Finance Excellence
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MESSAGE FROM THE DEAN The global economic crisis illustrates the importance of strong financial skills, global awareness, and high ethical standards. At the Jones Graduate School of Business we excel at developing principled, innovative thought leaders in global communities. We are dedicated to scholarship and teaching at the highest levels. Finance is one of the key faculty research and teaching areas within the Jones School, with Financial Times continuing to rank our program among the very best in the world for finance—7th in the most recent review. The Jones School finance faculty have contributed greatly to the increase in the school’s research productivity of 67 percent in the top 40 academic and practitioner journals tracked by the Financial Times. Within three years, Jones School faculty research rankings have climbed from 52nd to 20th internationally based on per capita productivity. This increase can be attributed to both internal development and successful recruiting of exceptional junior and senior faculty. With the launch of new programs, we have increased the faculty by more than 20 percent. The Jones Graduate School of Business is rapidly becoming one of the world’s premier research business schools. Our reputation for excellence is based on support for our current faculty and recruiting of great faculty. Along with important faculty hires in other areas, we continue to grow our strength in finance with the recent additions of Kerry Back as the J. Howard Creekmore Professor of Finance, Jefferson Duarte as the Gerald D. Hines Associate Professor of Real Estate Finance, and Associate Professor Alex Butler. With the arrival of these highly regarded scholars and inspirational teachers, the finance faculty group is in an exceptionally strong position to participate in the Jones School’s recently initiated PhD in Business program, with applications being accepted in finance for fall 2010. We are also proud to feature the El Paso Corporation Finance Center, a state-of-the-art facility that supports training in the data and analytical tools used by practitioners as well as direct involvement in equity portfolio management and simulation courses in commodities and fixed income management. Rice MBA students have won several awards for their investment analyses and portfolio management with the student managed fund, the M.A. Wright Fund. At Rice University we are committed to cultivating an environment that encourages intellectual growth, inspires curiosity and the desire to learn, and that drives research. I encourage you to read this brochure, which highlights our internationally recognized finance faculty and provides a few examples of our MBA alumni whose educational experiences at Rice were second to none. The Jones Graduate School has a truly award-winning finance faculty—recognized by their students for excellence in the classroom and by their peers for outstanding contributions to finance research. Warm regards,
Bill Glick
Dean H. Joe Nelson III Professor of Management
Jesse H. Jones Graduate School of Business Rice University (713) 348-5928 bill.glick@rice.edu
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Image courtesy of www.VisitHoustonTexas.com
T
he finance area and its curriculum at the Jones Graduate School of Business reflects the broad interests, experience and expertise of our faculty, ranging from basic financial management to more technical subjects such as options and other derivatives, and financial modeling. The exceptional accessibility of the finance faculty is also the hallmark of our new doctoral program in finance, debuting in the fall of 2010, which aims to provide students with the knowledge and skills necessary to become first rate scholars in financial economics. The essence of the finance doctoral program is the opportunity to learn from and work with a top quality faculty on a broad range of topics in modern finance. Our faculty’s research specialties include all major areas, from corporate financial policies to issues in investments and mathematical finance, with their papers consistently published in the top academic journals of the finance profession. There’s never been a better time to connect with the finance program at Rice.
THE HOUSTON CONNECTION nn Fourth-largest city in the United States. nn 2008 No. 1 Best City to Live, Work and Play according to Kiplinger’s Personal Finance. nn Houston boasts more Fortune 500 headquarters than any other U.S. city except New York. nn Of the world’s 100 largest non-U.S.-based corporations, more than half have operations in Houston. nn Foreign governments have established 90 consular offices in metropolitan Houston, ranking third behind New York and Los Angeles.
H O U S T O N
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Finance 2
Jones Graduate School of BUSINESS
Rice Advantage: FUTURE BUSINESS LEADERS
Strong, principled leadership is critical to any successful entity. We believe in fostering skills and values that enable our students to become tomorrow’s business leaders.
GEORGE KANATAS
Jesse H. Jones Professor of Finance Finance Area Coordinator kanatas@rice.edu
Education: B.S., The City College of New York; Ph.D., Johns Hopkins University Joined Rice: 1994 Prior Faculty Appointments: Northwestern University, University of Illinois-Chicago, Indiana University, University
of South Florida
Research Interests: Financial intermediation, corporate finance Dr. Kanatas’ research has dealt with bank capital regulation, deposit insurance, loan contracting under imperfect information, the effects of product market competition on corporate financial policy, and most recently the effects of social culture on economic decisions.
Teaching Interests: Corporate finance, financial strategy, managerial economics, economics of organizations Dr. Kanatas has taught a variety of courses at the MBA, Executive MBA, and doctoral levels. He currently teaches the managerial economics course in the full-time MBA program, a course on the economics of organizations in the MBA for Professionals program and part of the core finance course in the MBA for Executives program.
