Research @ HEC Liège

Research @HEC Liège


Financial Management for the Future

Financial Management for the Future

 

Active participation in upcoming events for FM4F researchers


Our researchers will take part in several important conferences and workshops over the world:

  • Marie Lambert will present her latest research (coauthored with L. Phalippou, A. Scivoletto and N. Moreno) on « Employee Views of Leveraged Buy-Out Transactions » at the Private Equity Research Symposium hosted by the University of Oxford Saïd Business School, a renowned research center. A preview of the paper is available via SSRN.
  • Caterina Santi will present her paper "Carbon risk premium and worries about climate change and energy disruption" (coauthored with A. Moretti) at the annual conference of the Royal Economic Society. The annual conference is the flagship event of the Royal Economic Society and it attracts hundreds of academic and professional economists. You can find the paper here
  • Several of our researchers (C. Santi, A. Scivoletto, M. Lambert) will take part to the 38th international conference of the French Finance Association (AFFI) in Saint-Malo. The International AFFI Conference is one of the main European conferences in Finance. The full program of the conference can be found here.
  • Marie Lambert will be as a panelist in the latest FEBELFIN workshop on Sustainable Finance, alongside other speakers such as Vincent Van Peteghem (Belgian federal finance minister) and Johan Thijs (CEO of KBC Group). More on the workshop here

 

Some research projects undertaken by the members of our research group


International Differences in the CEO Gender Pay Gap

In a paper published in Corporate Governance: An International Review, Wouter Torsin and his co-authors (X. Chen and A. Tsang) studied CEO compensation data patterns across 27 countries over the 2001–2016 period, and found a 3.3% average difference in the level of financial compensations between male and female. In particular, by exploiting CEO changes in firms, they found that this effect exists when a female CEO is replacing a male CEO. Moreover, their findings suggest that attitudes related to gender equality across countries are able to explain a significant part of CEO pay gap differences across nations.

 

Mental accounts with horizon and asymmetry preferences

In two recent papers published in the journals Economic Modelling and Finance, Georges Hübner and his co-author Thomas Lejeune extended the famous “mental account theory” to more realistic behaviors of investors. In particular, they accounted for the existence of various investment horizons, as well as perceptions’ differences between extreme gains and extreme losses. They showed that this horizon-asymmetry mental accounting (HAMA) framework widens the spectrum of investors’ optimal portfolio choices considerably, revealing that investors are more concerned about extreme events rather than volatility. Applying their model to United States stock data, they showed that investors who care significantly about upside potential should hold asymmetric and less diversified portfolios than usually supposed. This research has important implications for asset managers to recommend adequate portfolios. Both papers can be accessed via ORBI here and here.

 

Revisiting the link between interest rates and exchange rates: the volatility puzzle

In a recent study published in the Journal of Empirical Finance, Maren Ulm and Julien Hambuckers developed an econometric method to reveal a new link between interest rates and exchange rates of two economies : whereas it is usually supposed that interest rates differences predict the future level of exchange rates, they showed that it is also an indicator of future episodes of high exchange rates volatility in several advanced economies (e.g. Europe, Switzerland and Japan). They connected this effect with changes in invested amounts by speculators engaging in carry trade activities. This work has important implications for investors and policy makers wanting to avoid high volatility on financial markets.

 

The FINCAP experiment: How researchers’ choices add uncertainty to conclusions of empirical analyses

Three of our researchers (Julien Hambuckers, Marie Lambert and Wale Dare) participated in the FINCAP project and co-authored the first crowd-sourced paper in the field of finance. Along with more than 300 researchers split in 100 teams, they independently tested the same economic hypotheses (related to market efficiency) using the same data, and wrote a short academic paper based on their findings. These results were analyzed by the project leaders and revealed that choices made by researchers add substantial uncertainty to the conclusions of empirical analyses. The paper has important implications for researchers and decision makers, because it quantified for the first time that the variability stemming from the data analyst choices is as important as the variability stemming from the data.

 

… And many more. Visit our strategic research field page for the full list of papers recently published by our research group.