Raghavendra Rau

Biography

Raghavendra Rau is Sir Evelyn de Rothschild Professor of Finance at Cambridge University Judge Business School.

He is the Founder and Academic Director of the Cambridge Centre for Alternative Finance (CCAF).

He is the President of the Financial Management Association, and the Gresham Professor of Business at Gresham College.

Professor Rau is a past president of the European Finance Association and was previously Principal at Barclays Global Investors, then the largest asset manager in the world, in San Francisco.

He is an Associate Editor of the Journal of Corporate Finance.

In 2015, Professor Rau won the Ig Nobel prize in Management for a study that investigated how CEOs surviving traumatic childhood natural disasters end up with a greater appetite for risk-taking.

'Raghavendra Rau has written a witty and thoroughly accessible introduction to how financial markets work and why they may fail to deliver. Highly recommended.' - Sanjeev Goyal FBA, Fellow at Christ's College, University of Cambridge

'Professor Rau provides a concise, coherent introduction to corporate finance that should be essential reading for current and aspiring managers. The text is interjected with examples that borrow from pop culture, which are only accentuated by Professor Rau’s biting wit and quirky charm.' - Kathleen M. Kahle, University of Arizona

Education

PhD Management, INSEAD

MSc Management, INSEAD

MBA Management, IIM Bangalore

BSc Chemistry, University of Delhi

Institutions

Professor of Economics, Hofstra University (1984 - present)

Associate Professor, Université Paris XIII (2013 - 2019)

Topics

Corporate finance

Asset pricing

Information economics

Behavioral finance

Game theory

Publications

BEHAVIORAL FINANCE

• “Till death (or divorce) do us part: Early-life family disruption and investment behavior” (with A. Betzer, P. Limbach, and Henrik Schürmann), Journal of Banking and Finance 124, 106057, 2021.

• “What doesn’t kill you will only make you more risk-loving: Early life disasters and CEO behavior”, (with G. Bernile and V. Bhagwat), Journal of Finance 72 (1), 167-206, 2017.

• “Past performance may be an illusion: Performance, flows, and fees in mutual funds”, (with B. Phillips and K. Pukthuanthong), Critical Finance Review 5, 351-298, 2016.

• “Changing names with style: Mutual fund name changes and their effects on fund flows”, (with M. Cooper and H. Gulen), Journal of Finance 60 (6), 2825-2858, 2005.

• “Managerial actions in response to a market downturn: Valuation effects of name changes in the dot.com decline”, (with M. Cooper, A. Khorana, I. Osobov, and A. Patel), Journal of Corporate Finance 11 (1-2), 319-335, 2005.

• “Investor Reaction to Corporate Event Announcements: Under-reaction or Overreaction?”, (with P. Kadiyala), Journal of Business 77 (2), 357-386, 2004.

• “A Rose.com by Any Other Name”, (with M. Cooper and O. Dimitrov), Journal of Finance 56 (6), 2371-2388, 2001 (Reprinted in The Psychology of World Equity Markets, Werner De Bondt, ed., Edward Elgar Publishing, Cheltenham, UK, Volume II, 500-517). CORPORATE GOVERNANCE: COMPENSATION

• “An ill wind? Terrorist attacks and CEO compensation”, (with Y. Dai, A. Stouraitis, and W. Tan), Journal of Financial Economics 135(2), 379-398, 2020. Page 2 of 10

• “Do compensation consultants enable higher CEO pay? A disclosure rule change as a separating device”, (with J. Chu and J. Faasse), Management Science 64 (10), 4471-4965, 2018.

• “How do ex ante severance pay contracts fit into optimal executive incentive schemes?”, (with J. Xu), Journal of Accounting Research 51 (3), 631-671, 2013. CORPORATE

GOVERNANCE: EXPROPRIATION AND MISCONDUCT

• “What determines the return to bribery? Evidence from corruption cases worldwide”, (with Y. Cheung and A. Stouraitis), Management Science 67 (10), 6235-6265, 2021.

• “Does the market understand the ex ante risk of expropriation by controlling shareholders?” (with Yan-Leung Cheung, Aris Stouraitis, and Weiqiang Tan), Journal of Corporate Finance 68, 101946, 2021.

• “Why are shareholders not paid to give up their voting privileges? Unique evidence from Italy”, (with M. Bigelli and V. Mehrotra), Journal of Corporate Finance 17(5), 1619-1635, 2011.

