Portrait of Professor Enrique Schroth

Professor Enrique Schroth

Professor of Finance

Cass Business School, Faculty of Finance

Contact

Visit Enrique Schroth

Room BR5029, Bunhill Row

Postal address

Cass Business School
106 Bunhill Row
London
EC1Y 8TZ
United Kingdom

About

Overview

Enrique Schroth joined Cass in 2012 as a Reader in Finance. Previously, he held research and teaching positions at the Amsterdam Business School and HEC Lausanne. He received his PhD and MA in Economics from New York University.

His current research focuses on the valuation of the illiquidity risk, the dynamics of ownership concentration, and on the determinants of bank runs and financial fragility. His past research, in topics such as financial innovation and the acquisitions control premium, has appeared in leading academic journals, including The Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies and the Review of Finance. Enrique won the prize for the best symposium paper at the European Finance Association Conference in 2009 for his research on the relationship between the bankruptcy code and the return premium across countries.

Qualifications

BA in Economics, MA in Economics (New York) and PhD in Economics (New York).

Employment

  1. Research Fellow, Center for European Policy Research (CEPR), Sep 2016 – present

Awards

  1. Deutsche Bank Prize in Financial Economics (2010) Runner Up, for the best prize published in the RoF
    Runner Up, for the best prize published in the Review of Finance
  2. European Finance Association (2009) LECG Prize
    Best Overall Conference Paper, at the 2009 Meeting
  3. ECGI Corporate Governance Best Paper Competition (2008) Runner up, then voluntarily withdrawn.

Languages

French, Italian and Spanish; Castilian.

Expertise

Primary topics

  • Asset Valuation
  • Banking
  • Corporate Finance
  • Corporate Governance
  • Econometrics

Research

Research topics

Debt runs and financial fragility

Are runs on bank debt predictable? If so, what are the determinants?

Illiquidity of Large Blocks and the Value of Control

What discount should we apply on controlling blocks due to their lack of marketability?

Debt overhang, asset substitution and the bankruptcy code

How do differences in the banrkruptcy regimes across countries affect investment and risk taking behaviour in distressed firms?

Research students

2nd supervisor

  • Xingchen Zhu, PhD Student

Publications

Journal articles (9)

  1. Favara, G., Morellec, E., Schroth, E. and Valta, P. (2017). Debt enforcement, investment, and risk taking across countries. Journal of Financial Economics, 123(1), pp. 22–41. doi:10.1016/j.jfineco.2016.09.002.
  2. Albuquerque, R. and Schroth, E. (2015). The Value of Control and the Costs of Illiquidity. Journal of Finance, 70(4), pp. 1405–1455. doi:10.1111/jofi.12207.
  3. Schroth, E., Suarez, G.A. and Taylor, L.A. (2014). Dynamic debt runs and financial fragility: Evidence from the 2007 ABCP crisis. Journal of Financial Economics, 112(2), pp. 164–189. doi:10.1016/j.jfineco.2014.01.002.
  4. Favara, G., SCHROTH, E. and Valta, P. (2012). Strategic Default and Equity Risk Across Countries. The Journal of Finance, 67(6), pp. 2051–2095.
  5. Herrera, H. and Schroth, E. (2011). Advantageous innovation and imitation in the underwriting market for corporate securities. Journal of Banking & Finance, 35(5), pp. 1097–1113. doi:10.1016/j.jbankfin.2010.09.019.
  6. Albuquerque, R. and Schroth, E. (2010). Quantifying private benefits of control from a structural model of block trades. Journal of Financial Economics, 96(1), pp. 33–55. doi:10.1016/j.jfineco.2009.12.003.
  7. Schroth, E. and Szalay, D. (2010). Cash Breeds Success: The Role of Financing Constraints in Patent Races*. Review of Finance, 14(1), pp. 73–118. doi:10.1093/rof/rfp020.
  8. Schroth, E. (2006). Innovation, Differentiation, and the Choice of an Underwriter: Evidence from Equity-Linked Securities. Review of Financial Studies, 19(3), pp. 1041–1080. doi:10.1093/rfs/hhj023.
  9. Torero, M., SCHROTH, E. and Pasco-Font, A. (2003). The Impact of the Privatization of Telecommunications in Peru and the Welfare of Urban Consumers. Economia: Journal of the Latin American and Caribbean Economic Association, 4(1), pp. 99–128.

