Finance - WP Carey School of Business

Finance
Finance Forum
WINTER 1999/2000
A Publication for
Alumni and Friends
of the Department
of Finance
Greetings from the Chair
Finance
had another good year
Herbert M. Kaufman
Professor and Chair
This past year has seen the Department
of Finance move ahead in all phases of its
programs: research, teaching, and service.
In research, department faculty continue
to generate new findings through their
research and publish them in the top journals in our field. These journals include the
Journal of Financial Economics and the
Journal of Finance. Much of this work is
of interest beyond the academic community as indicated by the contacts received
from the financial and business press regarding individual faculty member research.
On the teaching front, we are pleased to
continue enrolling substantial numbers of
students in both our undergraduate and
graduate programs. In fact, finance is the
largest major in the college even as our
standards for admission to the finance
major rise. Last year the average student
admitted to finance had a 3.4 cumulative
grade point average. This means we are not
only attracting a hefty number of majors,
but also the highest quality students in our
history. Add to this one of the largest
enrollments in the honors program in the
College of Business, and you can see our
commitment to undergraduate education
and student response to this commitment.
On the graduate level, finance is one of the
major specialties in the MBA program. This
year, we have the largest number of
Financial Management and Markets
(FMM) students ever. Our Ph.D. students
continue to do well and we expect another
year of excellent placements. In addition,
department faculty are increasingly involved in the Executive MBA Program and
Executive Education.
Service to the university and finance
communities is an integral part of being a
finance faculty member. Department
faculty play major roles in college and
university activities and governance, while
serving as journal associate editors, presenting research at major professional meetings
throughout the world, and reviewing professional papers for top journals. Many of
these activities, and more, are highlighted
in this newsletter in more detail.
The Department of Finance continues to
be busy in other ways as well. The research
and teaching thrust in private equity, made
possible by the gift from Jack D. Furst, is
proceeding very well. We have named our
first undergraduate and graduate scholarship and fellowship recipients, we have
introduced modules in private equity in several courses, we have awarded our initial
research grant, and we are actively engaged
in recruiting the Jack D. Furst Professor in
Finance. We also continue to recruit for the
Francis and Mary Labriola Endowed Chair
in Competitive Business. We expect to
name appointments to both positions in the
near future. We also welcomed a new
assistant professor to the department this
year, Federico Nardari, who specializes in
corporate finance as well as international
finance. We are delighted to have him with
us. Federico comes to us from Washington
University, St. Louis, where he completed
his doctoral program. The department will
be actively recruiting at the assistant professor level again this year.
As you can see, this has been a busy year
for the department. However, all of this is
only a brief overview about what the
department faculty and students have
accomplished. I invite you to peruse the rest
of the newsletter. Please do not hesitate to
contact us to ask for additional information or to give us your comments. We look
forward to hearing from you and thank you
for your continued support.
WINTER 99/00
Finance
Finance Forum
2
Advisory Board
focus on
Alumni
In this issue of Finance Forum, we
continue our coverage of outstanding
Department of Finance graduates. As we
stated last year, we know we will never
be able to feature even a small fraction
of the many outstanding and interesting
graduates of the Department of Finance.
Christopher
Newhart’s
Advisory Board members Susan Edwards (Morgan Stanley) and Mark Miller (Mikles/Miller)
discuss proposed curriculum with Professor Jeff Coles (right).
The Advisory Board was established to
provide interaction between finance
professionals and students. This year,
representatives from several major companies and financial organizations joined
our Advisory Board. These include
Arthur Andersen Consulting, PCS Health
Systems, Inc. and Applied Decision
Analysis, a wholly owned subsidiary of
PricewaterhouseCoopers. The members
help guide our curriculum development as
well as offer job placement advice. Many
members go further, offering internships to
our undergraduate and MBA students and
hiring graduates as full-time employees.
The members of the Advisory Board and
the firms they represent are listed at right.
If you or another representative from your
firm are interested in becoming a board
member, please let us know.
Ms. Susan Edwards, Morgan Stanley
Dean Witter
Mr. Stanley Friedman, Applied Decision
Analysis
Mr. Tom Garrity, PCS Health Systems,
Inc.
Mr. Donald Hall, Arthur Andersen
Consulting
Mr. Dennis Mandalfino, Bank One
Arizona
Mr. John McDonnell, American Express
Travel Related Services Company, Inc.
