The Washington Post Cites Eller Finance Professors on Stock Market and COVID-19
April 27, 2020
Scott Cederburg and Alice Bonaime, both associate professors of finance at the University of Arizona’s Eller College of Management, were cited in an April 22 Washington Post article on the stock market’s ‘fear gauge,’ also known as the VIX index, and how it affects price movements.
The article discusses the recent erratic price swings of the stock market due to the COVID-19 outbreak. According to Cederburg, “The VIX index was still quite low in mid-February before the market began to crash. The volatility spike came out of nowhere relative to investor expectations.”
Additionally, Bonaime describes her theory of why stocks are becoming so unstable in recent times, explaining that, “faced with a need to conserve cash, many companies have delayed or eliminated stock buybacks and, in some cases, dividends.”
Scott Cederburg joined the Eller College of Management in 2011 after earning his PhD in Business Administration (Finance) from the University of Iowa in 2011. Cederburg’s research interests include asset pricing, cross-sectional anomalies, long-run risk and asset allocation.
Alice Bonaime joined the Eller College of Management in 2015, after teaching at the University of Kentucky. Her research is focused on empirical corporate finance, payout policy, insider trading and mergers and acquisitions.