Young Soo Jang
Assistant Professor in Finance
Young Soo Jang is an Assistant Professor of Finance at Penn State University. Young Soo earned his Ph.D. in Finance from the University of Chicago Booth School of Business and B.S. in Economics and Mathematics from the Massachusetts Institute of Technology. Young Soo has worked as a research assistant at the Federal Reserve Board of Governors and focuses his research on empirical corporate finance, with particular interests in corporate debt and entrepreneurial finance.Young Soo has conducted research in various parts of the private capital markets: private credit, private equity, and venture capital.
Expertise
Corporate Finance, Corporate Debt, Entrepreneurial Finance
Education
Ph. D. in Finance, University of Chicago, Booth School of Business, Chicago, IL, USA, I examine whether direct lenders, increasingly displacing banks in private equity (PE) buyouts, lend more like banks or arm’s-length investors. Using a novel PE buyout loan database, I find that financial covenants are ubiquitous in direct lending, with borrowers facing more covenants and violating more often than in bank loans. Direct lenders actively intervene after violations, prompting firms to adopt more conservative policies. During the COVID pandemic, direct lenders exhibited greater flexibility than banks in renegotiating out-of-court, facilitated by more equity injection from PE sponsors. Prior relationships with sponsors also lead to greater credit supply during distress. Overall, similar to banks, direct lenders engage in active monitoring and relationship lending., 2024-06-01 B.S. in Economics and Mathematics (double major), Massachusetts Institute of Technology, Cambridge, MA, USA, 2016-02-01
Courses Taught
FIN 405 – Adv Financial Mgmt
An examination of the development and application of decision rules for major long-term financial and investment problems of the firm.
Selected Publications
Block J., Jang Y., Kaplan S. N., Schulze A. "A Survey of Private Debt Funds" The Review of Corporate Finance Studies, vol. 13, 2024-05-01