• “Helping hand or grabbing hand? Central vs. local government shareholders in Chinese listed firms”, (with Y. Cheung, and A. Stouraitis), Review of Finance 14 (4), 669-694, 2010.

• “Buy high, sell low: How listed firms price asset transfers in related party transactions”, (with Y. Cheung, Y. Qi, and A. Stouraitis), Journal of Banking and Finance 33 (5), 914-924, 2009.

• “Tunneling and propping up: An analysis of related party transactions by Chinese listed companies”, (with Y. Cheung, L. Jing, T. Lu, and A. Stouraitis), Pacific-Basin Finance Journal 17 (3), 372-393, 2009.

• “Tunneling, propping, and expropriation: Evidence from connected party transactions in Hong Kong”, (with Y. Cheung and A. Stouraitis), Journal of Financial Economics 82 (2), 343-386, 2006.

CORPORATE FINANCE: ANALYSTS

• “Is there life after the complete loss of analyst coverage?”, (with A. Khorana and S. Mola), The Accounting Review 88 (2), 667-705, 2013.

• “Independents' day? Analyst behavior surrounding the Global Settlement”, (with J. Clarke, A. Khorana, and A. Patel), Annals of Finance 7(4) 529-547, 2011.

• “The impact of all-star analyst job changes on their coverage choices and investment banking deal flow”, (with J. Clarke, A. Khorana, and A. Patel), Journal of Financial Economics 84 (3), 713-737, 2007. CORPORATE FINANCE: FINTECH

• “Sometimes, always, never: Regulatory clarity and the development of digital financing” (with Z. Ran and T. Ziegler), Management Science, forthcoming, 2024.

• “Fintech and big tech credit: drivers of the growth of digital lending” (with G. Cornelli, J. Frost, L. Gambacorta, R. Wardrop, and T. Ziegler), Journal of Banking and Finance, 148, 106742, 2023.

CORPORATE FINANCE: MERGERS

• “Solving serial acquirer puzzles”, (with A. Macias and A. Stouraitis), Review of Corporate Finance Studies forthcoming, 2023.

• “Patterns in the timing of corporate event waves”, (with A. Stouraitis), Journal of Financial and Quantitative Analysis 46 (1), 209-246, 2011. Page 3 of 10

• “Investment Bank Market Share, Contingent Fee Payments, and the Performance of Acquiring Firms”, Journal of Financial Economics 56 (2), 293-324, 2000.

• “Glamour, Value and the Post-Acquisition Performance of Acquiring Firms”, (with T. Vermaelen), Journal of Financial Economics 49 (2), 223-253, 1998 (Reprinted in Corporate Restructuring, David J. Denis and John McConnell eds., Edward Elgar Publishing).

CORPORATE FINANCE: SOCIAL ISSUES

• “The decline of trust across the U.S. finance industry” (with P. Limbach and Henrik Schürmann), Journal of Economic Behavior and Organization 213, 324-344, 2023.

CORPORATE FINANCE: OTHER

• “Supply-chain power and the cost of debt: Evidence from uncertainty shocks” (with M. Rahaman and A. Zaman), Journal of Banking and Finance 114 (2), 2020.

• “Why do firms go public through debt instead of equity?” (with D. Glushkov, A. Khorana, and J. Zhang), Critical Finance Review 7(1), 85-110, 2018.

• “Do board interlocks increase innovation? Evidence from a corporate governance reform in India”, (with C. Helmers and M. Patnam), Journal of Banking and Finance 80, 51-70, 2017.

• “Regulation, Taxes, and Share Repurchases in the U.K.”, (with T. Vermaelen), Journal of Business 75 (2), 245-282, 2002.

MUTUAL FUNDS

• “Size doesn’t matter: Diseconomies of scale in the mutual fund industry revisited” (with B. Phillips, and K. Pukthuanthong), Journal of Banking and Finance, 88, 357-365, 2018.

• “Do hedge fund managers dynamically manage systematic risk?” (with E. Namvar, B. Phillips, and K. Pukthuanthong), Journal of Banking and Finance, 64, 1-15, 2016 (lead article).

• “Detecting superior mutual fund managers: Evidence from copycats”, (with B. Phillips and K. Pukthuanthong), Review of Asset Pricing Studies, 4(2), 286-321, 2014.

• “Good stewards, cheap talkers, or family men? The impact of mutual fund closures on fund managers, flows, fees, and performance”, (with A. Bris, H. Gulen, and P. Kadiyala), Review of Financial Studies, 20 (3), 953-982, 2007.