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Rice Advantage: OPPORTUNITY
Rice Advantage: COLLABORATION
KERRY BACK
J. Howard Creekmore Professor of Finance kerry.e.back@rice.edu
Education: B.A. (Economics),
Western Kentucky University; Ph.D. (Economics), University of Kentucky
Joined Rice: 2009 Prior Faculty Appointments: Texas A&M, Northwestern University,
University of Pennsylvania, Indiana University, Washington University in St. Louis
Research Interests: Market microstructure, asset pricing, real
options
Dr. Back’s research focuses on investments and markets. He has studied the efficiency of different market structures and the design of auctions for new issues. He has also studied asset pricing models and the real option approach to corporate investment.
Teaching Interests: Investments, derivative securities, fixed income Dr. Back has taught a wide variety of courses at different institutions at the MBA, Executive MBA, and doctoral levels. He is the author of two textbooks: A Course in Derivative Securities, and Asset Pricing and Portfolio Choice Theory. He teaches Investments to MBA and MBA for Executives students at Rice.
The Jones School provides excellent opportunities for collaboration with students, other faculty members, the business community here in Houston and colleagues around the world.
ALEXANDER W. BUTLER
Associate Professor of Finance alex.butler@rice.edu
Education: B.A. (Mathematical Economic Analysis), Rice University; M.B. (Finance), Indiana University; Ph.D. (Finance), Indiana University Joined Rice: 2009 Prior Faculty Appointments: University of Texas at Dallas,
University of South Florida, Rice University, Louisiana State University, Indiana University
Research Interests: Financial intermediation, institutions,
corporate finance
Dr. Butler’s work integrates research in corporate finance and financial institutions, covering the external financing decisions of firms and governments. He studies how corruption, political and social connections, and institutions affect financial and economic decisions and outcomes.
Teaching Interests: Financial markets, financial institutions, corporate finance, empirical methods in finance The Jones School provides a wealth of opportunity to professors as well as students. I am honored to be a part of an institution renowned for its high-quality faculty, students and research.
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Dr. Butler teaches the core finance courses in the undergraduate and MBA for Executives programs. He previously has taught financial markets and institutions courses at undergraduate, masters and doctoral levels. His approach to teaching involves hands-on learning and incorporates cutting-edge knowledge and research into the curriculum.
F A C U L T Y
Rice Advantage: RESEARCH
Rice Advantage: RESOURCES
JEFF FLEMING Research is the noblest activity performed by an educator. A successful researcher teaches us about new ideas and previously unknown facts.
Associate Dean of Academic Affairs Houston Endowment Professor of Finance jfleming@rice.edu
Education: B.A. (Economics and Business), Cornell College; M.B.A. and Ph.D. (Business Administration), Fuqua School of Business, Duke University
JEFFERSON DUARTE
Joined Rice: 1993
Gerald D. Hines Associate Professor of Real Estate Finance jefferson.duarte@rice.edu
Research Interests: Derivative securities, role of information in financial markets, financial econometrics, volatility modeling
Education: B.Sc. (Civil Engineering), Instituto Tecnologico de Aeronautica (ITA), Brazil; M.B.A. and Ph.D. (Finance), University of Chicago
Dr. Fleming’s research contributions are in evaluating the performance of option pricing models, the role of information and trading activity on the movement of financial asset prices, and the economic importance of volatility modeling on the performance of investment decisions.
Teaching Interests: Futures and Options I
Joined Rice: 2008 Prior Faculty Appointments: University of Washington Research Interests: Empirical finance Dr. Duarte’s current research projects include the effect of trust and regulation in financial markets, residential mortgage credit derivatives, and empirical option pricing. He also has published papers on the term structure of interest rates, the effect of mortgage refinancing on interest-rate volatility, and the relationship between private information and firms’ cost of capital.
Dr. Fleming teaches an introductory elective on derivative securities to second-year students in the full-time MBA and MBA for Professionals programs. The course emphasizes both theory and applications and relies on basic finance principles to demonstrate the key ideas.
Teaching Interests: Real estate finance, empirical and theoretical
option pricing, risk management
Dr. Duarte teaches real estate finance at the Jones School. He has also taught PhD and MBA level courses on option pricing models, term structure models, empirical asset pricing and risk management.
The Jones School provides tremendous support for faculty research. The culture enables you to leverage faculty expertise with the resources that are necessary to conduct top quality research.
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Rice Advantage: THOUGHT LEADERSHIP
Rice Advantage: Innovation
GUSTAVO GRULLON
Associate Professor of Finance grullon@rice.edu
Education: B.B.A. (Finance
and Economics), University of Puerto Rico, Rio Piedras Campus; Ph.D., Cornell University
Innovation is the cornerstone of all growth: economic, cultural, and personal. The Jones School fosters a creative environment where great leaps of thought can lead to such growth.
Joined Rice: 1998 Research Interests: Empirical corporate finance, empirical asset
John Hund
Visiting Assistant Professor of Finance jhund@rice.edu
pricing
Dr. Grullon has done extensive research on corporate payout policy, capital structure and the interaction between product market competition and managerial decisions. His work has provided rational explanations to interesting anomalies documented in the asset pricing literature, such as the closedend fund discount, the tendency of investors to buy familiar stocks and the apparent ability of managers to forecast future stock returns and interest rates. His current research focuses on how real options affect stock returns, and how cultural factors affect the behavior of firms and investors.
