skip to navigation skip to content
 

Raghavendra Rau

Raghavendra Rau

Sir Evelyn de Rothschild Professor of Finance

MBA (IIM Bangalore), MSc, PhD (INSEAD)

Professor Rau is currently the Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School. He is also a past president of the European Finance Association, Head of the School's Finance & Accounting subject group, Director (Research) of the Cambridge Centre for Alternative Finance (CCAF) and a member of the Cambridge Corporate Governance Network (CCGN).

Research interests

Corporate finance; market efficiency; the acquisition and use of information by market participants in a competitive framework.

Subject group: Finance & Accounting

Previous appointments

Professor Rau has taught at a number of universities around the world, including the Institut d'Etudes Politiques de Paris (Sciences PO), Purdue University, the University of California at Los Angeles and most recently, the University of California at Berkeley.

Professional experience

Professor Rau was Principal at Barclays Global Investors, then the largest asset manager in the world, in San Francisco from 2008-2009. He is Co-Editor of Financial Management, and an Associate Editor of the Journal of Banking and Finance, the International Review of Finance and the Quarterly Journal of Finance. His research has frequently been covered by the popular press including the New York Times, the Financial Times, the Wall Street Journal, and the Economist, among others.

Awards & honours

  • FMA Competitive Paper in Corporate Finance Award for the paper "Do compensation consultants enable higher CEO pay? New evidence from recent disclosure rule changes", 2015
  • Ig Nobel Prize in Management for the paper "What doesn't kill you will only make you more risk-loving: early life disasters and CEO behavior", 2015
  • International Finance & Banking Society best paper in conference award for the paper "What doesn't kill you will only make you more risk-loving: early life disasters and CEO behavior", 2015
  • Keynes Senior Fellowship, 2014
  • Club 7 Member, Haas School of Business, University of California at Berkeley (for teaching excellence, based on student evaluations), 2009
  • The Chinese Finance Association Best Paper in Corporate Finance Award, 2008
  • Runner-Up, Salgo-Noren Teaching Award for Outstanding MBA Teacher of the Year, Purdue University, 2007
  • Dean's Outstanding MBA Core Course Teaching Award, Purdue University, 2005, 2007
  • Institute for Quantitative Research in Finance (Q Group) Award, 2003
  • Chicago Quantitative Alliance Award, 2002
  • School of Management Outstanding Undergraduate Teaching Award, Purdue University, 2001
  • John and Mary Willis Young Faculty Scholar Award, 2001
  • EFA Barclays Global Investor Award, 2000
  • Krannert Faculty Fellow Award, 1999
  • FMA "Best of the Best" Award, 1996
  • FMA Competitive Award for Business Finance, 1996
  • Indian Institute of Management Merit Scholarship, 1988
  • Delhi University Merit Scholarship, 1987
  • National Talent Merit Scholar, India, 1982

Selected publications

Here are a selection of Raghavendra Rau's publications. Please see the "Selected publications" tab above for a more comprehensive list.

Bernile, G., Bhagwat, V. and Rau, P.R. (2016) "What doesn't kill you will only make you more risk-loving: early-life disasters and CEO behavior." Journal of Finance (available online via the SSRN) (forthcoming)

Mola, S., Rau, P.R. and Khorana, A. (2013) "Is there life after the complete loss of analyst coverage?" The Accounting Review, 88(2): 667-705 (DOI: 10.2308/accr-50330)

Rau, P.R. and Xu, J. (2013) "How do ex ante severance pay contracts fit into optimal executive incentive schemes?" Journal of Accounting Research, 51(3): 631-671 (DOI: 10.1111/joar.12001)

Rau, P.R. and Stouraitis, A. (2011) "Patterns in the timing of corporate event waves." Journal of Financial and Quantitative Analysis, 46(1): 209-246 (DOI: 10.1017/S0022109010000694)

Cheung, Y.-L., Rau, P.R. and Stouraitis, A. (2006) "Tunneling, propping, and expropriation: evidence from connected party transactions in Hong Kong." Journal of Financial Economics, 82(2): 343-386

Cooper, M.J., Gulen, H. and Rau, P.R. (2005) "Changing names with style: mutual fund name changes and their effects on fund flows." Journal of Finance, 60(6): 2825-2858

Many of Professor Rau's papers are available via the Social Science Research Network.