Report

  1. SCHROTH, E. and Albuquerque, R. (2014). The Marketability Discount of Controlling Blocks of Shares. London, Uk: KPMG International.

Professional activities

Editorial activity (14)

  1. American Economic Review, Referee, 2015 – present.
  2. Journal of Monetary Economics, Referee, 2015 – present.
  3. Journal of Financial Economics, Referee, 2013 – present.
  4. Management Science, Referee, 2012 – present.
  5. The Financial Review, Referee, 2012 – present.
  6. The Review of Financial Studies, Referee, 2012 – present.
  7. Review of Finance, Referee, 2010 – present.
  8. B.E. Journal in Theoretical Economics, Referee, 2005 – present.
  9. Journal of Empirical Finance, Referee, 2005 – present.
  10. Journal of Finance, Referee, 2005 – present.
  11. Global Association of Risk Professionals Library, Member of Editorial Board, 2004 – 2006.
  12. Journal of Financial Intermediation, Referee, 2003 – present.
  13. Journal of Banking and Finance, Referee, 2002 – present.
  14. Journal of Economic Theory, Referee, 2002 – present.

Events/conferences (62)

  1. European Finance Association Annual Meeting. (Conference) Copenhagen, DK (2012). Invited speaker.
    Paper: Dynamic Debt Runs and Financial Fragility
    Author: Schroth E
    Co-authors: Gustavo Suarez and Lucian Taylor
  2. CEPR European Symposium on Financial Markets. (Conference) Gerzensee, CH (2012). Invited speaker.
    Paper: Dynamic Debt Runs and Financial Fragility
    Author: Schroth E
    Co-authors: Gustavo Suarez and Lucian Taylor
  3. Wharton Conference on Liquidity and Financial Crises. (Conference) Philadelphia, USA (2012). Invited speaker.
    Paper: Dynamic Debt Runs and Financial Fragility
    Author: Schroth E
    Co-authors: Gustavo Suarez and Lucian Taylor
  4. Finance Seminar, Queen Mary College. (Seminar) London, UK (2012). Invited speaker.
    Paper: Dynamic Debt Runs and Financial Fragility
    Author: Schroth E
    Co-authors: Gustavo Suarez and Lucian Taylor
  5. Finance Seminar, London School of Economics. (Seminar) London, UK (2012). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  6. Finance Seminar, HEC School of Management. (Seminar) Paris, FR (2012). Invited speaker.
    Paper: Dynamic Debt Runs and Financial Fragility
    Author: Schroth E
    Co-authors: Gustavo Suarez and Lucian Taylor
  7. Society of Financial Econometrics Liquidity Conference. (Conference) Amsterdam, NL (2012). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  8. Paris Spring Corporate Finance Conference. (Conference) Paris, FR (2012). Invited speaker.
    Paper: Dynamic Debt Runs and Financial Fragility
    Author: Schroth E
    Co-authors: Gustavo Suarez and Lucian Taylor
  9. Frontiers of Finance Conference, Warwick Business School. (Conference) Coventry, UK (2012). Invited speaker.
    Paper: Dynamic Debt Runs and Financial Fragility
    Author: Schroth E
    Co-authors: Gustavo Suarez and Lucian Taylor
  10. Finance Seminar, University of Zurich. (Seminar) Zurich, CH (2011). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  11. Finance Seminar, University of British Columbia. (Seminar) Vancouver, CA (2011). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  12. Finance Seminar, Universidade Catolica Portuguesa. (Seminar) Lisbon, PT (2011). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  13. Finance Seminar, ESSEC School of Business. (Seminar) Paris, FR (2011). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  14. Finance Seminar, EDHEC. (Seminar) Nice, FR (2011). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  15. Western Finance Association Annual Meeting. (Conference) Santa Fe, USA (2011). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  16. NYU Economics Alumni Conference. (Conference) New York, NY (2011). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  17. Fourth Erasmus Liquidity Conference. (Conference) Rotterdam, NL (2011). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  18. Finance Seminar, London Business School. (Seminar) London, UK (2011). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  19. Macroeconomics Seminar, Wharton School of Business. (Seminar) Philadelphia, USA (2010). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  20. Finance Seminar, HEC School of Management. (Seminar) Paris, FR (2010). Invited speaker.
