When considering how households make investment decisions, Professor Egan became intrigued by the question, “What makes a bank ‘special’ when compared to other lending institutions?” Focusing on empirical industrial organization with applications to finance and banking, his research uses quantitative tools from the industrial organization literature to better understand the stability of the banking sector in the United States. Similarly, Professor Egan has studied bank value by estimating the productivity of a bank across its deposit-taking and lending activities. His research suggests that deposit productivity rather than lending productivity accounts for the bulk of bank value creation.
In addition to banks, households turn to the financial advisory industry when making investments. Professor Egan has examined the investment decisions of retail consumers in a broker-intermediated market using a new retail bond data set, finding evidence indicating that the incentives of brokers distort consumer investment decisions and often direct consumers’ search toward inferior products. He also uses a novel dataset to document the extent of misconduct in the financial services industry and the associated labor market consequences. His research shows that one of every thirteen financial advisors in the United States has a past record of misconduct, and many are guilty of concentrated, or repeated, misconduct. Men are three times more likely to engage in misconduct than women, yet in the labor force, the future career opportunities of women who engage in misconduct are jeopardized to a greater extent than those of men.
Mark L. Egan
Mark E. Kingdon Associate Professor of Business Administration
Mark E. Kingdon Associate Professor of Business Administration
Mark Egan is the Mark Kingdon Associate Professor of Business Administration in the Finance Unit, teaching Corporate Financial Operations to MBA students.
Professor Egan’s research concentrates on the intersection of corporate finance and industrial organization. His current research agenda explores how consumers access financial markets through banks and brokerage firms. His work has been cited in Bloomberg, The Financial Times, The New York Times, The Wall Street Journal, and published in the American Economic Review, Journal of Political Economy, Review of Economic Studies, Journal of Finance, Review of Financial Studies, and Journal of Financial Economics.
Professor Egan received a BA in economics from Middlebury College and a PhD in economics from the University of Chicago. Prior to beginning his doctoral studies, he worked in interest rate structuring at Barclays Capital in New York.
Finance
Mark Egan is the Mark Kingdon Associate Professor of Business Administration in the Finance Unit, teaching Corporate Financial Operations to MBA students.
Professor Egan’s research concentrates on the intersection of corporate finance and industrial organization. His current research agenda explores how consumers access financial markets through banks and brokerage firms. His work has been cited in Bloomberg, The Financial Times, The New York Times, The Wall Street Journal, and published in the American Economic Review, Journal of Political Economy, Review of Economic Studies, Journal of Finance, Review of Financial Studies, and Journal of Financial Economics.
Professor Egan received a BA in economics from Middlebury College and a PhD in economics from the University of Chicago. Prior to beginning his doctoral studies, he worked in interest rate structuring at Barclays Capital in New York.
- Journal Articles
-
- Egan, Mark, Gregor Matvos, and Amit Seru. "The Problem of Good Conduct Among Financial Advisers." Journal of Economic Perspectives 38, no. 4 (Fall 2024): 193–210. View Details
- Egan, Mark, Shan Ge, and Johnny Tang. "Conflicting Interests and the Effect of Fiduciary Duty: Evidence from Variable Annuities." Review of Financial Studies 35, no. 12 (December 2022): 5334–5386. View Details
- Desai, Mihir, Mark Egan, and Scott Mayfield. "A Better Way to Assess Managerial Performance." Harvard Business Review 100, no. 2 (March–April 2022): 134–141. View Details
- Egan, Mark, Alexander J. MacKay, and Hanbin Yang. "Recovering Investor Expectations from Demand for Index Funds." Review of Economic Studies 89, no. 5 (October 2022): 2559–2599. View Details
- Di Maggio, Marco, Mark Egan, and Francesco Franzoni. "The Value of Intermediation in the Stock Market." Journal of Financial Economics 145, no. 2A (August 2022): 208–233. View Details
- Egan, Mark, Stefan Lewellen, and Adi Sunderam. "The Cross Section of Bank Value." Review of Financial Studies 35, no. 5 (May 2022): 2101–2143. View Details
- Egan, Mark, Gregor Matvos, and Amit Seru. "When Harry Fired Sally: The Double Standard in Punishing Misconduct." Journal of Political Economy 130, no. 5 (May 2022): 1184–1248. View Details
- Egan, Mark. "Brokers vs. Retail Investors: Conflicting Interests and Dominated Products." Journal of Finance 74, no. 3 (June 2019): 1217–1260. View Details
- Egan, Mark, Gregor Matvos, and Amit Seru. "The Market for Financial Adviser Misconduct." Journal of Political Economy 127, no. 1 (February 2019): 233–295. View Details
- Egan, Mark, Ali Hortaçsu, and Gregor Matvos. "Deposit Competition and Financial Fragility: Evidence from the U.S. Banking Sector." American Economic Review 107, no. 1 (January 2017): 169–216. View Details
