Mehmet I. Canayaz
Assistant Professor of FinanceCarl H. Lindner College of BusinessUniversity of Cincinnati2332 Lindner Hall, Cincinnati, OH 45221513-556-8777canayami@uc.edu
Background
I am a financial economist with a D.Phil. in Financial Economics from the University of Oxford and M.A./B.A. degrees in Economics and Mathematics from New York University. My research spans corporate finance, political economy, and information economics, with a growing emphasis on the economics of artificial intelligence. My AI work examines standards, autonomous agents, and organizational design, with a focus on innovation, talent, and investment. I also study courts, procurement, trade policy, intellectual property, reputation, sentiment, and digital-asset markets.
The labels below offer a guide to the themes running through the papers; each paper carries the labels that best describe its focus.
Appointments
- 2026-present
- University of CincinnatiAssistant Professor of Finance, Carl H. Lindner College of Business
- 2017-2026
- Pennsylvania State UniversityAssistant Professor of Finance, Smeal College of Business
Published Papers
- 6.Small Business Judging JudgesCanayaz, Mehmet, and Matthew Gustafson. "Small Business Judging Judges." Management Science, forthcoming, 2026.
- 5.Macro Sentiment and Hedge Fund ReturnsCaglayan, Mustafa O., Mehmet I. Canayaz, Timothy T. Simin, and Le Zhao. "Macro Sentiment and Hedge Fund Returns." Journal of Banking & Finance 187 (2026): 107685.
- 4.Financial Consequences of the Belt and Road InitiativeCanayaz, Mehmet Ihsan. "Financial Consequences of the Belt and Road Initiative." Journal of Financial and Quantitative Analysis, 2026, 1-37.
- 3.Choose Your Battles Wisely: The Consequences of Protesting Government Procurement ContractsCanayaz, Mehmet I., Jess Cornaggia, and Kimberly Cornaggia. "Choose Your Battles Wisely: The Consequences of Protesting Government Procurement Contracts." Management Science 71(10) (2025): 8526-8548.
- 2.Country Reputation and Corporate ActivityCanayaz, Mehmet I., and Alper Darendeli. "Country Reputation and Corporate Activity." Management Science 70(3) (2023): 1483-1504.
- 1.Fake Products, Real Effects: Evidence from Special 301 ActionsCanayaz, Mehmet I., and Umit G. Gurun. "Fake Products, Real Effects: Evidence from Special 301 Actions." Journal of Financial and Quantitative Analysis 58(5) (2023): 2024-2063.
Papers Undergoing Revision
- 1.Crafting an AI Compass: The Influence of Global AI Standards on FirmsCanayaz, Mehmet, and Zhe Wang. "Crafting an AI Compass: The Influence of Global AI Standards on Firms." Working paper, 2026. Revise and resubmit, The Review of Financial Studies.
Abstract, Presentations and Media Mentions
Abstract
We examine how participation in global standard-setting for artificial intelligence shapes innovation and investment. Participating firms respond to AI standardization on different margins. Frontier firms patent more, particularly when AI committees connect them to the broader AI ecosystem rather than to same-industry peers. Firms outside the patenting frontier instead build absorptive capacity, expanding AI-oriented human capital in application, deployment, and governance roles. Our findings suggest that AI standards committees serve as channels for knowledge diffusion rather than as venues that merely codify existing technologies and extract licensing rents.
Presentations
Penn State University, University of Cincinnati, 2024 Next Generation of Antitrust, Data Privacy & Data Protection Scholars Conference, Asian Bureau of Finance and Economic Research 11th Annual Conference, 2024 Columbia & RFS AI in Finance Conference, AI & Platform Conference (Emory), 2025 SFS Cavalcade North America, 2025 AI/ML Conference (Columbia).
- 2.When Protectionism Kills TalentCanayaz, Mehmet I., Isil Erel, Umit G. Gurun, and Yufeng Wu. "When Protectionism Kills Talent." NBER Working Paper 32466, revised 2026. Revise and resubmit, The Review of Financial Studies.