    Paper: The Value of Control and the Costs of Illiquidity
    Author: Schroth E
    Co-authors: Rui Albuquerque
  21. Western Finance Association Annual Meeting. (Conference) Victoria, CA (2010). Invited speaker.
    Paper: Strategic Default and Equity Risk Across Countries
    Author: Schroth E
    Co-authors: Giovanni Favara and Philip Valta
  22. Finance Seminar, University of Mannheim. (Conference) Mannheim, GER (2010). Invited speaker.
    Paper: Strategic Default and Equity Risk Across Countries
    Author: Schroth E
    Co-authors: Giovanni Favara and Philip Valta
  23. Financial Intermediation Research Society Conference. (Conference) Florence, IT (2010). Invited speaker.
    Paper: Strategic Default and Equity Risk Across Countries
    Author: Schroth E
    Co-authors: Giovanni Favara and Philip Valta
  24. CEPR European Symposium on Financial Markets. (Conference) Gerzensee, CH (2010). Invited speaker.
    Paper: Strategic Default and Equity Risk Across Countries
    Author: Schroth E
    Co-authors: Giovanni Favara and Philip Valta
  25. Finance Seminar, Cass Business School. (Seminar) London, UK (2009). Invited speaker.
    Paper: Strategic Default and Equity Risk Across Countries
    Author: Schroth E
    Co-authors: Giovanni Favara and Philip Valta
  26. European Finance Association Annual Meeting. (Conference) Bergen, NO (2009). Invited speaker.
    Paper: Strategic Default and Equity Risk Across Countries
    Author: Schroth E
    Co-authors: Giovanni Favara and Philip Valta
  27. EFMA European Symposium on Corporate Financeq. (Conference) Cambridge, UK (2009). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  28. Corporate Finance Spring Paris Conference. (Conference) Paris, FR (2009). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  29. Financial Intermediation Research Society Conference. (Conference) Prague, CZ (2009). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  30. Finance Seminar, University of Amsterdam. (Seminar) Amsterdam, NL (2008). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  31. Finance Seminar, IESE Business School. (Seminar) Barcelona, SP (2008). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  32. Finance Seminar, HEC Montreal. (Seminar) Montreal, CA (2008). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  33. Western Finance Association Annual Meeting. (Conference) Kilauea, USA (2008). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  34. Financial Intermediation Research Society Conference. (Conference) Anchorage, USA (2008). Invited speaker.
    Paper: The Welfare Gains from Corporate Finance Innovation
    Author: Schroth E
  35. ECGI Best Corporate Governance Paper Competition. (Conference) Oxford, UK (2008). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  36. Duke-UNC Conference in Corporate Finance. (Conference) Raleigh, USA (2008). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  37. European Winter Finance Summit. (Conference) Hemsedal, NO (2008). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  38. CEPR European Summer Symposium on Financial Markets. (Conference) Gerzensee, CH (2008). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  39. Caesarea Center - IDC Annual Finance Summit. (Conference) Herzliya, IL (2008). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  40. Finance Seminar, Cass Business School. (Seminar) London, UK (2007). Invited speaker.
    Paper: The Welfare Gains from Corporate Finance Innovation
    Author: Schroth E
  41. Finance Seminar, Norwegian School of Management (BI). (Seminar) Oslo, NO (2007). Invited speaker.
    Paper: The Welfare Gains from Corporate Finance Innovation
    Author: Schroth E
  42. Finance Seminar, Judge Business School. (Seminar) Cambridge, UK (2007). Invited speaker.
    Paper: The Welfare Gains from Corporate Finance Innovation
    Author: Schroth E
