Denis Gromb

Antin I.P. Professor of Finance


HEC Paris

1 rue de la Libération

78350 Jouy-en-Josas FRANCE


Email :

Web :





o   Download my CV

o   HEC’s finance seminar series

o   Financial Intermediation Research Society (FIRS):  great conference, great atmosphere/locations



I coordinate a chair organized by HEC Paris and Antin Infrastructure Partners, a private equity firm that is an active investor in infrastructures broadly defined


o   A paper on the Chair in French business daily, Les Echos





o   “Large Shareholders, Monitoring and the Value of the Firm” with Mike Burkart (LSE) and Fausto Panunzi (U. Bocconi), Quarterly Journal of Economics (1997)

o   “Selection in Dynamic Entry Games” with Jean-Pierre Ponssard (Ecole Polytechnique) and David Sevy, Games and Economic Behavior (1997)

o   “Why Higher Takeover Premia Protect Minority Shareholders” with Mike Burkart (LSE) and Fausto Panunzi (U. Bocconi), Journal of Political Economy (1998)

o   “On the Strength of Corporate Cultures” with Juan Carrillo (USC), European Economic Review (1999)

o   “Agency Conflicts in Public and Negotiated Transfers of Corporate Control” with Mike Burkart (LSE) and Fausto Panunzi (U. Bocconi), Journal of Finance (2000)

o   “Equilibrium and Welfare in Markets with Constrained Arbitrageurs” with Dimitri Vayanos (LSE), Journal of Financial Economics (2002)

o   “Public Trading and Private Incentives” with Antoine Faure-Grimaud (LSE), Review of Financial Studies (2004)

o   “Minority Blocks and Takeover Premia” with Mike Burkart and Fausto Panunzi (U. Bocconi), Journal of Institutional and Theoretical Economics (2006)

o   “Culture in Organizations: Inertia and Uniformity” with Juan Carrillo (USC), Journal of Law, Economics and Organizations (2006)

o   “Collusion and the Organization of Delegated Expertise” with David Martimort (PSE and EHESS), Journal of Economic Theory (2007)

o   “A Model of Financial Market Liquidity Based on Intermediary Capital” with Dimitri Vayanos (LSE), Journal of the European Economic Association (2010)

o   “Limits of Arbitrage: The State of the Theory” with Dimitri Vayanos (LSE), Annual Review of Financial Economics (2010)

o   “Imperfect Competition in the Interbank Market for Liquidity as a Rationale for Central Banking” with Viral Acharya and Tanju Yorulmazer, American Economic Journal: Macroeconomics (2012)

o   Legal Investor Protection and Takeovers + On-line appendix with Mike Burkart (LSE), Holger Mueller (NYU Stern) and Fausto Panunzi (U. Bocconi), Journal of Finance (2014)

o   “The Dynamics of Financially Constrained Arbitrage,” with Dimitri Vayanos (LSE), forthcoming in the Journal of Finance (2018)

o   “Financing Capacity Investment Under Uncertainty: An Optimal Contracting Approach” with Francis de Véricourt (ESMT), Manufacturing & Service Operations Management (2018) + Online appendix

o   “Financing Capacity with Stealing and Shirking” with Francis de Véricourt (ESMT), forthcoming in Management Science + Online appendix

o   “The Paradox of Pledgeability” with Jason Roderick Donaldson (Washington University) and Giorgia Piacentino (Columbia Business School), forthcoming in the Journal of Financial Economics

o   “Controlling Sellers Who Provide Advice: Regulation and Competition with David Bardey (U. Los Andes), David Martimort (PSE and EHESS) and Jérôme Pouyet (PSE, ENS and CNRS), forthcoming in the Journal of Industrial Economics






o   “Arbitrage and Its Limits” with Dimitri Vayanos (LSE), The Palgrave Encyclopedia of Strategic Management (2015)





o   “Is One Share - One Vote Optimal?”  

o   “Renegotiation in Debt Contracts”

o   “Innovation and Dynamic Entry Deterrence” with David Sevy

o   “Debt Design, Liquidation Value and Monitoring” with Mike Burkart (LSE) and Fausto Panunzi (U. Bocconi)

o   “Entrepreneurship in Equilibrium” with David Scharfstein (HBS)

o    “The Dynamics of Delegated Expertise” with David Martimort (PSE and EHESS)

o   “Financially Constrained Arbitrage and Cross-market Contagion” with Dimitri Vayanos (LSE)

o   “Liquidity Dry-ups: A Framework and Policy Implications” with Dimitri Vayanos (LSE)

o   “Financial Restructuring and the Resolution of Banks” with Jean-Edouard Colliard (HEC Paris)

o   “Conflicting Priorities: A Theory of Covenants and Collateral” with Jason Roderick Donaldson (Washington University) and Giorgia Piacentino (Columbia Business School)




o   “The ‘Limits to Arbitrage’ Agenda” with Dimitri Vayanos, VOX, April 10, 2010. VOX is CEPR’s policy portal.

