How Inclusive Corporate Culture Matters in the #MeToo Era
Gender diversity in corporate boards of directors has long been on the agenda, but whether and when investors reward companies that make efforts towards such inclusion remains an open question. Researchers in Accounting Crystal Shi (HEC Paris), April Klein and Mary Brooke Billings (New York University) investigate whether the #MeToo movement had an impact on investors' perceptions of the benefits of having a diverse and inclusive corporate culture, as reflected by the gender makeup of corporate boards.
Implicit Guarantees in the Onset of the Euro Area Countries’ Debt Crisis
More than a decade ago, the euro area went through a sovereign debt crisis, in which governments of Southern Europe faced high borrowing costs compared with countries in the north of the euro area. Ultimately, such high borrowing costs led Greece to default on its sovereign debt. In this article, Eric Mengus, Associate Professor of Economics at HEC Paris, explains the euro area sovereign debt crisis and the lessons to take from it, based on his new research, “Asset Purchase Bailouts and Endogenous Implicit Guarantees”, forthcoming in the Journal of International Economics.
5 Lessons for Crypto Economy after FTX Collapse
“Is crypto about to go extinct?” The question posed by numerous media in January followed a number of major crypto companies collapsing in 2022. Global media concerns came to a climax in November with the FTX imploding and its founder Sam Bankman-Fried placed under arrest. To better gauge the stakes behind this crypto-crisis, HEC Paris Professor Bruno Biais held a Masterclass on January 19. It retraced the Bitcoin’s history, from its inception by Satoshi Nakamoto in 2008 to current calls for regulation. Here are five of the key takeaways.
Environmental, Social and Governance Performance
Addressing the 'S' Demands of ESG
Top-quality research and teaching are essential to understand growing inequalities which hinder the urgently needed ecological transition, to interrogate the ESG factors, and to leverage theory and the most ambitious empirical methods. To do so, HEC scholars work with public and private regulators, peers from leading European academic institutions, CEOs and administrators to develop, test, and evaluate novel strategies, policies and practices designed to tackle inequalities in their field. In this Knowledge@HEC issue, we share academic knowledge and highlight professional experiences on those topics. Find the pdf of that issue here.
Addressing the "S" Demands of ESG - Editorial
Because of Europe’s strong social welfare tradition, the social dimension of business has an additional legitimacy and urgency here. Top-quality research and teaching have an essential role to play in understanding growing inequalities which hinder the urgently needed ecological transition, in interrogating the environmental, social and governance (ESG) factors, their interplay and their promise and limitations, in leveraging theory and the most ambitious empirical methods. As a leading business school and research center in France and Europe, HEC Paris’ faculty has a responsibility in providing science-based evidence and practical tools to reinvent the business of tomorrow.
Is globalization’s time up? There are two major, and conflicting, views about this tricky topic. For many economists, free trade is a natural state of the global economic system. Any upheavals – Covid-19, the war between Ukraine and Russia, the resurgence of protectionism - can only result in temporary disruptions which, sooner or later, will be corrected. They are just bursts of irrationality, arising momentarily from political forces upsetting otherwise harmonious economic balance, etc.
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.