Gender & Finance Portrait Series #3: Raphaëlle Paret – Chairwomen of ESSEC Transaction and intern at Ernst & Young

Dear readers, today I offer you a piece of advice from one of the most dynamic ESSEC students. Please do not hesitate to click and visit the Facebook page of the Finance Association:
https://www.facebook.com/groups/332231027263628/. Stay tuned if you want to know more about the director of shareholders relationship at Euronex … Her portrait is coming soon.

Describe your current position

I am a Master student at ESSEC and an audit intern at Ernst and Young in Luxembourg. I wanted to work in the audit profession to develop strong technical skills and in Luxembourg because I seized an opportunity to discover how it works in a different country from France. This year I am also the president of ESSEC Transaction, our beloved finance association! Throughout the year, this association organizes events to help students to discover corporate finance, as well as how financial markets work. Among examples, we set up conferences such as the Paris M&A Summit, meetings like “Women in Finance”, or competitions like TradeXtre, job presentations or Case Studies training sessions. You can imagine that these events represent a huge amount of work, thus I am proud of the motivation of all members of this association, who give their time and passion without them this would not be possible!

What attracted you to finance and how did you get started?

My passion began in high school! Indeed, at that time, I was determined to enter a Classe Préparatoire, which is a French program dedicated to the preparation of the highly competitive entrance examination of the French business schools. I worked a lot to enter one of the best French business school: ESSEC. Since high school I knew I wanted to work in finance, but I notice that what I want to do in finance is still evolving while I am studying at ESSEC. I am interested in finance because it covers all industries. For me, finance is the spine of all businesses, so I would learn a lot about how companies work by studying it. Then, I could have opportunities in diverse business sectors across different countries!

A piece of advice for women interested in finance?

I am trying to make women to better know the finance world, through events such as “Women in Finance” meetings. Even within my association, parity isn’t reached, thus it represents a real issue! Encouraging women, who are already interested in finance isn’t tough because they are often highly curious and willing to attend conferences and ask professionals about their careers. It is more difficult to make other women curious about finance. So, I want to encourage these women to attend the gender event “Women in Finance” to discover the variety of opportunities within the finance industry. These women could also benefit from the extreme kindness of professionals, willing to share their experience as they themselves would have benefitted from such events at the beginning of their career.

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Gender & Finance Portrait Series #2: Gabriel Eschbach – Founder and President at ACE Conseil SAS

Describe your current position

“I am the founder and the chairman of a brokerage firm named “ACE Finance et Conseil”. Since 2002, I have developed a strong network to whom my company sells financial products, savings products or life insurances. Besides, I have created several advisory firms to help entrepreneurs and individual investors to manage properly their financial and real estate assets.

Before that, I began as a financial analyst and portfolio manager at an insurance company. Only five years later, I was appointed as the investment and treasury director and supervised the financial assets of the conglomerate, included those of Vie and IARD companies.

I achieved it mainly because I have always been highly interested in financial innovations. For instance, I was the first in 1990’s to use put options on OAT through the Over-The-Counter market with the Paribas bank – now BNP Paribas.”

– now BNP Paribas.”

What attracted you to finance?

Finance is a thriving world in which you can achieve a lot by simply using your brain. Opportunities are everywhere, even for the youngest if you are smart enough. With new technological tools, you can compete with the giants of this industry such as Goldman only by using your computer in smart ways. Besides, you cannot be bored in finance thanks to the diversity of products and industries that you discover through it.

In this sector, you work with high-skilled people and need to be creative to solve highly complex issues. This challenging environment is a pleasure for someone as curious as I am. Curiosity is highly relevant for someone who would like to work in this sector. Indeed, understanding finance is not enough to succeed here, people need to catch the greater picture! For instance, geopolitics issues have currently a huge impact on the markets, so you need to understand them to better serve your clients. Finance is fascinating because you need knowledge in history, philosophy, mathematics and even physics (research on particles’ movements has applications in the Capital Asset Pricing Model framework.

But in France, there is still a need for pedagogy. Indeed, finance has a poor reputation here because people don’t understand the role of finance. How could we have hospitals, infrastructures and competitive companies without finance? Don’t forget that finance is only a tool. So, there are good or bad ways to use it. I chose finance because I knew I could have a positive impact on society.

