Do Employee Shareholders Care about their Employers' ESG Performance?
The Environmental, Social and Governance (ESG) performance of companies has become an increasingly significant factor influencing investor sentiment in recent years. But does this hold for all investors? A recent study by HEC Paris Finance researchers Maxime Bonelli and François Derrien, with Marie Brière of Amundi Asset Management, Paris Dauphine University and Université Libre de Bruxelles, investigated the response of French employee shareholders to ESG performance through their personal investment behavior in their employers’ share schemes. The results show that these employees have a distinctly different response to the ESG performance of their employers: one that is focused on their personal welfare.
How Governments’ Heavy Reliance on Bank Debt Affects Firms
Noémie Pinardon-Touati, newly Assistant Professor at Columbia University and holder of a PhD in Finance from HEC Paris, investigates how governments affect the economy, with practical implications for policymakers. In this interview based on her research, she explains how the increase of local governments’ reliance on bank debt adversely affects firms, and thereby hinders growth.
Future of Finance: How Are New Technologies Reshaping the Sector?
The advent of digital technologies has created a very new and vastly different financial landscape. Today's buying and selling of securities is conducted mostly by computer programs that react within nanoseconds – faster than any human could – to the subtlest market fluctuations. In a new report published by the Centre for Economic Policy Research (CEPR), Professor of Finance Thierry Foucault comes to grips with how technologies are fundamentally changing the way banks, brokers, exchanges, and dealers do their work, and what it means for investors, for privacy and income inequalities.
How AI is Affecting VC Funding of Innovative Startups
Artificial Intelligence adoption by investors might hinder the allocation of capital to breakthrough innovations. Learn more in this interview with Maxime Bonelli, PhD student in Finance at HEC Paris, on his dissertation. Maxime focuses on the real effects of new technologies and human capital in the financial sector, to help us better understand how the industrial organization of the financial sector affects the real economy.
Activist Short Sellers vs. Financial Analysts: Competitive Claims of Expertise
The methods and aims of activist short sellers and financial analysts are often at odds. In a highly competitive environment, there is a battle for narrative authority, with short sellers often criticizing analysts. New research examines this struggle, and how — or if — analysts respond to challenges.
Ukraine/Russia: The Energy Factor
Professor of Finance and Executive Director of the Société Générale Energy & Finance Chair at HEC Paris, Jean-Michel Gauthier spoke to us on March 3, one week after Russia invaded Ukraine. Jean-Michel is a veteran of the energy business. After a start in the oil and gas industry, he moved to the energy consulting for 16 years as a partner at Deloitte. In parallel, he joined HEC Paris’ finance department in 2006. The school campus is where we discuss the dramatic events developing in Ukraine. Jean-Michel focuses on a key factor behind the conflict: the question of energy. Not just the pipelines that bring Europe 40% of its natural gas and much of its oil – but also the knock-on effects on all energy sources that prop up our global economy. He helps us understand what role energy is playing in this ongoing conflict and where these upheavals could lead the entire planet.
HEC Paris Trains Future Professors
Our PhD Students Got Talent
This special issue aims to show the excellence and diversity of the research conducted by HEC Paris PhD candidates and alumni. You will find a selection of cutting-edge findings, answering crucial questions such as: Is AI a threat to human creativity? Should we listen to the Wall Street gurus? How to better manage one’s promotion? How much do we value our private data? What are ambiguity and risk attitudes? How bad is the mere presence of a phone? HEC Paris PhD Program, headed by finance professor Johan Hombert, supports its students throughout their thesis writing and job placement in the best universities and business schools, such as the MIT, Wharton and Harvard Business School. Most PhD alumni continue to collaborate with professors at HEC, thanks to the strong relationships they have developed during their journey.
Will the Increased Use of AI in Private Equity Cause an Industry Shakeout?
A new study developed by Thomas Åstebro, Professor of Entrepreneurship at HEC Paris, finds that the number of private equity (PE) and venture capital (VC) firms using artificial intelligence has increased dramatically in the past decade. The study claims that while increasing efficiency overall, AI will also change deal-making processes and destroy junior-level jobs. This article summarizes the article, ‘An Inside Peek at AI Use in Private Equity’, published in the Journal of Financial Data Science (Summer 2021, jfds.2021.1.067) with Portfolio Management Research (PMR).
Why Student Debt Relief May Fall Short of Its Good Intentions
As the U.S. staggers beneath the weight of its education debt – a crushing $1.6 trillion in 2020 – there are increasing calls for loan forgiveness. But debt forgiveness plans need to be crafted carefully or they might actually disproportionately favor high-income individuals or specific ethnic groups. A duo of Finance researchers, Sylvain Catherine of Wharton School and Constantine Yannelis of Chicago Booth School of Business, explains how to tailor such policies to better redistribute their benefits. Sylvain Catherine is a HEC Paris PhD alumnus.
“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.