Georgetown Corporate Governance Research Honored with Finance Award

July 16, 2004

Cynthia S. Shaw
(202) 687-4080

Georgetown Corporate Governance Research Honored with Finance Award

Georgetown University Robert Emmett McDonough School of Business professors Rohan G. Williamson and Lee F. Pinkowitz received the Journal of Financial and Quantitative Analysis' William F. Sharpe Award for Scholarship in Financial Research in 2003. The award was given in honor of Williamson and Pinkowitz' paper, "Corporate Governance and the Home Bias" (JFQA, Vol. 38, No. 1, March 2003), which they co-authored with Magnus Dahlquist (Stockholm Institute for Financial Research) and Rene M. Stulz (Ohio State University).

The William F. Sharpe Award recognizes researchers who, through their articles published in the JFQA, have most contributed to our understanding of important areas of financial economics.

"This is an excellent research achievement that honors our faculty members, our finance area, and the McDonough School," said Executive Dean of Faculty Joseph B. Mazzola.

Williamson and Pinkowitz' paper shows that there is a close relation between corporate governance and the portfolios held by investors. The prevalence of closely-held firms in most countries helps explain why these countries exhibit a home bias in share holdings and why U.S. investors underweight foreign countries in their portfolios.

The research was cited in a March 2003 speech by Federal Reserve Chairman Alan Greenspan at the Bank of France International Symposium on Monetary Policy, Economic Cycle, and Financial Dynamics.

Williamson was profiled in the Fall/Winter 2003 issue of McDonough Business magazine.