Professor Nickolaos Travlos
Professor Nickolaos Travlos joined the University of Surrey in September 2016 as Professor of Finance and Accounting. He has teaching and research interests in the areas of Corporate Finance, Financial Analysis, Financial Markets, Banking, and Mergers and Acquisitions. Prior to the University of Surrey he was at ALBA Graduate Business School (1992-2016) holding the Kitty Kyriacopoulos Chair in Finance and serving as its first Dean (1998-2016).
He has also taught at Boston College, City University of New York (Baruch College), New York University (L. Stern School of Business) and University of Piraeus (1990-1998), where he served as Chairman of the Department of Banking and Financial Management (1993-1997) and Director (founder) of the MSc in Banking and Financial Management (1997-1998). Moreover, he held the position of Distinguished Senior Research Fellow at Cardiff Business School (U.K.), 1998-2007.
Professor Travlos' research has been published in leading academic journals such as The Journal of Finance (10 papers); Journal of Accounting Research; Journal of Financial and Quantitative Analysis; Journal of Corporate Finance; Review of Finance; Financial Management; Journal of Financial Research, etc. His research findings have been cited widely in numerous international academic journals and text-books, while managerial implications of his work have appeared in the best relevant outlets. In 2008 Professor Travlos was recognized as one of the “most contributing” authors in the Journal of Finance (JF), “the gold standard in academic finance literature”, over its six decades of existence. In addition, his published article “Corporate Takeovers Bids, Methods of Payment and Bidding Firms' Stock Returns” (The Journal of Finance, 1987b) was included in 1994 in the list of the twenty most influential published papers in Finance. Other published papers have been voted as the best papers appeared in the associated journals. He has served on the editorial Board of several international academic journals and has served as President/Chairman of several international academic Associations and Conferences. His research agenda includes Mergers and Acquisitions, Executive Compensation, Corporate Governance, Corporate Control, Dividend Policy, Ownership Structure, International Acquisitions, Leveraged Buyouts, Capital Restructuring and Raising New Capital.
He is a finance consultant and has served on the Board of Directors of several national and international firms. He was a member of the Board of the Hellenic Capital Market Commission from 2004 until 2009 and of the Hellenic Competition Commission from 2009 to 2012. He served as Chairman of the Board of the Athens International Airport (2013-2015) and vice-chairman of the Board of International Transparency - Hellas (2013-2016).
Currently teaching Financial Management at the MBA Programme.
In Chapter 1, entitled "Lending discrimination across the U.S.: New methodology and the role of the subprime crisis", we examine whether discrimination in mortgage-loan origination and pricing exists, and if so, whether the level of discrimination differ before and after the eruption of the subprime crisis. Using data from 6.5 million loan applications from 2004 through 2013, we propose a novel approach aiming to substantially lower the notorious omitted-variable bias of the Home Mortgage Disclosure Act (HMDA) database and identify the level of racial, ethnic, and gender discrimination in mortgage lending across the United States. In stark contrast with previous studies, we find, on average, very little discrimination in loan origination. Although discrimination increases somewhat after 2007, its probability remains well below 1%. In contrast, we find that white (non-Hispanic) applicants pay a lower spread on the originated loans by 0.37 (0.11) basis points, a result that almost entirely comes from the pre-crisis period.
A key policy to limit the possibility of bank runs is an explicit deposit insurance scheme (DIS), which can be either privately or government-funded. In Chapter 2, entitled "Blessing or curse? Government funding of deposit insurance and corporate lending", we study the effect of government involvement in explicit DIS funding on price and non-price characteristics of loans. Using syndicated loans from 63 countries over 1985-2016, we show that changes in DIS from purely private-funded to either government-funded or jointly-funded increase all-in-drawn spreads by approximately 4.6%, further increase loan fees, decrease loan maturity, and increase the use of performance pricing provisions. Our findings are consistent with the moral hazard problem behind government-funded explicit DIS.
In Chapter 3, entitled "Creditor rights and corporate lending revisited", we challenge the conventional finding that stronger legal protection of creditors improves the terms of corporate loan deals. Using global syndicated loan data from 1986 to 2005, we revisit the effect of creditor rights on corporate loan terms (spread, amount, and maturity). Instead of focusing only on cross-country differences, we also investigate within-country variation in creditor rights index by using country fixed effects and event-study methodologies. In stark contrast with previous findings, we find that the level of creditors? protection does not significantly affect banks? decisions on corporate loan terms. Our findings highlight that strengthening creditors? protection is not necessarily an appropriate mechanism for promoting more competitive lending terms.
