Andrei Simonov is Professor of Finance at Michigan State University, a CEPR Research Affiliate in the Financial Economics program, Scientific Director of Research Center for Empirical Finance at Gaidar Institute for Economic Policy (Moscow, Russia), J. P. Morgan Visiting Professor of Finance at New Economic School, and a Research Associate in Stockholm International Corporate Governance Institute. He received Ph.D. in Finance from European Institute of Business Administration ( INSEAD, 2000). He also holds Ph.D. in Theoretical Physics from Moscow State University. His research interests include asset pricing, individual portfolio decision and behavioral finance. Andrei is recipient of several grants and awards. He was awarded EFA/LECG Prize for best paper in Behavioral Finance, Iddo Sarnat Memorial Award and was one of the winners of BSI Gamma Foundation Research Competition. His work is regularly presented at leading finance conferences including American Economic Association, American Finance Association, Western Finance Association, European Finance Association, CEPR and NBER meetings. His publications appear in leading Finance and Management journals including, among others, Journal of Finance, Review of Financial Studies, Journal of Financial Economics, Review of Finance, and Management Science. His research has been covered extensively in the popular press, including, among others, The Wall Street Journal, The Times of London, Atlantic Monthly, The Guardian, Globe and Mail, and Dow Jones Market Watch. He serves on Editorial Boards of Management Science, Financial Management, Journal of Empirical Finance, and Russian Economic Journal. At MSU, he is Academic Director of Financial Markets Institute.
Industry Expertise (3)
Areas of Expertise (5)
Professor of the Year (professional)
Voted by New Economics School Master in Finance students
Grant of FDIC Center for Financial Research (professional)
$10,000 for "On the Real Effects of Bank Bailouts: Micro-Evidence from Japan" (joint with M. Giannetti), American Economic Journal: Macroeconomics, vol. 5-1 (2013), pp. 135-167
Grant of Bank of Sweden Tercentenary Fund (professional)
SEK 1,850,000 for "Investment Banks as Insiders and the Market for Corporate Control" (with Andriy Bodnaruk and Massimo Massa), Review of Financial Studies, vol. 22-12 (2009), pp. 4989-5026
Moscow State University: Ph.D., Theoretical Physics 1991
INSEAD: Ph.D., Finance 2000
Moscow State University: M.S., Physics 1988
- Center for Empirical Finance, Gaidar IET, Moscow, Russia, Scientific Director
- Center for Economic Policy Research, Research Affiliate
Documents: Staffers signed Schuette real estate deals
The Detroit News
Andrei Simonov, a finance department professor at Michigan State University, said blind trusts are typically used to manage personal financial assets or private equities. It’s more rare to place personal property in a blind trust, he said. [...]
Wall Street Analysts Are Embarrassingly Bad At Predicting The Future, Study Finds
“Overall, it’s a very good finding,” Andrei Simonov, a professor at Michigan State University who researches behavioral finance and who is unaffiliated with the research, tells me. “The big problem is that the growth of a stock is extremely difficult to predict. Who will be the next Google? Who knows.” [...]
Gap between rich and poor is getting wider
Spartan Newsroom online
We spoke with Andrei Simonov, associate professor of finance at the Eli Broad College of Business at Michigan State University, to answer some of these questions. [...]
Journal Articles (5)
Luojia Hu, Xing Huang, Andrei Simonov
We show that borrowers strategically boost their credit score in order to move into next credit score bin for better credit availability and loan terms. Borrowers are more likely to purchase houses after their credit scores change to qualify them for the next bin. However, the credit accounts of those individuals are more likely to become delinquent within the next four years after home purchases. The effect is front-loaded for subprime and near prime borrowers and takes three to four years for prime borrowers. This strategic behavior is not limited to 2004-2007 housing boom nor curtailed by post-bust reforms.
William Grieser, Rachel Li, Andrei Simonov
We highlight a potential trade-off between integrity and innovation in corporate culture. In particular, cultures that neglect integrity are associated with a greater probability of SEC enforcement actions for accounting misstatements, lower corporate ethics ratings by external analysts, and greater tax-avoidance. However, firms that score lower on measures of integrity within a given industry also have higher research and development output, more patents and patent citations, and greater patent diversity. Moreover, post-takeover research productivity of inventors decreases (increases) when they are merged into cultures with relatively higher (lower) scores on integrity. These results provide a potential explanation for the difficulty that firms have in sustaining integrity as a key corporate value.
Andriy Bodnaruk, Andrei Simonov
Using survey-based measures of mutual fund manager loss aversion, we study the effects of institutional investor preferences on their investment decisions, performance, and career outcomes. We find that managers with higher aversion to losses choose portfolios with lower downside risk, increase their risk-taking more in response to poor past performance, and display a stronger disposition effect. Further, we provide evidence that managers who are more loss-averse have lower performance and are more likely to have their contracts terminated.
William David Grieser, Nishad Kapadia, Rachel Li, Andrei Simonov
We develop a new measure of integrity as it relates to corporate culture—the number of employees who use corporate emails to register for a website that facilitates extramarital affairs. This measure is associated with firm level unethical behavior: it predicts a greater probability of SEC enforcement actions for accounting misstatements, and lower corporate ethics ratings by external analysts. However, consistent with research in psychology, we find that the measure also predicts more innovation and risk taking. Our results suggest that it is difficult to engineer a perfect corporate culture due to potential trade-offs between employee creativity, risk-taking, and integrity.
Andriy Bodnaruk, William O'Brien, Andrei Simonov
We study the effects of establishment of a captive finance subsidiary on parent firm's competitiveness. Firms with captives have higher profitability, larger market share, lower volatility of sales, and maintain lower cash balances. Following the establishment of a captive, a firm's profitability and its industry market share gradually increase, but it takes about four years to become economically relevant. Stock returns of companies with captive finance subsidiaries correlate more with finance industry returns than stock returns of companies without captives. We estimate that captives generate about 17% of parents' net income. Thus, significant part of profits of the largest U.S. industrial corporations comes from what in essence are financial services.