Mr. Mark Miller, Mikles/Miller Management, Inc.
Mr. Nick Nicassio, Allstate Insurance
Company
Mr. Mark Poulsen, Motorola, Inc.
Representative TBA, Wells Fargo Bank
Representative TBA, Arizona Public
Service/Pinnacle West
Thanks to Our Donors
Finance
We would like to take this opportunity to thank those of you who
made pledges during our annual SunDial Campaign last year. Funds
are earmarked for student scholarships, research and development.
When you are contacted by students from the SunDial Annual Fund
Campaign, we hope that you will respond positively to their request
for support of the Department of Finance.
experiences at
ASU exemplify
maximizing
one’s opportunities. In fact,
Chris has exhibited this trait
throughout his
life. Born in upstate New York,
Chris received
early hands-on experience in two varied
occupational areas. His father, a residential contractor, allowed Chris to prepare
estimates, keep financial records, and
draft contracts. In addition, for three
years Chris managed a restaurant owned
by his mother. Chris notes that “observing the final days of the restaurant
spurred my decision to continue my
formal business education!”
Acting upon this decision, Chris
attended a local community college for
two years before applying to ASU. However, during his sophomore year at ASU
he suffered a devastating injury to his
right hand, which required nerve surgery,
tendon repair, and taking a medical leave
of absence from his program of study. In
Chris’ words, “I returned to Arizona State
University even more motivated and
determined than before.” Shortly after
that, Chris’ daughter, Destiny Jade
Newhart, was born.
Chris’ motivation and determination
are reflected in his extensive and varied
academic pursuits at ASU and in the
many awards he received. A developing
interest in the emerging Russian market
prompted Chris to enroll in the International Business Certificate Program
and led to an overseas internship in
Finance Forum
WINTER 99/00
focus on
Alumni
3
Moscow. In addition, Chris was active in
the student chapter of the Financial Management Association and the Golden Key
National Honor Society.
Finance 1997–98, Finance Department
nominee and finalist for College of Business Outstanding Graduate Fall 1997, Phoenix Society of Financial Analysts Scholarship 1997–98, Hugh L. Hamilton Scholar
1996–97, and Halstead Scholarship and
Regents Scholarship 1996–97.
Chris graduated from ASU in December 1997 with a Bachelor of Science,
summa cum laude, in Finance and
Economics, and received an International
Business Certificate, Russian and Eastern
European concentration. During his career
at ASU, Chris was a member of Beta
Gamma Sigma, the national honor society
for collegiate schools of business, and he
received the following awards: National
Security Education Program Scholar 1997–
98, National Bank of Arizona Award for
Outstanding Undergraduate Student in
The process of Chris becoming a nominee and finalist for the College of Business
Outstanding Graduate prompts faculty
memories. Department Chair Herb
Kaufman remembered Chris as “one of the
best students I ever had,” a sentiment echoed by several other faculty members. Linda
Martin recalls his project as “the most creative of the semester.” Mike Hertzel, as a
member of the College Honors and Awards
Committee, remembers his interview with
Chris: it was a conference call between ASU
and Moscow!
Andrew
Cosgrove
By the time
Andrew Cosgrove
enrolled in ASU’s
MBA program in
Finance, he had already achieved a
world ranking in
doubles tennis and
had worked in
claims and corporate underwriting for a
large insurance firm in Melbourne, Australia. He did, in fact, grow up in Goulburn,
a town just outside Sydney. Since that time,
however, he has spent extended periods in
the United States: the first time while earning his Bachelor of Business Administration from the University of Portland
(Oregon) on a tennis scholarship, and the
second time while completing his MBA in
Finance here at ASU.
Andrew’s positive experience in Oregon
contributed significantly to a rekindling of
his desire to return to the United States for
his MBA. The choice of school was difficult, but with the assistance of the staff at
the U.S. Consulate in Melbourne, he
narrowed his selection to two. Several factors swung Andrew’s decision toward ASU,
but the foremost factor was the value and
return on investment of the ASU MBA. For
Andrew, the financial advantages had to be
combined with a program that enjoyed a
high level of respect, a healthy position in
the national rankings, and an administration that focused on continued improvement
of the program’s image and profile. All these
elements he found in ASU’s MBA in Financial Management and Markets (FMM).
Andrew looks at his two years at ASU as
among the best of his life, although the death
of his mother in the middle of his second
year also made that year one of the worst.
