Fenghua Song

Associate Professor of Finance , Mary Kathryn Walker Fellow
Department: Finance
Office: 312 Business Building
Phone: 814-863-4905
Fax: 814-865-3362
E-mail: song@psu.edu
Member of Faculty Since: 2007


Fenghua Song is an Associate Professor of Fi nance at Smeal College of Business, Pennsylvania State University, where he teaches financial management (undergraduate) and corporate fi nance (PhD). He received his PhD from Washington University in St. Louis, MSc from National University of Singapore, and BSE from Tsinghua University. His research interests include banking and financial crises, executive compensation and corporate governance, and corporate finance. His research has appeared in The Economic Journal, Journal of Finance, Review of Financial Studies, Journal of Financial Intermediation, Journal of Financial and Quantitative AnalysisWorld Bank Economic Review, and Journal of Risk, and has also been covered in VoxEU, World Bank Chief Economist's Blog, and Harvard Law School Forum on Corporate Governance and Financial Regulation. Besides research, Fenghua enjoys music, movies, nature, and spending time with his family.

Current Research

Banking and Financial Crises, Executive Compensation and Corporate Governance, Corporate Finance


Corporate Finance and Banking

Publication List

A.M. Goel, F. Song, and A.V. Thakor, "Correlated leverage and its ramifications", Journal of Financial Intermediation, 2014, 23(4), pp. 471-503.

R. Gopalan, F. Song, and V. Yerramilli, "Debt maturity structure and credit quality", Journal of Financial and Quantitative Analysis, 2014, 49(4), pp. 817-842.

R. Gopalan, T. Milbourn, F. Song, and A.V. Thakor, "Duration of executive compensation", Journal of Finance, 2014, 69(6), pp. 2777-2817.

F. Song, and A.V. Thakor, "Notes on financial system development and political intervention", World Bank Economic Review, 2013, 27(3), pp. 491-513.

R. Gopalan, T. Milbourn, and F. Song, "Strategic flexibility and the optimality of pay for sector performance", Review of Financial Studies, 2010, 23(5), pp. 2060-98.

F. Song, and A.V. Thakor, "Financial system architecture and the co-evolution of banks and capital markets", The Economic Journal, 2010, 120(547), pp. 1021-55.

F. Song, and A.V. Thakor, "Relationship banking, fragility, and the asset-liability matching problem", Review of Financial Studies, 2007, 20(6), pp. 2129-77.

F. Song, and A.V. Thakor, "Information control, career concerns, and corporate governance", Journal of Finance, 2006, 61(4), pp. 1845-96.

K.G. Lim, F. Song, and M. Warachka, "The effect of taxes on the pricing of defaultable debt", Journal of Risk, 2003, 6(2), pp. 1-29.

Media Mention

Banks and capital markets as a co-evolving financial system,  VoxEU

The optimal duration of executive compensation,  Harvard Law School Forum on Corporate Governance and Financial Regulation

Strategic flexibility and the optimality of pay for sector performance,  Harvard Law School Forum on Corporate Governance and Financial Regulation

Political intervention in financial system development: its nature, causes, and consequences,  Let's Talk Development (hosted by World Bank's Chief Economist)


FIN 305W, Financial management of the business enterprise

FIN 597B, Corporate finance (PhD)