Teaching Interests: Corporate investment policy, corporate
financial policy, mergers and acquisitions
Dr. Grullon teaches several courses in corporate finance to second-year MBA students. His goal is to provide students with the financial and economic tools that are essential for making sound investments and financial decisions. His courses combine theory, empirical evidence and practical application.
We are deeply committed to educating and inspiring our students to become thought leaders who are ethical, creative and knowledgeable in all areas of business.
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Education: (Political Economy), Williams College; Ph.D., University of Texas at Austin
Joined Rice: 2006 Prior Faculty Appointments: Tulane University, University of Texas Research Interests: Credit risk in corporate finance, emerging
markets, risk management methodology, probability of default and corporate governance Dr. Hund’s research focuses on the estimation of default risk, primarily in emerging markets, as well as the influence of default on corporate decision making.
Teaching Interests: Corporate finance, risk management, international finance, fixed income analytics Dr. Hund has taught Fixed Income Analytics at the MBA level, Risk Management and Financial Innovation in the undergraduate program, and lectured on asset pricing at the Ph.D. level.
F A C U L T Y
Rice Advantage: TEACHING ATMOSPHERE
Rice Advantage: INVESTMENT
SÉBASTIEN MICHENAUD Assistant Professor of Finance michenaud@rice.edu
The atmosphere in the finance group at the Jones school is exceptional – everyone is collegial, friendly and happy to help. This makes it a fantastic place to teach and do research.
Education: M.Sc. (Business), HEC Paris, Jouy-en-Josas, France; M.Sc. (Economics), Delta-EHESS, Paris, France; Ph.D. (Finance), HEC Paris Joined Rice: 2008
NISHAD KAPADIA
Assistant Professor of Finance nishadk@rice.edu
Research Interests: Corporate finance, behavioral finance Dr. Michenaud ‘s research focuses on corporate finance and behavioral finance with a special interest in the effects financial analysts may have on corporate financial decisions.
Education: B.S. (Mathematics), St Xavier’s College, Bombay University; M.B.A. (Finance), Indian Institute of Management, Bangalore; Ph.D. (Finance), University of North Carolina at Chapel Hill
Teaching Interests: Corporate finance and investments Dr. Michenaud teaches corporate finance to the MBA for Professionals, examining the many aspects of corporate investment and financing, and how financial policy impacts corporate value.
Joined Rice: 2007 Research Interests: Empirical asset pricing Dr. Kapadia’s research is focused on empirical asset pricing. He enjoys working with data to test theoretical predictions. His work includes understanding why individual stocks in the U.S. have become more volatile over time, the effect of skewness (a small probability of extremely high returns) on stock prices and the effects of financial distress.
The Jones School believes in investing in faculty as well as students through opportunities for research and collaboration with colleagues worldwide.
Teaching Interests: Investments, applied finance, risk
management
Dr. Kapadia teaches courses that apply finance theory to real-world situations. These include case studies on risk management, how and why companies manage financial risk, and applied finance, techniques in financial modeling for valuation and portfolio optimization.
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Rice Advantage: LEARNING ENVIRONMENT
Rice Advantage: COMMUNITY
BARBARA OSTDIEK
BRADLEY PAYE
Education: B.A. (International
Education: B.A. (Economics), Washington and Lee University; Ph.D. (Economics), University of California, San Diego
Associate Professor of Finance Academic Director, El Paso Corporation Finance Center ostdiek@rice.edu
Assistant Professor of Finance bpaye@rice.edu
Affairs), University of Nebraska – Lincoln; Ph.D. (Finance), Fuqua School of Business, Duke University
Joined Rice: 2004
Joined Rice: 1994
Research Interests: Asset pricing, financial econometrics, corporate finance, neurofinance
Research Interests: Volatility dynamics, information flow,
market linkages
Dr. Ostdiek’s research interests focus on modeling, measuring, and understanding financial market volatility. This central theme has led her to investigate topics such as volatility timing strategies, rational information flow across markets, and the relationship between information flow, volatility, and trading activity. Her current research focuses on parsimonious covariance estimation using high frequency data, the performance of “naive” volatility timing strategies, and volatility timing by mutual fund managers.
Teaching Interests: Economic environment of business, portfolio
management
Dr. Ostdiek teaches an economics course that provides a framework to develop a robust understanding of the major forces at work in the modern economy. She also teaches a portfolio management course that focuses on understanding asset allocation in terms of risk and return and provides students an opportunity to dissect complex “post-modern” portfolio management strategies.
The Jones School and Rice offer an excellent academic community. The Finance Group thrives on the collegial exchange of ideas and information. This atmosphere fosters excellence – both in research and in the classroom.
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Dr. Paye’s research focuses on risk and return in asset markets over the business cycle. Several of his papers examine the strength and stability of linkages between current macroeconomic conditions and future stock market returns. Ongoing research explores how humans make financial decisions using recently developed functional Magnetic Resonance Imaging (MRI) techniques.