Refereed Articles in Scholarly Journals
- Nickolaos G. Travlos with George Alexandridis, and Nick Antypas “Value Creation from M&As: New Evidence”, Journal of Corporate Finance, 2017 (forthcoming) doi:10.1016/j.jcorpfin.2017.05.010
- Nickolaos G. Travlos with Jay Dahya, Andrey Golubov, and Dimitris Petmezas “Governance Mandates, Outside Directors, and Acquirer Performance”, Journal of Corporate Finance, 2016 doi:10.1016/j.jcorpfin.2016.11.005
- Nickolaos G. Travlos with Andrey Golubov and D. Petmezas "Do Stock-Financed Acquisitions Destroy Value? New Methods and Evidence", Review of Finance 19 (6) (October 2015) doi:10.1093/rof/rfv009
- Nickolaos G. Travlos with N. Karampatsas and D. Petmezas, “Credit Ratings and the Choice of Payment Method in Mergers and Acquisitions”, Journal of Corporate Finance 25, 474-493, 2014 doi:10.1016/j.jcorpfin.2014.01.008
- Nickolaos G. Travlos with E. Oltheten, T. Sougiannis, and S. Zarkos, “Greece in the Eurozone: Lessons from a decade of experience”, The Quarterly Review of Economics and Finance, November 2013
- Nickolaos G. Travlos with G. Alexandridis, K. P. Fuller, and L. Terhaar, “Deal Size, acquisition premia and shareholder gains”, Journal of Corporate Finance, 2013
- Nickolaos G. Travlos with A. Golubov and D. Petmezas, “When it Pays to Pay Your Investment Banker: New Evidence on the Role of Financial Advisors in M&As”, The Journal of Finance, February 2012
- Nickolaos G. Travlos with E. Croci and D. Petmezas, “Asymmetric information and target firm returns”, The European Journal of Finance, Vol. 18, No. 7, August 2012
- G. Alexandridis with C. Mavrovitis, and Nickolaos G. Travlos “How have M&As changed? Evidence from the sixth merger wave”, The European Journal of Finance, 1-26, 2011
- Nickolaos G. Travlos with G. Alexandridis and D. Petmezas “Gains from M&As Around the World. New Evidence”, Financial Management, December 2010
- Nickolaos G. Travlos with G. Papaioannou and K.G. Viswanathan “Visibility Effects and Timing in Stock Listing Changes: Evidence from Operating Performance”, Quarterly Review of Economics and Finance 49, 357 - 377, May 2009
- Nickolaos G. Travlos with George N. Leledakis, George J. Papaioannou, and Nickolaos V. Tsangarakis “Stock splits in a neutral transaction cost environment: Evidence from the Athens Stock Exchange”, Journal of Multinational Financial Management, 2009
- Nickolaos G. Travlos with Philip J. Mcknight, T. Milonas and Charlie Weir “The Cadbury Code Reforms and Corporate Performance” Icfai University Journal of Corporate Governance, January 2009
- Nickolaos G. Travlos with Nikolaos T. Milonas, Jason Zezhong Xiao and Cunkai Tan, “The Ex-Dividend Day Stock Price Behavior in the Chinese Stock Market”, Pacific-Basin Finance Journal, Vol. 14, 2006
- Nickolaos G. Travlos, with Vasilis Theoharakis and E. Oltheten, “Faculty Perceptions of Finance Journals: A Global View”, Journal of Financial and Quantitative Analysis. March 2005
- Nickolaos G. Travlos, with P. Protopapas and G. Tsagarakis “Mergers and Acquisitions in Greece: Stock Price Reaction of Acquiring and Target Firms”, Spoudai, October-December 2003 (voted best paper for the year)
- Nickolaos G. Travlos with G. Papaioannou and K.G. Viswanathan, "The Operating Performance of Firms that Switch their Stock Listing", Journal of Financial Research, Vol. 26, Issue 4, Winter 2003
- Nickolaos G. Travlos with J. Doukas and M. Holmen, "Diversification, Ownership and Control of Swedish Corporations", European Financial Management, Vol. 8, Issue 3, September 2002
- Nickolaos G. Travlos with J. Dahya and J. McConnell, "The Cadbury Committee, Corporate Performance, and Top Management Turnover", The Journal of Finance, 57 (1), February 2002
