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Raghavendra Rau

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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

How investors and firms acquire and use information.

Subject group: Finance

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.

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 FinanceFinancial 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.

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, 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 (available online via the SSRN) (published online Dec 2020)

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)

An, J. and Rau, R. (2020) “Finance, technology and disruption.” European Journal of Finance (DOI: 10.1080/1351847X.2019.1703024) (published online Dec 2019)

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 (DOI: 10.1016/j.jbankfin.2020.105801) (published online May 2020)

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 (forthcoming) (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 (available online via the SSRN) (published online Dec 2020)

Nature and nurture

Childhood disruption through parents' divorce or death is a "nurture"-related factor affecting risk taking of investment professionals, says study in Journal of…

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Examining bribery

New study co-authored by Professor Raghu Rau finds that $1 in bribes is linked to $6 to $9 increases in the value…

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Trust in finance

Trust among US finance professionals has declined far more sharply than in the general population, finds study that has implications for coronavirus…

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Fintech flexes its muscles

Fintech is deeply impacting the finance world, challenging orthodoxies and offering customers innovative ways to manage and maximise their finances. CJBS Faculty…

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Ordeal & risk

Childhood trauma from a parent's death or divorce causes mutual fund managers to be more risk averse later in life, finds a…

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Cambridge Bitcoin Electricity Consumption Index (CBECI)

The Cambridge Centre for Alternative Finance launches a new real-time index tracking the total electricity consumption of the Bitcoin network. The Cambridge…

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Alternative finance in Europe

In 2017, the alternative finance market throughout Europe (including the UK) grew by 36 per cent to €10.44 billion, predominantly in the…

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Debt versus equity

Study co-authored by Professor Raghavendra Rau of Cambridge Judge Business School examines why some firms go public through initial public debt offerings…

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Executive pay survey

New research by Professor Raghavendra Rau of Cambridge Judge looks at CEO compensation theory and practice, drawing on academic literature over many…

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Terrorism and CEO pay

CEOs at firms near terrorist attacks earn 8.8 per cent "compensation premium" over CEOs employed far from attacks, finds new study co-authored…

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Cong Luan: The latest research on the “night go” of multinational corporations

A study on corporate bribery co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, featured…

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The Economist: Bribery pays – if you don’t get caught

A new study by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, on global corporate bribery…

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The Times: £23bn vanishes from economy as bosses put spending on hold

Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School comments on businesses' capital expenditure plans during uncertain…

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S&P Global: Fintechs, challengers keen to help distribute UK government’s coronavirus loans

Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, comments on fintech and how they can help…

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S&P Global: European P2P lending prone to mispricing and inefficiencies, new study claims

Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, comments on peer-to-peer lending platforms and says they…

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Wired: Everything and nothing is a tech company now

Raghu Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge, comments on how over the past decade many firms have…

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Portfolio Adviser: Asking fund managers sensitive questions about their childhood

A study co-authored by Raghu Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, found that fund managers…

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Investment Europe: ‘Tell me about your childhood’ may become required RFP question

Childhood trauma from a parent’s death or divorce causes mutual fund managers to be more risk averse later in life, finds a…

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The Irish Times: A fund manager’s childhood can tell a lot about their attitude to risk

A study co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, explores how traumatic experiences…

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Institutional Investor: Broken homes produce more cautious fund managers

Traumatic experiences in childhood can affect the behaviour of professional investors, says a study co-authored by Raghavendra Rau, Sir Evelyn de Rothschild…

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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

[email protected]

www.raghurau.com

Download Raghavendra’s papers on SSRN