Professor Alex Edmans

Associate

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+44 (0) 20 7776 6600

Location: London

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Alex is a Professor of Finance at London Business School. He is an expert in corporate finance (corporate governance, executive compensation, M&A, and investment/growth/innovation), corporate social responsibility, behavioural finance, and practical investment strategies.

He has a unique combination of deep academic rigour and practical business experience. He began his career working for Morgan Stanley in investment banking (London) and fixed income sales and trading (New York). After his PhD he became a finance professor at The Wharton School, University of Pennsylvania, where he won 14 teaching awards in six years and was granted tenure.

Alex co-led a session on behavioural economics at the 2014 World Economic Forum in Davos. He has advised the Dutch Prime Minister (Mark Rutte), US Senator Elizabeth Warren, and the No. 10 policy unit. He serves on the steering group of The Purposeful Company, which advocates policy reforms to enable companies to pursue long-term purpose rather than short-term profit. Alex co-invented a solution to the US housing crisis that was named one of the 50 best inventions in 2010 by Time magazine. He also co-invented the idea of paying managers with debt to dissuade excessive risk-taking, which has been implemented by several banks and advocated by policymakers worldwide. He was named a Rising Star in Finance and a Rising Star in Corporate Governance, and was awarded the Moskowitz Prize for Socially Responsible Investing and the FIR-PRI prize for Finance and Sustainability. He has given a TEDx talk on ‘The Social Responsibility of Business’.

He has worked on various economic consulting projects related to valuation, collusion, estimation of damages, and the link between financial markets and the real economy. He was the lead plaintiff in a derivative lawsuit against a NASDAQ firm, successfully implementing corporate governance reforms.

Selected publications

Alex’s research has been published by the American Economic Review, Journal of Finance, Journal of Financial Economics, and Review of Financial Studies. He is Managing Editor of the Review of Finance, and has served on the editorial boards of the Review of Financial Studies and Journal of Financial and Quantitative Analysis.

  • Edmans, A. and Gabaix, X. (forthcoming), ‘Executive Compensation: A Modern Primer’, Journal of Economic Literature.

  • Edmans, A. (2016), ‘28 Years of Stock Market Data Shows a Link Between Employee Satisfaction and Long-Term Value’, Harvard Business Review, 24 March.

  • Edmans, A. (2016), ‘Performance-Based Pay for Executives Still Works’, Harvard Business Review, 23 February.

  • Edmans, A. (2016), ‘How Much Do Financial Markets Matter?’, World Economic Forum, 17 February.

  • Edmans, A. (2015), ‘How Can We Help Businesses Think Long-Term?’, World Economic Forum, 12 August.

  • Edmans, A. (2015), ‘There Is No Trade-Off Between Profit and Purpose’, Huffington Post Business, 17 August.

  • Edmans, A., Goldstein, I. and Jiang, W. (2015), ‘Feedback Effects, Asymmetric Trading, and the Limits to Arbitrage’, American Economic Review, 105:12, pp. 3766–97.

  • Edmans, A. (2014), ‘Blockholders and Corporate Governance’, Annual Review of Financial Economics, 6, pp. 23–50.

  • Edmans, A., Fang, V.W. and Zur, E. (2013), ‘The Effect of Liquidity on Governance’, Review of Financial Studies, 26:6, June, pp. 1443–82.

  • Bond, P., Edmans, A. and Goldstein, I. (2012), ‘The Real Effects of Financial Markets’, Annual Review of Financial Economics, 4, pp. 339–60.

  • Edmans, A., Gabaix, X., Sadzik, T. and Sannikov, Y. (2012), ‘Dynamic CEO Compensation, Journal of Finance, 67:5, October, pp. 1603–47.

  • Edmans, A., Goldstein, I. and Jiang, W. (2012), ‘The Real Effects of Financial Markets: The Impact of Prices on Takeovers’, Journal of Finance, 67:3, June, pp. 933–71.

  • Bao, J. and Edmans, A. (2011), ‘Do Investment Banks Matter For M&A Returns?’, Review of Financial Studies, 24:7, July, pp. 2286–315.

  • Edmans, A. (2011), ‘Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices’, Journal of Financial Economics, 101:3, September, pp. 621–40.

  • Edmans, A. and Manso, G. (2011), ‘Governance Through Trading and Intervention: A Theory of Multiple Blockholders’, Review of Financial Studies, 24:7, July, pp. 2395–428.

  • Edmans, A. (2009), ‘Blockholder Trading, Market Efficiency, and Managerial Myopia’, Journal of Finance, 64:6, December, pp. 2481–513.

  • Edmans, A., García, D. and Norli, Ø. (2007), ‘Sports Sentiment and Stock Returns’, Journal of Finance, 62:4, August, pp. 1967–98.

Qualifications                                            

  • PhD Financial Economics, Massachusetts Institute of Technology

  • BA (Hons) Economics and Management, University of Oxford


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