research@hec - Issue #13 - (Page VIII)

Excellence in Finance Research at HEC Paris On February 19th, HEC Paris organized an encounter between three researchers recently honored for the quality of their work: François Derrien, Thierry Foucault and Laurent Frésard. It was a chance for the business school to highlight the excellence of research in its Finance Department. Videos can be seen at: “Research is a central part of HEC Paris’s development policy. Indeed, only first-class research can ensure the presence of teachers and students of the highest caliber… and vice versa,” emphasizes Bernard Ramanantsoa, dean of HEC Paris, who has spurred ongoing efforts to promote academic research. These efforts are already bearing fruit, as shown by the institution’s Finance Department: for the period 2007-2009, HEC Paris ranks fourth among European business schools in terms of publications in the three most prestigious international finance journals (Journal of Finance, Journal of Financial Economics, Review of Financial Studies). A brief overview of this excellence highlighting the work of François Derrien, Thierry Foucault and Laurent Frésard, all three recently honored for their research by internationally renowned institutions: research hec AUCTION-BASED IPOS François Derrien, finance professor at HEC Paris since 2007, became head of the department in 2009. He was recently awarded the prize for best article on finance research by the private bank Espirito Santo and the Swiss Finance Institute for his article “Auctioned IPOs: The US Evidence” (to appear in the Journal of Financial Economics). This article, which is based on an empirical analysis of 19 auctioned IPOs in the United States, shows that this system offers a credible alternative to bookbuilding, which is suspected of offering too much power to banks. FINANCE AT HEC PARIS BY THE NUMBERS • 15 professors and 8 doctoral students • 90 finance majors • 50 quantitative economics and finance majors • 45 international finance majors • 180 MBA students, including 20 percent who are aiming for careers in finance • 3 chairs: BNP Paribas (Hedge Fund Center), Deloitte - Société Générale (Energy and Finance), and Fédération des Banques Françaises (Corporate Finance) with Dauphine DEREGULATION OF FINANCIAL MARKETS Thierry Foucault, finance professor at HEC Paris, received the EIF award for best article in finance for “Stock Price Informativeness, CrossListings and Investment Decision” (Journal of Financial Economics, vol. 88, 2008) and “Competition for Order Flow and Smart Order Routing Systems” (Journal of Finance, vol. 63, 2008). These two articles focus on the architecture of financial markets and, in particular, on the impact of their deregulation in Europe and the United States. The second article, for example, aims to evaluate the effect of competition between stock exchanges on market liquidity and thus on companies’ ability to obtain financing. INCREASING MARKET SHARE THROUGH CASH Laurent Frésard, finance professor at HEC Paris since September 2008, received the LECG prize for the article “Financial Strength and Product Market Behaviors: The Real Effect of Corporate Cash Holdings” (to appear in the Journal of Finance). In this article, Frésard examines the links between financial and strategic decisions. He shows notably that firms’ cash reserves act as strategic tools that can influence their decisions and lead ultimately to increases in market share. I VIII research@hec • February-March 2010

Table of Contents for the Digital Edition of research@hec - Issue #13

Cover & Contents
Trailing a Scent: Does Age Affect Perfume Brand Loyalty?
When the Going Gets Tough,Who Can You Trust?
Major Risks and PublicManagement
Excellence in Finance Research at HEC Paris

research@hec - Issue #13