Some advice for our students?

You cannot go wrong by choosing finance because there are a lot of different opportunities there. You need to be prepared to be quickly challenged by your peers even in a junior position. And if you are smart enough, finance offers you the opportunity to climb the hierarchy immediately after school!

You should be curious because as I said, finance is related to diverse subjects from history to physics and you will work with diverse people with different interests. This diversity explains why many “old” financial experts are still working after the retirement age! By working in this sector, each of your days will be different!

Don’t forget that despite technological progress, the markets are still inefficient. Two consequences, first you still have many opportunities to build an ambitious career in this sector while it could be more difficult in other sectors because in finance there is still so much progress to do. Secondly, you shouldn’t forget to respect deontological rules when you’ll be working. There are good and bad people in this sector, don’t lose your time with the bad ones!

To know more about ACE Finance Conseil SAS:
https://www.eschbach.fr/

Stay tuned because another portrait will be published in January … Raphaëlle Paret, president of ESSEC Transaction …

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Gender & Finance at the Paris Financial Management Conference 2019

Gender & Finance presented at the Paris Financial Management Conference 2019

Estefania Santacreu-Vasut ESSEC Business School
Prof. François Longin ESSEC Business School

Gender & Finance recently participated to the Paris Financial Management Conference (PFMC-2019) that took place on 16-18 December 2019 at IPAG Business School in the breathtaking and enchanting Saint-Germain-des-Prés district of Paris. Thanks to the conference organizers Sabri Boubaker, Ephraim Clark and Duc Khuong Nguyen.

Gender Issues in Finance

Professor François Longin presented our paper Stock Market Reaction to Female CEO Appointments: Is the Market Gendered? which is based on a lab experiment using SimTrade trading simulations. Felix Von Meyerinck (University of St. Gallen, Switzerland) was the discussant of our paper and provided valuable comments. Thank you Felix!

Renée Adams: keynote speaker of the conference

Participants at the conference were lucky to have Professor Renée Adams (Saïd Business School, University of Oxford) as a keynote speaker at the conference. Renée gave a talk about her favorite research field: boards. I really liked the way she presented with three questions: 1) How important I the topic of board in the literature? We had an overview of the “business of research” in the field with the evolution of the number of articles published in top journals, the number of citations; 2) What remains to be done? What does it take to do insightful work on board? We had a presentation of what we know and what we do not know about boards. The gender dimension – one of Renée favorite research theme – was presented as one of the main dimensions of future research on boards.



















Contact us for more information or for research collaborations! And check our presentation slides!

Presentation on gender and finance

Prof. François Longin and Prof. Santacreu-Vasut
ESSEC Business School

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Gender & Finance Portrait Series #1 – Maude CULIS-FERY – ESSEC student and M&A intern at BNP Paribas

Maude CULIS-FERY

In this G&F PS #1, we learn from Maude Culis-Fery, student at ESSEC Business School, M&A intern at BNP Paribas and member of Gender & F inance team.

What is your current role?

“Hi! I’m Maude, 22 years old. I am currently a student from the Master in Finance at ESSEC and a member of the “Gender & Finance” project. I chose this Master for its strong reputations among professionals and the numerous networking opportunities it offers. I also decided to join the Gender & Finance project because I need to understand why there are still now too few women in leadership positions in finance. Previously I attended a finance summer camp and had my first answer, we were three women out of 50 men! Indeed, in schools, women are rare in finance tracks… This experience reinforced my desire to work in finance to prove it is possible and then help other women, who would like to work in finance, to reach their objectives too. Thus, this project represents my first step towards my purpose. As a student, I still have doubts about what I precisely want to do in finance but speaking with or reading about inspiring women helps me to have a broad picture of all the opportunities I have and how I could manage my own career. Thus, I want to offer to you, students or young professionals, a place where you could find different stories about women in finance. A place where you could understand more deeply the finance world and may discover jobs that you didn’t know before. And I hope that by reading them, you’ll get inspire and more confident about your potential success in the finance world. If so, then I would reach my objective to make you discover why I’m so interested in this world.

