Finance

Finance

September 22nd, 2021

“The World is Watching El Salvador’s Bitcoin Experiment”

On September 7, El Salvador became the world’s first nation to make the cryptocurrency bitcoin legal tender across the country. This bold initiative from the tiny Central American state is dissected by HEC Paris Professor in Finance Bruno Biais, who has written several top research papers on cryptocurrency.

Finance

September 08th, 2021

Jean-Noël Barrot: Building Bridges between Research and Politics

Jean-Noël Barrot is an associate professor at HEC Paris and member of parliament for Yvelines in France’s National Assembly, combining his political work with his research in finance. On June 29, he submitted a report to the government in which he detailed proposals to help France recover from the COVID-19 pandemic. In this interview, Jean-Noël Barrot explains how he manages to combine his research and his role in parliament in an effective way.

Associate Professor

Finance

August 26th, 2021

Why Do We Share Our Personal Data? The Privacy Paradox Explained

The business model of many tech companies is based on collecting and using data about their customers. Google and Facebook generate revenues by selling targeted ads tailored to users' personal information. Amazon shows you the product they forecast you will buy. Tesla collects data on drivers' behavior and is said to plan using these data to enter into the insurance business. Google has just acquired smartwatch producer Fitbit, which collects data about users' health. The list goes on and on. So why most of us still widely share our personal data, even when we claim to be worried by the lack of online privacy?

Associate Professor

Finance

July 08th, 2021

5 minutes

Professor Bruno Biais on Cryptocurrencies' Challenges

What is a cryptocurrency? And what are the stakes of maintaining its stability? What role does it play in Economics and politics? In this interview, Bruno Biais, HEC Paris Professor of Finance and expert of cryptocurrencies, explains.

Finance

July 01st, 2021

8 minutes

Real Effects of Dividend Taxes: A Natural Experiment From Switzerland

Any tax inexorably distorts the behaviour of economic agents, and dividend taxation is no exception to this rule. However, accurately assessing the impact of a tax reform on economic activity remains a difficult if not impossible task. Indeed, a change in tax rules affects the whole economy, and it is difficult to attribute a change in the behaviour of economic agents to the reform rather than to the evolution of the economic situation. This article reviews a change in Swiss tax policy that allowed us to precisely assess how listed companies react to a reduction in dividend taxation.

By Dušan Isakov , Christophe Pérignon , Jean-Philippe Weisskopf

dividends - adobe

Our Latest Research on D&I

Why Diversity Matters

Why diversity matters. This special number presents the latest research from HEC professors and Ph.D. students on the impact of Human Resources policies and leadership on diversity and inclusion (D&I). These often throw up stereotypes in factors of discrimination and in shaping workplaces and society. Researchers explain their key findings in D&I and offer concrete insights and recommendations to better face management and career challenges. Hence, they attempt to answer certain crucial societal issues.

June 03rd, 2021

diversity and inclusion - aleutie-AdobeStock

Finance

May 12th, 2021

Will NFTs Disrupt The Art Market?

Why do non-fungible tokens (NFTs) have the potential to disrupt the art market? This new investment phenomenon came to light when an animated GIF of Nyan Cat, which is a meme of a flying pop-tart cat, sold for more than $500,000 US Dollars. Shortly after, musician Grimes sold her digital art for more than $6 million US Dollars. HEC Paris Associate Professor of finance Christophe Spaenjers explains how NFTs work and why they have become such big news for the investment world.

Associate Professor

Finance

April 08th, 2021

5 minutes

Why Do Investors Trade on Unverified Rumors?

Stock prices occasionally move in response to unverified rumors. These rumors often concern corporate takeovers and are associated with a surge in stock returns and trading activity. As CNBC stock expert Herb Greenberg succinctly observed: “Takeover rumors have always been part of the game of Wall Street, but there are times they fly so quickly you don't have time to consider the sources.” Why do investors trade based on unverified rumors?

By Daniel Schmidt

stock market - adobe

Finance

March 05th, 2021

Real Estate Returns Are Lower Than You Think

National trends for housing data over the last decades seem to indicate that housing prices climb steadily. Even during the pandemic, certain real estate markets are showing record prices. Yet a new study, with unusual access to minute detail, indicates that over the long term, real estate as an investment is decidedly lukewarm.

By Christophe Spaenjers

houses in London - adobe stock - vignette

Finance

February 24th, 2021

5 minutes

GameStop: Hedge Funds vs Amateur Traders?

Is the GameStop Affair a collective action revolting against major hedge funds, or is it just another form of speculation by amateur investors also aiming to become rich? In the course of one week, GameStop’s stock value had catapulted to an impressive 1600% rise from its previous value. This situation had Wall Street trembling, and had hedge funds and individual investors at attention. As GameStop’s stock value continues to fluctuate towards a lower price, its initial steep climb up raises questions on stock market behavior, the actions of hedge fund investors, and the trading technique of short selling. HEC Paris professor of Finance Johan Hombert explains the mechanics behind the GameStop affair and Robinhood trading application.

Associate Professor