Journal articles

Rau, P.R. and Vermaelen, T. (1998) "Glamour, value and the post-acquisition performance of acquiring firms." Journal of Financial Economics, 49(2): 223-253

Rau, P.R. (2000) "Investment bank market share, contingent fee payments, and the performance of acquiring firms." Journal of Financial Economics, 56(2): 293-324

Cooper, M.J., Dimitrov, O. and Rau, P.R. (2001) "A rose.com by any other name." Journal of Finance, 56(6): 2371-2388

Rau, P.R. and Vermaelen, T. (2002) "Regulation, taxes, and share repurchases in the United Kingdom." The Journal of Business, 75(2): 245-282

Kadiyala, P. and Rau, P.R. (2004) "Investor reaction to corporate event announcements: Underreaction or overreaction?" The Journal of Business, 77(2): 357-386

Cooper, M.J., Khorana, A., Osobov, I. and Rau, P.R. (2005) "Managerial actions in response to a market downturn: valuation effects of name changes in the dot.com decline." Journal of Corporate Finance, 11(1-2): 319-335 (DOI: 10.1016/j.jcorpfin.2004.02.005)

Cooper, M.J., Gulen, H. and Rau, P.R. (2005) "Changing names with style: mutual fund name changes and their effects on fund flows." Journal of Finance, 60(6): 2825-2858

Cheung, Y.-L., Rau, P.R. and Stouraitis, A. (2006) "Tunneling, propping, and expropriation: evidence from connected party transactions in Hong Kong." Journal of Financial Economics, 82(2): 343-386

Clarke, J., Khorana, A., Patel, A. and Rau, P.R. (2007) "The impact of all-star analyst job changes on their coverage choices and investment banking deal flow." Journal of Financial Economics, 84(3): 713-737

Bris, A., Gulen, H., Kadiyala, P. and Rau, P.R. (2007) "Good stewards, cheap talkers, or family men? The impact of mutual fund closures on fund managers, flows, fees, and performance." Review of Financial Studies, 20(3): 953-982

Cheung, Y.L., Qi, Y.H., Rau, P.R. et al (2009) "Buy high, sell low: how listed firms price asset transfers in related party transactions." Journal of Banking and Finance, 33(5): 914-924 (DOI: 10.1016/j.jbankfin.2008.10.002)

Cheung, Y.L., Jing, L.H., Lu, T. and Rau, P.R. (2009) "Tunneling and propping up: an analysis of related party transactions by Chinese listed companies." Pacific-Basin Finance Journal, 17(3): 372-393

Cheung, Y.-L., Rau, P.R. and Stouraitis, A. (2010) "Helping hand or grabbing hand? Central vs. local government shareholders in Chinese listed firms." Review of Finance, 14(4): 669-694 (DOI: 10.1093/rof/rfp024)

Rau, P.R. and Stouraitis, A. (2011) "Patterns in the timing of corporate event waves." Journal of Financial and Quantitative Analysis, 46(1): 209-246 (DOI: 10.1017/S0022109010000694)

Rau, P.R., Bigelli, M. and Mehrotra, V. (2011) "Why are shareholders not paid to give up their voting privileges? Unique evidence from Italy." Journal of Corporate Finance, 17(5): 1619-1635 (DOI: 10.1016/j.jcorp?n.2011.09.005)

Mola, S., Rau, P.R. and Khorana, A. (2013) "Is there life after the complete loss of analyst coverage?" The Accounting Review, 88(2): 667-705 (DOI: 10.2308/accr-50330)

Rau, P.R. and Xu, J. (2013) "How do ex ante severance pay contracts fit into optimal executive incentive schemes?" Journal of Accounting Research, 51(3): 631-671 (DOI: 10.1111/joar.12001)

Phillips, B., Pukthuanthong, K. and Rau, P.R. (2014) "Detecting superior mutual fund managers: evidence from copycats." Review of Asset Pricing Studies, 4(2): 286-321 (DOI: 10.1093/rapstu/rau007)

Namvar, E., Phillips, B., Pukthuanthong, K. and Rau, P.R. (2016) "Do hedge funds dynamically manage systematic risk?" Journal of Banking and Finance, 64: 1-5 (DOI: 10.1016/j.jbankfin.2015.11.014)

