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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 the current president of the European Finance Association (2014), Head of the School's Finance & Accounting subject group, 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

  • 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.

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

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

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) "Past performance may be an illusion: performance, flows, and fees in mutual funds." Critical Finance Review (available online via the SSRN) (forthcoming)

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

‘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 …

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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? …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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‘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 …

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‘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 …

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Large bribes do not lead to greater benefits

Research led by Professor Raghavendra Rau has focused fresh light onto bribery and flies in the face of previous survey-based studies Fresh …

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Large bribes do not lead to greater benefits

Research led by Professor Raghavendra Rau has focused fresh light onto bribery and flies in the face of previous survey-based studies Fresh …

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Banks should put up or shut up

Professor Raghavendra Rau on the LIBOR rate-fixing scandal that is dragging in top British, American, German and Swiss banks A leading financial …

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Banks should put up or shut up

Professor Raghavendra Rau on the LIBOR rate fixing scandal that is dragging in top British, American, German and Swiss banks A leading …

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Professor Raghavendra Rau gives his opinion on Barclays Bank’s profits and bonuses live on BBC Radio Cambridgeshire

Professor Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, has been speaking on BBC Radio Cambridgeshire …

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Do the maths

The current climate is a good time to learn about finance explains Professor Raghavendra Rau Cambridge Judge Business School’s Executive Education courses …

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Do the maths

The current climate is a good time to learn about finance explains Professor Raghavendra Rau. Cambridge Judge Business School’s Executive Education courses …

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Plain brown envelopes

Firms bribing their way to contracts underperform for up to three years before and after securing the work for which the bribe …

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Financial Times: Copycat fund managers cannot beat the market

Investment columnist John Authers investigates why some fund managers copycat and features the research co-authored by Raghavendra Rau, Sir Evelyn de Rothschild …

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The Economist: Curiosity killed the copycat

‘Copycatting’ doesn’t work in the mutual funds, says research co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge …

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The Wall Street Journal: Even stock-pickers can’t pick good stock-pickers

The research co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, found that ‘copycat funds …

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The Financial Times: Copycats are an unsuccessful breed

Superior fund managers can’t be identified in advance, says research co-authored by Cambridge Judge Business School finance professor Raghavendra Rau. According to …

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Cambridge News: Do bosses benefit from disasters?

The research co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance, shows that CEOs who experienced a number of moderate …

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Phys.org: Research shows the behaviour of business leaders could be directly linked to their experiences in childhood

The new research suggests that experiencing a natural disaster at first hand during your early childhood can have a profound impact on …

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BizEd Magazine: Higher pay, lower returns

The more executives are paid, the more overconfident they tend to become. As a result these CEO invest in riskier projects, approve …

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Financial Times: The economic rationale for tenured professors

Raghu Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, looks at the economics of tenured academic positions …

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London Evening Standard: Anthony Hilton: Big bonuses are really no incentive

The newspaper investigates how big bonuses impact executives’ performance. The research by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at …

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Bloomberg Business Week: The most daring CEOs were forged in fire (and flood and earthquake)

Bloomberg features the research of Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, and colleagues, into …

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Blog: Reputability: Big bonuses lead to poorer performance, says new research

Anthony Fitzsimmons looks at executives salaries and how this impact their performance. Author refers to the research by Raghavendra Rau, Sir Evelyn …

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BBC World Service: Business matters

Roger Hearing interviews Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at CJBS, about executive pay. Raghu says that ‘paying someone …

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The Wall Street Journal: Lessons from the bull market

WSJ investigates what investors should do in order to avoid errors in stock market that can cost a lot. The magazine refers …

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Sunday posts: Education for employment: what if you didn’t go to a ‘core school’?

In his blog Supriyo Chaudhuri writes about competition amongst students who want to study in elite universities and schools. Author says ‘education …

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The Coutts Index: Inside the minds of passion investors

Raghavendra Rau, the Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, comments on passion investing (classic cars, antiques …

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High Pay Centre: Free Conference: Pay for performance – does it work?

A half-day conference examining the arguments for and against performance-related pay and considering the future of the performance pay model. Our two …

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FT.com: Want an innovative idea? Don’t turn to the Ref

Finding cutting edge research is akin to discovering a rough diamond in a sea of pebbles, writes Raghu Rau, Sir Evelyn de Rothschild …

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The Financial Times: Choose assets wisely to reap returns

Choosing assets shrewdly is an important skill if you hope to produce strong returns when market volatility arises. Or at least this …

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Finanzen.ch: Overconfidence makes CEOs with too many stock options perform badly

Conventional wisdom has it that paying company bosses with a lot of stock and options aligns their interests with those of shareholders…“The …

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Business Insider: Too many stock options kills CEO performance

Conventional wisdom has it that paying company bosses with a lot of stock and options aligns their interests with those of shareholders…“The …

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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

Visit Raghavendra's website
Download his papers on SSRN