Academy of Finance
Spring 2006 Newsletter
A Message from the Academy of Finance President
Hello Fellow Academy Members!
As we come to our 20th Annual Meeting in Chicago, I want to tell each of you
how much I have enjoyed getting to know you and working with you over the past 3
years. When I was asked if I would like to be secretary 3 years ago, I hesitated because I
was concerned about the amount of time and effort it would take. Well, I was right! It
has taken a large amount of time and effort but it has been worth it! And what I was
perhaps most surprised about was the willingness of so many people to help. With so
many people working together, I believe our organization has moved forward and is
positioned to advance even more. Let me address a few of these important points in the
Growth: We have had 3 consecutive years of record setting growth. Monzur
Hoque produced the largest Program to date in 2004. I topped that with the 2005
Program and now Kevin Bahr has produced an even larger Program for 2006! Growth is
almost always a sign that good things are happening because people have limited travel
money and time. If they are spending those resources on the Academy, then we must be
providing them something of value. Further while bigger isn’t necessarily better, I do
believe that certain advantages come from reaching a critical mass. Members get to
make contacts with more people. It is more likely that everyone will be able to find
something of interest on the Program. The “vibe” of the meeting feels better with lots of
new, energetic faces. Once we reach a certain size we are better able to attract support
from the Chicago business and government community. More and new members
increase the likelihood of new and good ideas for organizational and programming
improvements. Within the MBAA, we have more influence when we have a larger
membership. Overall, increasing the size of the organization and the Program is a good
thing. We just want to be careful that in the process of growing we do not change the
nature of the organization.
Best in Track Awards: We added new Best in Track Awards for the 2006
Program. While we continue to recognize the best overall paper of the conference with
the Distinguished Paper Award, there are many other good papers throughout various
topical areas of the finance discipline. We wanted to recognize these authors for the fine
work they were doing, and thus the Best in Track Awards were created. This year we
had entries in 6 tracks and there will be 12 members going home with plaques for their
walls and nice lines for their vitae. I like to call these things “sweeteners” for our
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MB Financial Teaching Excellence Award: MB Financial has graciously
agreed to sponsor our 1st Annual Teaching Excellence Award with a $500 cash prize for
the winner. The Academy is very concerned about teaching as that is the primary
mission of many of the institutions represented by the membership, and this award gives
recognition to excellence in that area. In addition to the cash prize, the winner will
receive a trophy provided by the Academy. The other 3 finalists will also receive nice
plaques from the Academy recognizing their own great teaching and the honor of making
it to the finals (more “sweeteners” for more members). If you see Jim Tripp (J-
Tripp@wiu.edu), banking professor at Western Illinois University, be sure to tell him
“thanks” for the help he provided in setting up the sponsorship from MB Financial. You
should also say a good word to Sheri Faircloth (Secretary and Associate Program Chair;
firstname.lastname@example.org) for her good work in chairing the Teaching Committee. Also,
if you will check the page of this Newsletter with the teaching competition information
you’ll see that the finalists have great teaching records and numerous awards already!
Journal: The Journal of the Academy of Finance (JAF) continues to be a very
significant attraction of the Annual Meeting. JAF provides a publication outlet for our
members, helps with the tenure and promotion needs, and gives a way for everyone to see
the good work being done by many of our members. The next time you see Raj Kohli
(email@example.com), JAF editor, be sure to tell him you appreciate his continued, unselfish
Luncheon: Our 2nd Annual Luncheon will be held at 12:15 on Thursday, May
16, immediately following the Annual Business Meeting. For a more intimate setting we
have moved the Luncheon to the Crystal Room. For the first time, we will have a
distinguished, external speaker, Bill Strauss, Senior Economist at the Chicago Federal
Reserve. Additionally, this is where we will be presenting the teaching and research
awards. Also, I hope at some point to publicly recognize the person who has agreed to
subsidize part of the cost of the Luncheon (he wishes to remain anonymous at this point
despite my best efforts to bring him forward)!
Track Chairs: For the first time, we used track chairs. The track chairs
significantly lightened the workload of the Program Chair. The track chair positions also
provided an avenue for more people to become involved in the organization.
Newsletter: Peppi Kenny has worked as editor to put together this initial issue of
the Academy’s newly launched newsletter. This outlet gives all members a way to tell
everyone about their successes. It is also a good way for us to communicate with each
other and to share good experiences in our profession. Please consider writing for the
Academy’s Newsletter in the future (contact Peppi Kenny, PM-Kenny@wiu.edu).
