On Black’s Leverage Effect in Firms with No Leverage

is assistant professor of finance at Babson College in Wellesley, MA

is Charles E. and Susan T. Harris professor at the MIT Sloan School of Management, director of the MIT Laboratory for Financial Engineering, a principal investigator at the MIT Computer Science and Artificial Intelligence Laboratory, and an affiliated faculty member of the MIT Department of Electrical Engineering and Computer Science in Cambridge, MA, and an external faculty member at the Santa Fe Institute in Santa Fe, NM