Teaching Interests: Economics, forecasting Dr. Paye teaches the core Managerial Economics course across several Jones School programs. Through a combination of lecture and case discussion, he introduces students to key economic ideas including demand analysis, profit maximizing pricing and production decisions, and strategic analysis.
The Jones School fosters learning through hands-on projects and innovative approaches to teaching. Faculty and staff are committed to cultivating an environment that inspires students to learn.
F A C U L T Y
Rice Advantage: PRINCIPLED
Rice Advantage: EXCELLENCE
JAMES P. WESTON
Associate Professor of Finance westonj@rice.edu
Education: B.A. (Economics), Trinity College, Hartford, CT; Ph.D. (Economics), University of Virginia
Jones School faculty members strive for across-theboard excellence – in teaching, research and mentoring students to become the business leaders we need in the global marketplace.
Joined Rice: 2000 Research Interests: Corporate finance, asset pricing, financial
YUHANG XING
econometrics
Associate Professor of Finance yxing@rice.edu
Dr. Weston’s academic research covers a wide array of corporate finance issues from banking to stock market liquidity, advertising, religious behavior and risk management. Dr. Weston promotes the synergy between corporate finance and asset pricing research techniques. His recent research has uncovered important relationships between stock market returns and corporate managers’ security issuance decisions.
Education: B.A., Peking
University, Beijing, China; M.S., Northwestern University; Ph.D., Graduate School of Business, Columbia University
Teaching Interests: Corporate finance, core finance Dr. Weston’s teaching interests focus mainly on corporate finance and financial institutions. He has taught popular courses on economics and finance in all of the Jones School programs. Dr. Weston currently teaches the flagship first-year MBA core finance course for the full-time program. He seeks to highlight the relevance of course principles to current events in business and to foster a classroom atmosphere conducive to lively discussions.
Joined Rice: 2003 Research Interests: Empirical asset pricing Dr. Xing’s research area is empirical asset pricing. In particular, she has worked on topics such as higher moments and the cross-section of expected returns, rational explanations for the value premium, and return predictability across different financial markets.
Teaching Interests: Investments, fixed income management, futures and options Our current economic situation vividly illustrates the importance of principled business leaders. The Jones School cultivates an ethical approach to corporate governance.
Dr. Xing teaches the elective courses Fixed Income Management and Futures and Options in the full-time MBA program. Both courses combine lectures with hands-on learning through case studies.
F A C U L T Y
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El Paso Corporation FINANCE CENTER 10
Jones Graduate School of BUSINESS
Where Theory Meets Practice The Jones School’s El Paso Corporation Finance Center (EPFC) brings the markets to the students—and the students to the markets—through integration into the Jones Graduate School finance curriculum, ongoing resources training, and extra-curricular activities such as trading simulations. Under the guidance of director Jill Foote, CFA, PhD, the EPFC is also home to the M.A. Wright Fund, the Jones School’s studentmanaged investment fund.
The Wright Fund curriculum is designed for students who hope to pursue a career in securities research or investment management. Foote has noticed a significant improvement in the quality of employment opportunities for Wright Fund participants. “We are placing virtually all of our students in both large and small investment management firms, highprofile investment banks, as well as investment analysis/ research and corporate finance positions.”
“Business school students are here for two years,” comments Foote, who spent 13 years with Goldman Sachs in New York before joining the Rice faculty. “They’re expected to immediately transition into a higher-level job than they had before. A big challenge is to provide a pathway between classroom learning and applying theory, principles and models to live situations. Both the Finance Center and Wright Fund aim to bridge that gap and in the process make the students more knowledgeable and more marketable.”
The Fund runs a diversified balanced portfolio with 30 to 50 stocks and a few fixed income assets. Winner of numerous awards, the Wright Fund hosted the 2009 Texas Investment Portfolio Symposium where a team of Wright Fund students won the Portfolio Manager’s Competition. The M. A. Wright Fund was established in 1995 with a generous gift from the family of Myron “Mike” A. Wright, the former Chairman of then Humble Oil, now ExxonMobil.
The EPFC boasts state-of-the-art HP ProLiant Blade Workstations offering industry standard software across financial markets (currency, commodities, energy, equities, fixed income, foreign exchange and real estate). Resources such as Bloomberg, Capital IQ, Factset, and Reuters provide students with access to a wealth of financial data and analytical tools. In 2009, the EPFC launched a new certificate program in which students undertake an intensive training curriculum to three levels of certification—EPFC Associate, Scholar and Expert. “We’re trying to cover all aspects of the investment world—stocks, bonds, futures, options and swaps, oil markets, commodities markets, foreign exchange and real estate,” says Foote. She and the EFPC staff are also bringing in corporate partners to help develop and deliver training. “We continue to develop partnerships with investment banks and asset management firms to help us stay on the cutting edge of new tools and techniques. In exchange, these firms gain access to our best and brightest students.” M.A. Wright Fund Despite a volatile and challenging stock market, the Jones School’s student-run M.A. Wright Fund continues to generate impressive returns. Comprised of students selected through a rigorous application and interview process, the Fund provides Rice MBA students with a hands-on opportunity to learn, develop, and apply effective stock analysis and portfolio management risk and return techniques. The Fund has outperformed its benchmark over the past five years and has supported $10,000 annually in scholarship funds. The program requires a two-semester commitment, with half of the students rolling off each semester to provide continuity of fund management.
