Original and innovative financial research
Original and innovative financial research
Danish mortgage bank Nykredit gives research award to Søren Hvidkjær, Professor from the Department of Finance Original and innovative research in the financial area is the reason why Professor Søren Hvidkjær receives Nykredit's research award.
Lack of information is an element of risk
Søren Hvidkjær receives the honorary award of DKK 250,000 for his research in which he has studied investment and what impact it will have on the prices on the financial market if investors have more information at their disposal than other investors before trading.
- If an investor knows that other investors have more information about the company at their disposal than he has, it is a further element of risk and as a result of this he will demand compensation in terms of a larger rate of return. The differences in the level of information is very significant to the share prices, says Søren Hvidkjær.
He emphasises that the gap in the level of information is largest when it comes to small companies and companies, which aren't traded very often.
Award for article in the Journal of Finance
Hvidkjær has treated this topic in the Journal of Finance, and for that he was awarded the distinguished best paper award within financial economics, the Journal of Finance Smith-Breeden Prize together with his co-authors Easley and O'Hara.
Søren Hvidkjær has also studied the behaviour of individual investors on the share market and how this behaviour can result in a high degree of share price predictability. Investors often follow the herd when they trade and are therefore able to force up the prices, but it is also very predictable that the prices will fall again within a few years.
The journey from Denmark and back again
Søren Hvidkjær has a degree from Aarhus University and a PhD from USA. Before he came to CBS in 2008,he was associate professor at INSEAD in France, where he taught at MBA and PhD level. He used to work at the University of Maryland and is cooperating closely with researchers from several American universities.
The award ceremony will take place at Nykredit's headquarters, Kalvebod Brygge 1-3 in Copenhagen, Thursday 11 November at 17:00.
Read more about the award at Nykredit's website .
Read more about Søren Hvidkjær.