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On June 8, 2009, NYU Stern Professor of Finance Viral Acharya, along with his colleagues Raghuram Rajan from Chicago Booth and Stewart Myers from MIT Sloan, received the III Jaime Fernández de Araoz Corporate Finance Award for their paper, “The Internal Governance of Firms.” The award was presented in Madrid, Spain, by the Prince of Asturias, Crown Prince of Spain, and the ceremony was attended by Miguel Sebastian, Spanish Minister of Industry, Tourism and Trade, Ms. Esperanza Aguirre, President of the Community of Madrid, and Mr. Luis de Guindos, Chairman of the Jury of the III Jaime Fernandez de Araoz Corporate Finance Award. “The Internal Governance of Firms” finds that firms should invest in junior management because they are closely tied to a firm’s long-term prospects and can impose an important discipline on top management, whose focus is often more myopic. The authors call this “internal governance,” and believe it can be just as important for value creation as external governance through a Board of Directors.

This award, the only one of its kind in Spain, recognizes the impact of applied research in economics and corporate finance. It carried a cash prize of Euro 10,000.