers
Working papers
The Value of Pricing Power When Investors Benchmark to Headline Inflation
(with Alexander F. Wagner)
We study equity valuation when investors benchmark firms against headline inflation although pass-through varies across firms. In standard valuation, inflation is valueneutral even with heterogeneous pass-through if investors use firm-specific inflation. Benchmarking to headline inflation conflates nominal cash-flow growth with real performance and shifts discount rates at inflation announcements. Pricing power shapes both channels by enabling greater pass-through and reducing perceived inflation exposure. Empirically, higher-pricing-power firms exhibit smaller stock-price declines and smaller cost-of-capital increases following inflation surprises. The April 2025 tariff announcement yields similar pricing-power-based return differences. These results offer new insights into inflation's implications for asset pricing and valuation.
Conferences and Seminars (* scheduled): 2nd Lake District Workshop in Corporate Finance 2025, Tri-City Bridge Workshop on Empirical Research in Finance 2025, AFA Annual Meeting 2025 (Poster Session), BBLS Seminar at the University of Zurich Fall 2024, SFI Research Days 2024.
Work in progress
Work in progress
Learning from Stock Prices: Evidence from Product Markets
(single-authored)
Financial markets aggregate dispersed information, and prior research shows that managers incorporate market signals into investment decisions. Yet what managers learn from financial markets remains an open question. I study whether managers learn about future product demand and incorporate this information into pricing decisions. I match stock-market data for publicly listed firms to Nielsen product-level data and construct novel firm-product-level measures of product prices and quantities sold. I find that stock-market signals add predictive power for future quantities beyond information contained in firms’ recent product-market outcomes. I then examine whether firms incorporate this demand-relevant market information into product prices.
Link to paper coming soon
Conferences and Seminars (* scheduled): BBLS University of Zurich Fall 2026*, BBLS University of Zurich Spring 2026.
Subsidy Pass-Through in EV Financing
(with Winta Beyene and Philipp Klein)
Conferences and Seminars (* scheduled): SFI Research Days 2025, BBLS University of Zurich Spring 2025.
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