  43. Finance Seminar, Birkbeck College. (Seminar) London, UK (2007). Invited speaker.
    Paper: Private Benefits of Control and the Block Premium
    Author: Schroth E
    Co-authors: Rui Albuquerque
  44. European Finance Association Annual Meeting. (Conference) Ljubljana, SL (2007). Invited speaker.
    Paper: The Welfare Gains from Corporate Finance Innovation
    Author: Schroth E
  45. CEPR European Summer Symposium on Financial Markets. (Conference) Gerzensee, CH (2007). Invited speaker.
    Paper: The Welfare Gains from Corporate Finance Innovation
    Author: Schroth E
  46. American Economic Association Annual Meeting. (Conference) Chicago,USA (2007). Invited speaker.
    Paper: Financially Constrained Innovation Races
    Author: Schroth E
    Co-authors: Dezso Szalay
  47. Finance Seminar, University of Zurich. (Seminar) Zurich, CH (2006). Invited speaker.
    Paper: The Welfare Gains from Corporate Finance Innovation
    Author: Schroth E
  48. GAEL Industrial Organisation and Innovation Conference. (Conference) Grenoble, FR (2006). Invited speaker.
    Paper: Financially Constrained Innovation Races
    Author: Schroth E
    Co-authors: Dezso Szalay
  49. Financial Intermediation Research Society Conference. (Conference) Shanghai, CN (2006). Invited speaker.
    Paper: Financially Constrained Innovation Races
    Author: Schroth E
    Co-authors: Dezso Szalay
  50. Financial Intermediation Research Society Conference. (Conference) Capri, IT (2004). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  51. CERF Cambridge Conference on Financial Innovation. (Conference) Cambridge, UK (2004). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  52. American Finance Association Annual Meeting. (Conference) San Diego, USA (2004). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  53. Finance Seminar, University of Amsterdam. (Seminar) Amsterdam, NL (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  54. Finance Seminar, Universidad Carlos III. (Seminar) Madrid, SP (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  55. Finance Seminar, Queens University. (Seminar) Kingston, CA (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  56. Finance Seminar, INSEAD. (Seminar) Fontainbleau, FR (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  57. Finance Seminar, HEC Montreal. (Seminar) Montreal, CA (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  58. Finance Seminar, HEC Lausanne. (Seminar) Lausanne, CH (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  59. Finance Seminar, Bocconi University. (Seminar) Milan, IT (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  60. Finance Seminar, Tilburg University. (Seminar) Tilburg, NL (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  61. Finance Seminar, ITAM. (Seminar) Mexico, MX (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E
  62. Finance Seminar, CEMFI. (Seminar) Madrid, SP (2002). Invited speaker.
    Paper: The Dynamics of Innovation in Corporate Finance
    Author: Schroth E

Media appearances (11)

  1. New capital rules spur banks seek breathing room with controversial credit relief trades. (2013) Washington Post Business (website).
  2. Banks Allying With Hedge Funds as Capital Rules Bite. (2013) Bloomberg.com (website).
  3. New capital rules spur banks seek breathing room with controversial credit relief trades. (2013) The Washington Post Business (website).
  4. Banks Allying With Hedge Funds as Capital Rules Bite. (2013) Bloomberg (website).
  5. Banks Converging With Hedge Funds on Risks as Capital Rules Bite. (2013) SFGate (website).
  6. Lloyds and RNS boosted by new capital pledge. (2012) Daily Mail (newspaper).
  7. Bankers get new 'relaxed' rules. (2012) The Press (Yorkshire) (newspaper).
  8. City welcomes relaxing of banking rules. (2012) City AM (newspaper).
  9. Banking union may provide security. (2012) The Financial Adviser (website).
  10. Banking union may provide security. (2012) Financial Advisor (website).
  11. EU moves for banking stability won't benefit UK. (2012) www.ftadviser.com (website).
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