Eugene Kandel is the Emil Spyer Professor of Economics and Finance at the Hebrew University. He is a member of the Center for the Study of Rationality at Hebrew University, a Research Fellow of the Center for Economic Policy and Research in London, and a Fellow of the European Corporate Governance Institute.
He is an expert in Financial Markets and Financial Intermediaries, and his areas of research include Financial Intermediation, Market Microstructure, Information in Financial Markets, Executive Compensation, and Corporate Governance.
Prof. Kandel earned his Ph.D. in Business Economics and Industrial Organization at University of Chicago. He holds an MBA in Economics and Econometrics from University of Chicago, and an M.A. and B.A. in Economics from Hebrew University.
His research has been published in leading finance and economics journals, including Review of Financial Studies, Accounting Review, Journal of Financial and Quantitative Analyses, Journal of Financial Economics, Journal of Finance, and Journal of Financial Economics. Kandel’s work was instrumental in the 1997 redesign of the Nasdaq trading rules.
In addition to his academic work, between 2009 and 2015, Prof. Kandel served as Head of the National Economic Council and as the Economic Adviser to the Prime Minister, and played a central role in all major decisions on economic policy. Between 2015 and 2021, he served as CEO of Start-Up Nation Central, a non-profit dedicated to strengthening Israel’s innovation ecosystem and connecting world business, government, and NGO leaders to the people and technologies in Israel that can help them solve their most pressing problems. Besides having advised numerous organizations, governments, and corporations, he served on the Israeli Antitrust Court.
Prof. Kandel teaches a seminar in Financial Economics.
- Research Summary
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I study how information is used and abused in the financial markets, and how seemingly reasonable contracts can create extremely perverse incentives.
- Publications
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Technological Progress and the Future of the Corporation,(with A. Hamdani, N. Hashai, and Y. Yafeh), Journal of British Academy, 2018.
The Great Pyramids of America: A Revised History of US Business Groups, Corporate Ownership and Regulation, 1926-1950 (with K. Kosenko, R. Morck, and Y. Yaffe), Strategic Management Journal, 2018.
Incentive Fees and Competition in Pension Funds: Evidence from a Regulatory Experiment (with A. Hamdani, Y. Mugerman and Y. Yaffe), Journal of Law, Finance, and Accounting, 2017.
Mutual Fund Performance Evaluation with Active Peer Benchmarks (with D. Hunter, S. Kandel, and R. Wermers), lead article, Journal of Financial Economics, 2014.
Liquidity Cycle and Make/Take Fees in Electronic Markets (with T. Foucault and O. Kadan). 2009 Analysis Group Award for the best paper on Financial Institution and Markets at the Western Finance Association Meetings; The Journal of Finance, 2013
Shareholder Similarity and Firm Value (with M. Massa, and A. Simonov), The Journal of Financial Economics, 2011.
Closing Auction (with L. Bosetti, and B. Rindi), The Journal of Financial Intermediation, 2011.
Theory of Dividend Smoothing (with I. Guttman, and O. Kadan), The Review of Financial Studies, 2011.
Aging Brings Myopia: VC Fund’s Limited Horizon as a Source of Inefficiency (joint with D. Leschinskii and H. Yuklea), the Journal of Financial and Quantitative Analyses, 2011.
Stock-Based Compensation and CEO (Dis)Incentives (with E. Benmelech, and P. Veronesi), The Quarterly Journal of Economics, 2010.
In Search of Reasonable Executive Compensation, CESifo Economic Studies, 2009.
Brokerage Commissions and Institutional Trades (with M. Goldstein, P. Irvine and Z. Wiener), The Review of Financial Studies, 2009.
Portfolio Diversification and the Decision to Go Public (with A. Bondaryuk, M. Massa, and A. Simonov), The Review of Financial Studies, 2008
Tick size, market structure and trading costs (with W. Christie and J. Harris), Stock Market Liquidity, ed. G.N. Gregoriou and F.S. Lhabitant, John Wiley, 2007.
A Rational Expectation Theory of Kinks in Financial Reporting (with I. Guttman, and O. Kadan), The Accounting Review, 2006.
Limit Order Book as a Market for Liquidity (with T. Foucault and O. Kadan), The Review of Financial Studies, 2005.
Option Value, Uncertainty and the Investment Decision (with N. Pearson), Journal of Financial and Quantitative Analyses, 2002.
Between Search and Walras, (with A. Simhon), The Journal of Labor Economics, 2002.
Flexibility vs. Commitment in Personnel Management (with N. Pearson), The Journal of Japanese and International Economics, 2001.
Differential Interpretation of Information in Inflation Forecasts (with B. Zilberfarb), The Review of Economics and Statistics, 1999.
Payment for Order Flow on Nasdaq (with L. Marx), Journal of Finance, 1999.
Effect of Market Reform on the Trading Cost and Depths of Nasdaq Stocks (with M. Barclay, W. Christie, J. Harris, P. Schultz), Journal of Finance, 1999, lead article.
Odd Eighths Avoidance as a Defense Against SOES Bandits (with L. Marx), Journal of Financial Economics, 1999.
The Effect of Transaction Costs on Stock Prices and Trading Volume, (with M. Barclay and L. Marx), lead article, Journal of Financial Intermediation, 1998.
Nasdaq Market Structure and Spread Patterns (with L. Marx), Journal of Financial Economics, 1997.
The Right to Return, Journal of Law and Economics, 1996.
Differential Interpretation of Information and Trade in Speculative markets (with N. Pearson), Journal of Political Economy, 1995.
Contract Enforcement Institutions: Historical Perspective and Current Status in Russia (with A. Greif), in Economic Transition in Eastern Europe and Russia, ed. E. Lazear, Hoover Institution Press, 1995.
Peer Pressure and Partnerships (with E. Lazear), Journal of Political Economy, 1992.
Reprinted in the Personnel Economics volume of The International Library of Critical Writings in Economics, ed. Mark Blaug, Edward Edgar Publishing, 2003;
Reprinted in The Economics of Modern Business Enterprise, volume (ed. Martin Ricketts), of The International Library of Critical Writings in Economics, 2007.
- In The News
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https://en.globes.co.il/en/article-new-pact-to-open-indian-market-to-israeli-startups-1001343561
https://www.calcalistech.com/ctech/articles/0,7340,L-3739806,00.html
https://www.calcalistech.com/ctech/articles/0,7340,L-3795830,00.html
https://www.timesofisrael.com/government-okays-plan-to-bolster-diaspora-jewry-but-sparse-on-details/
https://www.timesofisrael.com/tech-jobs-dip-but-still-in-demand-amid-covid-19-economic-downturn/
https://www.timesofisrael.com/newly-trained-young-haredi-women-ready-for-bold-foray-into-tech-world/
https://www.ynetnews.com/articles/0,7340,L-4165121,00.html