New research by Professor Roni Michaely and other co-authors shows that while Socially Responsible Investment Funds are good at picking firms that adopt such behaviours, they do not inspire those firms to further improve their performance.
Academic & Professional Qualification
Professor Michaely is a professor of Finance and Entrepreneurship at The University of Hong Kong. Before that he spent a significant portion of his career as The Rudd Family professor of Finance at Cornell University and Cornell Tech. His teaching include Corporate Finance and Entrepreneurial Finance for MBAs, executive MBAs, DBA and PhD students. Professor Michaely’s research interests are in the areas of empirical corporate finance, corporate governance, entrepreneurial finance, and FinTech. His current research focuses on how frictions in capital markets affect managers’ corporate decisions and new product developments; with a particular focus on corporate payout policy, the effect of competition in firms’ behavior, and on the impact of Fintech on capital market efficiency. He was recently recognised as one of the most prolific researchers in finance with over 25,000 citations.
His research has appeared in such scholarly journals as the Journal of Finance, Review of Financial Studies, Journal of Financial Economics, Management Science, The Review of Finance, and Journal of Financial and Quantitative Analysis. His research has been frequently featured in the Wall Street Journal, New York Times, the Economist, Investor’s Business Daily, Bloomberg, BusinessWeek, Forbes, Barrons, Money, and others. Prof. Michaely has given over 200 invited research talks, conference presentations and key-note speeches around the world, and is working with scholars from Asia, the US, and Europe, on research in corporate finance. Professor Michaely collaborates on research projects with many research scholars from Asia, the US, and Europe.
Professor Michaely’s research has also received many awards and honors. Awards include the 2020 Review of Finance best paper award, the 2017 Distinguish research award of the Eastern Finance Association, the 2005 Journal of Financial Economics Fama Prize for best paper, the 2000 Journal of Finance Smith Breeden Prize for distinguish paper, the 2000 Western Finance Association Award for the best paper on capital formation, The Review of Financial Studies 1999 Barclays Global Investors/Michael Brennan Runner-up Award, the 1999 Western Finance Association Award for the best paper, 1996 Quantitative Alliance Group Prize for best paper, and the 1996 Western Finance Association Award for best paper on investments.
Professor Michaely is a co-founder of Gina Life, a medical devise startup, and is currently on the board of Tipranks, and on the advisory board of Mogul, Hyro and Nielsen Innovate. He was a director of the Israeli Securities Authority (ISA) from 1998 to 2003, and was the chairperson of Tachlit (mutual fund) investment committee.
- Empirical Corporate Finance
- Corporate Governance
- Fin Tech
- “Do Index Funds Monitor?” (with Davidson Heath, Daniele Macciocchi, Matthew Ringgenberg). The Review of Financial Studies, Forthcoming, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3259433
- “FinTechs and the Market for Financial Analysis” (with Jill Grennan), Journal of Financial and Quantitative Analysis, Forthcoming, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3136150
- “Cultural Diversity on Wall Street: Evidence from Sell-Side Analysts’ Forecasts” (With Ken Merkley and Joe Pacelli); Journal of Accounting and Economics, Vol 70:1 August 2020, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3068232
- “Signaling Safety” (with Stefano Rossi and Michael Weber) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3064029, Journal of Financial Economics, Forthcoming.
Awards and Honours
- The 2020 Review of Finance best paper award (the Pagano-Zechner Award) for the paper: “Are U.S. Industries Becoming More Concentrated?”
- Distinguish Research Award, Eastern Finance Association, 2017
- The 2005 Jensen Prize for the best paper published in the Journal of Financial Economics in the Areas of Corporate Finance and Organizations; (for the paper: “Payout Policy in the 21st Century”).
- The 2000 Journal of Finance Smith Breeden Prize for distinguish paper (for the paper: “When the Underwriter is the Market Maker: An Examination of Trading in the IPO Aftermarket”)
- The 2000 Western Finance Association Award for the best paper on capital formation (for the paper: “The Making of a Dealer Market: From Entry to Equilibrium in the trading of Nasdaq Stocks”)
- The Review of Financial Studies 1999 Barclays Global Investors/Michael Brennan Runner-up Award (“Conflict of Interest and The Credibility of Underwriter Analyst Recommendations “)
- The 1999 Western Finance Association Award for the best paper (for the paper: “When the Underwriter is the Market Maker: An Examination of Trading in the IPO Aftermarket”)
Socially Responsible Investment (SRI) Funds have become popular in recent years as investors increasingly give weight to measures such as reducing pollution, maintaining employee and customer satisfaction and diversifying board membership. However, new research shows that while such funds are good at picking firms that adopt such behaviours, they do not inspire those firms to further improve their performance.