Babson College Professor Jérôme Taillard Wins Best Paper Award in Review of Financial Studies

This prestigious award is an annual $20,000 prize from one of the highest-ranked journals in finance

Babson Professor Jerome Taillard From left to right: Prof. Erik Gilje, Prof. Andrew Karolyi, Prof. Jerome Taillard

Jérôme Taillard, Associate Professor of Finance at Babson College, has received the Michael J. Brennan Best Paper Award at the Review of Financial Studies. Taillard was recognized for his paper entitled, “Does Hedging Affect Firm Value? Evidence from a Natural Experiment,” as the top contribution to the finance journal published in 2017.

“We are incredibly pleased to see Dr. Taillard recognized for his research with this prestigious award,” says Ryan Davies, chair of the Finance Division at Babson. “Academic achievement such as this award continues to strengthen Babson’s leadership in finance education.”

The paper, co-authored by Erik P. Gijie, Assistant Professor at the Wharton School, evaluated the benefits of hedging on firms in the oil and gas industry. The research found that firms affected by a “basis risk” shock that negatively impacted their financial hedging strategies, cut back investments, have lower valuations, sell assets, and reduce debt. This result is driven by firms with high leverage prior to this shock. The evidence shows that reducing the probability of financial distress and underinvestment risk are first-order channels through which hedging affects firm value.

About Jérôme Taillard

Jérôme Taillard earned his PhD in finance from The Ohio State University in 2010. He also earned his graduate degree in economics from the Study Center in Gerzensee (Switzerland) and his undergraduate degree in mathematics applied to finance (magna cum laude) from the University of Neuchâtel in Switzerland.

He teaches Introduction to Financial Management in the full-time MBA program as well as at undergraduate level at Babson College. He previously taught Corporate Finance at the Carroll School of Management. Professor Taillard has been recognized for teaching excellence with the Carroll School of Management school-wide teaching award in 2012 and was voted Best 40 Under 40 by Poets & Quants in 2017.

His main research interests are in corporate finance. Currently, he is doing research in the areas of risk management, energy finance, innovation, and governance. He has published his research in the Journal of Finance, Review of Financial Studies, Management Science, Journal of Corporate Finance, and the Journal of Financial and Quantitative Analysis.

He has served as consultant to one of the largest Swiss brokerage firm on assessing the trading behavior and performance of their clients. He also does consulting for the Global Association of Risk Managers (GARP).

Learn more about Taillard's other research »

About Babson College

Babson College is the educator, convener, and thought leader for​ Entrepreneurship of All Kinds®. The top​-ranked college for entrepreneurship education, Babson is a dynamic living and learning laboratory where students, faculty, and staff work together to address the real-world problems of business and society. We prepare the entrepreneurial leaders our world needs most: those with strong functional knowledge and the skills and vision to navigate change, accommodate ambiguity, surmount complexity, and motivate teams in a common purpose to make a difference in the world, and have an impact on organizations of all sizes and types. As we have for nearly a half-century, Babson continues to advance Entrepreneurial Thought & Action® as the most positive force on the planet for generating sustainable economic and social value.​​​

By Shannon Sweeny, ssweeny1@babson.edu, (781) 239-4621 | 6/28/2018 8:00 AM