F i nanc e
JILL FOOTE
Senior Lecturer in Finance Director, El Paso Corporation Finance Center jfoote@rice.edu
Education: B.A. (Economics and Managerial Studies), Rice University (Magna Cum Laude and Phi Beta Kappa); M.A. (Economics), New York University; Ph.D. (Economics), Fordham University Joined Rice: 2002 Research Interests: As director of the El Paso Corporation Finance Center, Foote also directs the M.A. Wright Fund, the student-managed investment portfolio, and is faculty advisor to the Rice Finance Club. She has 13 years of experience from Goldman Sachs in New York, where, among other positions, she was vice president, managing a large group involved in strategic initiatives, new business ventures, risk management, and operational, regulatory, and financial audits and risk reviews. She is a Chartered Financial Analyst.
C e nt e r
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As head of MBA recruiting for Citigroup’s Global Commodity business, I am actively involved with hiring students annually from the Jones School. I have found that the skill sets of Jones students are equal to (and usually greater than) than competitor schools. Typically the differentiating factor is that Jones students seem to be much less individualistic which is good when I am seeking team players.
Gregory J Broussard Rice MBA ‘01 Director, Global Commodities Citigroup
The Jones School distinguishes itself by its culture of integrity, excellence and camaraderie. My experience there was amazing—the school, its students and faculty, inspire the pursuit of excellence. I found knowledge, mentors and friends among the finance faculty. Professor Jeff Fleming’s class provided a thorough understanding of options and derivatives, and Professor George Kanatas provided a true philosophical and economic approach to understanding intrinsic value. Professors Gustavo Grullon and James Weston were always available and willing to engage in thoughtful discussions and enabled me to work with them on enriching research projects; I continually received their mentorship as they encouraged my interest in and passion for finance which ultimately led me to further my studies, continuing on to a PhD in Finance.
Jorge A. Murillo Rice MBA ‘04 PhD (Finance and Economics), Columbia University Associate Goldman Sachs
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A lu m n i
There’s no doubt my courses at the Jones School provided me with a firm understanding of business and financial concepts. Group case studies and presentations especially helped enhance my communication and interpersonal skills. It’s the ability to listen, articulate problems, and come up with a coherent solution that clients are looking for. But you also need that solid grounding in economic theory to thoughtfully frame problems, identify causes and possible solutions, and then build a consensus to address them.
Michael Friezo Rice MBA ‘80 Managing Director, Head of Equity Capital Markets - Americas Deutsche Bank
Frances Vallejo Rice MBA ‘96 Vice President and Treasurer ConocoPhillips 2009 Female Senior Executive of the Year, Houston Hispanic Chamber of Commerce
I had not had one business-related class as an engineering undergraduate, so the finance curriculum at the Jones School provided me the means to transition my career from the technical side to the financial side.
A lu m n i
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PROGRAMS 14
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Rice MBA Full Time
The Rice MBA is earned in an intimate, focused and interactive environment that encourages both independent thinking and strong relationships. As a result, the Rice MBA program meshes with today’s business world and fosters thinking that can shape the future. Rice’s MBA program combines three essential elements: a comprehensive and challenging core curriculum provides a solid foundation of basic business disciplines; a required Action Learning Project, a summer internship, and numerous field-project-oriented electives offer ample opportunities for real-world practice; and a range of specialized electives allows further integration of knowledge and empowers achievement of career objectives. Throughout the Rice experience, students cultivate the ability to articulate problems, explore alternatives and reach solutions. Leadership communications and ethics are integrated across the curriculum with instruction in strategic communications, plus team and individual coaching in oral and written communication.
Rice MBA for Executives
Management. Each of these areas is supervised by a faculty advisor, a member of the faculty specializing in that area.
Rice Business Undergraduate Minor
The Jones School undergraduate business minor enables students to pursue any of the excellent majors on campus while enhancing their education with select business courses. The integrated curriculum emphasizes knowledge in functional business areas that support the development of core skills: communication, globalization, innovation, leadership, team work and technical business knowledge.
Rice MBA Accolades nn Entrepreneurship Recognition: The Princeton Review and Entrepreneur magazine ranked the Jones School as the No. 5 entrepreneurial graduate school in the U.S. nn Best in Texas: The 2009 Economist ranks the Jones School No. 1 in the Southwest and 22nd in the U.S.