Phillips, B., Pukthuanthong, K. and Rau, P.R. (2016) "Past performance may be an illusion: performance, flows, and fees in mutual funds." Critical Finance Review (forthcoming) (available online via the SSRN)

Bernile, G., Bhagwat, V. and Rau, P.R. (2016) "What doesn't kill you will only make you more risk-loving: early-life disasters and CEO behavior." Journal of Finance (available online via the SSRN) (forthcoming)

Hedge fund skills

Only a few skilled hedge fund managers can consistently deliver ‘alpha’ returns while managing systematic risk, finds new study co-authored at Cambridge …

Read more

Think the market is irrational?

Research from Cambridge predicts investors with confidence and knowledge will profit. Don’t trust an investor who says he has never succumbed to …

Read more

CEO pay paper award

Research on the link between compensation consultants and higher CEO pay wins Corporate Finance award from the Financial Management Association. A research …

Read more

CEO study co-authored at Cambridge Judge wins “Ig Nobel” award

Research on the impact of childhood disasters on CEO risk-taking wins Ig Nobel Management Prize, awarded to achievements that make people laugh …

Read more

Alternative finance: all grown up and coming to a business near you

One of the less predictable consequences of the financial crisis has been the growth of alternative finance providers, particularly online platforms. These …

Read more

European alternative finance market could top €7b in 2015

The European alternative finance market grew 144 per cent last year to €2,957 million. The European online alternative finance market grew by …

Read more

Stale illusion

Mutual funds exploit through higher fees investors who chase ‘stale returns’. Investors fail to distinguish relevant and stale components of fund performance, …

Read more

Compensation consultants lead to higher CEO pay

Consultants a ‘justification device’ for higher executive pay, says study at Cambridge Judge Business School. A study of more than 1,000 US …

Read more

‘Copycatting’ doesn’t work in the mutual fund world

Superior fund managers can’t be identified in advance, says research co-authored by Cambridge Judge Business School finance professor Suppose you want to …

Read more

Why a disaster may not be disastrous

Research shows that the behaviour of business leaders could be directly linked to their experiences in childhood. What makes a great leader? …

Read more

Six reasons why … star performers are bad for the bottom line

Everyone – shareholders, board members, even colleagues – loves a star performer. But how many deliver on the top hire promise? CJBS …

Read more

Six reasons why … good bankers will always turn bad

They want to be good, they promise to be good, but will they be good? Cambridge Judge Business School faculty Professor Raghavendra …

Read more

European Finance Association AGM for Cambridge

Cambridge Judge Business School is to host the 2013 Annual General Meeting of the European Finance Association (EFA) The AGM, the 40th …

Read more

European Finance Association AGM for Cambridge

Cambridge Judge Business School is to host the 2013 Annual General Meeting of the European Finance Association (EFA) The AGM, the 40th …

Read more

European Finance Association Conference

40th Annual Conference to be held at Cambridge Judge Business School Cambridge Judge Business School is delighted to be hosting the 40th …

Read more

The 2013 Behavioural Finance Forum

Can behavioural finance explain fund choices? Professor Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance, attended the 2013 Behavioural Finance Forum …

Read more

Finance is less about profits and more about value

Cambridge Judge Business School’s Executive Education programme, the Financial Management Programme of Achievement, targets those switching into financial positions or those who’ve …

Read more

Finance is less about profits and more about value

Cambridge Judge Business School’s Executive Education programme, the Financial Management Programme of Achievement, targets those switching into financial positions or those who’ve …

Read more

‘Shareholder Spring’ failed to make waves

Professor Raghavendra Rau and Dr Bang Dang Nguyen agree that the so-called ‘Shareholder Spring’ has proved to be a damp squib Two …

Read more

‘Shareholder Spring’ failed to make waves

Professor Raghavendra Rau and Dr Bang Dang Nguyen agree that the so-called ‘Shareholder Spring’ has proved to be a damp squib Two …

Read more

Business Because: Fintech: Elite business schools exploring blockchain and bitcoin

2016 has been the year of the blockchain and business schools are trying to decode the complex digital ledger, writes Seb Murray. …

Read more

Cambridge Business Magazine: Few hedge fund managers deliver big returns and manage systemic risks

