Sir Evelyn de Rothschild Professor of Finance
MBA (IIM Bangalore), MSc, PhD (INSEAD)
Professor Rau is the Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School. He is also a past president of the European Finance Association, and a past editor of Financial Management. He is a founder and director of the Cambridge Centre for Alternative Finance (CCAF) and a member of the Cambridge Corporate Governance Network (CCGN).
Research interests
How investors and firms acquire and use information.
Subject group: Finance
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 an Associate Editor of the Journal of Corporate Finance, the Journal of Banking and Finance, Financial Review, the Quarterly Journal of Finance, among others. 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.
Previous appointments
Professor Rau has taught at a number of universities around the world, including the Institut d’Etudes Politiques de Paris (Sciences PO), Université Paris-Dauphine, Purdue University, the University of California at Los Angeles and most recently, the University of California at Berkeley.
Awards & honours
- Cambridge Judge Business School Teaching Award, 2022
- 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, 2010, 2018
- 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.
Cheung, Y., Rau, P.R. and Stouraitis, A. (2021) “What determines the return to bribery? Evidence from corruption cases worldwide.” Management Science, 67(10): 6235-6265 (available online via the SSRN)
Dai, Y., Rau, P.R., Stouraitis, A. and Tan, W. (2020) “An ill wind? Terrorist attacks and CEO compensation.” Journal of Financial Economics, 135(2): 379-398 (DOI: 10.1016/j.jfineco.2019.06.005) (available online via the SSRN)
Chu, J., Faasse, J. and Rau, P.R. (2018) “Do compensation consultants enable higher CEO pay? A disclosure rule change as a separating device.” Management Science, 64(10): 4915-4935 (DOI: 10.1287/mnsc.2017.2845) (available online via the SSRN)
Bernile, G., Bhagwat, V. and Rau, P.R. (2017) “What doesn’t kill you will only make you more risk-loving: early-life disasters and CEO behavior.” Journal of Finance, 72(1): 167–206 (DOI: 10.1111/jofi.12432) (available online via the SSRN)
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)
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, 5(2): 351-398 (DOI: 10.1561/104.00000032) (available online via the SSRN)
Rau, R. (2017) “Social networks and financial outcomes.” Current Opinion in Behavioral Sciences, 18: 75-78 (DOI: 10.1016/j.cobeha.2017.08.010)
Rau, R. (2017) “Executive compensation.” Foundations and Trends in Finance, 10(3-4): 181-362 (DOI: 10.1561/0500000046)
Helmers, C., Patnam, M. and Rau, P.R. (2017) “Do board interlocks increase innovation? Evidence from a corporate governance reform in India.” Journal of Banking and Finance, 80: 51-70 (DOI: 10.1016/j.jbankfin.2017.04.001)
Bernile, G., Bhagwat, V. and Rau, P.R. (2017) “What doesn’t kill you will only make you more risk-loving: early-life disasters and CEO behavior.” Journal of Finance, 72(1): 167–206 (DOI: 10.1111/jofi.12432) (available online via the SSRN)
Phillips, B., Pukthuanthong, K. and Rau, P.R. (2018) “Size doesn’t matter: diseconomies of scale in the mutual fund industry revisited.” Journal of Banking and Finance, 64(10): 4915-4935 (DOI: 10.1016/j.jbankfin.2017.12.005)
Chu, J., Faasse, J. and Rau, P.R. (2018) “Do compensation consultants enable higher CEO pay? A disclosure rule change as a separating device.” Management Science, 64(10): 4915-4935 (DOI: 10.1287/mnsc.2017.2845) (available online via the SSRN)
Glushkov, D., Khorana, A., Rau, P.R. and Zhang, J. (2018) “Why do firms go public through debt instead of equity?” Critical Finance Review, 7(1): 85-110 (DOI: 10.1561/104.00000057)
Dai, Y., Rau, P.R., Stouraitis, A. and Tan, W. (2020) “An ill wind? Terrorist attacks and CEO compensation.” Journal of Financial Economics, 135(2): 379-398 (DOI: 10.1016/j.jfineco.2019.06.005) (available online via the SSRN)
Rahaman, M.M., Rau, P.R. and Al Zaman, A. (2020) “The effect of supply chain power on bank financing.” Journal of Banking and Finance, 114: 105801 (DOI: 10.1016/j.jbankfin.2020.105801)
An, J. and Rau, R. (2021) “Finance, technology and disruption.” European Journal of Finance, 27(4-5): 334-345 (DOI: 10.1080/1351847X.2019.1703024)
Betzer, A., Limbach, P., Rau, P.R. and Schürmann, H. (2021) “Till death (or divorce) do us part: early-life family disruption and investment behavior.” Journal of Banking and Finance, 124: 106057 (DOI: 10.1016/j.jbankfin.2021.106057) (also available online via the SSRN)
Cheung, Y., Rau, P.R. and Stouraitis, A. (2021) “What determines the return to bribery? Evidence from corruption cases worldwide.” Management Science, 67(10): 6235-6265 (available online via the SSRN)
Cheung, Y., Rau, P.R., Stouraitis, A. and Tan, W. (2021) “Does the market understand the ex ante risk of expropriation by controlling shareholders?” Journal of Corporate Finance, 68: 101946 (DOI: 10.1016/j.jcorpfin.2021.101946)
Cornelli, G., Frost, J., Gambacorta, L., Rau, P.R., Wardrop, R. and Ziegler, T. (2022) “Fintech and big tech credit: drivers of the growth of digital lending.” Journal of Banking and Finance, 148: 106742 (DOI: 10.1016/j.jbankfin.2022.106742)
Rau, P.R. and Yu, T. (2023) “A survey on ESG: investors, institutions, and firms.” China Finance Review International (DOI: 10.1108/CFRI-12-2022-0260) (published online Jan 2023)
