Research seminars

Team Stability and Performance: Evidence from Private Equity


Speaker: Francesca Cornelli
London Business School

16 November 2017 - T004 - From 2:00 pm to 3:15 pm


We examine the relation between team turnover and firm performance
studying the private equity industry. Using a unique data set that tracks over
time teams in 138 PE managers and their performance, we uncover a positive
relation between turnover and fund performance. We propose and confirm in
the data two channels that explain our findings: i) in the short-run, performance
improves when bad performers are fired, ii) in the long-run, turnover
helps teams to adapt and replenish their skills in response to shifting external
demand. Our findings suggest that frictions coming from informational
asymmetries may deter optimal turnover. These findings are surprising given
the common belief among PE investors that team stability is key to long-term


Speaker: Sabrina Howell
NYU Stern School of Business

9 November 2017 - T017 - From 11:00 am to 12:15 pm

Finance in a Time of Disruptive Growth


Speaker: Nicolae Garleanu
Berkeley Haas School of Business

21 September 2017 - From 11:00 am to 12:15 pm

Expected Stock Returns and the Correlation Risk Premium


Speaker: Grigory Vilkov
Frankfurt School of Finance & Management

14 September 2017 - T017 - From 2:00 pm to 3:15 pm


In a general equilibrium model with stochastic variance and correlation, we decompose the equity risk premium into compensations for variance, correlation and consumption risks. Based on this decomposition, we develop and test a new methodology for out-of-sample forecasts of the market excess return. Estimating contemporaneous variance and correlation betas from the joint dynamics of option-implied variables and index returns, we find significant out-of-sample R2’s of 10.4% and 7.0% for 3- and 12-months forecast horizons, respectively. While the predictability
of the variance risk premium is strongest at the intermediate (quarterly) horizon, the correlation risk premium dominates at longer horizons. In line with a risk-based explanation for the existence of a correlation risk premium, we document that expected correlation predicts future diversification risks.

What Prevents Female Executives from Reaching the Top?


Speaker: Matti Keloharju
Aalto University

7 September 2017 - T004 - From 2:00 pm to 3:15 pm


Exceptionally rich data from Sweden makes it possible to study the gender gap in executives’ career progression and to investigate its causes. In their forties, female executives are about one-half as likely to be large-company CEOs and about one-third less likely to be high earners than male executives. Abilities, skills, and education likely do not explain these gaps because female executives appear better qualified than males. Instead, slow career progression in the five years after the first childbirth explains most of the female disadvantage. During this period, female executives work on average shorter hours than male executives and are more often absent from work. These results suggest that aspiring women may not reach the executive site without trading off family life.