Massimo Massa

Massimo Massa is the Rothschild Chaired Professor of Banking and a Professor of Finance at INSEAD. He teaches international finance, corporate finance, asset management, behavioural finance, and governance in MBA, EMBA, PhD and Executive Education programmes. He has an MBA from the Yale School of Management and an MA and a PhD in Financial Economics from Yale University. He is a CPA and an Auditor. He has previously worked in the Bank of Italy.

His research interests include asset management, corporate finance, behavioural finance, and financial intermediation. He has published articles on M&A, alliances, capital structure, dividend policy, share repurchases, IPOs, mutual funds, hedge funds, short-selling, behavioural biases, banking, asset management, international finance, the role of media and social networks in financial markets, ownership structure, corporate governance, family firms. His publications have been featured in top academic journals and his research has been quoted in major magazines, newspapers, professional journals, and forums. He is an Associate Editor of the Journal of Empirical Finance and the Review of Finance.

Professor Massa has been a consultant with several companies on strategic issues related to governance and corporate financial and growth strategies. He co-directs the Hoffmann Fund for research in family firms and is the director of the Advanced Asset Management programme, the Interalpha Banking programme and the Executive Master in Finance. He co-directs Value Creation for Owners and Directors programme and has managed several programmes for corporations and banks, including ABN AMRO, Maybank, Société Générale, Fineco, Technip, Mubadala, Bertelsmann.

Professor Massa's current research focuses on the link between corporate financial strategies, governance, and type of ownership and how this affects value creation and growth in corporations as well as the strategies of asset managers and banks and their synergies.

Education

• 05/1998 Yale University, New Haven, CT
  Ph.D. degree in Economics, specialized in Finance and Macroeconomics.
  Research interests: asset pricing, financial microstructure, incomplete markets and derivatives, mutual funds.
• 10/1993 Yale University, New Haven, CT
  M.Phil. degree in Economics
• 08/90-05/92 Yale School of Organization and Management, New Haven, CT
  Master in Business Administration (MBA) Concentration in Financial Management
• 09/84-05/89 LUISS University of Rome, Rome, Italy
  BA degree in Economics and Business, with minor in Law

Research Areas

• Information in Financial Markets
• Mutual Funds
• Corporate Finance
• Behavioural Finance

Teaching Areas

• Corporate Finance: International Finance (MBA, EMBA, Executives: AICF, AMP, GMP, CSPs); Applied Corporate Finance (MBA, EMBA, MFIN, Executives: AICF, AMP, GMP, CSPs, MFIN); Mergers and Acquisitions (MBA, MFIN, Executives: AICF, AMP, GMP, CSPs)
• Governance: Value Creation and Governance (Executives: AMP, IDP, VCOD, CSPs)
• Behavioral Finance: Behavioral Strategies for Asset Managers and Managers (CSPs, MFIN)
• Asset Management: Investment Strategies (Executives: AAM, CSPs), Strategic Insutrial Positioning (Executives: Interalpha, SMB, CSPs)
• PhDs: Information Economics, Behavioral Finance, Applied Corporate Finance

