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Raghavendra Rau
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Raghavendra Rau

Sir Evelyn de Rothschild Professor of Finance, Cambridge Judge Business School

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 also 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.

Known For: World-Leading Cambridge University Researcher On Behavioral Finance & Financial Markets; Winner of the Ig Nobel Prize for a Study On CEO Risk Appetite.

Expertize Sought By: Investment Banks. Hedge Funds. Financial Institutions. Private Sector Enterprises. Think Tanks. Schools of Business.

Research Featured In Mass Media (Selected):

Business Insider - The Highest Paid CEOs Are The Worst For Investors - Reporting On The Journal Article Performance for Pay? The Relation Between CEO Incentive Compensation and Future Stock Price Performance.

Education
PhD Management, INSEAD · MSc Management, INSEAD · MBA Management, IIM Bangalore · BSc Chemistry, University of Delhi
Topics
Corporate finance · Asset pricing · Information economics · Behavioral finance · Game theory

In the Encyclopedia1

Books1

  • Short Introduction to Corporate Finance

Talks & video2

Selected publications51

  1. 2024• “Sometimes, always, never: Regulatory clarity and the development of digital financing” (with Z. Ran and T. Ziegler), Management Science, forthcoming, 2024.
  2. 2023• “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.
  3. 2023• “Solving serial acquirer puzzles”, (with A. Macias and A. Stouraitis), Review of Corporate Finance Studies forthcoming, 2023.
  4. 2023• “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.
  5. 2021• “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.
  6. 2021• “What determines the return to bribery? Evidence from corruption cases worldwide”, (with Y. Cheung and A. Stouraitis), Management Science 67 (10), 6235-6265, 2021.
  7. 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.
  8. 2020• “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
  9. 2020• “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.
  10. 2018• “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.
  11. 2018• “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.
  12. 2018• “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.
  13. 2017• “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.
  14. 2017• “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.
  15. 2017What doesn’t kill you will only make you more risk-loving: Early life disasters and CEO behavior”. Journal of Finance. 2017.
  16. 2016• “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.
  17. 2016• “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).
  18. 2014• “Detecting superior mutual fund managers: Evidence from copycats”, (with B. Phillips and K. Pukthuanthong), Review of Asset Pricing Studies, 4(2), 286-321, 2014.
  19. 2013• “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.
  20. 2013• “Is there life after the complete loss of analyst coverage?”, (with A. Khorana and S. Mola), The Accounting Review 88 (2), 667-705, 2013.
  21. 2013Is there life after the complete loss of analyst coverage?. The Accounting Review. 2013.
  22. 2011• “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.
  23. 2011• “Independents' day? Analyst behavior surrounding the Global Settlement”, (with J. Clarke, A. Khorana, and A. Patel), Annals of Finance 7(4) 529-547, 2011.
  24. 2011• “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
  25. 2011Patterns in the timing of corporate event waves. Journal of Financial and Quantitative Analysis. 2011.
  26. 2010• “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.
  27. 2009• “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.
  28. 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.
  29. 2007• “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.
  30. 2007• “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.
  31. 2006• “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.
  32. 2005• “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.
  33. 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.
  34. 2005Changing names with style: Mutual fund name changes and their effects on fund flows. Journal of Finance. 2005.
  35. 2005Managerial actions in response to a market downturn: Valuation effects of name changes in the dot.com decline. Journal of Corporate Finance. 2005.
  36. 2004• “Investor Reaction to Corporate Event Announcements: Under-reaction or Overreaction?”, (with P. Kadiyala), Journal of Business 77 (2), 357-386, 2004.
  37. 2004Investor Reaction to Corporate Event Announcements: Under-reaction or Overreaction?. Journal of Business. 2004.
  38. 2002• “Regulation, Taxes, and Share Repurchases in the U.K.”, (with T. Vermaelen), Journal of Business 75 (2), 245-282, 2002.
  39. 2001• “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).
  40. 2000• “Investment Bank Market Share, Contingent Fee Payments, and the Performance of Acquiring Firms”, Journal of Financial Economics 56 (2), 293-324, 2000.
  41. 2000Investment Bank Market Share, Contingent Fee Payments, and the Performance of Acquiring Firms. Journal of Financial Economics. 2000.
  42. 1998• “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).
  43. BEHAVIORAL FINANCE
  44. CORPORATE GOVERNANCE: COMPENSATION
  45. CORPORATE GOVERNANCE: EXPROPRIATION AND MISCONDUCT
  46. CORPORATE FINANCE: ANALYSTS
  47. CORPORATE FINANCE: FINTECH
  48. CORPORATE FINANCE: MERGERS
  49. CORPORATE FINANCE: SOCIAL ISSUES
  50. CORPORATE FINANCE: OTHER
  51. MUTUAL FUNDS

Positions & affiliations4

  • Professor of Economics, Hofstra University (1984 - present)
  • Associate Professor, Université Paris XIII (2013 - 2019)
  • Professor of Finance at Cambridge University Judge Business School.
  • Former Principal at Barclays Global Investors, Then The Largest Asset Manager In The World.