Faced with the decision to remain here to
complete his degree or return home to be
with his family, he decided that staying was
the best for himself and his family in the
long run. It has proven to be precisely that.
While still in the U.S., Andrew accepted
a position with GE Capital, joining its
Global Leadership Development Program
when he returned to Australia last summer.
This selective program, in which he is one
of only thirteen GE Capital employees
worldwide to participate this year, takes GE
employees from outside the United States
and moves them through rotations in various functions and businesses within the
company. His first rotation is in risk management.
Today, Chris is a financial analyst for Tim
Gay & Associates, P. C., in Phoenix, where
he works on business valuations, litigation
support, and merger and acquisition
engagements. He is enrolled in the 2000
Chartered Financial Analyst Program,
Level 1 candidate. Last April, his son,
Christopher Victor Newhart II, was born.
In addition to spending his spare time
with his family, Chris has exotic recreational pursuits, such as restoring classic
cars, raising Tanganyikan cichlids (a family of tropical fish from one of the east
African rift lakes, Lake Tanganyika), and
building computer systems.
We are sure the life of Christopher
Newhart will continue to be one filled with
success and the continual quest for knowledge. Congratulations and continued good
luck, Chris!
Andrew credits the FMM program’s
approach with giving him a “better handle
on ‘the bigger picture,’” redirecting him
away from a total finance focus to a fuller
appreciation of the fundamental tools and
skills he can build upon as his career
progresses. As he remarked, “I believe the
ASU MBA has added tremendous value for
me as I resume my career as a financial
professional. It’s very clear to me that
whether you want to be in corporate
finance, equities research and trading,
I-banking, M&A, or Treasury, you had
better know something about marketing,
operations, systems, and technology, otherwise your financial analysis may miss
some key insights. ASU has given me that
perspective.”
There is one more aspect of his ASU
MBA experience that Andrew cites as
immensely valuable: the people he met here
have become a new group of lifetime
friends and are already the core of a good
network of business contacts. The structure
of the program encourages the formation
of friendships, and Andrew recognizes how
fully ASU’s contributions in this area
benefited him while he was here and will
continue to benefit him in the future.
Congratulations, Andrew, and much
continued success to you!
WINTER 99/00
Finance
Finance Forum
4
Awards Luncheon
Congratulations to our Honorees!
The Department of Finance Honors and Awards
Luncheon was held on April 16, 1999, at the
University Club. Representatives of the sponsoring
firms presented their awards.
Geetha Bhaskaran
IBM Outstanding Minority Graduate Student Award.
Terry Weinberg presented the award.
Greg Durham
The College of Business Teaching Assistant Excellence Award.
Kimberly L. Gerberich
The Phoenix Society of Financial Analysts Scholarship, presented by Society President Eric Nelson and
Tom Connelly.
Herb Kaufman, Department of Finance Chair, congratulates Geetha Bhaskaran,
recipient of the IBM Outstanding Minority Graduate Student Award.
Dr. Kaufman (right) announces the
winner of the American Express Financial
Resource Center-West Excellence in
Finance Award. The award was received
by Don Sechler (second from right) with
Christine Bernich, Manager of Human
Resources at American Express in New
York City (left) and Tom Barker, Career
Development with American Express in
Phoenix (second from left) looking on as
proud sponsors.
Photos by Tim Trumble, ASU Photographer
Ed Jankowski
Wells Fargo Bank Award for Leadership in Finance,
presented by Tim Billings.
Finance Forum
WINTER 99/00
5
Trina Lee (second from left) received the Allstate
Insurance Company Award for Outstanding
Woman in Finance. Presenting the award to her
are three representatives from Allstate Insurance
Company, Joe Gacioch (right), Anne Crowley
(second from right), and Ben Falcon (center).
Dr. Kaufman (left) shares the moment.
Trina Lee
Allstate Insurance Company Award for Outstanding Woman
in Finance; presenters were Joe Gacioch, Anne Crowley, and
Ben Falcon.
Donald Sechler
American Express Financial Resource Center-West Excellence
in Finance Award, presented by Tom Barker and Christine
Bernich.
Scott Victor Padelsky
State Farm Insurance Academic Achievement Award: Junior
in Investment Analysis. Jerry Strickland and Mark Brandt presented the award.
In addition to the honorees and donor representatives,
several college and department representatives were present.
