Latest news and research

 

 DECEMBER 2018 - Latest edition of the CAIR newsletter

The latest edition of the CAIR newsletter is now available and it highlights some of the main activities from CAIR since June including
  • An overview of our Market Microstructure and Fintech workshop and our Annual Corporate Finance conference (both held in September)
  • Anne Stafford’s contribution to the Academy of Social Sciences’ ‘Making the case for Accounting and Finance’ and its launch in the Palace of Westminster
  • Research published by academics associated with CAIR – specifically in the areas of Corporate Governance, Asset Pricing and Investment Analysis, Audit & Risk Management and Corporate Finance
  • Press coverage where colleagues have commented (Kostas Stathopoulos on Corporate Governance and Executive Pay and Jodie Moll on Whistleblowing)
  • Anne Stafford and Pam Stapleton’s written evidence submitted to the House of Commons Public Administration and Constitutional Affairs Committee and its Inquiry on the Government’s Major Projects Portfolio
Download or view here
 
 

NOVEMBER 2018 - Labour report on executive pay proposes ending share-based compensation for execs and giving customers a vote on compensation

Konstantinos Stathopoulos, Professor of Accounting and Finance at Alliance MBS, gives his views on the plans by Labour to give customers of big firms a vote on boardroom pay. Read his views here:
 
 

NOVEMBER 2018 - Whistleblowers: Endangered But Vital To The Corporate World

Dr Jodie Moll, Senior Lecturer in Accounting, Alliance MBS writes in Forbes.com that whistleblowers are endangered but are vital to the corporate world. Read her article here:
 
 

NOVEMBER 2018 - Mitsubishi’s move to dismiss Carlos Ghosn as chairman is the result of another significant corporate governance failure under the watch of a super boss says Corporate Governance expert

Konstantinos Stathopoulos, Professor of Accounting and Finance at Alliance MBS commented on the Carlos Ghosn / Mitsubishi / Nissan story in the Guardian. You can read his comments here
 
 

SEPTEMBER 2018 -Academics from across the UK attend the 7th Annual Corporate Finance conference in Manchester

NYU Stern's Anthony Saunders was the keynote speaker for the 7th Annual Corporate Finance Conference; a collaboration between Alliance Manchester Business School and the Universities of Bristol, Exeter and Lancaster.
Around 30 academics from across the UK came to Manchester for the 2-day event which saw presentations from Sergey Chernenko, Claudia Custodio, Cem Demiroglu, Ruediger Fahlenbrach, Eliezer Fich and a number of early career researchers. Read more here
 
 

SEPTEMBER 2018 -Market Microstructure and Fintech workshop a success 

Academics and Practitioners from around the world came to the newly opened Crowne Plaza Hotel last week for a workshop on Market Microstructure and Fintech. Co-funded by the Centre for the Analysis of Investment Risk (CAIR) and the AMBS Strategic Investment Fund, the one day workshop saw a total of 14 speakers present their latest research and insights. Read more here
 
 

 JUNE 2018 - Taking accountability for the Private Finance Initiative

Anne Stafford, Professor of Accounting and Finance writes about her PFI research in LocalGov.com. You can read the article here
 
   

JUNE 2018 -New CAIR newsletter available to download

The July 2018 edition of our bi-annual newsletter is now available to download and read.
In this edition we review the February Corporate Governance event, April Corporate Finance event and highlight just some of our recent research and activities.
Download here now 
 
 

MAY 2018 -Professor Anne Stafford presents research into shortcomings of PPP and PFI at the Palace of Westminster

On 11th May 2018 the Academy of Social Sciences and its Campaign for Social Science launched the publication Making the Case for the Social Sciences 13 – Accounting and Finance.

Supported by the British Accounting and Finance Association and the British Accounting Review, the event included a presentation from Professor Anne Stafford about her research into the shortcomings of Public-Private Partnerships (PPP) and the Private Finance Initiative (PFI). She made the case that “the reality of PFIs is reduced control and higher cost to government. Our social science approach shows that the real effect of the policy has been the redistribution of wealth to the financial and corporate sectors”.

The Rt Hon Elizabeth Truss MP, Chief Secretary to the Treasury spoke at the launch and is pictured here at the launch with Professor Stafford.
You can read more here
 
 


APRIL 2018 -Research concludes that short-termist Hedge Funds demand more cash during merger negotiations and questions the efficiency of such payments for long-term shareholders

A detailed analysis of 2,000 merger transactions announced between 1994 and 2009 (involving listed firms in the U.S) has revealed that hedge fund holdings in target firms significantly affects merger payment in a way that is likely to be inefficient for long-term shareholders of target companies, as higher proportion of the payment is made in cash.
This has led to the conclusion that the involvement of hedge funds with short-term investment horizons should be subject to additional scrutiny during merger negotiations by other investors, especially those interested in keeping a stake in a joint firm.
The paper, written by Olga Kolokolova and Ning Gao with Achim Mattes from Credit Suisse was recently featured in the Columbia Law School blog.
 
 


APRIL 2018 -Corporate Finance: Beyond private companies
19-20 April 2018

Academics from around the world came to Manchester last week to present new and ground-breaking research relating to Corporate Finance.
 
Co-funded by the Centre for the Analysis of Investment Risk (CAIR) and the Alliance Manchester Business School Strategic Investment Fund, the 2-day event saw a total of 16 speakers present their latest research. 
 
