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Jasper Pan, PhD

I am a tenure-track Assistant Professor of Finance at The College of New Jersey. My research asks how financial markets price technological disruption and how firms adapt to it. Current work examines the effects of generative AI on corporate credit spreads and corporate investment, alongside work on measuring diversification and risk in banking. I received my PhD in Finance from Rutgers University, an MA in Economics from Vanderbilt University, and a Bachelor of Arts and Science in Applied Mathematics and Economics from the University of California, Los Angeles.

Research Interests: Corporate Finance, Financial Intermediation and Banking, Artificial Intelligence

Email: panja@tcnj.edu

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WORKING PAPERS

Equity Prices the Opportunity, Debt Prices the Risk: Generative AI and Corporate Credit Spreads

With P. Gandhi, J. Lu, A. Plazzi, and J. Wei. [SSRN]

Corporate bond spreads widen by roughly eight basis points per standard deviation of workforce exposure to generative AI after the release of ChatGPT, while equity valuations rise. A structural credit model with parameter uncertainty reconciles the opposing responses, which concentrate in credit-fragile firms.

Presentations: ISB Summer Research Conference, Eastern Finance Association Early Career Forum, Rutgers Camden.

Scheduled presentations: Wharton-Chicago-Harvard Insolvency and Restructuring Conference, FMA Emerging Scholar Initiative, Ohio State Fisher AI in Business Conference, C.r.e.d.i.t. Conference, RCF-ECGI Corporate Finance and Governance Conference.

Awaiting the Prompt? Generative AI Uncertainty and Corporate Investment

With P. Gandhi, S. Kedia, J. Lu, and J. Wei. [SSRN]

Firms with greater workforce exposure to generative AI cut investment after the release of ChatGPT, by 0.57 percentage points of lagged assets per standard deviation of exposure. The decline concentrates in physical capital and is smaller where assets are redeployable, consistent with a real-options mechanism: uncertainty raises the value of waiting under irreversibility.

Scheduled presentations: FMA, SFA.

Do Measures of Bank Diversification "Measure Up"?

With P. Gandhi and D. Palia. [SSRN]

Standard measures of bank business line diversification do not capture the diversification effect. We propose a correlation-adjusted entropy measure, validate it against the Dodd-Frank and Economic Growth Acts, and find that diversified banks are more profitable and carry lower bankruptcy, tail, and systemic risk.

Presentations: AFA Junior Faculty Mentoring Program, RCF-ECGI Corporate Finance and Governance Conference, European University Institute, Midwest Finance Association, Sydney Banking and Financial Stability Conference.

Scheduled presentations: FDIC Bank Research Conference, FMA, SFA.

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