- Nickolaos G. Travlos with L. Trigeorgis and N. Vafeas, “Shareholder Wealth Effects of Dividend Policy Changes in an Emerging Stock Market: The Case of Cyprus”, Multinational Finance Journal, June 2001, Vol. 5, Issue 2 (voted best paper for the year)
- Nickolaos G. Travlos with G. Papaioannou and N. Tsangarakis, "Valuation effects of Greek stock dividend distributions", European Financial Management, Vol. 6(4), December 2000
- Nickolaos G. Travlos with J. Dahya, "Does the One Man Show Pay? Theory and evidence on the Dual CEO Revisited", European Financial Management, Vol. 6(1), 2000
- Nickolaos G. Travlos with J. Barkoulas and K. Baum, "Long Memory in the Greek Stock Market", Journal of Applied Financial Economics, Vol. 10, 2000
- Nickolaos G. Travlos with J. Barkoulas, "Chaos in an Emerging Capital Market? The Case of the Athens Stock Exchange", Journal of Applied Financial Economics, Vol. 8, 1998
- "Sources of Gain from Domestic and International Acquisitions", Corporate Finance Review, Vol. 1, no 3, pp. 25-33, December 1996
- Nickolaos G. Travlos with Gil Manzon and David Sharp, "An Empirical Study of the Consequences of US Tax Rules for International Acquisitions by US Firms", The Journal of Finance, December 1994
- Nickolaos G. Travlos with Elizabeth Strock-Bagnani, Nikolaos Milonas and Anthony Saunders, "Managers, Owners and the Pricing of Risky Debt: An Empirical Analysis" , The Journal of Finance, June 1994
- Nickolaos G. Travlos with Marcia Millon Cornett, "Going Private Buyouts and Determinants of Shareholders Returns", Journal of Accounting, Auditing and Finance, p. 1-3, 1993
- Nickolaos G. Travlos with George Papaioannou and Elizabeth Strock, "Ownership Structure and Corporate Liquidity Policy", Managerial and Decision Economics, Vol. 13, pp. 315-22, 1992
- Nickolaos G. Travlos with Sinan Cebenoyan and George Papaioannou, "Foreign Takeover Activity in the US and Wealth Effects for Target Firm Shareholders", Financial Management, pp. 58-68, 1992
- Nickolaos G. Travlos with James Waegelein, "Executive Compensation, Management Ownership, Corporate Control and Abnormal Returns to Bidding Firms at Takeover Announcements", Managerial and Decision Economics, Vol. 13, pp. 493-501, 1992
- Nickolaos G. Travlos with George Papaioannou, "Corporate Acquisitions: Method of Payment Effects, Capital Structure Effects and Bidding Firms Stock Returns", Quarterly Journal of Business and Economics, pp. 3-22, Autumn 1991
- Nickolaos G. Travlos with Yakov Amihud and Baruch Lev, "Corporate Control and the Choice of Investment Financing: The Case of Corporate Acquisitions" , The Journal of Finance, pp. 603-16, June 1990
- Nickolaos G. Travlos with Anthony Saunders and Elizabeth Strock, "Ownership Structure, Deregulation and Bank Risk Taking" , The Journal of Finance, pp. 643-54, June 1990
- Nickolaos G. Travlos with Marcia Millon Cornett, "Information Effects Associated with Debt-for-Equity and Equity-for-Debt Exchange Offers" , The Journal of Finance, pp. 451-468, June 1989
- Nickolaos G. Travlos with John Doukas, "The Effects of Corporate Multinationalism on Shareholders' Wealth: Evidence from International Acquisitions" , The Journal of Finance, pp. 1161-1175, December 1988
- Nickolaos G. Travlos with Hassan Tehranian and James Waegelein, "The Effect of Long-term Performance Plans on Corporate Sell-Off-Induced Abnormal Returns" , The Journal of Finance, pp. 933-942, 1987
- "Corporate Takeover Bids, Method of Payment, and Bidding Firms' Stock Returns", The Journal of Finance, pp. 943-963, 1987
- Nickolaos G. Travlos with Hassan Tehranian and James Waegelein, "Management Compensation Contracts and Merger-Induced Abnormal Returns", Journal of Accounting Research, pp. 51-76, 1987 (Supplement)
- Nickolaos G. Travlos with Marcia Millon Cornett, "An Examination of the Motivation for Leveraged Buyout Proposals" , Spoudai, pp. 177-202, January-June 1987