Conference co-organiser Maria-Teresa Marchica said “We were delighted that so many world-leading academics working in the area of Corporate Finance were able to join us. Our event created the right atmosphere to present innovative works and discuss them in a very productive environment ” Read more here
 
 

Multi-trillion hedge fund industry set to become more transparent

Hedge funds are likely to become more transparent due to investor demand and regulatory pressures, says a leading expert on the industry.
Dr Olga Kolokolova, Senior Lecturer in Finance at Alliance MBS, has been studying the industry for a decade and has tracked its growing impact on global financial and investment markets.
She says while hedge funds started life as predominantly private boutiques for high net-worth individuals, today’s funds also attract investments from large institutions. She says the $3tn industry has matured rapidly and is now having a significant impact on markets. “At the same time internal pressure from regulated institutional investors is likely to push hedge funds into more transparent and less risky investment strategies.” Read more here
 





FEBRUARY 2018 -Revitalising corporate governance for the long-term benefit of business and society

Reform of the UK’s Corporate Governance Code came under the spotlight at a major event co-hosted by Alliance MBS together with the Financial Reporting Council (FRC).
Emeritus Professor Martin Walker opened the event, introducing keynote speakers Sacha Sadan (Director of Corporate Governance at Legal and General Investment Management), Professor Kostas Stathopoulos, and David Styles (Director of Corporate Governance and Stewardship at the Financial Reporting Council). The panel featured Theresa Casey (N. Brown Group Plc), Simon Holman (Castlefield), James Jarvis (Institute of Directors) and Chrysoula Zervoukadis (experienced Investment Director).
Find out more here
 

Insurance experience enhances financial performance in UKGI firms

AMBS’ Wei Jiang and Professor Michael Adams from The University of Bath have examined the effects of four key dimensions of Chief Executive Officers’ (CEOs) traits on six financial performance metrics using panel data for 1999-2012 drawn from the United Kingdom’s (UK) property-casualty insurance industry. They find that CEO insurance experience and CEO financial expertise enhance financial performance, while two other CEO traits - power and age are generally not significant. The results thus reinforce the importance of CEO insurance industry expertise and CEO financial expertise in the management and trading of risks. 

 
 




SEPTEMBER 2017 -The Role of Hedge Funds and other Collective Investment Funds in the Modern World 
1-2 September 2017

Academics from around the world came to Manchester in September to present new and ground-breaking research relating to Hedge Funds and other Collective investments.

Co-funded by the Centre for the Analysis of Investment Risk at Alliance Manchester Business School and the Alliance Manchester Business School Strategic Investment Fund, the 2-day event saw keynote presentations from Vikas Agarwal (Georgia State University) and George Aragon (Arizona State University).

Conference organisers Olga Kolokolova and George Wang welcomed researchers from 25 different academic institutions representing 10 countries including the USA, Australia, China, France, Germany, Finland and the Netherlands. Over 50 delegates attended the conference including practitioners from AJ Bell and BlackRock.
 
 

Cash Holdings and Labor Heterogeneity: The Role of Skilled Labor

A paper co-authored by Senior Lecturer in Finance Viet Dang and Professor of Accounting and Finance Konstantinos Stathopoulos has been published in the October 2017 edition of The Review of Financial Studies, a leading finance journal.

The study looks at the role that skilled labour plays in shaping a business’ financing decisions, and specifically at how firms’ cash management policies are affected by their dependence on their workers’ skill levels.

One of the conclusions of the paper, which was also written with former Alliance MBS PhD student Mohamed Ghaly and current Lecturer in Finance at Lancaster University, is that firms relying more on skilled workers tend to adopt more conservative cash policies.
 
  Providing critical perspectives and evaluation to inform investment decision-making

Established in 2005, the Centre for the Analysis of Investment Risk (CAIR) is undertaking novel,world-leading research relating to investment risk. We stimulate academic debate and in turn provide institutional investors, policy makers and corporate leaders with insights and analysis that informs investment decision making.

Find out more here
 
 

Robust accounting has crucial role to play in changing global economy

Speaking at a recent Alliance MBS/LSE conference at The University of Manchester, George Serafeim, the Jakurski Family Associate Professor of Business Administration at Harvard Business School, said there was a fundamental role for accountants in helping organisations change and adapt to the demands of a low carbon economy and technological disruption.

 
 

Chris Humphrey honoured by Lund University

Professor Chris Humphrey has recently received an honorary doctoral degree from Lund University's School of Economics and Management. Lund University is one of Europe's oldest and largest universities and Chris now joins a number of celebrated scholars with honorary doctoral degrees.

Chris gave a key address on sustainability assurance at Lund last November and an announcement of Chris' honorary degree is available here>>

 
 

Non-executive directors key to business innovation     

Researchers Ning Gao, Ian Garrett and Yan Xu have discovered that companies who recruit non-executive directors from a pool of CEOs with a track record of innovation, benefit through improved innovation and operating performance in the post-appointment years 

 
 

Role of skilled labor in financial decisions

A paper co-authored by Senior Lecturer in Finance Viet Dang and Professor of Accounting and Finance Konstantinos Stathopoulos has been accepted for publication in The Review of Financial Studies, a leading finance journal.

 
 

Gender lens investing

Initial findings from a study of gender-based Exchange Traded Products (ETPs) led by Professor of Finance Ser-Huang Poon has found that female leadership can improve an organisation’s CSR (especially in the areas of diversity and governance) and that gender based investment portfolio is now a new asset class.

 
  Institutional investment

Lord Alliance has funded a ground-breaking 3-year study into new developments in financial markets and the asset management industry.

 
  CEO gender in the Boardroom

Ground-breaking research from Roberto Mura and Maria Marchica has demonstrated that firms run by female CEOs have lower leverage and less volatile earnings and they are also more likely to remain in operation compared to firms run by male CEOs.

Read the journal article here

 
  Hedge Fund risk

Research from Olga Kolokolova found that larger hedge funds and hedge funds charging higher incentive fees exhibit lower risk, whereas hedge funds charging higher management fees, imposing longer notice periods, and stemming from large fund-families take more risk.

Read the paper here