What attracted you to Finance and how did you get started?

Before ESSEC, I studied accounting because I wanted to know more about how companies work inside. Working in accounting gave me a broad understanding of the business world as business accounts tell a lot about a company’s structure. Then, during one of my internships, I helped an entrepreneur to launch his business by building a business plan and pitching his project in front of banks to raise funds. This experience taught me how precious is finance advisory for the development of companies. Later, I learnt how much damages bad financial decisions could make when I worked for a company in the wake of a judicial review. In parallel, I read a lot about finance in the news and discovered that finance is highly linked to economics and politics two other fields in which I am highly interested. Working in finance enables you to discover different sectors and countries as well as develop a strong economic culture. Thus, it represents an incredible playing field for someone as curious as I am! For these reasons, I attended a double cursus composed of a BA in Economics and a “Classe Préparatoire” to enter the Master in Finance at ESSEC. My next stage? A first internship in Investment Banking at BNP Paribas!

What is your advice to female students interested in leadership position in the finance industry?

NETWORKING, NETWORKING and NETWORKING! Don’t hesitate to use the wonderful ESSEC network to ask professionals about their career, their motivation and their advice. I have written a lot of e-mails and generally people are keen to speak about their career to a motivated student! I had wonderful phone discussions with people I didn’t know, simply by asking them on LinkedIn: “Could you please tell me about your current role and why did you choose it?” Beside meeting new people, networking also gives you a broad view on the opportunities within the finance world, I am sure you’ll discover new jobs. Indeed, working finance is not only about trading and M&A!

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Gender & Finance at the European Economic Association Meeting 2019

Gender & Finance presented at the European Economic Association Meeting

Estefania Santacreu-Vasut ESSEC Business School
Prof. François Longin ESSEC Business School

Gender & Finance recently participated to the EEA 2019 conference. The conference took place in Manchester from August 26 2019 to August 30 2019. Gender & Finance Co-founder and Professor Estefania Santacreu-Vasut presented experimental research on the stock market reaction to CEO appointments as function of gender.

Groups, Leadership and Gender

Estefania Santacreu-Vasut chaired the session on “Groups, Leadership and Gender”.

The session included both theoretical and empirical components, including experiments that specifically looked at the gender component of leadership.

During the session we presented our paper Stock Market Reaction to Female CEO Appointments: Is the Market Gendered? which is based on a lab experiment.

The role of aspirations

At the conference, several invited sessions related to gender took place. They were excellent, and we learned a lot. For instance, Professor Ghazala Azmat (Sciences Po Paris) presented her paper “Gender Promotion Gaps: Career Aspirations and Early Workplace Experiences”. She documents a gender promotion gap in the legal sector of 13% after 10 years of experience. What explains it? Professor Azmat found that 50 % of the gender gap in partner promotion is attributed to the role of “aspirations”, which include preferences and expectations.

The impact of quotas

Professor Andrea Weber (Central European University) presented her very interesting paper “Female Leadership and Gender Gap withi n Firms: Evidence from anItalian Board Reform” co-authored with Professor Agata Maida. In their work the authors study whether gender quotas work. They find little evidence of spillovers of quotas on female career progression and gender representation in leadership positions within organizations.

Future work

Regarding our paper, we were proud to receive very positive feedback from session participants. Furthermore, we received interest in collaboration in the German environment. Indeed, it would be interesting to undertake our experiments in different cultural environments.

Contact us for more information or for research collaborations! And check our presentation slides!

Presentation on gender and finance

Prof. François Longin and Prof. Santacreu-Vasut
ESSEC Business School

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ESSEC Knowledge video about the Gender & Finance project

ESSEC Knowledge video about the Gender & Finance project

Estefania Santacreu-Vasut ESSEC Business School

Prof. François Longin ESSEC Business School

François Longin, Professor of Finance, and Estefania Santacreu-Vasut, Professor of Economics, present the Gender & Finance project and their recent research on the market reaction to the appointment of CEO based on the innovative simulation tool SimTrade.

Watch ESSEC Knowledge video to know more about Gender & Finance project.


