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Erwan Morellec
SFI Senior Chair Head of SFI PhD Program
Professor of Finance
Erwan Morellec is Full Professor of Finance at the Ecole Polytechnique Fédérale de Lausanne (EPFL) and has held an SFI Senior Chair since 2006. Before joining EPFL in 2008, he taught at the universities of Lausanne and Rochester. Prof. Morellec is a regular speaker at leading finance conferences worldwide, and his research papers have been published in the top academic journals in finance.
Research Interests:
His main research interests lie in banking, corporate finance, and corporate governance.
Recent Research:
In ongoing research on the effects of short-term debt financing on default risk, Prof. Morellec and his co-authors show that when firms have short-term debt outstanding, negative cash flow shocks lead to a drop in liquid reserves and may cause the firms to suffer losses when rolling over their debt, due to weaker fundamentals. This mechanism becomes more pronounced as debt maturity decreases, increases default risk, and can give rise to a rollover trap, a scenario in which firms burn their cash flows and cash reserves due to severe rollover losses. High exposure to rollover risk can also make claim holders risk-loving and lead distressed firms to implement gambling strategies.