Press Releases

Profesor Viral Acharya and Colleagues Receive 10,000 Euro Grant

Viral Acharya, NYU Stern Professor of Finance, with colleagues Paolo Volpin at London Business School and Marco Pagano at Università di Napoli Federico II, received a 10,000 Euro grant from the BNP Paribas Hedge Fund Centre at HEC Paris for their paper, “Seeking Alpha: Excess Risk Taking and Competition for Managerial Talent."

Many people view compensation practices at large, complex financial institutions as a contributing factor to the financial crisis. The authors argue that a key issue is the difficulty of rewarding managers and traders in an efficient way when managers can choose riskier projects with short-term profits (a "fake alpha") and long-term risks, but have the ability to keep moving across firms.