Batten Institute

Vihang R. Errunza



Bio: Vihang Errunza is Bank of Montreal Chair in Finance and Banking at McGill University (Montreal, Canada), where he is also the director of the Finance Research Centre. Before moving to Montreal in 1976, he taught development banking and finance at Instituto Centroamericano de Administración de Empresas (INCAE), in Costa Rica.

His principal areas of academic and consulting activities are international asset pricing, emerging markets, portfolio management, international corporate finance, and risk management. Professor Vihang has published many papers in such journals as Journal of Finance, Journal of Financial and Quantitative Analysis, Journal of Banking and Finance, Emerging Markets Review, Emerging Markets Quarterly, and Journal of International Business Studies, and has contributed to books on finance and international business. He has also served on the editorial boards of many publications and currently is on the editorial advisory board of Emerging Markets Review and is an associate editor of Emerging Markets Finance, Review of Quantitative Finance and Accounting, European Financial Management, and Journal of Multinational Financial Management.

He has received numerous honors and awards, and has advised international institutions such as The World Bank and the United Nations Conference on Trade and Development, and major fund managers such as Templeton Investment Counsel, Rosenberg-Alpha, and UBS Brinson Partners. He received his bachelor’s degree from the University of Bombay and an M.S. and Ph.D. in international finance from the University of California at Berkeley.

Expertise: Managerial Ownership, Firm Value, and Growth


Fellowship Focus: During Vihang Errunza’s fellowship, he and his faculty host, Yiorgos Allayannis, will collaborate with Darius Miller, of Indiana University, on a research paper examining how managerial ownership has changed over time. Their work grows out of the field of agency theory, which was established by Michael Jensen and William Meckling in 1976. In Professors Jensen and Meckling’s groundbreaking paper, they demonstrated how firms suffer because of misaligned incentives among managers and shareholders.

Other researchers have examined the impact of ownership structure on firm value among U.S. and international firms at a specific time. Examining managerial ownership over time will allow Professor Vihang and his faculty host to document the changes, explore why those changes have occurred, and examine how the relationship between ownership structure and firm value has changed. The cross-country analysis will allow them to study the impact of legal framework and differential regulation as well as the effect of liberalization and macroeconomic crises on ownership structure and firm value. Others have highlighted the importance of legal framework and ownership structure for financial development and growth, but this collaborative study will be the first to analyze whether such relationships are robust through time. Indeed, the results will deepen our understanding of how firms and countries emerge.

Contact Info

Appointment: 2003

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