College of Business representatives attending were Associate
Dean of Undergraduate Programs Steve Happel, Assistant Dean
of Undergraduate Programs Kay Faris, and Student Services
Coordinator Senior for the Honors Program Regina Matos.
Department of Finance representatives were Chairman Herb
Kaufman; Professors George Gallinger, Jerry Poe and Glenn
Wilt; Student Services/External Relations Coordinator Clancy
Stockham; and Student Services Coordinator Earla Marshal.
Brent Richter
The Wall Street Journal Student Achievement Award.
Henrik Schmidt
National Bank of Arizona Award for the Outstanding Undergraduate Student in Finance, presented by James Kennedy.
Award recipients
are joined by
Steve Happel,
Associate Dean of
Undergraduate
Programs and
Regina Matos,
Student Services
Coordinator, Honors
Program for a quick
photo opportunity.
From left to right,
Kimberly Gerberich,
Don Sechler, Trina
Lee, Regina Matos;
standing in back are
Scott Padelsky,
Associate Dean
Happel, and
Henrik Schmidt.
Finance
WINTER 99/00
Finance Forum
6
UNDERGRADUATE PROGRAM
Honors Program
Finance Major Continues to
Attract Honors College Students
Many Honors College students continue
to choose the finance major. As of Fall
1999, 225 students were enrolled in the
College of Business Honors Program; 78
of these were finance majors.
The names of the finance majors who
graduated from the Honors College during
the 1998–99 academic year and the titles
of their theses are as follows:
Stephen Bertrand
“An Analysis of the Franchising
Decision.”
Scott Coolidge
“Is the Decision to Publicly Finance
Sports Stadiums Prudent?”
Adam Dwinells
“Causes and Implications of the Bank
Consolidation Trend.”
Thomas Curran
“Market Psychology and Speculative
Manias: How Investor Perceptions
Affect Stock Prices.”
Bryan Edens
“The Dragon Awakes: An Analysis of
Bilateral Trade Between the United
States and China.”
Riza Esen
“The European Union and the
Enlargement Process.”
Conrad Flake
“Causes and Effects of the Asian Crisis
in Relation to Banking and Finance in
Thailand.”
Andrew Free
“Bank Mergers and Acquisitions:
With a Focus on Banc One.”
Kelly Gadd
“The Euro and Its Implication for the
Banking Industry in the European
Monetary Union.”
Philip Hawkins
“Goodyear Tire and Rubber Company
vs. Sir James Goldsmith: A Case Study
of the Hostile Takeover Environment.”
Robert Jordan
“The LTCM Debacle: Anatomy of a
Bailout.”
Angela Kelley
“The Key to Secure Electronic
Commerce.”
Henrik Schmidt
“Reported Trading Volume and Return
Distribution on the NASDAQ and
NYSE: Dealer Market Versus Auction
Market.”
Donald Sechler
“Measurement Techniques in the
Quest for Shareholder Value.”
Ben Weisenberg
“The Impact of HMOs on Physician
Organization.”
Jonathan Zweifel
“A History and Import Analysis of the
New Russian Federal Commission for
the Securities Market on the Russian
Trading System.”
For additional information about the Department of Finance Honors Program,
please call Mike Hertzel, Honors Advisor
at (480) 965–6869.
Student FMA Chapter Activities
The student chapter of the Financial
We also visited the offices of Deutsche
Management Association had another busy
Bank. Chad Ogden, a recent ASU graduyear. Our chapter has been designated as a
ate, provided an excellent tour and explasuperior chapter now five years in a row.
nation of the day-to-day operations of the
Each year the Financial Management Asglobal organization. Pete Scalinger, also a
sociation International extends this award
recent ASU graduate, provided an office
to less than 5 percent of the FMA student
tour of Bank One’s Real Estate Investment
chapters throughout the United States,
operations.
Canada, Mexico, Europe, and Australia.
This award is a product of the hard work of
A highlight of the year was the visit by
the officers of the club and our Honor
William Johnston, President of the New
Society Programs. This
York Stock Exchange,
past year Edward
who spoke on campus
A highlight of the year
Jankowski served as
to our club. All stuwas the visit by William
president, and he redents in the College of
Johnston, President of the
ceived much support
Business were invited
New York Stock Exchange,
from Henry Bragg, Vice
to attend his presentawho spoke on campus to
President of Publicity,
tion, and we had an exour club.
and Dew Price, Vice
cellent turnout. Mr.