Industry Sectors

Banking and Insurance

Publications

1. Financial innovation and information: the role of derivatives when a market for information exists. Review of Financial Studies, 2002, 15 (3), 927-958.
2. Index funds and stock market growth (joint with W. Goetzmann). NBER Working Paper 703. Journal of Business, 2003, 76(1), 1-29.
3. Daily momentum and contrarian behavior of index fund investors (joint with W. Goetzmann). Journal of Financial and Quantitative Analysis, 2002, 37(3), 375-390.
4. Trading volume and stock market efficiency: A financial microstructure analysis (joint with M. Majnoni). European Financial Management, 2001, 7 (1), 93-115.
5. How do family strategies affect fund performance? When performance-maximization is not the only game in town. Journal of Financial Economics, 2003, 67(2), 249-305.
6. Reputation and inter-dealer trading. A microstructure analysis of the Treasury Bond market (joint with A. Simonov). Journal of Financial Markets. 2003, 6(2), 99-141.
7. Price manipulation in parallel markets (joint with F. Drudi). Journal of Business, 2005, 78(5), 1625-1658.
8. Shareholder investment horizon and the market for corporate control (joint with J.M. Gaspar and P. Matos). Journal of Financial Economics, 2005, 76(1), 135-165.
9. Hedging, familiarity and portfolio choice (joint with A. Simonov). Review of Financial Studies,
10. . Favoritism in mutual fund families? Evidence of strategic cross-fund subsidization (joint with J.M. Gaspar and P. Matos). Journal of Finance, 2006, 61(1), 73-104. 11.Is learning a dimension of risk? (joint with A. Simonov). Journal of Banking and Finance, 2005, 29(10), 2605-2632. Awarded the Sarnat Prize as the Best Paper in the Journal of Banking and Finance for 2005.
11. Dispersion of opinion and stock returns (joint with W Goetzmann). Journal of Financial Markets, 2005, 8(3), 324-349. 13.Idiosyncratic volatility and product market competition (joint with J.M. Gaspar). Journal of Business, 2006, 79(6), 3125-3152.
12. Behavioral biases and investment (joint with A. Simonov). Review of Finance, 2005, 9(4), 483- 507.
13. Local ownership and private information: evidence of a monitoring-liquidity trade-off (joint with J.M. Gaspar). Journal of Financial Economics, 2007, 83(3), 751-792. .
14. Mimicking repurchases (joint with Z. Rehman and T. Vermaelen). Journal of Financial Economics, 2007, 84(3), 624-666.
15. Mutual funds and bubbles: the surprising role of contractual incentives (joint with N. Dass and R. Patgiri). Review of Financial Studies, 2008, 21, 51-99.
16. Shareholder diversification and the decision to go public (joint with A. Bodnaruk, E. Kandel and A. Simonov) Review of Financial Studies, 2008, 21(6), 2779-2824. 19.Incentives and mutual fund performance: higher performance or just higher risk taking? (joint with R. Patgiri) Review of Financial Studies, 2009, 22(5), 1777-1815. 20.Information flows within financial conglomerates: evidence from the bank-mutual funds relationship (joint with Z. Rehman). Journal of Financial Economics, 2008, 89(2), 288-306.
17. Disposition matters: volume, volatility and price impact of a behavioral bias (joint with W. Goetzmann). Journal of Portfolio Management, Winter 2008 34(2),103-125 and Journal of Trading 2008, 3(2), 68-90.
18. Cosmetic mergers: the effect of style investing on the market for corporate control (joint with L. Zhang). Journal of Financial Economics, 2009, 93(3), 400-427.
19. Experimentation in financial markets (joint with A. Simonov). Management Science, 2009, 55(8), 1377-1390. 24.Investment banks as insiders and the market for corporate control (joint with A. Bodnaruk and A. Simonov). Review of Financial Studies, 2009, 22(12), 4989-5026.
20. Do demand curves for currencies slope down? (joint with H. Hau and J. Peress). Review of Financial Studies, 2010, 23(4), 1681-1717.
21. When should firms share credit with employees? Evidence from anonymously managed mutual funds (joint with J. Reuter and E. Zitzewitz). Journal of Financial Economics, 2010, 95(3), 400- 424.
22. Shareholders at the gate? Institutional investors and cross-border mergers and acquisitions (joint with M. Ferreira and P. Matos). Review of Financial Studies, 2010, 23(2), 601-644.
