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Rajna Gibson Brandon
SFI Senior Chair
Professor of Finance
Rajna Gibson Brandon is Professor of Finance at the University of Geneva and Deputy Director of the Geneva Finance Research Institute. She joined SFI in 2006, acted as SFI Head of Research from 2007 to 2014, and has held an SFI Senior Chair since 2007. Prof. Gibson Brandon is a member of the board of directors of Swiss Re.
Research Interests:
Her research areas include asset pricing, risk management, experimental finance, and corporate governance.
Recent Research:
In a recent study, Professor Gibson Brandon and her coauthors contribute to the experimental finance literature by focusing on how investors’ perceptions of managerial honesty impact their investment decisions. The experimental data reveals that 60 percent of the participants chose to invest with CEOs who did not engage in upwards earnings management and thus passed on the opportunity to earn a significantly higher bonus. This result applies irrespectively to “pro-self” and “pro-social” investors alike, but for different motivations. “Pro-self” investors assign greater credibility to announcements issued by CEOs perceived to be more committed to honesty, as such announcements are viewed as more reliable. “Pro-social” investors seem to favor perceived managerial honesty simply because they themselves value honesty, and are willing to accept lower returns in order to invest with a similarly minded CEO. Essentially, the results suggest that firms with CEOs perceived as more honest may enjoy a better access to funds and, therefore, a lower cost of capital.