Sir Evelyn de Rothschild Professor of Finance
Founder and Academic Director of the Cambridge Centre for Alternative Finance (CCAF)
MBA (IIM Bangalore), MSc, PhD (INSEAD)
My research interests include how investors and firms acquire and use information. I’m a past president of the European Finance Association and was previously Principal at Barclays Global Investors, then the largest asset manager in the world, in San Francisco. I’m an Associate Editor of the Journal of Corporate Finance, among others.
I’m a member of the Finance subject group at Cambridge Judge Business School, which focuses on the investment and financial decisions of firms and institutions.
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. Professor Rau was Vice-President of the Financial Management Association in 2023. In 2014 he was President of the European Finance Association in 2014, as well as Vice-President in 2013. He is a member of the Cambridge Corporate Governance Network (CCGN).
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.
Publications
Selected publications
- Ran, Z., Rau, P.R. and Ziegler, T. (2024) “Sometimes, always, never: Regulatory clarity and the development of digital financing” Management Science, forthcoming.
- 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
- Lei, Z., Petmezas, D., Rau, P.R. and Yang, C. (2024) “Born to behave: home CEOs and financial misconduct.” Review of Accounting Studies (forthcoming)
- Macias, A.J., Rau, P.R. and Stouraitis, A. (2024) “Solving serial acquirer puzzles.” Review of Corporate Finance Studies (DOI: 10.1093/rcfs/cfad015) (published online Jul 2023)
- Ran, Z., Rau, R. and Ziegler, T. (2024) “Sometimes, always, never: regulatory clarity and the development of digital financing.” Management Science (forthcoming)
- Rau, P.R., Sandvik, J. and Vermaelen, T. (2024) “IPO price formation and board gender diversity.” Journal of Corporate Finance (DOI: 10.1016/j.jcorpfin.2024.102629) (published online Jul 2024)
- Rau, P.R. and Yu, T. (2024) “A survey on ESG: investors, institutions, and firms.” China Finance Review International, 14(1): 3-33 (DOI: 10.1108/CFRI-12-2022-0260)
- Cornelli, G., Frost, J., Gambacorta, L., Rau, P.R., Wardrop, R. and Ziegler, T. (2023) “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)
- Limbach, P., Rau, P.R. and Schürmann, H. (2023) “The death of trust across the US finance industry.” Journal of Economic Behavior and Organization, 213: 324-344 (DOI: 10.1016/j.jebo.2023.07.006)
- 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)
- 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)
- 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)
- 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)
- 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)
- 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)
- Rau, R. (2017) “Executive compensation.” Foundations and Trends in Finance, 10(3-4): 181-362 (DOI: 10.1561/0500000046)
- Rau, R. (2017) “Social networks and financial outcomes.” Current Opinion in Behavioral Sciences, 18: 75-78 (DOI: 10.1016/j.cobeha.2017.08.010)
- 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)
- 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)
- 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., 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.jcorpfin.2011.09.005)
- 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. (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)
- 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., 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)
- 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
- 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
- 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., 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)
- Kadiyala, P. and Rau, P.R. (2004) “Investor reaction to corporate event announcements: underreaction or overreaction?” The Journal of Business, 77(2): 357-386
- Rau, P.R. and Vermaelen, T. (2002) “Regulation, taxes, and share repurchases in the United Kingdom.” The Journal of Business, 75(2): 245-282
- 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. (2000) “Investment bank market share, contingent fee payments, and the performance of acquiring firms.” Journal of Financial Economics, 56(2): 293-324
- 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
Awards and honours
- Cambridge Judge Business School Teaching Award, 2022
- Distinguished Alumnus Award, Indian Institute of Management, 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
News and insights
Solving the puzzle of why the markets don’t anticipate and punish serial acquirers: new study classifies acquirers as loners, sprinters, occasional acquirers and marathoners to help predict future activity.
A just-completed study entitled “Hazed and Confused” finds a clear effect decades later on CEOs who had prenatal exposure to toxic U.S. “Superfund” sites as designated by the US Environmental Protection Agency (EPA), which are typically the most hazardous contaminated sites in the U.S. such as landfills, mining sites and manufacturing plants, with EPA documents showing that most of them were actively polluted for decades over the 20th Century.
Three Cambridge Judge faculty – Lucio Sarno, Raghavenda Rau and Elroy Dimson – are cited in study as among the most prolific authors of papers in top finance journals.
Media coverage
FS Tech | 4 April 2023
The end for Britain’s illegal crypto ATMs?
Raghavendra Rau, Sinyi Professor of Chinese Management at Cambridge Judge Business School, is featured in this article about crypto ATMs.
Toutiao | 11 June 2022
Beijing-collar guests – Tenured Chair Professor of Finance at the University of Cambridge interprets education and financial innovation
Raghavendra Rau, Professor of Finance at Cambridge Judge Business School, delivered a speech at the Jingling Nobel Prize Innovation Forum and International School Award Ceremony, providing an in-depth interpretation of innovation in the field of education and finance.
Vice | 2 June 2022
The pivot to Web3 is going to get people hurt
Raghavendra (Raghu) Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, is mentioned in this article about Web3.
Investor’s Chronicle, 10 March 2022
Ideas Farm – When a gap is a chasm
Executive Courses, 25 February 2022
Executive education courses in Fintech
Phys.org, 7 February 2022
Understanding what determines the benefits of bribery
The Guardian, 5 February 2022
Battle lines drawn over the future of UK’s biggest pension fund
Financial Times, 14 November 2021
UK university pensions suffer from misplaced prudence
Business Weekly, 22 October 2021
Cambridge Judge Business School finds hope for change in gender bias study
LexBlog, 12 October 2021
Do investors pay less attention to women fund managers?
Investors’ Chronicle, 13 May 2021
Trapped by our past
BBC News Indonesia, 15 March 2021
Stories of successful artists becoming billionaires by selling digital works through crypto art
The Washington Post, 6 February 2021
Bumble gave women more power in dating. Now the app is giving women power in the boardroom
Cong Luan, 15 September 2020
The latest research on the “night go” of multinational corporations
The Economist, 28 August 2020
Bribery pays – if you don’t get caught
The Times, 10 June 2020
An award-winning study of ‘time’
Cambridge Business Magazine, 1 January 2015
£23bn vanishes from economy as bosses put spending on hold
S&P Global, 31 March 2020
Fintechs, challengers keen to help distribute UK government’s coronavirus loans
S&P Global, 8 January 2020
European P2P lending prone to mispricing and inefficiencies, new study claims
Wired, 26 December 2019
Everything and nothing is a tech company now
Portfolio Adviser, 13 August 2019
Asking fund managers sensitive questions about their childhood
Investment Europe, 7 August 2019
‘Tell me about your childhood’ may become required RFP question
The Irish Times, 23 July 2019
A fund manager’s childhood can tell a lot about their attitude to risk
Institutional Investor, 20 May 2019
Broken homes produce more cautious fund managers
Bloomberg, 18 June 2018
The stockpop from a crypto rebrand doesn’t last
Business Because, 15 January 2018
From blockchain to bitcoin, the cryptocurrency craze is gripping business schools
CNBC, 5 January 2018
Five predictions for digital currencies in 2018