Finance

Our Latest Research on D&I

Why Diversity Matters

This special number of “In-Depth” 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

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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

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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

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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

Finance

February 01st, 2021

5 minutes

Midas Case Study: How to Enter the Brazilian Automotive Aftermarket?

Denis Gromb, Antin I.P. Chair Professor of Finance at HEC Paris, and HEC Paris EMBA graduate François Sauvageot present their business case study “Midas in Brazil”. Midas is a global chain of auto repair and maintenance centers, and the case connects several key themes such as franchising, the automotive aftermarket, valuation and joint ventures in a country renowned for its challenging business environment.

Antin I.P. Professor

Finance

December 15th, 2020

10 minutes

Nobel Prize in Economics: What Impact on Research and Society?

The 2020 Nobel Prize in Economics recognized Paul Milgrom and Robert Wilson of Stanford University for their research on auctions. In this interview, Jean-Edouard Colliard, Associate Professor of Finance at HEC Paris and author of "Les Prix Nobel d’Economie", explains their research, and its role in the economy, society, and the perception of economists.

Associate Professor

Finance

December 15th, 2020

How Activist Short Sellers Police Financial Markets

New research analyzes how activist short sellers’ “research reports” convince investors that the companies they target are overvalued. Professors Luc Paugam and Hervé Stolowy of HEC Paris and Yves Gendron of the Université Laval found that the share price of companies targeted by major activist short sellers drop by 11.2%, on average, over three days. Target firms are also more likely to be subsequently delisted, suspended from stock exchanges, or to go bankrupt. Who are activist short sellers and how do they police financial markets?

By Luc Paugam , Hervé Stolowy

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Finance

December 14th, 2020

6 minutes

Should the EU Issue Perpetual Bonds?

The idea of issuing perpetual debt to combat the Covid crisis has recently been floated by prominent public figures such as hedge fund manager George Soros (The EU Should Issue Perpetual Bonds), economist Luis Garicano and former Belgian Prime Minister Guy Verhofstadt (Toward a European Reconstruction Fund). A perpetual bond is a bond that pays an annual coupon forever and whose principal is never repaid. Conceptually, a perpetual bond is a coupon-paying bond with an infinite maturity.

Associate Professor

Finance

December 09th, 2020

7 minutes

“A $%^* Sexist Program”: Detecting and Addressing AI Bias

A major issue facing companies that use AI, algorithmic bias can perpetuate social inequalities — as well as pose legal and reputational risks to the companies in question. New research at HEC Paris offers a statistical method of tracking down and eliminating unfairness.

By Christophe Pérignon

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