Author Archives: Raphaël ROERO DE CORTANZE

Could the 2008 financial crisis been foreseen?

Could the 2008 financial crisis been foreseen? In September 2008, the bankruptcy of Lehman Brothers broke the news and disclosed to the public what would become the biggest financial crisis since 1929. This crisis, fuelled by the speculation around ill-rated … Continue reading

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Stock split

Stock split In this article, Raphaël ROERO DE CORTANZE (ESSEC Business School, Master in Management, 2018-2022) introduces the specificities of stock splits. Stock split What a stock split? A stock split is a decision by a company’s board of directors … Continue reading

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How does the stock price of a firm change according to the shift of its capital structure?

How does the stock price of a firm change according to the shift of its capital structure? In this article, Raphaël ROERO DE CORTANZE (ESSEC Business School, Master in Management, 2018-2022) analyses the effects of the shifts of capital structure on … Continue reading

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Dividend policy

Dividend policy In this article, Raphaël ROERO DE CORTANZE (ESSEC Business School, Master in Management, 2018-2022) analyses the effects of dividend policy on the stock price. What is a dividend? Firms that generate earnings through their activities must choose between … Continue reading

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Credit Rating Agencies

Credit Rating Agencies What are Credit Rating Agencies? Credit Rating Agencies are private companies whose main activity is to evaluate the capacity of debt issuers to meet their financial commitments. The historical agencies (Moody’s, Standard & Poor’s and Fitch Ratings) … Continue reading

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The Internal Rate of Return

The Internal Rate of Return What is the Internal Rate of Return? The Internal Rate of Return (IRR or “TRI” – “taux de rendement interne” in French) of a sequence of cash flows is the discount rate that makes the … Continue reading

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Why was 2020 a record year in terms of financial market returns?

Why was 2020 a record year in terms of financial market returns? 2020: a year of all records The year 2020 has been the scene of the greatest economic downturn since the Great Depression and the fastest market collapse on … Continue reading

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Inflation & deflation

Inflation & deflation In this article, Raphaël ROERO DE CORTANZE (ESSEC Business School, Master in Management, 2018-2022) describes the main mechanisms at the origin of inflation and deflation episodes, providing historical examples. Inflation Definition Inflation is a movement of increase … Continue reading

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Gamestop: how a group of nostalgic nerds overturned a short-selling strategy

Gamestop: how a group of nostalgic nerds overturned a short-selling strategy In this article, Raphaël ROERO DE CORTANZE (ESSEC Business School, Master in Management, 2018-2022) talks about the Gamestop case which has shaken up Wall Street last january. Gamestop: an … Continue reading

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How do “animal spirits” shape the evolution of financial markets?

How do “animal spirits” shape the evolution of financial markets? In this article, Raphaël ROERO DE CORTANZE (ESSEC Business School, Master in Management, 2018-2022) explores the concepts of rationality of economic agents and animal spirits to explain the behavior of … Continue reading

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