The MBA for Executives program draws experienced managers, professionals and executives from the Houston area. Houston boasts more Fortune 500 company headquarters than any other U.S. city except New York. MBA for Executives students have the opportunity to form lasting relationships with a locallybased faculty and fellow students who are active in the Houston business community. The top-ranked Rice MBA for Executives allows experienced professionals to acquire a valuable education without career interruption and apply classroom knowledge to the workplace immediately. Our rigorous curriculum emphasizes strategic management skills as well as a solid foundation in general business knowledge. Students benefit from outstanding faculty, small classes and opportunities to interact and network with a diverse group of experienced executives. In addition, students have access to our state-of-the-art facility, including the El Paso Corporation Finance Center.
nn Top 10 in the U.S.: The Rice MBA for Executives ranked 10th in the U.S. for executive salary. Overall, the program was ranked No. 11 in the U.S., according to the Financial Times 2009 Global Executive MBA rankings.
Rice MBA for Professionals
nn Top in ROI: The Wall Street Journal 2008 Executive MBA survey placed the Rice MBA for Executives at 11th in the U.S. for Return on Investment.
The Rice MBA for Professionals offers a unique opportunity to earn a degree while continuing to work. Students who want to accelerate their careers by enrolling in the Professionals program have the same rigorous learning experience, faculty and facilities as our top-ranked MBA Full-Time and MBA for Executives programs.
Rice PhD in Business
The JGS doctoral program is intended for candidates aspiring to become faculty members at business schools in prestigious research universities. Students engage in both coursework and research as part of their doctoral training. Students close to graduation interview for faculty positions, hoping to start their careers as assistant professors at business schools around the world.
nn Top 10 in the World: The Rice MBA Full-Time program ranked 7th worldwide for “Best in Finance.” Overall the program was ranked 25th in the U.S., according to the Financial Times 2009 full-time Global MBA rankings. nn Top in Research (Intellectual Capital): The Financial Times 2009 full-time Global MBA survey ranked the Rice MBA Full-Time program 20th worldwide in faculty research. nn Top in Jobs: Among U.S. schools, the 2008 U.S. News and World Report ranked the Rice MBA Full-Time program 20th for job placements three months after graduation.
nn Diversity Recognition: Expansión 2009 ranked the Rice MBA Full-Time program 14th in the U.S. and 26th globally. nn Rice MBA is a diversity leader across all three programs. Among US News Top 50 MBA Programs in 2009, our Class of 2011 percentage of women (34%) ranks 13th and underrepresented minorities (13%) ranks 9th. Our Class of 2011 underrepresented minority percentages are 25% in the MBA for Professionals program and 24% in the MBA for Executives program. Although peer school data is not available for these programs, Rice MBAs are exceptionally diverse.
A prospective student chooses an area of study when applying to the doctoral program, Marketing in 2009, Finance in 2010, and other anticipated areas of study include Accounting, and
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About Rice University Rice University is consistently ranked one of America’s best teaching and research universities. It is distinguished by its: nn Small size: 2,995 undergraduates and 2,013 graduate students; nn Undergraduate student-to-faculty ratio of five to one; nn Eighth-largest endowment per student among American colleges and universities; nn Residential college system which builds close-knit, diverse communities; nn Interdisciplinary, collaborative culture which integrates teaching and research and both undergraduate and graduate work.
About the Jones Graduate School of Business The Jones Graduate School of Business is one of the world’s leading business schools. One of seven academic units of Rice University, it is named in honor of the late Jesse Holman Jones, a prominent Houston business and civic leader. In 1933, Jones was appointed chairman of a government agency, the Reconstruction Finance Corporation (RFC), which invested in loans to banks and businesses, keeping those institutions afloat. By directing the RFC to purchase stock in troubled financial companies, he effectively infused capital back into the markets and brought many of the banks and businesses back to solvency. The Jones School is distinguished by its: nn Strong foundation in marketing, finance, accounting, strategy and organizational behavior with areas of excellence in energy, entrepreneurship, health care and real estate; nn Nine to one student-to-faculty ratio creates an interactive classroom experience; nn Unsurpassed teaching and path-breaking research; nn High-ranking MBA program among the world’s business schools;
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The Behavioral Lab at the Jones School provides researchers with the latest in audio/visual equipment and editing software to conduct both individual projects and focus groups. James A. Baker III Institute for Public Policy has established itself as one of the leading nonpartisan public policy think tanks in the country. Since its inception in 1993 the Baker Institute has developed a strong track record of achievement based on the work of Rice University faculty and the institute’s endowed fellows and scholars, who do important research on domestic and foreign policy issues with the goal of bridging the gap between the theory and practice of public policy. The institute also collaborates with experts from academia, government, the media, business and nongovernmental and private organizations. Results of research programs and studies with specific recommendations are then presented to those involved in the formulation and execution of public policy. The Rice Alliance supports entrepreneurs and early-stage technology ventures in Houston and throughout Texas through education, collaboration and research. Since its founding in 1999, the Rice Alliance has assisted in the launch of over 230 technology companies that have raised more than $500 million in early-stage funding. More than 750 companies have benefited from participation and/or mentoring provided though the Rice Alliance Technology Venture Forum programs. The Rice Alliance has hosted over 100 educational programs and venture forums, attended by more than 24,000 individuals. The Rice University Business Plan Competition has become one of the largest and richest intercollegiate graduate-level business plan competitions in the world. In 2009, more than $800,000 in cash and prizes were awarded.