23. The impact of a strong bank – firm relationship on the borrowing firm (joint with N. Dass). Review of Financial Studies, 2011, 24(4), 1204-1260.
24. The role of commonality between CEO and divisional managers in internal capital markets (joint with J.M. Gaspar). Journal of Financial and Quantitative Analysis, 2011, 46(3), 841-869.
25. The role of college interaction in portfolio choice (joint with A. Simonov), CEPR Working Paper
26. Review of Finance, 2011, 15(4), 757-797.
27. The role of institutional investors in propagating the crisis of 2007-2008 (joint with A. Manconi and A. Yasuda) NBER Working Paper 16191. Journal of Financial Economics, 2012, 104(3), 491- 518.
28. Can buybacks be a product of shorter shareholder horizon? (joint with J.M. Gaspar, P. Matos, R. Patgiri and Z. Rehman), CEPR Working Paper n° 4813, Review of Finance, 2012, 17, 261-320.
29. Shareholder homogeneity and firm value: the disciplining role of non-controlling shareholders (joint with E. Kandel and A. Simonov). Journal of Financial Economics, forthcoming.
30. Liquidity and the choice between private and public acquirers (joint with M. Xu). Journal of Financial and Quantitative Analysis, forthcoming.
31. Corporate governance and alliances (joint with A. Bodnaruk and A. Simonov). Journal of Financial Economics, forthcoming.
32. A servant to many masters: competing shareholder preferences and limits to catering (joint with A. Manconi). Journal of Financial and Quantitative Analysis, forthcoming.
33. The effects of bond supply uncertainty on the financing policy of the firm (joint with A. Yasuda and L. Zhang). Journal of Financial Economics, forthcoming.
34. The role of relative availability of bond and bank financing: A measure of financial inflexibility. (joint with L. Zhang). Journal of Monetary Economics, forthcoming. 39.International bond issuances and institutional investors (joint with A. Zaldokas). Journal of International Economics, forthcoming. 40.Institutional investor demand and the multiple debt-structure of the firm (joint with N. Dass). The Review of Financial Studies, forthcoming.
35. Currency management and fund performance (joint with Y. Wang and H. Zhang). The Journal of Financial and Quantitative Analysis, forthcoming.
36. Do mutual funds play a sentiment based strategy? When marketing is more important than performance (joint with V. Yadav). The Journal of Financial and Quantitative Analysis, forthcoming.
37. Mutual Funds and Information Diffusion: The Role of Country-Level Governance (joint with M. Lin and H. Zhang). The Review of Financial Studies, forthcoming.
38. Outsourcing in the International Mutual Fund Industry: An Equilibrium View (joint with O. Chuprinin and D. Schumacher). Journal of Finance, forthcoming.
39. The Invisible Hand of Short Selling: Does Short Selling Discipline Earnings Manipulation? (joint with B. Zhang and H. Zhang). The Review of Financial Studies, forthcoming.
40. Bondholder concentration and credit risk: evidence from a natural experiment (joint with A. Manconi and L. Zhang). The Review of Finance, forthcoming.
41. Portfolio choice and menu exposure (joint with A. Karlsson and A. Simonov). Awarded the LECG Prize as the best paper in Behavioral Finance at the 2006 EFA. Journal of Financial Markets, forthcoming.
42. Competition of the Informed: Does the Presence of Short Sellers Affect Insider Selling? (joint with W. Qian, W. Xu, and H. Zhang). The Journal of Financial Economics, forthcoming

Published in Professional Jounals

• Credit Default Swaps stop Fire sales (joint with L. Zhang), CreditFlux.
• Compensation and Managerial Herding: Evidence from the Mutual Fund Industry (joint with Patgiri), Trading and Risk Magazine

Chapters in Books

• Stock market participation and pension reform (joint with A. Karlsson and A. Simonov)
• Transitioning to retirement: How will boomers fare?, Oxford University Press. O. Mitchell Editor.
• What do we know of the mutual fund industry? Growth and Value Creation in Asset
• Management. Strategy Lab SimCorp.
• The asset management of pension funds and insurance companies. Strategy Lab SimCorp.
• Global Asset Management. Current and Future Challenges Faced by Pension Funds, Palgrave MacMillan.