Professor Margarita Tsoutsoura, PhD

Current Position

since 1/23

Research Fellow Department of Laws, Regulations and Factor Markets

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 1/22

Associate Professor of Finance

Washington University

Research Interests

  • corporate finance
  • entrepreneurship
  • innovation

Margarita Tsoutsoura joined the Department of Laws, Regulations and Factor Markets as a Research Fellow in April 2023. Her research focuses on corporate finance, entrepreneurship, and innovation.

Margarita Tsoutsoura is Associate Professor of Finance at Olin Business School, at the Washington University in St. Louis. She is also Research Associate at the National Bureau of Economic Research, Research Fellow at CEPR and Research Member at ECGI.

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Professor Margarita Tsoutsoura, PhD
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The Labor Effects of Judicial Bias in Bankruptcy

Aloisio Araujo Rafael Ferreira Spyridon Lagaras Flavio Moraes Jacopo Ponticelli Margarita Tsoutsoura

in: Journal of Financial Economics, No. 2, 2023


We study the effect of judicial bias favoring firm continuation in bankruptcy on the labor market outcomes of employees by exploiting the random assignment of cases across courts in the State of São Paulo in Brazil. Employees of firms assigned to courts that favor firm continuation are more likely to stay with their employer, but they earn, on average, lower wages three to five years after bankruptcy. We discuss several potential mechanisms that can rationalize this result, and provide evidence that imperfect information about outside options in the local labor market and adjustment costs associated with job change play an important role.

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Political Ideology and International Capital Allocation

Elisabeth Kempf Mancy Luo Larissa Schäfer Margarita Tsoutsoura

in: Journal of Financial Economics, No. 2, 2023


Does investors’ political ideology shape international capital allocation? We provide evidence from two settings—syndicated corporate loans and equity mutual funds—to show ideological alignment with foreign governments affects the cross-border capital allocation by U.S. institutional investors. Ideological alignment on both economic and social issues plays a role. Our empirical strategy ensures direct economic effects of foreign elections or government ties between countries are not driving the result. Ideological distance between countries also explains variation in bilateral investment. Combined, our findings imply ideological alignment is an important, omitted factor in models of international capital allocation.

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Do Firms Respond to Gender Pay Gap Transparency?

Morten Bennedsen Elena Simintzi Margarita Tsoutsoura Daniel Wolfenzon

in: Journal of Finance, No. 4, 2022


We examine the effect of pay transparency on the gender pay gap and firm outcomes. Using a 2006 legislation change in Denmark that requires firms to provide gender-disaggregated wage statistics, detailed employee-employer administrative data, and difference-in-differences and difference-in-discontinuities designs, we find that the law reduces the gender pay gap, primarily by slowing wage growth for male employees. The gender pay gap declines by 2 percentage points, or 13% relative to the prelegislation mean. Despite the reduction of the overall wage bill, the wage transparency mandate does not affect firm profitability, likely because of the offsetting effect of reduced firm productivity.

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