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Francesco Franzoni
SFI Senior Chair
Professor of Finance

Francesco Franzoni is Professor of Finance at the Università della Svizzera italiana. He joined SFI in 2007 and has held an SFI Senior Chair since 2012. Prof. Franzoni obtained his PhD in Economics from the Massachusetts Institute of Technology. Prof. Franzoni’s research has been published in the top finance journals worldwide and featured in the international press. He is a regular speaker at leading academic conferences in finance.

Listen to Prof. Francesco Franzoni speak about his research.

Research Interests:
His general research interests are in asset pricing, with a focus on institutional investors such as hedge funds, private equity, mutual funds, and ETFs. He studies, in particular, the impact of institutional investors on asset prices and liquidity.
Recent Research:
In some recent research, Prof. Franzoni and his coauthor provide a critical assessment of the recent tightening of regulation concerning hedge funds sponsored by financial institution such as banks. Their main conclusion is that these funds actually contribute to the smooth functioning of financial markets. Their empirical evidence shows that during periods of financial turmoil, investors are less likely to withdraw their capital from such hedge funds because of the funds’ beneficial relationship with the sponsoring banks. Moreover, these funds increase their exposure to risky assets when others are divesting, thus providing much needed liquidity and playing a stabilizing role in bad times. Hence, keeping the relationship between hedge funds and banks alive may be beneficial for market stability, and recent regulation should be rethought. In terms of policy recommendations, there is an opportunity for Switzerland to harbor such hedge funds as the country has refrained from following this regulatory trend yet.