President of Programs.
Johnston provided
great insight into the
Our chapter enjoyed many exceptional
operation of the NYSE, the competition
speakers; some were ASU alumni and all
between the NYSE and NASDAQ, the
provided information about their organizaadvantages of quoting stocks in decimals
tions, their duties, and possible career and
instead of fractions, and his duties as presiinternship opportunities. Our speakers
dent of the NYSE. Mr. Johnston spent a lot
included Mark A. Herding, Senior Field
of time providing candid answers to numerDirector, Prudential; Shawn Douglas, Staous questions.
tistical Modeler, GE Capital; Stephanie
Arnold, Relationship Manager, Wells
This year President Todd Bazin has the
Fargo; Kevin Johnson, Field Sales Leader,
chapter off to a fast start. He has lined up
Southwestern Co.; Karen Faulkner, Finanan impressive group of speakers, and many
cial Planner, Professional Planning Assoof the members are thinking about a trip to
ciates, Ltd.; Richard M. Greene, District
the FMA Leadership Conference in
Manager, Wallace; Victor J. Gallassi,
Chicago this spring. Professor Ronald
Financial Analyst, and Michelle Colling,
Hoffmeister is the faculty advisor for the
Financial Manager, both of Intel.
club.
Finance Forum
WINTER 99/00
Internships
The undergraduate finance major internship program, under the direction of
Professor John Cesta, provides students
with invaluable hands-on experience and
academic credit. This program gives a competitive advantage to students when they
enter the job market.
The supervisors and firms currently participating include the following: Alan Peril
of Arthur Andersen; Edwina Casey,
Lynette Roesch, and Lynn Searles of
Bank of America; Roger Christianson of
M. F. Diessner & Company; Gary Naquin
of Franchise Finance Corporation of
America; Bob Schubert of Impact Auto
Body; Pam Reeb of Langley Properties;
Charles Carter of MicroAge; Darla
Smith of Motorola; Jon Krieger of
Northland/Marquette Capital Group, Inc.;
Tim Minert of Peacock, Hislop, Staley &
Given; Mark Thompson of Scottsdale
Securities; Jeff Stoddard of Stoddard
Insurance Agency/Avalon Mortgage; Richard K. Shields of Sutro & Company;
Steve Barry of The Vanguard Group; and
Wendy Wilson of Jimmy Walker &
Associates.
The department is most appreciative of
these firms and supervisors for their time
and commitment to the internship program.
To explore the possibility of your firm
participating in an internship, or for more
information about the program, please
contact John Cesta at 480–965–2969.
FMM Degrees Awarded
Twenty-four students received their ASU
MBA with a specialization in Financial
Management and Markets in May, 1999.
They were:
Mohamed Basma, Robert Bassett, Scott
Bauguess, Geetha Bhaskaran, Fred Carreo,
Andrew Cosgrove, Cameron Dennis, John
Fletcher, Joseph Giacalone, Brett Haas,
Erika Herbold, Chris Jacomino, Jian Kang,
Victor Labate, Yating Lai, Philip Martinelle,
Scott Messier, John “Trey” Oglesby III,
José Prieto, Phyllis Rector, Ian Sharpe,
Andrew Stevenson, and David Voegtli.
7
ASU MBA PROGRAM
The Student Investment
Management (SIM) Fund
is one of the premier
experiences that attracts
students to the ASU MBA
program. The SIM program was designed for
a small, select group of
second-year ASU MBA
students in the Financial
Management and Markets
concentration who have a
strong interest in the field
of professional money
management.
While students partici- Professor Herb Kaufman explains upcoming responsibilities to the
pate in other practica new members of the SIM Fund. From left to right, Qiang “Jackie”
You, Gregory Legros, John Baty, Timothy “Kent” Hardaway, and
within local corporations, Professor Kaufman.
we have chosen to focus on
monitor the Fund’s current holdings and
the SIM fund for this issue. The SIM
research and present new investment ideas
program is in its fourth year, having origion an ongoing basis. Student managers denated during the 1996–97 academic year.
velop fundamental investment valuation
The program has provided an excellent
skills, including economic value-added and
opportunity for students to gain practical
free cash flows methods. The managers
experience managing a portfolio of real
present their findings in formal, standardmoney, currently totaling over $400,000.
ized research reports. They also formally
The SIM Fund has clearly defined restricpresent the Fund’s performance to their
tions to which the student managers must
Advisory Committee semi-annually.
adhere, including asset-allocation guidelines, equity and fixed-income securityLast year’s SIM management team conselection criteria, and performance-reportsisted
of Andrew Cosgrove, Brett Haas,
ing requirements. In addition, the program
Scott
Messier,
Trey Oglesby, and Phyllis
has provided opportunities for participants
Rector.