The above items are just some of the advances we have made this year. These advances
were only possible because of the great work done by so many people.
The Future: There are many things we could do to make our conference more
valuable to both current and prospective members. As I said earlier, a little extra size
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could be a good thing. Besides better overall marketing to attract people across the
board, we could target certain niches. Here are some suggestions for growth:
a. The areas of corporate finance, investments and institutions will
always be the heart of the conference. However, it should be possible to add 10-
12 papers above the modest numbers we have now in the areas of real estate,
insurance and personal finance. Those areas could together yield an additional
30+ papers and 40+ members.
b. We could market more carefully to professors from outside the
U.S., utilizing the attractiveness of Chicago as a meeting venue. We should
promise to immediately review their submissions so they can speed the visa
process. They would probably produce papers across the topical spectrum, and I
know that it would be interesting to meet people from across the world. Again,
careful marketing here could add 10-12 more papers and 12-15 members.
c. We meet in one of the world’s great financial centers. Surely we
can use that to our advantage by incorporating local companies and government
agencies into our program. Many organizations are willing to provide people to
participate in special panels. We should be able to arrange tours of the local
exchanges (AMEX, CBOT, etc.) for our members. Besides the immediate
interest generated at the meeting by including the professionals, the interaction
between our members and the local business will give our members the
opportunity to make connections in the Chicago business community that could
be useful the them and their students.
d. We could register our program with various professional
designation groups (Certified Financial Planners, Chartered Financial Analysts,
etc.) so that attending our meeting counts as continuing education credit for those
designations. The mingling of the academicians and the practitioners within the
sessions should be useful and interesting. Additionally, we should be able to raise
additional funds from the practitioners’ registrations, especially if we were able to
charge additional fees to anyone wanting continuing education credit for the
It has been a pleasure working with everyone these past several years. I believe our
organization can continue to grow, improve and become a better place for everyone.
However, we just need to be careful that we don’t change the nature of our organization:
open, inclusive and an outlet of ideas and research for everyone. Again, thank you for
allowing me to serve you during the past three years. I look forward to seeing all of you
Don T. Johnson, PhD
President, Academy of Finance
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MB Financial Teaching Excellence Award
MB Financial (www.mbfinancial.com) is sponsoring the Academy’s First Annual
Award for Excellence in Teaching Finance. MB Financial has contributed a cash prize of
$500 to be awarded to the winner of the competition. Additionally, the Academy will be
providing the winner with a trophy and the other finalists with plaques, recognizing their
accomplishments. The finalists will be making their presentations to the teaching
committee (chaired by Sheri Faircloth; firstname.lastname@example.org), in LaSalle 1, at 9:15
a.m., on Thursday, March 16. The session is open to everyone interested in better
teaching. The committee will consider the written materials and the in-person
performances of the finalists and announce the winner of the competition at the Luncheon
later that same day (Crystal Room, at 12:15 p.m.). We are fortunate to have the
following four great finalists for the Teaching Awards:
Thomas D. Berry, PhD (University of Missouri), St.
Vincent DePaul Professor, and Associate Professor of Finance,
DePaul University. Tom has taught at DePaul since 1981 and specializes in
the area of corporate financial management. He has won (three times) the DePaul
Outstanding University Teaching Award and has won (also three times) the
Lawrence Ryan Award for outstanding undergraduate teaching. He has taught in
the Czech Republic, Germany, France, Spain, Bahrain and Russia. He has also
taught in the Chartered Financial Analyst Program for the Chicago Investment
Analysts Society since 1990, the Certified Public Accounting Review program
and has conducted credit and valuation seminars for major banks in Poland since
Ernest N. Biktimirov, PhD (University of Kentucky),
CFA, Associate Professor of Finance, Brock University, Ontario,
Canada. He has been the recipient of the Brock University and Faculty of
Business Distinguished Teaching Awards. He is also the holder of the Brock
Chancellor's Chair for Teaching Excellence. His financial education papers won
the best paper awards at the Financial Management Association (2002) and
International College Teaching Methods and Styles (2005) conferences. Ernest
has served as Division Chair and Program Chair of the Finance Division of
the Administrative Sciences Association of Canada, and he is currently on the
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editorial board of the International College Teaching Methods & Styles Journal.
