Photo of Bakke, Tor-Erik

Tor-Erik Bakke, PhD

Associate Professor

Department of Finance

Contact

Building & Room:

UH 2111

Address:

601 S. Morgan St., Chicago, IL 60607

About

Tor-Erik Bakke is Associate Professor of Finance (with tenure) in the College of Business Administration at the University of Illinois Chicago (UIC), where he has taught since 2017. His research focuses on corporate finance and governance, with particular expertise in executive compensation, corporate risk management, investment decisions, and the real effects of financial markets and regulation.
Professor Bakke's work has appeared in leading journals including the Journal of Finance, Journal of Financial Economics, Review of Financial Studies, and Journal of Financial and Quantitative Analysis. His research has influenced SEC rulemaking on executive compensation clawbacks and has been featured in The Wall Street Journal, the Harvard Law School Forum on Corporate Governance, and the Oxford Business Law Blog. He holds a Ph.D. in Finance from the University of Wisconsin-Madison and previously served on the faculty at the University of Oklahoma (2009–2017).

Selected Publications

  • Does Independent Advice to The Board Affect CEO Compensation?, (with Hamed Mahmudi), 2021, Journal of Financial and Quantitative Analysis, 56(2) 693-744.
  • Performance Peer Groups in CEO Compensation Contracts (with Hamed Mahmudi and Ashley Newton), 2020, Financial Management, 49(4) 997-1027.
  • ​”Diversification and Cash Dynamics” (with Tiantian Gu), 2017, Journal of Financial Economics 3, 580-601.
  • “The Causal Effect of Option Pay on Corporate Risk Management” (with Hamed Mahmudi, Chitru Fernando and Jesus Salas), 2016,  Journal of Financial Economics 120, 623-643.
  • “The Real Effects of Market Liquidity: Causal Evidence from Delisting” (with Toni Whited and Candace Jens), 2013, Finance Research Letters 9, 183-193.
  • “Threshold Events and Identification: A Study of Cash Shortfalls” (with Toni Whited), 2012, Journal of Finance 25, 1286-1329.

Notable Honors

2016, Teaching Award, Finance Research Letters ("The Real Effects of Market Liquidity") Merrick Foundation

2016, Teaching Award, Merrick Foundation

2015, Master Teacher Award, Houston and Mary Jo Johnson

2012, Best Paper, Ross Prize

2007, Stephen L. Hawk Fellowship, University of Wisconsin-Madison

Education

PhD Finance- University of Wisconsin-Madison

BA Mathematics- University of Oslo

BA Finance and Real Estate- University of Wisconsin-Madison

Licensures and Certifications

Ph.D., Finance, University of Wisconsin-Madison, 2009
B.A., Mathematics, University of Oslo, 2003
B.A., Finance and Real Estate, University of Wisconsin-Madison, 2001