- Working Papers
-
- Brown, Zach Y., Mark Egan, Jihye Jeon, Chuqing Jin, and Alex A. Wu. "Why Do Index Funds Have Market Power? Quantifying Frictions in the Index Fund Market." Harvard Business School Working Paper, No. 24-019, October 2023. (NBER Working Paper Series, No. 31778, October 2023.) View Details
- Baker, Malcolm, Mark Egan, and Suproteem K. Sarkar. "How Do Investors Value ESG?" NBER Working Paper Series, No. 30708, December 2022. (Harvard Business School Working Paper, No. 23-028, November 2022.) View Details
- Egan, Mark, Alexander MacKay, and Hanbin Yang. "What Drives Variation in Investor Portfolios? Estimating the Roles of Beliefs and Risk Preferences." Harvard Business School Working Paper, No. 22-044, December 2021. (Revisions Requested at the Review of Financial Studies. Revised April 2024. Direct download. NBER Working Paper Series, No. 29604, December 2021) View Details
- Egan, Mark, Gregor Matvos, and Amit Seru. "Arbitration with Uninformed Consumers." Harvard Business School Working Paper, No. 19-046, October 2018. (Revise and Resubmit at the Review of Economic Studies. Revised May 2020. NBER Working Paper Series, No. 25150, October 2018) View Details
- Egan, Mark, and Tomas J. Philipson. "International Health Economics." NBER Working Paper Series, No. 19280, August 2013. View Details
- Egan, Mark, and Tomas J. Philipson. "Non-Adherence in Health Care: A Positive and Normative Analysis." NBER Working Paper Series, No. 20330, July 2014. (Previously titled, "Health Care Adherence and Personalized Medicine.") View Details
- Egan, Mark, Casey B. Mulligan, and Tomas J. Philipson. "Adjusting National Accounting for Health: Is the Business Cycle Countercyclical?" NBER Working Paper Series, No. 19058, May 2013. View Details
- Cases and Teaching Materials
-
- Egan, Mark. "Navigating the Future: Managing Financial Forecasts." Harvard Business School Module Note 224-075, March 2024. View Details
- Egan, Mark, and C. Fritz Foley. "AB InBev: Brewing Up Forecasts during COVID-19." Harvard Business School Teaching Note 224-074, February 2024. View Details
- Egan, Mark. "Accelerating with Caution: Forecasting and Managing birddogs' Growth (A) and (B)." Harvard Business School Teaching Note 224-071, February 2024. View Details
- Egan, Mark. "Data-Driven Denim: Financial Forecasting at Levi Strauss." Harvard Business School Teaching Note 224-073, February 2024. View Details
- Egan, Mark. "Forecasting Climate Risks: Aviva's Climate Calculus." Harvard Business School Teaching Note 224-072, February 2024. (Revised October 2024.) View Details
- Egan, Mark. "Data-Driven Denim: Financial Forecasting at Levi Strauss." Harvard Business School Case 224-029, January 2024. (Revised February 2024.) View Details
- Egan, Mark, C. Fritz Foley, Esel Cekin, and Emilie Billaud. "AB InBev: Brewing Up Forecasts during COVID-19." Harvard Business School Case 224-020, September 2023. (Revised January 2024.) View Details
- Egan, Mark, and Peter Tufano. "Forecasting Climate Risks: Aviva’s Climate Calculus." Harvard Business School Case 224-025, September 2023. (Revised October 2024.) View Details
- Egan, Mark. "Accelerating with Caution: Forecasting and Managing birddogs’ Growth (B)." Harvard Business School Supplement 224-024, September 2023. View Details
- Egan, Mark. "Accelerating with Caution: Forecasting and Managing birddogs' Growth." Harvard Business School Case 224-023, September 2023. (Revised February 2024.) View Details
- Egan, Mark, Billy Chan, and Ahmed Dahawy. "Launching Egypt’s First Digital Banking Platform: QNB Bebasata." Harvard Business School Case 223-091, June 2023. View Details
- Egan, Mark, and Youssef Abdel Aal. "Abu Issa Holding: Navigating the Qatar Blockade." Harvard Business School Case 222-063, March 2022. View Details
- Egan, Mark. "Transformation at Citizens Bank." Harvard Business School Teaching Note 221-079, March 2021. View Details
- Egan, Mark. "Satrix: Competing in the Passive Asset Management Industry in South Africa." Harvard Business School Teaching Note 221-078, February 2021. View Details
- Egan, Mark, and E. Scott Mayfield. "Project Helios: Harvesting the Sun." Harvard Business School Teaching Note 221-072, February 2021. (Revised June 2023.) View Details
- Egan, Mark. "Highfields Capital and McDonald's." Harvard Business School Teaching Note 221-069, February 2021. View Details
- Egan, Mark, Pippa Tubman Armerding, and Dilyana Karadzhova Botha. "Satrix: Competing in the Passive Asset Management Industry in South Africa." Harvard Business School Case 221-020, August 2020. (Revised December 2020.) View Details
- Egan, Mark. "Transformation at Citizens Bank." Harvard Business School Case 220-058, February 2020. (Revised January 2021.) View Details
- Egan, Mark, and E. Scott Mayfield. "Project Helios: Harvesting the Sun." Harvard Business School Case 219-009, July 2018. (Revised August 2018.) View Details
- Research Summary
-
- Awards & Honors
-
Winner of the 2023 TIAA Paul A. Samuelson Award for Outstanding Scholarly Writing on Lifelong Financial Security for “Conflicting Interests and the Effect of Fiduciary Duty: Evidence from Variable Annuities” (The Review of Financial Studies, 2022) with Shan Ge and Johnny Tang.
- Additional Information
- In The News
-