Ernest has financial education papers published or forthcoming in the Journal of
Financial Education, Advances in Financial Education, Journal of Education for
Business, Journal of Accounting and Finance Research, and Journal of
Teaching in International Business.
Kent Ragan, PhD (University of Missouri), CFA,
Associate Professor at Missouri State University. Kent has twice
received the Outstanding Service Award for the College of Business and has also
received the Outstanding Research Award for the College of Business. He
received a University Teaching Award (2003) and was named the Dean’s
Distinguished Research Fellow for 2000-2005. Kent was also named to the “40
Under 40” list by the Springfield Business Journal (2001). Kent has teaching-
related research published or forthcoming in Journal of Financial Education,
Advances in Financial Education, Journal of Education for Business, Journal of
Economics and Finance Education, The Business, Education, and Technology
Journal, and the Journal of the Academy of Finance. He also began MSU’s CFA
University Scholars Program and created the CFA Level I study course.
Jason White, PhD (University of Missouri – Kansas
City), Assistant Professor at Northwest Missouri State. Jason’s
honors include being a Nominee for the 2006 NMSU Distinguished Faculty
Award; a 2006 Northwest Tower Service Award Nominee; 2005 Booth College
of Business Research Award (NMSU); 2004 Kenneth Elzinga National Teaching
Excellence Award; 2004 Mortar Board’s Teaching Excellence Award; 2004 FMA
Top Northwest Finance Faculty Award; 2003 International Teaching Excellence
Award (Region 5 of the ACBSP Accreditation body); and 2001 Outstanding
Teacher of the Year Award for the Booth College of Business.
Distinguished Paper and Best in Track Awards
The Academy of Finance is making seven awards for papers this year. We are
continuing the Distinguished Paper Award as in years past, and we have added new Best
in Track Awards for several different topical tracks. These are truly some fine papers and
we encourage you to seek them out on the Academy Program this year:
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Distinguished Paper Award: Jeffrey Heisler (Gottex Fund Management),
Christopher R. Knittel (University of California-Davis), John J. Newmann (St.
John’s University) and Scott D. Stewart (Boston University), for “Analysis of the
Wealth Impact of Re-Allocation Decisions by Institutional Plan Sponsors.”
Best in Track winners:
Corporate Finance: Ted Day (University of Texas at Dallas; email@example.com),
George Z. Li (New Jersey University; firstname.lastname@example.org) and Yexiao Xu (University
of Texas at Dallas; email@example.com), for "Unrealized Capital Gains,
Dividends, and Closed-End Fund Discounts."
Investments: Jayaram Muthuswamy (Griffith University, Queensland, Australia;
firstname.lastname@example.org), for "Non-Synchronicity in Asset Prices and Income
Rejections of Market Efficiency."
Global: David Basterfield (Hillsdale College; David.Basterfield@Hillsdale.edu)
and Thomas Bundt (Hillsdale College; Tbundt@Hillsdale.edu), for "Risk
Management and the Asian Currency Currency Crisis: Backtesting Stable
Institutions: Jie Dai (Saint Mary's University (Halifax, Nova Scotia, Canada;
email@example.com), for "Do Banks Always Make Informed Loans: A Theory and
Financial Education: Benjamin Dow (Southeast Missouri State University;
firstname.lastname@example.org) and Paul Newsom (Valparaiso University;
email@example.com), for "Valuing a Small Business: The Case of an
Independent Retail Pharmacy."
Real Estate: Olgun Faut Sahin (Minnesota State University at Moorhead;
firstname.lastname@example.org), and Pattarake Sarajoti (Sasin GIBA of Chulalongkorn
Univeristy (Bangkok, Thailand), email@example.com), for "Liquidity and
Adverse Selection: Evidence From the Five-or-Fewer Rule Change."
All of these winners should be congratulated on their fine work as there was tough
competition in each category (some categories had as many as 10 entries).
Each author will receive a plaque recognizing their accomplishment. We will present the
plaques at the Second Annual Luncheon on Thursday at 12:15 p.m. in the Crystal Room
(it has been moved from what was printed in the program).
One final note, this is the first year we have offered these awards. There may be a
discussion at the Annual Business Meeting about whether to continue them. If you have
an opinion on the subject, please come to the Business Meeting in LaSalle 1, at 10:45
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a.m. on Thursday (this is immediately prior to the Luncheon).