Only a few skilled hedge fund managers can consistently deliver “alpha” returns while managing systemic risk, finds study co-authored by Raghavendra Rau, …

Read more

Cambridge Network: Study investigates hedge fund skills

Only a few skilled hedge fund managers can consistently deliver “alpha” returns while managing systematic risk, finds a new study co-authored by …

Read more

Business Because: 10 business school experts on how bitcoin’s blockchain will transform financial services

Experts from ten business schools share their thoughts on how the blockchain could revolutionise finance. Raghu Rau, Sir Evelyn de Rothschild Professor …

Read more

Business Because: Blockchain: UK b-school duo partners Citi, KPMG, CME Group to launch fintech courses

Cambridge University Judge Business School to launch new courses focusing on fintech over the next few years. “We’re seeing a lot of …

Read more

Financial Times: Bonuses are bad for bankers and even worse for banks

FT Management Editor Andrew Hill’s column looks at bank bonuses and their impact. The article features research on money and trust by …

Read more

Reuters: Thomson Reuters collaborates with the University of Cambridge, Tsinghua University and the University of Sydney on Asia Pacific’s first alternative finance benchmarking survey

The Cambridge Centre for Alternative Finance at Cambridge Judge has joined forces with the Tsinghua University Graduate School of Shenzhen and the …

Read more

Crowdfundinsider: Cambridge Centre for Alternative Finance and partner universities launch the 2015 Asia-Pacific alternative finance benchmarking study

The Cambridge Centre for Alternative Finance at Cambridge Judge has joined forces with the Tsinghua University Graduate School of Shenzhen and the …

Read more

Business Weekly: Bank of England engages with Cambridge ‘brains’

Bank of England COO Charlotte Hogg and CIO John Finch came to Cambridge to discuss how to build effective markets. The duo …

Read more

Ideas for leaders: The connection between disasters and less risk-averse CEOs

A study co-authored by Raghu Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge, investigated how CEOs surviving traumatic childhood …

Read more

The Independent on Sunday: Can this subject really be taught?

The Independent asks business experts and academics – is there a point in teaching ethical behaviour. Raghavendra Rau, Sir Evelyn de Rothschild …

Read more

The Economic Times: Meet Cambridge economist Raghavendra Rau: The Ig Nobel Prize winner

Last month at Harvard University, the 25th Annual Ig Nobel Prize Ceremony took place. Ig Nobel is a light-hearted award for work …

Read more

News Asia TV: Risk appetite

News Asia TV reports on the 25th Annual Ig Nobel Prize Ceremony and the winners in the management category: Raghavendra Rau, Gennaro …

Read more

The Times (Shreveport): The consequences of waiting

Further coverage of the research on the impact of childhood disasters on CEO risk-taking that won the “Ig Nobel” Management Prize. The …

Read more

The New York Times: Bee stings, research that makes you go ‘huh’? win Ig Nobels

Research on the impact of childhood disasters on CEO risk-taking wins the “Ig Nobel” Management Prize, awarded to achievements that make people …

Read more

The Christian Science Monitor: How CEO pay exploded

The higher-paid CEOs are not always better for the business according to the research co-authored by Raghavendra Rau, Sir Evelyn de Rothschild …

Read more

The Huffington Post: The outrageous ascent of CEO pay

The higher-paid CEOs are not always better for the business according to the research co-authored by Raghavendra Rau, Sir Evelyn de Rothschild …

Read more

The New York Times: Why some start-ups are called tech companies and others are not

Jim Kerstetter looks at the new generation of tech start-ups and what are the differences between tech and non-tech companies. Raghavendra Rau, …

Read more

City AM: How crowdfunding will revolutionise R&D: What platforms offer the world’s most innovative businesses

Over the past decade, donation-based crowdfunding has played a reasonably prominent role in helping to fund technological development, writes Harriet Green in …

Read more

Thinkers: In conversation with Raghavendra Rau

In an interview for the latest Thinkers issue, Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, …

Read more

Contact details

Raghavendra Rau
Cambridge Judge Business School
University of Cambridge
Trumpington Street
Cambridge CB2 1AG
UK

Tel: +44 (0)1223 761079
Fax: +44 (0)1223 339701

r.rau@jbs.cam.ac.uk

www.raghurau.com

Download Raghavendra's papers on SSRN