R e sou r c e s
PUBLICATIONS: Selected research publications Alexander W. Butler and Hong Wan. 2009. “Stock Market Liquidity and the Long-Run Stock Performance of Debt Issuers.” Review of Financial Studies, forthcoming.
Geert Bekaert, Min Wei and Yuhang Xing. 2007. “Uncovered Interest Rate Parity and Term Structure.” Journal of International Money and Finance, 26-1038-1069.
Alexander W. Butler and Jess Cornaggia. 2009. “Does Access to External Finance Improve Productivity? Evidence from a Natural Experiment.” Journal of Financial Economics, forthcoming.
Gregory W. Brown and Nishad Kapadia. 2007. “Firm-specific risk and equity market development.” Journal of Financial Economics 358-388.
Alexander W. Butler, Larry Fauver and Sandra Mortal. 2009. “Corruption, Political Connections, and Municipal Finance.” Review of Financial Studies, Vol. 22, No. 7, 2673-2705.
Jefferson Duarte, Francis A. Longstaff and Fan Yu. 2007. “Risk and Return in Fixed-Income Arbitrage: Nickels in Front of a Steamroller?” Review of Financial Studies 20(3) 769-811.
Jefferson Duarte and Lance Young. 2009. “Why is PIN Priced?” Journal of Financial Economics 91 119-138.
Andrew Ang, Robert Hodrick, Yuhang Xing and Xiaoyan Zhang. 2006. “The Cross-Section of Volatility and Expected Returns.” Journal of Finance 51:1, 259-299.
Jeff Fleming and Bradley Paye. 2009. “High Frequency Returns, Jumps and the Mixture of Normals Hypothesis.” Journal of Econometrics, forthcoming.
Andrew Ang, Joe Chen and Yuhang Xing. 2006. “Downside Risk.” Review of Financial Studies, 19, 1191-1239.
Gustavo Grullon, Bradley Paye, Shane Underwood and James Weston. 2009. “Has the Propensity to Pay Out Declined?” Journal of Financial and Quantitative Analysis, forthcoming.
Alexander Butler, Gustavo Grullon and James P. Weston. 2006. “Can managers successfully time the maturity structure of their debt?” Journal of Finance 61, 1731-1758.
George Alayannis, Brian Rountree and James P. Weston. 2008. “Do Investors Value Smooth Performance?” Journal of Financial Economics 90, 237-251.
Jason Fink, Kristin Fink and James P. Weston. 2006. “Competition on the NASDAQ and the Growth of Electronic Communication Networks.” Journal of Banking and Finance 2537-2559.
Alexander W. Butler. 2008. “Distance Still Matters: Evidence from Municipal Bond Underwriting.” Review of Financial Studies, Vol. 21, No. 2 (April), 763-784. Jefferson Duarte. 2008. “The Causal Effect of Mortgage Refinancing on Interest Rate Volatility: Empirical Evidence and Theoretical Implications.” Review of Financial Studies 21 1689-1731. Jefferson Duarte, Xi Han, Jarrad Harford and Lance Young. 2008. “Information Asymmetry, Information Dissemination and the Effect of Regulation FD on the Cost of Capital.” Journal of Financial Economics 8(1) 24-44. Jeff Fleming, Chris Kirby and Barbara Ostdiek. 2008. “The Specification of GARCH Models with Exogenous Covariates.” Journal of Futures Markets 28:10, 911-934. Sébastien Michenaud and Bruno Solnik. 2008. “Applying Regret Theory to Investment Choices: Currency Hedging Decisions.” Journal of International Money and Finance 27:5, 677-694. Yuhang Xing. 2008. “Interpreting the Value Effect Through the Q-theory: An Empirical Investigation” (previously circulated under the title of “Firm Investments and Expected Equity Returns”). Review of Financial Studies 21:4, 1767-1795.
Jeff Fleming, Chris Kirby and Barbara Ostdiek. 2006. “Bootstrap tests of multiple inequality restrictions on variance ratios.” Economics Letters 91:3, 343–348. Jeff Fleming, Chris Kirby and Barbara Ostdiek. 2006 “Stochastic Volatility, Trading Volume, and the Daily Flow of Information.” Journal of Business 79:3, 1551–1590. Jeff Fleming, Chris Kirby and Barbara Ostdiek. 2006. “Information, trading and volatility: Evidence from weathersensitive markets.” Journal of Finance 61:6, 2899–2930. Jeff Fleming and Bradley S. Paye. 2006. “The impact of microstructure noise on the distributional properties of daily stock returns standardized by realized volatility.” Proceedings of the American Statistical Association, 997–1004. Gustavo Grullon, George Kanatas, and Piyush Kumar. 2006. “The Impact of Capital Structure on Advertising Competition.” Journal of Business 79, 3101-3124. Qing Li, Maria Vassalou and Yuhang Xing. 2006. “Sector Investment Growth Rates and The Cross-Section of Equity Returns.” Journal of Business, 79, 3, 1637-1665.