Again, thanks to all of you who submitted your work.
Don T. Johnson
President, Academy of Finance
Advancement and Award Announcements
Susan Crain and Kent Ragan, current treasurer of the Academy, both earned
tenure and were promoted to the rank of associate professor effective this fall at Missouri
Susan earned her Ph.D. from the University of Oklahoma in 1997. She is
responsible for the derivatives course at MSU, is an active sponsor of Missouri State
University’s Relay for Life campaign, and chairs the FGB Department’s Assessment
Committee. She was a 2005 recipient of a College of Business Administration teaching
Kent earned his Ph.D. from the University of Missouri-Columbia in 2000, the
same year he was awarded the chartered financial analyst credential by the CFA Institute.
His primary teaching responsibilities are in corporate finance at the undergraduate and
MBA levels. He has served on MSU’s Academic Integrity Council and various other
committees, and was pleased to serve on the vestry of St. James’ Episcopal Church for
the past three years, serving as senior warden for 2004-2005. Kent was a recipient of a
2005 College of Business Administration service award.
Jerry Oxenford, Professor of Finance, announced his retirement as of May 22,
2005. Jerry is now spending his time at his home in Reynold’s Plantation, GA.
Raj Kohli, Indiana University South Bend, was promoted to full professor
effective July 1, 2005.
Donald W. Swanton has been made chairman of the department of Finance and
Real Estate at Roosevelt University in Chicago.
Muhammad R.K. Chishty has been appointed Chair of the Finance and
Accounting Program at Graham School of Management, Saint Xavier University.
Don Johnson received a University Research Award at Western Illinois
University for his work during the 2004-2005 academic year.
Fred Ebeid has been serving as Interim Dean of the College of Business and
Technology at Western Illinois University. In the Fall, Fred will be taking the Dean’s
position at University of Wisconsin – Parkside.
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Ernest Biktimirov has three papers forthcoming to be published in the Journal of
Teaching in International Business and the Journal of Financial Education. In September
2005, he was awarded two “Best Paper” Awards for “Teaching Finance with a Learning
Object: A First Test of Effectiveness” and for “Different Locks Must Be Opened with
Different Keys: Using Chinese Proverbs for Teaching Finance” at the International
College Teaching Methods and Styles Conference. Additionally, Ernest received two
teaching awards: Brock University Award for Distinguished Teaching, September 2005
and Brock Chancellor’s Chair for Teaching Excellence, June 2005.
Walt Nelson and Kent Ragan Participate in China Program
Missouri State University, home institution for several academy members, offers a
unique bachelor’s degree program in general business through Liaoning Normal
University (LNU) in Dalian, China. Students take their first two years of course work
with faculty on the LNU campus, with every class being taught in English. The upper-
division courses are then taught in Dalian by MSU faculty from Springfield, who visit the
campus for two weeks just prior to the start of the semester. They teach intensively for
those two weeks, with some faculty choosing to provide a broad overview for the
semester, and others choosing to cover approximately one-third of the course material
during that time. The balance of the professor’s lectures are then delivered via CD-Rom
under the supervision of a trained facilitator over the course of a five-week block during
the semester. Weekly ITV sessions keep the student-professor relationship alive, and the
facilitators administer exams and quizzes. That makes the courses much more than a
“distance learning” experience for the students.
Academy members Walt Nelson and Kent Ragan have taught in the program. Walt
traveled to Dalian in January, 2005, and Kent went to Dalian in May, 2005. Walt taught
banking while Kent taught corporate finance. Both reported marvelous experiences in the
classroom, and enjoyed visiting Beijing and the Great Wall of China.
Dalian is a major port city (metropolitan population approx. 6 million) located in
northeastern China near Korea on the Yellow Sea. It is only 100 years old, and is
extremely modern, with spectacular architecture. It has a thriving high-tech sector. The
latitude is similar to Chicago, but the sea moderates the climate.
