Simona Risteska
I am an Assistant Professor of Finance at Warwick Business School. My research is in empirical finance, with interests in information frictions, belief formation, institutional investment, and housing markets.
I study how disclosure, behavioural distortions, and mechanical trading rules shape prices and real decisions. My recent work examines transaction-price disclosure in housing markets, the market capacity of mechanical rebalancing strategies, belief-driven overcrowding among institutional investors, and the role of first impressions in generating disagreement among mutual fund managers.
Selected Research
Transaction-Price Disclosure and Information Multipliers in Illiquid Markets
Using predetermined public release dates in the UK housing market, I show that disclosure can amplify rather than simply reveal information by causing the same price innovation to be repeatedly embedded in later valuations.
How Big Can Mechanical Rebalancing Get?
We derive an implementable capacity test for mechanical rebalancing strategies and show that volatility-controlled products can become vulnerable to manipulation at surprisingly small scale.
Biased Beliefs and Institutional Overcrowding
In leveraged loan markets, institutional overcrowding is driven by incorrect beliefs about peers’ actions rather than only by fundamentals or investor spillovers.
First Impressions and the Origins of Disagreement: Evidence from the Mutual Fund Industry
We show that mutual fund managers’ beliefs are anchored to their first experiences with a stock, generating non-fundamental disagreement that shapes trading, volatility, and expected returns.
For a full list of papers and projects, see the Research page.