Kerry Back and S. Baruch, 2007. “Working Orders in Limit Order Markets and Floor Exchanges.” Journal of Finance 61, 1589-1621.
Bradley Paye and Allan Timmermann. 2006. “Instability of Return Prediction Models.” The Journal of Empirical Finance 13 (3), 274-315.
Sohnke Bartram, Greg Brown and John Hund. 2007 “Estimating Systemic Risk in the International Banking System.” Journal of Financial Economics.
Alex Butler, Gustavo Grullon and James P. Weston. 2005. “Stock Market Liquidity and the Cost of Issuing Equity.” Journal of Financial and Quantitative Analysis 40, 331-348.
P u b l i cat i ons
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Alexander Butler, Gustavo Grullon and James P. Weston. 2005. “Can Managers Forecast Aggregate Market Returns?” Journal of Finance, 963-986.
Gustavo Grullon and Roni Michaely. 2004. “The Information Content of Share Repurchase Programs.” Journal of Finance 59, 651-680.
Kerry Back and Schmuel Baruch. 2004. “Information in Securities Markets: Kyle Meets Glosten and Milgrom.” Econometrica 72, 433-465.
George Kanatas and Jianping Qi. 2004 “Dividends and Debt with Managerial Agency and Lender Holdup.” Management Science 50, 1249-1260.
Jefferson Duarte. 2004. “Evaluating an Alternative Risk Preference in Affine Term Structure Models.” Review of Financial Studies 17(2) 370-404.
Maria Vassalou and Yuhang Xing. 2004. “Default Risk and Equity Returns.” Journal of Finance LIX:2: 831-868.
Gustavo Grullon, George Kanatas and James P. Weston. 2004. “Advertising, Breadth of Ownership, and Liquidity.” Review of Financial Studies 17, 439-461.
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Jones Graduate School of BUSINESS
P U B L I C A T I O N S
Honors and Awards Kerry Back nnBatterymarch Fellow (1991-1992) nnBest Paper Award, Review of Financial Studies nnDistinguished Faculty Member, Washington University in St. Louis nnOutstanding Research Award, Mays Business Schooln Alexander Butler nnBest paper in Corporate Finance, Financial Management Association meeting (2009) nnFinalist, Brattle Prize (2006) nnNominee, Smith-Breeden Prize, Journal of Fianance (2005) nnBest paper in Corporate Finance, Western Finance Association meeting (2008) Jefferson Duarte nnBest paper, German Fianance Association Meeting (2009) nnSecond best paper, Campus for Finance Conference (2006) Jeff Fleming nnFinalist, Smith-Breeden Prize, Journal of Finance (1999, 2002) nnInquire Group Europe Prize, Barcelona Meetings (1996) nnElective Course Teaching Excellence Award, Jones Student Association (1999, 2000) nnAward for Excellence in Teaching, Jones Graduate School (2000, 2003) Gustavo Grullon nnBest paper in Corporate Finance, Financial Management Association meeting (2009) nnFinalist, Brattle Prize (2006) nnNominee, Smith-Breeden Prize, Journal of Finance (2006) nnAward for Scholarship Excellence, Jones Graduate School (2006) George Kanatas nnIndiana University School of Business Doctoral Student Association Mentorship Award Barbara Ostdiek nnFinalist, Smith-Breeden Prize, Journal of Finance (2002) nnAward for Excellence in Teaching, Jones Graduate School (2001, 2004) James Weston nnBest paper in Corporate Finance, Financial Management Association meeting (2009) nnAlumni Teaching Award, Jones Graduate School (2007) nnOutstanding Faculty Teaching Award, MBA Full-Time Program, Jones Graduate School (2006) nnOutstanding Research Award, Jones Graduate School (2006) Yuhang Xing nnLehman Brothers Fellowship for Research Excellence in Finance (2002) nnExcellence in Research Award, Jones Graduate School (2007)
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Editorial Roles Jones Graduate School Finance faculty serve on review boards for many of the best journals in the field. Journal of Financial and Quantitative Analysis Journal of Financial Intermediation Journal of Financial Research Mathematical Finance Mathematics and Financial Economics Review of Financial Studies
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Finance and Stochastics Financial Management The Financial Review Journal of Economic Dynamics and Control Journal of Economic Theory Journal of Finance
Finance Faculty (left to right) Jeff Fleming, Kerry Back, George Kanatas, Yuhang Xing, John Hund, Jill Foote, Alexander Butler, Barbara Ostdiek, Bradley Paye, SĂŠbastien Michenaud, Jefferson Duarte, Gustavo Grullon, Nishad Kapadia, James Weston.
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Jones Graduate School of BUSINESS
Ed i to r i al
Rol e s
Rice University Jones Graduate School of Business Janice & Robert McNair Hall 6100 Main Street Houston, Texas 77005
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