o   Les limites de l’arbitrage : un nouveau paradigme en Finance with Dimitri Vayanos, forthcoming in La Jaune et la Rouge, special issue on the implications of the crisis for Economics. J&R is the magazine of Ecole Polytechnique alumni.

o   “Back to School”, Wall Street Journal June 2010 article on how finance theories must account for the crisis.





o   Infineon Technologies: Time to Cash-in Your Chips?   with Joël Peress (INSEAD)

Winner of the 2014 EFMD competition, “Finance and Banking” category

In late 2011, Infineon, the semiconductor giant, is sitting on a €2.4bn cash balance representing 40% of its assets. As part of a financial policy review, management is receiving conflicting advice as to whether to pay out some of the cash holdings, how much and by which methods.


o   Bain Capital’s “Take Private” of China Fire with Marc Kitten (Candesic and Imperial College)

In March 2011, China Fire, a US-listed Chinese company under pressure from hedge funds, must evaluate a buyout offer from private equity firm Bain Capital and management.

·       Case:

·       Abridged version:

·       Mandarin version:


o   Prada’s Hong Kong IPO with Alberta Di Giuli (ESCP)

Winner of The Case Centre’s 2018 Award in the Finance category (here)

Winner of the AFFI-CCMP 2018 Award for best case in Finance

In March 2011, Prada is preparing an IPO, set for June in Hong Kong. A team at Crédit Agricole’s CLSA unit is setting a preliminary price range, structuring the offering and preparing the IPO process. The case offers an opportunity to discuss the pros and cons of the IPO, to value the IPO using multiples and DCF, to set of the number of primary and secondary shares to be offered in the IPO, and to review the IPO process.

·       Case:

·       Abridged version:

·       Version française:


o   Big Game: Goldman Sachs’ Elephant Hunt in Libya with Joël Peress (INSEAD)

The case focuses on the ill-fated relationship between the LIA, Libya's new sovereign wealth fund, and Goldman Sachs, and the ultimately disastrous $1.2bn derivatives (elephant) trades the LIA entered into in early 2008 on Goldman’s advice. The analysis deals with basic derivative instruments, terminology and concepts (e.g., leverage) as well as valuation issues (e.g., put-call parity, binomial trees, Black-Scholes). In a subsequent lawsuit brought by the LIA, Goldman Sachs was accused of having exploited the lack of finance acumen of LIA staff. In October 2016, a London court ruled against the LIA.

·       Case:


o   Private Equity and Infrastructure: Antin I.P.’s TowerCo Deal

o   The Brick House: Managing Growth with Joël Peress (INSEAD)

o   Apex Capital: The Nova LBO





o   M1: Corporate Finance

o   M2/PhD: Corporate Finance Theory

o   MBA: Corporate Finance

o   Executive MiF: Advanced Corporate Finance, Corporate Restructuring

o   Executive MBA: Finance





o   My former PhD students: Jeffrey Bevelander, Chris Couch (where are you?), Adolfo DeMotta (McGill), Martin Gonzalez Eiras (U. Copenhagen), Jennifer Huang (CK GSB), Li Jin (Oxford U.), Arvind Krishnamurthy (Stanford), Augustin Landier (HEC Paris), Jan Mahrt-Smith (Toronto), Robert Marquez (UC Davis), Oguzhan Ozbas (USC), Rong Leng, Theos Dimopoulos (HEC Lausanne), Jason Sturgess (DePaul), Oguzhan Karakas (Judge Institute, Cambridge U.), Yuki Sato (U. Lausanne), Vincent Fardeau (NRU Higher School of Economics) Claudia Custodio (Imperial College), Moqi Xu (LSE), Alminas Zaldokas (HKUST), Stefan Zeume (U. Michigan), Sergio Gaspar (Cornerstone), Simona Abis (Columbia Business School), Sylvain Catherine (Wharton), Thorsten Martin (Bocconi), Charles Boissel (cyber-warrior), Victor Lyonnet (Ohio State U.)


o   Friends’ sites you might enjoy:

·       Mashid Mohadjerin: Photography

·       Safia Ouares: Video, graphic design, illustrations

·       Great homemade products:


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