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Gender & Finance at the 3rd SEHO Conference

Gender & Finance at the Third SEHO conference

Estefania Santacreu-Vasut ESSEC Business School
Prof. François Longin ESSEC Business School

Gender & Finance participated to the Third SEHO Conference which took place in Lisbon on May 27-28 2019. We presented our experiment on the stock market reaction to CEO appointments as function of gender.

Experiments and gender

Joao Peixoto from ISEG chaired the session on “Experiments about Household Decision-Making”. Because gender is a key aspect of household analysis, all the experiments presented at the session had a gender component.

During the session we presented our paper Stock Market Reaction to Female CEO Appointments: Is the Market Gendered? which is based on a lab experiment.

CEO appointments by gender and aspirations

The keynote speakers of the conference were excellent, and we learned a lot. For instance, Professor Shelly Lundberg discussed the role of aspirations to stimulate more gender equal career paths. Because we study the impact of the appointment of a female or male CEO, our research contributes to understand what are the barriers to the creation of female role models that can influence the aspirations of future generations.

Gender in different cultures

Regarding our paper, we were proud to receive very positive feedback from session participants. Furthermore, we received interest in collaboration in the Portuguese environment. Indeed, it would be interesting to undertake our experiments in different cultural environments.

Female CEO and household gender issues

In future work we plan to study the impact of female CEO appointments by adding household related information (marriage status, children, etc…). Therefore, we will soon organize new experiments.

Contact us for more information or for research collaborations! And check our presentation slides!

Presentation on gender and finance

Prof. François Longin and Prof. Santacreu-Vasut
ESSEC Business School

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Stock market reaction to female CEO appointments: Is the market gendered?

New research article: Stock market reaction to female CEO appointments: Is the market gendered?

Estefania Santacreu-Vasut ESSEC Business School

Prof. François Longin ESSEC Business School

We are happy to share with you our latest research article: Stock market reaction to female CEO appointments: Is the market gendered?

Barriers to female leadership are both formal and informal. Among informal ones, culturally grounded negative stereotypes play an important role in explaining female scarcity in CEO positions. These are also reflected not only in career advancement of women but also in how markets factor in gender-related information. Indeed, studies find that stock markets react negatively to the appointment of female CEOs.

You can download our research article below.

Presentation on gender and finance

Research subject on female CEO appointments

Stock markets react negatively to the appointment of female CEOs. Recent research has argued that this may reflect the investors’ negative perception about female leadership and media reporting that is biased against women. In this paper, we propose a new explanation based on the hypothesis that the market is ‘gendered’. As female and male market participants may exhibit differences in preferences and in biases towards gender, gender diversity in the financial sector potentially impacts the market outcomes.

Research design based on experimental simulations

To test this hypothesis, we run a simulation-based lab experiment in which female and male participants trade stocks of a company in response to the appointment of its future CEO, who could be either a man or a woman. We find that when a female CEO is appointed, the female participants’ perception is positive (they buy stocks), while the male participants’ perception is negative (they sell stocks). The opposite result holds when a male CEO is appointed. We interpret our findings drawing from homophily, entitativity and expectation theories.

Policy implication about gender

The policy implication of our study is that the gender issue is not only an issue reflected at the corporate level in the need to apppoint more female CEOs but also an issue at the financial industry level related to the need to increase gender diversity by attracting more women in investment occupations; finally it is an issue at the societal level related to the need to change individual and collective stereotypes about female leadership.

 

Prof. François Longin and Prof. Santacreu-Vasut
ESSEC Business School

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Impact of gender bias on pricing of art

Is art made by female artists sold at a lower price simply because they were made by women?
Gender & Finance Literature Review Series #7: Adams, Kräussl, Navone and Verwijmeren (2017)

In this G&F LRS #7, we analyze the following research paper:

Adams RB, Kräussl R, Navone MA, Verwijmeren P. 2017. Is gender in the eye of the beholder? Identifying cultural attitudes with art auction prices. Working paper. Goethe University.

This paper allows us to understand the gender bias in art auction prices. Adams et al.(2017) concentrate only on the demand side of the problem i.e. they look at pricing of art in auction houses. They assume that there is no problem with the supply of art by female artists.

