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Raghavendra Rau

Raghavendra Rau

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

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 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.

Chu, J., Faasse, J. and Rau, P.R. (2017) "Do compensation consultants enable higher CEO pay? A disclosure rule change as a separating device." Management Science (forthcoming) (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 (DOI: 10.1111/jofi.12432) (published online May 2016; forthcoming in print) (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)

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

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)

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 (DOI: 10.1111/jofi.12432) (published online May 2016; forthcoming in print) (available online via the SSRN)

Chu, J., Faasse, J. and Rau, P.R. (2017) "Do compensation consultants enable higher CEO pay? A disclosure rule change as a separating device." Management Science (forthcoming) (available online via the SSRN)

Crowdfunding struggles in emerging markets

Developing markets are lagging in crowdfunding, finds study at Cambridge Judge Business School. Regulation and corruption control are key factors in boosting …

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Alternative finance growth in the Americas

The online alternative finance market continues to grow in the US, Canada and Latin America, rising 23 per cent in 2016 to …

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Company board connections

Companies increase both R&D and patenting activity if they have directors who ‘interlock’ with other companies, says new study co-authored at Cambridge …

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Jargon-free corporate finance

A new Short Introduction to Corporate Finance book by Cambridge Judge Professor Raghavendra Rau simplifies an often intimidating subject into six basic …

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‘Serial acquirers’ (like Olympic runners) can be predicted in advance

Serial company acquirers, like elite Olympic runners but unlike serial killers, can easily be profiled in advance, finds new academic study co-authored …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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Stale illusion

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

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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 …

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‘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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Le Monde: Leaders, disasters and the sense of risk

An article about business leaders and how the personal story can influence their strategic decisions. A study co-authored by Raghavendra Rau, Sir …

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CNBC: Some closed funds ready to open for business again

A study led by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, is featured in the …

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Crowdfund Insider: The future of finance tackled at an annual event in Cambridge

Innovation in alternative finance and what the future looks like was discussed at the second annual conference recently held by the Cambridge …

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Cambridge Business Magazine: Alternative finance grows in the Americas

According to the latest report by the Cambridge Centre for Alternative Finance (CCAF) alternative finance market grew 23 per cent in the …

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Financial Review: Why being the boss could cause brain damage

A study co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, is referenced in the …

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Cambridge Business Magazine: Innovation boosted by ‘shared’ directors

The “interlocking” of corporate boards – in which directors sit on the boards of different companies at the same time – significantly …

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BBC World Service Radio: Business Matters

Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, talks about power and how leaders lose mental …

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The Atlantic: Power causes brain damage

A study co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, is referenced in the …

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Reuters: Lower CEO pay equates to higher shareholder rewards

Reuters columnist James Saft cites a study by Raghavendra Rau, Sir Evelyn de Rothschind Professor of Finance at Cambridge Judge, which found …

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ETFmatic Videoblog: Even fund managers can’t identify future outperformers

In this video blog, Professor Raghu Rau talks about whether fund managers themselves can spot talent in each other, and perhaps benefit …

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Business Because: Elite business schools are teaching MBAs about bitcoin’s blockchain

Business schools around the world are rolling out courses on blockchain to explore the topic in depth, writes Seb Murray. Cambridge Judge …

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Cambridge Business Magazine: ‘Serial acquirers’ can be predicted in advance

Serial company acquirers, like elite Olympic runners but unlike serial killers, can easily be profiled in advance, finds new academic study co-authored …

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Chief Executive: How CEOs can identify America’s most active acquirers

Serial company acquirers, like elite Olympic runners but unlike serial killers, can easily be profiled in advance, finds a new academic study …

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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. …

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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, …

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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 …

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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 …

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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 …

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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 …

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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 …

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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

www.raghurau.com

Download Raghavendra's papers on SSRN