Abstract, Presentations and Media Mentions
Abstract
We study how protectionist policies reshape the US chip-manufacturing workforce and talent pipeline - from prospective student interest and degree completion to skill composition and innovation capacity. We show that science and engineering employment has declined in response to protectionist measures, particularly in entry-level roles and at firms exposed to tariffs and reliant on foreign talent. Patent output fell and recruitment shifted overseas, while fewer domestic students pursued chip-related degrees, reducing the US share of global chip-manufacturing expertise. Our conceptual framework shows that a high share of foreign workers and inelastic labor supply contribute to the adverse effects of protectionist policies.
Presentations
2026 Jackson Hole Finance Group Conference, 2026 American Finance Association Meetings (Philadelphia), 2025 University of Kentucky Finance Conference, 2025 Western Finance Association Meeting, 2025 EFA Meeting, ABFER 12th Annual Conference, Labor and Finance Group Spring 2025 Conference, 2024 CSEF-RCFS Conference on Finance, Labor and Inequality*, 2024 Finance, Organizations and Markets (FOM) Conference, Second UIC Finance Conference, Midwest Finance Association 2025 Annual Meeting, University of Oregon*, Penn State University, University of Notre Dame*, University of Toronto*.
* denotes presentation by co-author.
Media
Working Papers
- 1.Signal Fragmentation in Cryptocurrency Markets: Theory and Empirical EvidenceCanayaz, Mehmet, Charles Cao, Zongbo Huang, Giang Nguyen, and Qiang Wang. "Signal Fragmentation in Cryptocurrency Markets: Theory and Empirical Evidence." Working paper, 2026.
Abstract, Presentations and Media Mentions
Abstract
We study how cryptocurrency markets process fragmented price-relevant information across media channels. We develop a cryptocurrency valuation model where social media complements traditional media through signal refinement and substitutes for it by providing unique information. Using a comprehensive dataset of 58 granular sentiment and attention measures spanning social media, news, and television coverage for 267 cryptocurrencies, we test our model's predictions. Our findings indicate that social media becomes price-informative primarily when accompanied by concurrent traditional media coverage, with stronger effects when sentiment alignment occurs across platforms. Social media, therefore, complements rather than substitutes traditional media in cryptocurrency price formation.
Presentations
2024 WFA Meeting, 2025 MFA Meeting, Penn State University*, Conference on Advances in Time Series Analysis at University of Chicago, CMU-PSU-Pitt Finance Conference*, 2023 Early Career Women in Finance Conference*, 2023 FMA Annual Meeting*, 38th Australasian Finance and Banking Conference*.
* denotes presentation by co-author.
Media
- 2.AI AgencyCanayaz, Mehmet. "AI Agency." Working paper, 2026.
Abstract, Presentations and Media Mentions
Abstract
AI agents, or autonomous digital employees, introduce a new form of agency within firms. This paper quantifies the economic trade-offs of integrating AI agents into firms' organizational structures. By analyzing AI agents' reasoning patterns, tool usage, interactions with confidential information, and inter-agent dialogues, the paper demonstrates that strategic AI workforce design and robust oversight are essential for firms to fully capture the financial benefits derived from deploying AI agents. Conversely, inadequate oversight leads to higher operational costs and greater agency risks, particularly when AI agents are equipped with more advanced technologies.
Presentations
Penn State University, 2025 CMU-PITT-PSU Finance Conference.
- 3.Trade Policy and Green Innovation: A 'Wasted' Opportunity?Canayaz, Mehmet, Jess Cornaggia, and Yuchen Li. "Trade Policy and Green Innovation: A 'Wasted' Opportunity?" Working paper, 2026.
Abstract, Presentations and Media Mentions
Abstract
This paper explores how US firms adjust their green innovation strategies in response to international trade barriers. China, formerly the largest global recipient of solid waste, enacted a permanent ban in 2018 that disrupted US firms' long-standing dependence on exporting waste. Our analysis reveals that firms affected by the ban face higher operating costs, reduced profit margins, and greater involvement in environmental-related incidents. In response, they substantially increase their R&D spending and redirect their innovation efforts toward environmentally sustainable solutions.
Presentations
Penn State University.