The
1999–2000
student managers
to network with and develop key contacts
are
John
Baty,
John
Goltermann,
Kent
in the investment community.
Hardaway, Gregory Legros, and Jackie
You. Three of the current year’s managers
The student managers are responsible for
have passed Level 1 of the Chartered
the day-to-day operations of the Fund. They
Financial Analyst exam, and all five plan
to pursue this designation.
These outstanding graduates accepted a
In mid-November 1999, the student
variety of positions, including General Partmanagers traveled to Pasadena and Santa
ner, Vice President, Senior Financial AnaMonica, California, to meet with four prolyst, Management Program Associate,
fessional money management companies.
Investment Advisor, and Finance Manager.
This opportunity was provided by the generosity of two of the SIM Fund’s Advisory
Positions were accepted at such compaCommittee members. The SIM Fund’s Adnies as Solomon Smith Barney, Motorola,
visory Committee consists of members of
GE Capital, Bank One, Hewlett-Packard,
the ASU Finance Faculty as well as a large
Hawkeye Capital, Bloomberg L.P., U.S.
number of professional money managers
Treasury Department, Martin Wolf Associthroughout the nation. The SIM Fund’s key
ates, PCS Health Systems, and Clorox.
faculty advisor is Herbert Kaufman. Other
ASU faculty advisors to the SIM Fund are
Congratulations, and much continued
George Gallinger, John Griffin, and Linda
success to our graduates!
Martin.
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Finance
Finance Forum
8
Faculty Activities
Faculty Awards
Greg Durham
George Gallinger
Professor George Gallinger received the
Outstanding Second Year MBA Instructor
Award during the 1998-99 academic year.
The students have accorded George this
award for five consecutive years!
Jeff Coles
Professor Jeff Coles received the ASU
MBA for Executives Best Professor Award.
Teaching Assistant Greg Durham received
the College of Business Teaching Assistant
Excellence Award.
Congratulations!
Jerry Poe
Marie Sushka
In the spring of 1999, Professor Marie
Sushka was the recipient of The Sir
Edward Youde Memorial Fund Visiting
Professorship. In this capacity, Professor
Sushka spent a portion of the spring semester in Hong Kong.
Jerry B. Poe, Professor of Finance, has
been appointed to the NCA Institutional
Actions Council, a new administrative body
of the North Central Association’s Commission on Institutions of Higher Education. In April 1999, Poe chaired the NCA
accreditation team that included evaluations
of new master’s degree programs in
Singapore, Hong Kong, and Jamaica.
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9
New Professor
Welcomed
Professor Federico Nardari
Faculty Research
Research accepted for publication since
last year’s Finance Forum include the following:
James Booth and Dan Deli
“On Executives of Financial Institutions
as Outside Directors,” Journal of Corporate Finance, forthcoming.
Jeffrey Coles, JosJ Suay, and Denise
Woodbury
“Fund Advisor Compensation in ClosedEnd Funds,” Journal of Finance, forthcoming.
The Department of Finance welcomes
Professor Federico Nardari to ASU.
Federico received his Ph.D. at Washington
University in St. Louis and defended his
dissertation, “Essays in Empirical Finance,”
in December 1998. Federico is teaching
Managerial Finance and International Financial Management in the MBA program.
Jeffrey Coles, Jim Brickley, and Jim Linck
“Does the Decision to Retain Retiring
Executives on the Board of Directors Help
to Control Agency Problems in American
and Japanese Firms?,” forthcoming as
Chapter 8 in Capital Markets, Banking, and
Corporate Finance (Macmillan Press).
Visiting Speakers
During the 1998–99 academic year the
following visiting speakers made presentations to Department of Finance faculty
and doctoral students as part of the Advisory Board Seminar Series:
Tyrone W. Callahan
The Anderson School at UCLA
Frank Fehle
The University of Texas at Austin
T. Clifton Green
New York University
Mark Grinblatt
The Anderson School at UCLA
Roberto C. Gutierrez, Jr.
