Andrei Simonov

Professor Michigan State University

  • East Lansing MI

An expert in US and international stock markets, institutional and individual investors, investment banking and behavioral finance.

Contact

Michigan State University

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Media

Biography

Andrei Simonov is Professor of Finance at Michigan State University, a CEPR Research Fellow in the Financial Economics program, Scientific Director of Research Center for Empirical Finance at Gaidar Institute for Economic Policy (Moscow, Russia), 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, The Economist, 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

Writing and Editing
Financial Services
Education/Learning

Areas of Expertise

International Finance
Behavioral Finance
Financial Services
Asset Management

Accomplishments

Professor of the Year

Voted by New Economics School Master in Finance students

Grant of FDIC Center for Financial Research

$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

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

Education

Moscow State University

Ph.D.

Theoretical Physics

1991

INSEAD

Ph.D.

Finance

2000

Moscow State University

M.S.

Physics

1988

Affiliations

  • Center for Empirical Finance, Gaidar IET, Moscow, Russia, Scientific Director
  • Center for Economic Policy Research, Research Affiliate

News

Study: Crypto and investment scams skyrocket in 2020 and 2021

The Motley Fool  online

2021-07-07

The proposed scam investments share one unique characteristic: they all appeal to greed. They promise unrealistically high rates of returns fast. Many scammers explain that such returns are achieved because the company, investment, or cryptocoin invents or uses new technology or because "we live through the technology revolution." Often, scammers refer to the high performance of "similar" companies or instruments (like Bitcoin), hiding the downside or extreme volatility.

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Are you a stock or a bond?

The Economist  online

2018-08-23

A paper, published in 2003, by James Poterba of the Massachusetts Institute of Technology discovered that an average of more than 40% of the value of the 20 largest company-pension plans in America was invested in the firm’s own shares. The dangers of such a strategy had recently become apparent. When Enron failed, its employees had over 60% of their retirement savings in company stock. Another study based on Swedish data by Massimo Massa, of INSEAD, and Andrei Simonov, now of Michigan State University, also found that households tend to invest in stocks that are closely related to their employment income.

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Documents: Staffers signed Schuette real estate deals

The Detroit News  

2018-05-11

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. [...]

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Journal Articles

Credit Score Doctor

FMA Conferences

Luojia Hu, Xing Huang, Andrei Simonov

2017

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.

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Integrity, creativity, and corporate culture

SSRN

William Grieser, Rachel Li, Andrei Simonov

2017

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.

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Loss-averse preferences, performance, and career success of institutional investors

The Review of Financial Studies

Andriy Bodnaruk, Andrei Simonov

2016

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.

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