Gustavo Grullon

Jesse H. Jones Professor of Finance

Gustavo Grullon is Professor of Finance at the Jesse H. Jones Graduate School of Business at Rice University. He received his B.B.A. in finance and economics from the University of Puerto Rico in 1991 and his Ph.D. in finance from Cornell University in 1998. He has been a faculty member at the Jones School since 1998. He currently teaches a course on mergers and acquisitions and a course on corporate financial policy in the MBA program and a corporate finance course in the Ph.D. program. Prof. Grullon’s research covers a wide range of topics in empirical corporate finance, such as how firms determine their investment, financing, and payout policies. His research also provides rational explanations to several documented anomalies in the asset-pricing literature, such as the closed-end fund discount, the tendency of investors to buy familiar stocks, the drastic increase in idiosyncratic risk during the internet boom, and the effect of managerial flexibility on firm value. His research has been published in the Journal of Finance, the Review of Financial Studies, the Journal of Financial Economics, the Journal of Business, the Journal of Financial and Quantitative Analysis, and the Journal of Financial Intermediation. His research has been featured in the Financial Times, the New York Times, the Washington Post, and the Wall Street Journal. He received the Jones School’s Award for Scholarship Excellence in 2006.

To read more about Prof. Grullon‘s work, please visit Rice Business Wisdom.

Teaching Interests:

  • Corporate financing
  • Mergers and acquisitions

Research Interests:

  • Empirical Corporate Finance
  • Empirical Asset Pricing
  • Corporate payout policy
  • Corporate financing policy
  • Corporate investment policy
  • Mergers and acquisitions
  • Market efficiency


Working Paper
Grullon, G., Hund, J., & Weston, J. (2013). A Granular Analysis of Corporate Investment. doi:10.2139/ssrn.2305349

Grullon. “Comments on “The Effects of Taxes on Market Responses to Dividend Announcements and Payments: What Can We Learn from the 2003 Dividend Tax Cut?”” Cambridge University Press

Working Paper
Chhaochharia, V., Grinstein, Y., Grullon, G., & Michaely, R. (Working Paper, 2015). Product Market Competition and Internal Governance: Evidence from the Sarbanes Oxley Act. Management Science.

Working Paper
Grullon, G., Kanatas, G., & Weston, J. (Working Paper, 2009). Religion, Ethics, and Corporate Behavior.

Working Paper
Grullon, G., Michenaud, S., & Weston, J. (2015). The Real Effects of Short-Selling Constraints. The Review Financial Studies, 28 (6), 1737-1767. doi:10.1093/rfs/hhv013

Working Paper
Grullon, G. & Michaely, R. (Working Paper, 2014). The Role of Product Market Competition on Firms’ Payout Policy.

Journal Article
Grullon, G., Underwood, S., & Weston, J.P. (2014). Comovement and investment banking networks. Journal of Financial Economoics, 113(1), 79-89. doi:10.1016/j.jfineco.2014.02.010.

Journal Article
Grullon, G., Lyandres, E., & Zhdanov, A. (2012). Real options, volatility, and stock returns. Journal of Finance, 67(4), 1499-1537. doi:10.1111/j.1540-6261.2012.01754

Journal Article
Grullon, G., Paye, B., Underwood, S., & Weston, J. P. (2011). Has the propensity to pay out declined? Journal of Financial and Quantitative Analysis, 46(1), 1-24. doi:10.1017/S0022109010000633

Journal Article
Fink, J., Fink, K. E., Grullon, G., & Weston, J. P. (2010). What drove the increase in idiosyncratic volatility during the internet boom? Journal of Financial and Quantitative Analysis, 45(5), 1253-1278. doi:10.1017/S0022109010000487