Texas A&M University
Thomas Hellmann
Stanford University
G. Andrew Karolyi
Ohio State University
Aditya Kaul
University of Alberta
Paul H. Malatesta
University of Washington
Federico Nardari
Washington University in St. Louis
Jay R. Ritter
University of Florida
Stephen Sapp
Northwestern University
H. Nejat Seyhun
University of Michigan
George Sofianos
New York Stock Exchange
Russ Wermers
The University of Colorado at
Boulder
Marc Zenner
University of North Carolina
at Chapel Hill
Michael Lemmon, Ron Anderson, Thomas
Bates, and John Bizjak
“Corporate Governance and Firm Diversification,” Financial Management, forthcoming.
Marie Sushka, M. Slovin, and J. Polonchek
“An Analysis of Contagion and Competitive Effects at Commercial Banks,” Journal of Financial Economics, forthcoming.
Marie Sushka, M. Slovin, and S. Ferraro
“Asset Sales: Restructuring, Financing,
or an Agency Problem?,” Advances in Financial Economics (Elsevier North-Holland Press), forthcoming.
The Department
of Finance
Website address:
www.cob.asu.edu/fin/
▲▲▲
The ASU MBA
Website address:
www.cob.asu.edu/
mba/fmm/
▲▲▲
Finance Forum
is on the Internet at:
www.cob.asu.edu/fin/
newsevents.htm
WINTER 99/00
Finance
Finance Forum
10
MBA First Annual State Case Competition
On Friday, November 18, 1999, ASU
MBA student teams took first and second
place in the first statewide case competition against U of A’s MBA students. The
theme of the competition was the conflict
that arises from the consolidation of radio
stations and advertising firms.
The event, sponsored by the Masters
Consulting Group of ASU and Intel
Corporation, was held at the Camelback Inn
in Phoenix. It was the final round of competitions after each school held preliminary
rounds the prior week, sending three
finalists to Tempe.
For the final competition, teams at each
school were given the same case and had
three days to analyze the firm and industry, developing a PowerPoint presentation
and written paper outlining the team’s strategic recommendations. Professionals from
Andersen Consulting, Intel, and
PriceWaterhouseCoopers served as judges
for the competition.
The first prize winners from ASU were
Jonathan Miles (FMM), Erik Black
(MSIM), Prateek Hak (MSIM) and Faiyaz
The first prize winners from left to right: Prateek Hak (MSIM); Erik Black (MSIM); Faiyaz Hirani
(MSIM) and Jonathan Miles (FMM).
Hirani (MSIM). They gave the winning presentation at a reception lunch following the
competition. Other MBA students involved
from the Department of Finance were Sean
Kracklauer who shared second place with
ASU’s Champa Magesh (MSIM), Jeff
DeWolf (Thunderbird), and Kelly Damron
(MSIM).
The first-place winners received $1,000
each, while the second-place winners
received Palm Pilots.
Ph.D. PROGRAM
The Ph.D. Program in Finance, under the
guidance of Professor Jeff Coles, provides
a challenging course of study in the most
recent developments in both the theoretical and empirical aspects of financial economics. This course of study, in addition
to work in economics and statistics, provides the skills and knowledge for careers
in research and teaching at major universities, in industry, and in government.
During the past academic year, two Ph.D.
candidates defended their dissertations and
were awarded their degrees. These two
graduates continue in their present academic positions.
James S. Linck, University of Rochester, defended his dissertation, “Exchange
Rates, Cash Flow and Firm Value: An Empirical Examination of U. S. Firms,” in June
1999.
Karyn L. Williams, The William F.
Drucker School of Management at
Claremont Graduate University, defended
her dissertation, “Price Discovery in
A Publication
for Alumni
and Friends of
the Department
of Finance
Multiple-Dealer Markets: The Case of the
Interbank Foreign Exchange Market,” in
July 1999.
