Alex Edmans

Edmans studied at St. Paul's School, London and then received a BA in Economics and Management from Merton College, Oxford. After two years at Morgan Stanley, he earned a PhD in Financial Economics from MIT Sloan School of Management as a Fulbright scholar.{{Cite web|title=Alex Edmans CV|url=https://alexedmans.com/wp-content/uploads/2019/07/alexcv.pdf|access-date=2021-08-30|website=Alex Edmans|language=en}} His first academic position was at Wharton School of the University of Pennsylvania. He was awarded tenure in 2013 and then moved to London Business School as a full professor of finance.

Edmans' research is on corporate governance, executive pay, the real effects of financial markets, and behavioral finance, and has been cited over 20,000 times. His work covers topics such as the role of blockholders (large shareholders) in disciplining management,Edmans, Alex (2009). [https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-6261.2009.01508. Blockholder trading, market efficiency, and managerial myopia.] Journal of Finance 64, 2481-2513. the importance of long horizons in executive pay,Edmans, Alex, Xavier Gabaix, Tomasz Sadzik, and Yuliy Sannikov (2012). [https://onlinelibrary.wiley.com/doi/10.1111/j.1540-6261.2012.01768.x. Dynamic CEO compensation.] Journal of Finance 67, 1603-1647.Edmans, Alex, Vivian Fang, and Katharina Lewellen (2017). [https://academic.oup.com/rfs/article/30/7/2229/3058111. Equity vesting and investment.] Review of Financial Studies 30, 2229-2271 how managers learn from financial markets to guide their real decisions,Edmans, Alex, Wei Jiang, and Itay Goldstein (2012). [https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-6261.2012.01738.x The Real Effects of Financial Markets: The Impact of Prices on Takeovers.] Journal of Finance 67, 933-971.Edmans, Alex, Wei Jiang, and Itay Goldstein (2012). [https://www.aeaweb.org/articles?id=10.1257/aer.20141271 Feedback Effects, Asymmetric Trading, and the Limits to Arbitrage.] American Economic Review 105, 3766-3797.Edmans, Alex, Sudarshan Jayaraman, and Jan Schneemeier (2017). [https://www.sciencedirect.com/science/article/pii/S0304405X17301344 The Source of Information in Prices and Investment-Price Sensitivity.] Journal of Financial Economics 126, 74-96. and the effect of sentiment on the stock market.Edmans, Alex, Diego Garcia and Oyvind Norli (2007). [https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-6261.2007.01262.x. Sports sentiment and stock returns.] Journal of Finance 62, 1967-1998.Edmans, Alex, Adrian Fernandez-Perez, Alexandre Garel and Ivan Indriawan (2021). [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3776071. Music sentiment and stock returns around the world.] Journal of Financial Economics.

Edmans’ main strand of research is on the business case for responsible business, demonstrating that responsibility can create financial as well as social value. His papers in the Journal of Financial EconomicsEdmans, Alex (2011). [https://www.sciencedirect.com/science/article/abs/pii/S0304405X11000869. Does the stock market fully value intangibles? Employee satisfaction and equity prices.] Journal of Financial Economics 101, 621-640. and Academy of Management PerspectivesEdmans, Alex (2012). [https://journals.aom.org/doi/abs/10.5465/amp.2012.0046. The link between job satisfaction and firm value, with implications for corporate social responsibility.] Academy of Management Perspectives 26, 1-19. show that companies with high employee satisfaction, as measured by their inclusion in the 100 Best Companies to Work For in America, delivered shareholder returns that beat their peers by 2.3-3.8% per year over a 28-year period. His book, Grow the Pie, argues that investing in stakeholders does not split the pie at the expense of shareholders, but grows the pie for the ultimate benefit of shareholders.

His most recent work highlights the trade-offs and complexities involved in responsible business. He finds that demographic diversity statistics bear little relation to diversity, equity, and inclusion,Edmans, Alex, Caroline Flammer and Simon Glossner (2023). [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4426488. Diversity, equity, and inclusion.] and that the high returns to carbon-emitting stocks arise due to higher profits rather than greater risk.Altigan, Yigit, K. Ozgur Demirtas, Alex Edmans, and A. Doruk Gunaydin (2023). [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4573622. Does the carbon premium reflect risk or mispricing?] His paper [https://onlinelibrary.wiley.com/doi/full/10.1111/fima.12413 The End of ESG] called for the ESG term to be scrapped on the grounds that environmental, social, and governance issues are relevant to all practitioners, not just ESG practitioners. It argues that ESG is "extremely important and nothing special", the former because it is critical to long-term value and the latter because it should not be seen as superior to other drivers of long-term value.Edmans, Alex (2023). [https://onlinelibrary.wiley.com/doi/full/10.1111/fima.12413. The end of ESG.] Financial Management 52, 3-17.

• [https://books.google.com/books?id=PFjPDwAAQBAJ Grow the Pie: How Great Companies Deliver Both Purpose and Profit], Cambridge University Press, 2020
• [https://www.mheducation.com/highered/product/principles-corporate-finance-brealey-myers/M9781264080946.html Principles of Corporate Finance, 14th edition], McGraw-Hill, 2022
• [https://penguin.co.uk/books/455479/may-contain-lies-by-edmans-alex/9780241630167 May Contain Lies: How Stories, Statistics and Studies Exploit Our Biases - And What We Can Do About It], Penguin Random House, 2024

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