Rüdiger Fahlenbrach

Associate Professor of Finance
Swiss Finance Institute Senior Chair
Email: ruediger.fahlenbrach [at] epfl.ch
Phone: ++41 (0)21 693 0098
Fax: ++41 (0)21 693 0110
Postal: Swiss Finance Institute @ EPFL
Quartier UNIL-Dorigny, Extranef 211
CH – 1015 Lausanne, Switzerland

Profile

RUEDIGER FAHLENBRACH is Swiss Finance Institute Associate Professor at Ecole Polytechnique Fédérale de Lausanne (EPFL), Switzerland. He holds a senior chair from the Swiss Finance Institute. Formerly on the faculty of the Fisher College of Business of the Ohio State University (USA), he received a Ph.D. in Finance from the University of Pennsylvania (Wharton).

He has research interests in empirical corporate finance, in particular corporate governance and entrepreneurship. Ruediger Fahlenbrach has published in the leading academic journals in finance, including the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies and the Journal of Financial and Quantitative Analysis.

He is Associate Editor of the Review of Finance and former Associate Editor of the Review of Financial Studies (2013-2016) and Financial Management (2012-2016).

Ruediger is a research member of the European Corporate Governance Institute.

His research has been reported in many large-circulation newspapers such as The New York Times, The Wall Street Journal, The Economist, Le Temps, NZZ, Handelsblatt, Forbes Magazine, USA Today, and Fortune Magazine.

Curriculum Vitae

Link to a recent Curriculum Vitae

Ruediger Fahlenbrach

Publications

Fahlenbrach, Rüdiger, Robert Prilmeier, and René M. Stulz, 2017, Why does fast loan growth predict poor performance for banks?, Review of Financial Studies, forthcoming.

Fahlenbrach, Rüdiger, Angie Low, and René M. Stulz, 2017, Do independent director departures predict future bad events?, Review of Financial Studies 30, 2313-2358.

Schmidt, Cornelius, and Rüdiger Fahlenbrach, 2017, Do exogeneous changes in passive institutional ownership affect corporate governance and firm value?, Journal of Financial Economics 124, 285-306.

Boyson, Nicole, Fahlenbrach, Rüdiger, and René M. Stulz, 2016, Why Don’t all Banks Practice Regulatory Arbitrage? Evidence from Usage of Trust-preferred Securities, Review of Financial Studies 29, 1821-1859.

Cronqvist, Henrik, and Rüdiger Fahlenbrach, 2013, CEO Contract Design: How Do Strong Principals Do It?, Journal of Financial Economics 108, 659-674.

Evans, Richard B., and Rüdiger Fahlenbrach, 2012, Institutional Investors and Mutual Fund Governance: Evidence from Retail – Institutional Fund Twins, Review of Financial Studies 25, 3530-3571.

Fahlenbrach, Rüdiger, Robert Prilmeier, and René M. Stulz, 2012, This Time is the Same: Using Bank Performance in 1998 to Explain Bank Performance During the Recent Financial Crisis, Journal of Finance 67, 2139-2185.

Fahlenbrach, Rüdiger, and René M. Stulz, 2011, Bank CEO Incentives and the Credit Crisis, Journal of Financial Economics 99, 11-26.

Becker, Bo, Henrik Cronqvist, and Rüdiger Fahlenbrach, 2011, Estimating the Effects of Large Shareholders Using a Geographic Instrument, Journal of Financial and Quantitative Analysis 46, 907-942.

Fahlenbrach, Rüdiger, Bernadette Minton, and Carrie Pan, 2011, Former CEO Directors: Lingering CEOs or Valuable Resources?, Review of Financial Studies 24, 3486-3518.

Fahlenbrach, Rüdiger, Angie Low, and René M. Stulz, 2010, Why Do Firms Appoint CEOs as Outside Directors?, Journal of Financial Economics 97, 12-32.

Fahlenbrach, Rüdiger, and Patrik V. Sandås, 2010, Does information drive trading in option strategies?, Journal of Banking and Finance 34, 2370-2385.

Cronqvist, Henrik, and Rüdiger Fahlenbrach, 2009, Large Shareholders and Corporate Policies, Review of Financial Studies 22, 3941-3976.

Fahlenbrach, Rüdiger, and René M. Stulz, 2009, Managerial Ownership Dynamics and Firm Value, Journal of Financial Economics 92, 342-361.

Fahlenbrach, Rüdiger, 2009, Founder-CEOs, Investment Decisions, and Stock Market Performance, Journal of Financial and Quantitative Analysis 44, 439-466.

Fahlenbrach, Rüdiger, 2009, Shareholder Rights, Boards, and Executive Compensation, Review of Finance 13, 81-113.

Fahlenbrach, Rüdiger, and Patrik V. Sandås, 2009, Co-movements of Index Options and Futures Quotes, Journal of Empirical Finance 16, 151-163.

Dlugosz, Jennifer, Fahlenbrach, Rüdiger, Gompers, Paul, and Andrew Metrick, 2006, Large Blocks of Stock: Prevalence, Size, and Measurement, Journal of Corporate Finance 12, 594-618.

Working papers

Please find the newest versions of my working papers here

Efing, Matthias, Rüdiger Fahlenbrach, Christoph Herpfer, and Philipp Krueger, 2015, How do investors and firms react to an unexpected currency appreciation shock?

Abstract: The Swiss National Bank surprisingly announced in January 2015 that it would no longer hold the Swiss franc at a fixed exchange rate of 1.2 Swiss francs per Euro, a peg it had defended for more than three years. The Swiss franc appreciated by approximately 15% immediately after the announcement. We exploit the removal of the currency peg to study how investors and firms respond to exogenous foreign currency shocks. We find large negative announcement returns for Swiss firms with significant foreign currency exposure. Affected firms experience a drop in profitability and react by reducing capital expenditures and moving production abroad.

Fahlenbrach, Ruediger, Hyemin Kim, and Angie Low, 2017, The importance of network recommendations in the director labor market.

Abstract: Directors are significantly more likely to obtain additional directorships or be promoted if the CEO on whose board they sit and peer directors are well-connected. The impact of CEO and peer director connections is stronger for additional appointments and promotions at firms in the CEO’s and peer director’s networks. The effect of CEO connections is particularly pronounced for directors with less experience and less expertise. Our evidence shows that connections are important in the director labor market and that access to additional networks provides strong incentives for directors to join corporate boards. (JEL G30, G34)

Teaching

Teaching in the MFE Program

Introduction to Finance 

Venture Capital 

Teaching in the SFI Ph.D. Program

Empirical Corporate Finance

Teaching in other Ph.D. Programs

University of New South Wales

Vienna Graduate School of Finance

Frankfurt School of Finance and Management

Central-German Doctoral Program Economics