The Karolyi Dynasty and the Corruption of Academic Finance

''Are you proposing that the editor retracts the paper of his son? What's the point then of being the editor?''

Fourteen years ago, Cornell finance professor Andrew Karolyi was appointed executive editor of the Review of Financial Studies—one of the three most powerful journals in the world for academic finance.

At the time, a lone commenter on EJMR accused him of being “corrupt to the bone” and ‘‘publishing his buddies.’’