What is the methodology used by the authors?

The authors used two experiments to draw inferences on the relationship between gender of the artist and prices of the paintings. The first experiment included asking the population to guess the gender of the artist by observing a pre-decided list of paintings. The participants also had to provide a number that they would bid foreach of the paintings. This experiment helped the authors to analyze two aspects. Firstly, it helped them to analyze whether it is obvious that a piece of art is made by a female artist i.e. does female made art have observable similarities in themes or styles. Secondly, it helped them the analyze the impact of perceived gender of the artist (by the participants) on the prices bid for the paintings. Under the second experiment, each of the participants was asked to rate a list of 10 paintings, but the difference being that this time they could see the names of the artists (and hence recognise the gender of the artists before making a bid). This helped the authors analyze if there are any biases towards prices bid for paintings of female artists.

What are the results obtained by them?

From the first experiment, the authors inferred that the participants (people who were frequenting art galleries and auction houses) guessed majority of the paintings to be made by male artists. With regards to the bid prices for the paintings, it was inferred that the participants, who mainly comprised of affluent males frequenting art auction houses, did not appreciate female art as much as they did for paintings made by males (as was obvious from their low bids for female made art). For the second experiment, the authors found that the respondents perceived female made paintings to be of a lower quality, which was evident from the lower score given to female made art.

What do we recommend?

Firstly, it may be a useful technique to hide gender related characteristics, so as to avoid bias based on whether the person is male or female. Moreover, there is an issue of wrong valuation of the particular products because they are based on gender stereotypes. For example, investors might be biased against the stocks of a company because it has a woman CEO, art collectors might under-value a painting because it has been made by a female artist etc. Hence there should be mechanisms to mitigate this problem as well.

You can download the PowerPoint presentation below. Please feel free to reach out to us for more information!

Presentation on gender and finance
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Are women more risk-averse than men?

Are women more risk-averse than men? Is this pattern especially prominent in industries like finance?
Gender & Finance Literature Review Series #6: Adams and Ragunathan (2015)

In this G&F LRS #6, we analyze the following research paper:

Adams RB, Ragunathan V. 2017. Lehman sisters. Working paper. University of South Wales.

This paper allows us to understand if women are systematically more risk-averse than men. Adams and Ragunathan (2015) concentrate on a specific industry i.e. the finance industry with a focus on banking. They study in detail to check if the presence of women as top executives, led the banks to perform better during the times of crises.

What is the methodology used by the authors?

The authors consider origin risk (risks measured on the date that banks first appear in CSRP) as an exogenous measure for banks to see if boardroom diversity responds to changes in risk (based on Cheng, Hong and Scheinkman, 2015). Secondly, they account for gender diversity in the risk regressions using a Blau index of gender balance in director connections. In order to analyze whether more gender diverse boards have different responses which help to improve their performance, they consider the research done by Adams and Ferreira (2009). Thirdly, they try to find out if there is a difference between women who choose a career in finance and others who do not, especially with reference to the risk-taking capabilities of these women. In order to analyze this further, they draw upon the research done by Sapienza, Zingales and Maestripieri (2009). The research considers the entire cohort of MBA students at the University of Chicago (including men). They run test on the responses of the sample to check if women have more risk-taking abilities than men. Finally, they try to analyze the participation of women as board members in financial firms in comparison with non-financial firms. They do this by drawing upon the research done by Adams and Kirchmaier (2015b).

What are the results obtained by them?

They find that there is no conclusive evidence suggesting that boardroom gender diversity is associated with more risk-taking capabilities, especially in the event of a crisis. Secondly,
male directors are more punctual and there is less absenteeism on their side when there are more women directors in the board. Thirdly, in the cohort of MBA students, women are more risk-averse than men. Women who opt for a career in finance have lower risk-aversion than other women who opt for careers in other industries. Whereas, this is not the case for the male students. And finally, they found that fewer women were on the boards of financial firms as compared to industrial firms.

You can download our PowerPoint presentation below. Please feel free to reach out to us for more information!

Presentation on gender and finance
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