I’m Alex Edmans, professor of finance, author, speaker, board member, and advisor.

I focus on purposeful business, sustainable investing, corporate governance, and behavioural finance.

This website contains both academic research and resources for practitioners. The latter include newspaper articles, submissions to policy consultations, blog posts and talks.

PROFESSOR OF THE YEAR

I’m Alex Edmans, professor of finance, author, speaker, board member, and advisor.

I focus on purposeful business, sustainable investing, corporate governance, and behavioural finance.

This website contains both academic research and resources for practitioners. The latter include newspaper articles, submissions to policy consultations, blog posts and talks.

PROFESSOR OF THE YEAR

What I do

Rational Sustainability New paper

This essay proposes rational sustainability as an evolution to the practice of ESG. It seeks sustainability – the creation of long-term value – which is of interest to all job titles and political leanings. It is rational since it recognizes diminishing returns and trade-offs; it is based on evidence and analysis; and guards against irrational sustainability bubbles.

January 2024

CEO Compensation: Evidence From the Field published in Journal of Financial Economics.

We survey directors and investors on how they set CEO pay in practice, revealing a number of departures from mainstream academic models. Incentives are used to fairly reward performance ex-post, rather than incentivize effort ex ante.

December 2023

Does the Carbon Premium Reflect Risk or Mispricing? New paper

Companies with higher carbon emissions enjoy higher earnings surprises; earnings announcement returns account for 30-50% of the carbon premium. The carbon premium may result from outperformance (companies can “get away with” emitting) rather than a higher cost of capital.

September 2023

Does Sustainable Investing Really Help the Environment? Wall Street Journal debate with Tariq Fancy.

November 2021

The Pie-Growing Mindset

TEDx talk on how companies can grow the pie for both stakeholders and shareholders.

What to Trust in a Post-Truth World

TED talk on critical thinking and the importance of discernment with data and evidence.

The Purpose of a Finance Professor.

Keynote speech at the 2021 Financial Management Association annual meeting.

May Contain Lies: How Stories, Statistics, and Studies Exploit Our Biases – And What We Can Do About It is my book on how our biases cause us to fall for misinformation, and how to combat it. To be published in April 2024 by Penguin Random House.

Grow the Pie: How Great Companies Deliver Both Purpose and Profit is my book on the business case for purposeful business. It was one of the Financial Times Books of the Year and has been, or is being translated into Arabic, Chinese, French, Italian, Japanese, Korean, Portuguese, Russian, and Turkish.

Principles of Corporate Finance is the classic corporate finance textbook previously written by Brealey, Myers, and Allen. I joined the book in the 14th edition to bolster the content on responsible business, corporate governance and behavioral finance, make the book more global, and improve the pedagogy throughout with clear explanations, precise definitions, and simple language.

Do Banks Offer Complex Mortgages to Mislead Customers? Banks are often accused of making money off complex products that consumers don’t understand.

How Political Connections Can Hurt, Rather Then Help, Firm Value We often think of political connections as clearly favoring a company. Perhaps the most extreme example is Donald Trump owning around 500…

What Drives the Cost of Default Insurance? One of the many negative consequences of the COVID-19 pandemic is that companies may default. Companies going bankrupt are indeed less…