Winter 1999/2000
Forum
Finance Forum is a publication of the Department of Finance,
Arizona State University, College of Business, PO Box 873906,
Tempe, Arizona 85287-3906. Phone: (480) 965-3131,
Fax: (480) 965-8539, Website: www.cob.asu.edu/fin
Professor Herbert M. Kaufman ............ Chair
Professor Linda J. Martin ..................... Editor
Ms. Clancy Stockham ........................... Associate Editor
Ms. Laurie Carr .................................... Layout and Design
Finance
inance Forum
WINTER 99/00
11
Jack Furst
inducted into the
College of Business
Hall of Fame
Jack D. Furst was inducted into the College of Business Alumni Hall of Fame on
November 12, 1999, at a luncheon held at
the University Club on campus. Jack spent
the afternoon meeting with finance faculty
and addressing a combined meeting of undergraduate honors students, MBAs and
Executive MBAs on private equity. It was
an exceptionally valuable afternoon for all
involved.
Jack graduated from ASU as a finance
major in 1981 and is a partner in one of the
largest private equity firms in the world,
Hicks, Muse, Tate, and Furst. This firm has
over $10 billion in management funds and
holdings with assets of about $40 billion.
Jack’s accomplishments are truly exceptional, and the department is proud that one
of its alumni has had so much success in
this important area. It is in recognition of
Jack’s success that the College of Business
inducted him into its Hall of Fame.
College of Business Dean Larry Penley (center) presents the Alumni Hall of Fame Award to
Jack Furst, ’81 (left) with David Smolinski, College of Business Alumni President (right) looking on.
Students awarded Jack D. Furst Fellowships
Jack Furst generously gave the Department of Finance a gift, part of which went
to the creation of student fellowships and
scholarships. These awards were designed
to help students better understand private
equity and to assist them in pursuing careers in this field.
We are pleased to announce the recipients of the fellowships and scholarships that
Jack has made possible. They are:
ASU President Lattie Coor (left) shares a moment with Jack Furst (center) and
Jeff Patrick, Alumni Association Chairman (right) at the 1999 Homecoming festivities.
Lalitha Naveen and Mukunthan
Santhanakrishnan are recipients of the
Jack D. Furst Dissertation Fellowship. The
title of Ms. Naveen’s dissertation is “Comparison of Agency Costs between Private
and Public Funds.” Mr. Santhanakrishman’s
dissertation is entitled “Comparison of
Corporate and Independent Venture Capitalists.”
The Jack D. Furst Honors Scholarship
was awarded to undergraduate student,
Pam Zanzucchi, for her thesis entitled
“Venture Capital in Arizona.”
Three fellowships were awarded to MBA
students in Finance. The first place award
went to John Goltermann for his paper
entitled “Deal Structure and Value: An Examination of the Interaction.” Second place
was awarded to Vincent Brady for his paper, “Pension Funds and Private Equity:
Recommendations to Increase Commitments” and third place went to Roland
Vigne for his contribution entitled “The
Organization of the Private Equity Market
and the Role of Intermediaries.”
Our appreciation goes out to Jack and our
congratulations to each of the recipients.
Much continued success to each of you
in your endeavors!
Finance
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Arizona State
University
Department of Finance
Main Campus
PO Box 873906
Tempe, AZ 85287-3906
Phone: 480-965-3131
CALL TO ALL ALUMNI!
Second, we are asking for your help in supporting our cur-
The Department of Finance is reaching out to our alumni for
two reasons:
rent students.
First, we would like to update our mailing list so that everyone
who wants a copy of our newsletter receives one and we reduce the
number of postage-paid returns.
Please fill out the contact information below and check off any
items which apply to you and fax it to Clancy Stockham, Department of Finance, 480-965-8539. Thank you!
Name ______________________________________________
❑ Please publish the above information in the Alumni Directory.
Home Address ______________________________________
❑ I would you like to mentor a Finance student.
City ____________________ State _____ Zip ____________
❑ I would you like to participate as a class speaker or alumni
panelist.
Home Phone ________________________________________
❑ You may refer students to me for career/industry advice. I
prefer to be contacted at home/at my office. (Circle one.)
Year of Finance Degree _______❑ BA ❑ MS ❑ MBA ❑ PhD
Company Name _____________________________________
❑ I am interested in recruiting undergraduate Finance students.
❑ I am interested in recruiting ASU MBA students with a
specialization in Financial Management and Markets.
Company Address ____________________________________
City ____________________ State _____ Zip ____________
Job Title ___________________________________________
Work Phone ________________________________________
E-mail address ______________________________________
❑ I am interested in serving on the Department of Finance
Advisory Board.
❑ I would like to host an alumni event in my city.
❑ I would like to share the following information with other
ASU Alumni. Please publish it in your next newsletter:
___________________________________________________
_______________________________________________________________________