Brandes Institute 2020 Call for Papers Winning Team: Dr. Elroy Dimson, Dr. Oğuzhan Karakas, and Dr. Xi Li

Brandes Institute 2020 Call for Papers Winning Team: Dr. Elroy Dimson, Dr. Oğuzhan Karakas, and Dr. Xi Li


Dr. Elroy Dimson, Dr. Oğuzhan Karakas, and Dr. Xi Li earned first prize in the Brandes Institute’s 2020 Call for Papers Contest for their submission, “Coordinated Engagements.”

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Brandes Institute Announces $20,000 Call for Papers Prize Winners

 

Authors of Winning Research Paper Propose Strategies for Investors Who Seek to Influence Companies to “Behave in a Responsible Fashion.” 

SAN DIEGO – 8 April 2021

The Brandes Institute today announced its winners in its Call for Papers contest:

  • Dr. Elroy Dimson, Research Director and Chairman of the Centre for Endowment Asset Management at the University of Cambridge Judge Business School
  • Dr. Oğuzhan Karakaş, Co-Director of the Centre for Endowment Asset Management at the University of Cambridge Judge Business School
  • Dr. Xi Li, Associate Professor of Accounting, London School of Economics and Political Science

The three co-authors will split a US$15,000 award for their winning paper, “Coordinated Engagements.”

Amid increasing attention and focus on ESG (environmental, social and governance) initiatives, the researchers deliver evidenced-based guidelines designed to show how “…investors can influence companies to behave in a responsible fashion.” The trio analyzed “…engagements by activist shareholders over a 10-year period coordinated through the Collaboration Platform provided by the Principles for Responsible Investing (PRI).” Their dataset covered more than 1,600 engagement activities targeting 960 unique publicly listed firms in 63 countries. Their results demonstrate “…that a two-tier engagement strategy, combining a lead investor with numerous supporting investors, is effective in successfully achieving the stated engagement goals and subsequently improving target performance.”

To read and/or download the complete report, visit this link.

First runners-up in the contest, for their piece “#MeToo in the Boardroom” were:

  • Rahul Goravara, Finance PhD Candidate at the Yale School of Management
  • Wanling Su, Fellow at Harvard Law School and Co-Editor of the Harvard Law School Forum on Corporate Governance

These co-authors will split a US$5,000 prize for their analysis of hundreds of board of director resignation letters on file with the SEC. They argued, “This new dataset—spanning more than 15 years—suggests that…directors who voice concerns to shareholders lose significantly more board seats over the ensuing five-year period than their boardroom colleagues. These results provide some insight as to why so many directors remain silent.”

A second runner-up prize was added this year to recognize the paper, “The Fundamental-to-Market Ratio and the Value Premium Decline.” The piece was researched and written by:

  • Dr. Andrei Conçalves, Assistant Professor of Finance at the UNC Kenan-Flagler Business School
  • Gregory Leonard, Finance PhD Candidate at the UNC Kenan-Flagler Business School

They will split a US$2,000 prize for showing the decline in the value premium occurred “…because book equity, BE, is no longer a good proxy for fundamental equity, FE, defined as the equity value originating from expected cash flows.” The team estimated FE “…for public US firms (from 1973 to 2018) and find that the premium associated with the fundamental-to-market ratio, FE/ME, has been large and stable.”

About the Brandes Institute Prize
The annual competition awards prizes to professors and graduate students for research on diverse investment topics including value investing and behavioral finance. Prior winners include Dr. Korok Ray of Texas A&M University, Dr. Wai Mun Fong of National University in Singapore and Dr. Lars Kaiser of the University of Liechtenstein.

About the Brandes Institute
The Brandes Institute, a division of Brandes Investment Partners, strives to challenge assumptions and raise awareness on diverse aspects of investing and portfolio management. Collaborating with progressive thinkers, the Institute provides a forum for investment insights and their practical application. To learn more about the Brandes Institute, visit the website or follow it on LinkedIn and Twitter.

About Brandes Investment Partners, L.P.
Brandes is a leading investment advisory firm, managing global equity and fixed-income assets for clients worldwide. Since the firm’s inception in 1974, Brandes has consistently applied the value investing approach pioneered by Benjamin Graham to security selection and was among the first investment firms to invest globally using a value approach. The independently owned firm manages a variety of active investment strategies and applies its investment philosophy consistently in all market conditions. Headquartered in San Diego, Brandes and its related entities have offices in Milwaukee, Toronto, Dublin and Singapore. To learn more about Brandes, visit the website or follow it on LinkedIn