[Contributed by Kent Ragan]
A Visit to the Federal Reserve Board of Governors
During my recent sabbatical from Western Illinois University, my wife and I flew to
Washington D.C. to allow me the once in a lifetime opportunity to spend two weeks at
the Board of Governors. How was I fortunate enough to get this opportunity? A friend
of mine, Susan S. Bies, was appointed about two years ago by President Bush to serve as
one of the seven Governors on the Federal Reserve Board. Governor Bies was gracious
enough to allow me to come and spend time with her and the Board staff to learn more of
what takes place at the Fed on a day-to-day basis. To say that I was treated well while I
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was there would be a vast understatement. I was given a huge office on the same floor as
During my time at the Fed, Governor Bies allowed me to sit in on several meetings in
which she participated. However, it should be noted, there were many others sessions
that I could not attend due to the policy issues that were discussed. I attended a
Consumer Advisory Council session where issues such as fair credit reporting, financial
privacy, predatory lending, and the issuance of debit/credit cards were discussed. I also
met with Governor Bies and Fed staff on discussions involving fair value accounting and
internal/external audit issues. In addition, Governor Bies invited me to have breakfast on
one occasion and lunch on another where I got to ask her more about her day-to-day
responsibilities. These meetings were extremely insightful and gave me a better
understanding of the scope of her job.
Since many of Governor Bies meetings were confidential, I spent much of my time
involved in other activities. These activities were coordinated by the Fed’s Chief of
Staff, Steve Malphrus. Steve definitely went beyond the call of duty in making sure my
visit was a great learning experience. He worked with me to set up briefing sessions with
members of the Fed’s staff and provided me with a vast amount of reading material.
These briefing sessions covered topics such as money laundering, new capital
requirements for large banking organizations (Basel II), and financial literacy. In
addition, Steve spent a great deal of his own time enlightening me on a variety of issues
such as security at the Fed, check processing, personnel management issues, and in
general the organizational structure of the Fed. He and I stayed at work past 7:00 pm on
several days discussing both economic and academic matters. I certainly learned a great
deal from his insight.
Carolyn got to visit me for lunch one day while I was there. Steve allowed us to take
some photos in my office and also in the Fed’s boardroom. The boardroom is the
location for the Federal Open Market Committee’s (FOMC) meetings where the Board of
Governors and the Federal Reserve Bank Presidents meet to discuss interest rate changes.
I got to sit in Chairman Greenspan’s chair for a couple of the photos! Another very
special invitation we had was to view the Washington D.C. Fourth of July fireworks
display from the Terrace of the Fed’s Martin building. This was an ideal location to view
the fireworks over the Washington Monument.
I owe a deep debt of gratitude to Governor Bies and to Steve Malphrus for such a
tremendous learning opportunity. My time at the Central Bank was truly a wonderful
experience and a great start to my sabbatical. Now when I talk about monetary policy
and the role of the Fed in my banking classes, I can give some additional personal insight
to my students.
[Contributed by Jim Tripp]
Kumoli Ramakrishnan’s Sabbatical
Ram is taking his first (and according to him likely last) sabbatical in a teaching career in
the United States spanning over two decades. Ram spent two months in India traveling
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through several cities in the south and focused mainly on conducting field research on
“Outsourcing from the Receiving Country Perspective.” During this time Ram had
extensive interviews with academics, managers, and owners of firms of various sizes and
in different industries (information technology, medical outsourcing, diamonds, ship
breaking, auto ancillary, lingerie, mobile phones, petrochemicals, banking).
After a few weeks back in the US, Ram decided to spend a month at the Sivananda
Ashram Yoga Ranch in Woodbourne, NY to attend their Teachers Training Certificate
program (http://www.sivananda.org/ranch/ttc/index.html). Ram indicates that it was
spartan, disciplined and wonderful providing him the opportunity to lose 15 pounds,
reflect on his choices in life, and meet participants from all over the world.
After those travels, Ram was at Kellogg, Northwestern University, working on research
for a book on India, outsourcing and implications of Asian growth on US businesses.
The dean at Kellogg, Dipak Jain, is Ram’s coauthor on this project. Ram left Kellogg for
Thailand and returned to South Dakota around mid January with hopes of completing his
sabbatical project in the form of a memorable book.
[Contributed by Kumoli Ramakrishnan]
2005 Academy of Finance Outstanding Paper Presentation
(Original Source Unknown)
In troubled economic times, companies falter and businesses combine. Some of the
interesting combinations might be:
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Polygram Records, Warner Brothers and Keebler Crackers combine to become Polly-
3M and Goodyear combine to become MMMGood.
John Deere and Abitibi-Price combine to become Deere Abi.
Zippo Manufacturing, Audi Motors, Dofasco, and Dakota Mining combine to become
Zip Audi Do Da.
Honeywell, Imasco, and Home Oil merge to become Honey I’m Home.
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