Research Impact

The College’s faculty members conduct highly relevant research addressing important questions in management, finance and policy. The goal of this webpage is to present selected the College’s projects and share their significant results and findings with a broad audience.

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New paper published by Prof. de Rassenfosse on Offshoring R&D

— Prof. de Rassenfosse has published a paper in Industrial and Corporate Change on the productivity effects of R&D offshoring.

New study on digitalization by Profs. Fahlenbrach and Filipovic

— Professors Fahlenbrach and Filipovic have conducted and co-authored a study on digitalization in the Swiss banking sector.

Policies Influencing Productivity Growth Through Entrepreneurship

— Given the importance of productivity growth in improving economic prosperity, there is surprisingly little in the classical economic literature on how to maximise the contributions of the entrepreneurs who are central to driving that growth. Professor Dominique Foray, Chair of Economics and Management of Innovation at EPFL, builds on the ideas of American economist William Baumol to suggest three essential pillars of any public policy framework aimed at encouraging productivity enhancing entrepreneurship.

New Publication on Optimal Credit Collections in Management Science

— A new research paper by Prof. Thomas Weber on “Dynamic Credit-Collections Optimization” has been accepted for publication at Management Science, the leading INFORMS journal.

How Badly Run is Your Firm? The Impact of Key Governance Issues.

— Corporate governance rules are designed to ensure that firms are well run - that management decisions do not unjustly deprive certain stakeholder groups of value, for example. A major challenge for policymakers, however, as regular reports of poorly run companies in the media show, is devising effective governance provisions. Now though, using a novel approach, academics Erwan Morellec, Boris Nikolov, and Norman Schürhoff have devised a framework which can be used to gauge the actual impact on a firm's value of some common governance problems and the relative impact on different stakeholder groups.

Prof. Fahlenbrach - SFI Practitioner Roundups

— The core role of a bank is to accept deposits from agents with excess liquidity and loan the resulting capital to agents with a lack of it. For these services, banks pay their creditors and charge their debtors. The remuneration for these services depends on macroeconomic factors, such as the real risk-free rate and expected inflation, as well as investment specific factors, such as liquidity, default risk, and maturity. If a bank overprices its lending activities, it will likely relinquish opportunities to a competitor. Reversely, if a bank underprices its loans, it will likely not be remunerated for the risk it is bearing.

What Happens When Platforms and Network Industries Collide?

— In recent years online platforms such as Amazon, Google, and Facebook, have become significant players in a number of markets, from retail to entertainment. Now, often aided by a favorable regulatory environment, platforms are encroaching on network industries, such as communications, transportation and energy. However, in addition to offering consumers considerable benefits, the platforms may be undermining the financial model which ensures that the network infrastructure they use, and that benefits society generally, receives adequate investment in the future. In their research paper Platformed! Network Industries and the New Digital Paradigm academics Juan J. Montero and Matthias Finger, consider some of the issues raised by the involvement of online platforms in networked industries.

Interview du prof. Filipovic sur le thème du swap de longévité

— Précurseur dans l’utilisation d’instruments financiers couvrant le risque de longévité, le Royaume-Uni n’a pas vraiment fait école. Le professeur Damir Filipović, titulaire de la chaire Swissquote de finance quantitative et responsable du Swiss Finance Institute @EPFL, a accordé une interview à la revue de la Prévoyance Professionnelle Suisse dans laquelle il fait le point sur les possibilités existantes. L'intégralité de l'article est publié ci-dessous.

Why Does Fast Loan Growth Predict Poor Performance for Banks?

— Rüdiger Fahlenbrach, professor at the Swiss Finance Institute at EPFL, wrote a popularized version of his academic article, co-authored with Robert Prilmeier (Tulane University - A.B. Freeman School of Business), and René Stulz (Ohio State University), entitled "Why Does Fast Loan Growth Predict Poor Performance for Banks?" and published in the International Banker online magazine.

Interview with Professor Collin-Dufresne

— Although many countries accumulate a large amount of debt, others have the opportunity to invest billions of dollars in various industries around the world by creating sovereign wealth funds. Today the world counts 73 of these discreet and powerful funds which manage all together $6000 billion. The Scandinavian country of Norway has the world's largest sovereign wealth fund—the Government Pension Fund Global—worth $882 billion. Funded by Norway's oil revenues, the fund generated an annual return of 5.6 percent between 1998 and 2015. The development of sovereign wealth funds generates much media and public interest. Pierre Collin-Dufresne, Swiss Finance Institute Professor and Professor of Finance at EPFL, was recently asked to deliver an expert opinion in front of a Committee appointed by the Norwegian government to assess the equity portion of the Government Pension Fund Global. Following up on this invitation, the [email protected] interviewed Prof. Collin-Dufresne.

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