Séminaires de recherche

Performance Isn’t Everything: Personal Characteristics and Career Outcomes of Mutual Fund Managers


Intervenant : Anna Scherbina
UC Davis

8 juin 2017 - De 14h00 à 15h15


We find that mutual fund managers’ career outcomes are largely determined by past performance, measured by returns and fund flows. However, managers’ personal attributes also factor in. All else equal, female managers are less likely to be promoted and have shorter tenures than male fund managers. This finding largely applies to women who co-manage funds with other managers, which suggests that working in teams negatively affects women’s careers compared to men’s. Restricting the sample of managers to those that co-manage the same fund and have identical track records, we provide further evidence that female managers are significantly more likely to leave the job than male managers. After controlling for workload and performance, we show that young managers are more likely to be promoted and less likely to be demoted or fired than their older peers.

The Role of Prepayment Penalties in Mortgage Loans


Intervenant : Alessandro Gavazza
LSE - The London School of Economics

30 mai 2017 - T004 - De 14h00 à 15h15

We study the effect of mortgage prepayment penalties on borrowers’ prepayments and delinquencies by exploiting a 2007 reform in Italy that reduced penalties on outstanding mortgages and banned penalties on newly-issued mortgages. Using a unique dataset of mortgages issued by a large Italian lender, we provide evidence that: 1) before the reform, mortgages issued to riskier borrowers included larger penalties; 2) higher prepayment penalties decreased borrowers’ prepayments; and 3) higher prepayment penalties did not affect borrowers’ delinquencies. Moreover, we find suggestive evidence that prepayment penalties affected mortgage pricing, as well as prepayments and delinquencies through borrowers’ mortgage selection at origination, most notably for riskier borrowers.

Stakeholder Orientation and the Cost of Debt: Evidence from a Natural Experiment


Intervenant : Kai Li
The University of British Columbia

18 mai 2017 - T025 - De 14h00 à 15h15

We examine the causal effect of stakeholder orientation on firms’ costs of debt. Our test exploits the staggered adoption of state-level constituency statutes, which allow directors to consider stakeholders’ interests when making business decisions. We find a significant drop in loan spreads for firms incorporated in states that adopted such statutes relative to firms incorporated elsewhere, and the effect is stronger when stakeholders’ interests are more likely to be ignored.
Our results are consistent with the view that incorporating stakeholders’ interests into corporate decision-making mitigates uncertainties in dealing with creditors, employees, customers, and suppliers, and thus lowering cost of debt.

Capital Inflows and Equity Issuance Activity


Intervenant : Mauricio Larrain
Columbia Business School

11 mai 2017 - T004 - De 14h00 à 15h15

We use issuance-level data to study the relation between equity capital inflows and the issuance of equity by emerging market firms. We start by showing that equity inflows are associated with higher values of country-level equity issuance proceeds. Equity inflows and the cost of equity capital are shown to be negatively correlated, suggesting that the increase of equity proceeds is largely driven by increased foreign equity capital supply. Next, we find that capital inflows substantially increase the likelihood of raising equity and the value of equity proceeds of a subset of firms that issue large amounts of equity during our sample period. When we control for potential endogeneity of equity demand, using mutual fund flows as a supply-side instrument, our results are confirmed. Finally, we find that the impact of equity inflows on issuance is also associated with significant increases in investment and employment.

“Cross-border bank flows and systemic risk”


Intervenant : Andrew Karolyi
Johnson - Cornell University

27 avril 2017 - T004 - De 14h00 à 15h15


Using data on cross-border bank flows from 26 source countries to 128 target countries, we find that bank inflows are associated with improved financial stability and lower systemic risk in the bank systems in the target country. The flows are greater between source (target) countries with more (less) stringent de jure regulations that govern the bank systems. And the link between increased flows and eductions in marginal expected shortfall (MES) are concentrated among larger banks, those with poorer asset quality, and those that rely more on non-traditional banking activities and on more volatile sources of funds. Additional evidence suggests that bank flows help to reduce MES by improving target-country bank asset quality, efficiency, and reliance on non-traditional revenue sources. Overall, we interpret our findings as in support of a benign view of regulatory arbitrage in international bank flows.


Département Finance 

Campus HEC Paris
1, rue de la Libération
78351 Jouy-en-Josas cedex


Blaise ALLAZ


Voir le CV

4th Annual HEC Paris Workshop Preliminary Program “Banking, Finance, Macroeconomics and the Real Economy”