Todd T Milbourn

Professor of Finance

Finance Area Coordinator

 

 

CV:  Todd Milbourn’s CV
E-Mail: milbourn@wustl.edu
Phone: 314-935-6392

Fax:  314-935-6359

Ph.D. December 1995, Indiana University at Bloomington, School of Business

B.A. 1991, Augustana College, Rock Island, Illinois

Academic Experience:

Professor of Finance, Washington University in St. Louis, 2007-present

Associate Professor of Finance (with tenure), Washington University in St. Louis, 2003-present

Visiting Associate Professor of Finance, University of Chicago, Spring Quarter 2005

Assistant Professor of Finance, Washington University in St. Louis, 2000-2003

Visiting Assistant Professor of Finance, University of Chicago, 1999-2000

Assistant Professor of Finance, London Business School, 1996-1999

Administrative Experience:

Finance Area Coordinator, Washington University in St. Louis, 2005-present

Academic Director, MS in Finance Program, Washington University in St. Louis, 2005-2008

·         Responsible for the design, development, and implementation of this new one-year, full-time MS in Finance Program.

Research and Honorary Appointments:

Member, Standard & Poor’s Academic Council, 2004-present

Fellow, Center for Financial Research, FDIC, 2004-2005

Marcile and James Reid Chair, Washington University in St. Louis, 2002-2003

Research interests:

Corporate finance, executive compensation, credit ratings, and the impact of managerial career concerns on their decisions

Working Papers and Work in Progress:     

Ø       “How Well Do Investors Process (More Subtle) Information? The Case of Employee Stock Options”, (joint with Jian Cai and Gerald Garvey), working paper, April 23, 2007.

 

Ø       “Strategic Flexibility and the Optimality of Pay for Luck”, (joint with Radhakrishnan Gopalan and Fenghua Song), working paper, April 23, 2008.

 

Ø       “Reputation and Competition:  Evidence from the Credit Rating Industry”, (joint with Bo Becker), preliminary draft – do not quote, April 30, 2008.

 

Ø       “The Role of Credit Ratings and Agencies in Coordinating Managerial Behavior: An Empirical Analysis”, (joint with Arnoud Boot and Anjolein Schmeits), in progress, March 15, 2007.

 

Ø       “The Optimal and Actual Use of Economic Value Added in Incentive Compensation”, (joint with Gerald Garvey), 2005.

 

Ø       “Presidential Compensation Practices at American Universities”, (joint with Bart Hamilton), proposal, 2007

 

Publications:

  1. “Asymmetric Benchmarking in Compensation: Executives are Rewarded for Good Luck But Not Penalized for Bad”, (joint with Gerald Garvey), Journal of Financial Economics 82-1, October 2006, 197-226.

 

  1. “Credit Ratings as Coordination Mechanisms”, (joint with Arnoud Boot and Anjolein Schmeits), Review of Financial Studies 19-1, 81-118, Spring 2006.

 

  1. "Sunflower Management and Capital Budgeting", (joint with Arnoud Boot and Anjan Thakor) Journal of Business 78-2, 501-527, (March) 2005.

 

  1. “Incentive Compensation When Executives Can Hedge the Market:  Evidence of Relative Performance Evaluation in the Cross-Section”, (joint with Gerald Garvey), Journal of Finance 58-4, 1557-1582, August 2003.

 

  1. "CEO Reputation and Stock-Based Compensation", Journal of Financial Economics 68-2, 233-262, 2003.

 

  1. "Managerial Career Concerns and Investments in Information", (joint with Richard Shockley and Anjan Thakor), Rand Journal of Economics 32-2, 334-351, 2001.

 

  1. “EVA versus Earnings:  Does it Matter Which is More Highly Correlated with Stock Returns”, (joint with Gerald Garvey), Journal of Accounting Research 38, 209-245, 2000.

 

  1.  “Regulation and the Evolution of the Financial Services Industry”, (joint with Arnoud Boot and Silva Dezelan), in Topics in Corporate Finance:  Perspectives on the Regulation of the Financial Services Industry, ed. by Arnoud Boot and Jeroen Ligterink, Amsterdam Center for Corporate Finance Number 2, 25-41, 2000.

 

  1. “The Theory of Security Design”, (joint with Arnoud W.A. Boot and Anjan V. Thakor), in The Handbook of Equity Derivatives, Second Edition, ed. by Jack Francis, William Toy and J. Gregg Whittaker, Irwin Professional Publishers, 2000, 665-687 (appeared in First Edition as well).

 

  1. “Megamergers and Expanded Scope:  Theories of Bank Size and Activity Diversity”, (joint with Arnoud Boot and Anjan Thakor), Journal of Banking and Finance 23 (lead article), 195-214, 1999.

 

  1. “Regulatory Distortions in a Competitive Financial Services Industry”, (joint with Arnoud Boot and Silva Dezelan), Journal of Financial Services Research 16-2/3, 249-259, 1999.

 

  1. “The Search for the Best Financial Performance Measure:  Yes, Basics are Better – If You Understand Them”, (joint with Jeff Bacidore, John Boquist, and Anjan V. Thakor), Financial Analysts Journal, 1999.

 

  1. “The Winner-Takes-All:  An Alternative View of CEO Incentives” (comment on three papers), in Executive Compensation and Shareholder Value:  Theory and Evidence, ed. by Jennifer Carpenter and David Yermack, Kluwer Academic Publishers, 47-52, 1999.

 

  1. “How Do You Win the Capital Allocation Game?”, (joint with John Boquist and Anjan Thakor), Sloan Management Review 39-2, 1998, 59-71.

 

  1. “Comment on Colin Mayer’s ‘Financial Systems and Corporate Governance’ ”, Journal of Institutional and Theoretical Economics 154-1, pp. 170-176, 1998.

 

  1. “EVA’s Charm as a Performance Measure”, in Mastering Finance, ed. by George Bickerstaffe, FT Pitman Publishing, 133-138, 1998.

 

  1.  “The Search for the Best Financial Performance Measure”, (joint with Jeff Bacidore, John Boquist, and Anjan V. Thakor), Financial Analysts Journal (lead article), May-June 1997, 11-20.

 

  1. “EVA and Total Quality Management”, (joint with Jeff Bacidore, John Boquist, and Anjan Thakor), Journal of Applied Corporate Finance, Summer 1997, 81-89.

 

Books:

·         The Value Sphere:  Secrets of Creating & Retaining Shareholder Wealth, 3rd edition, (written jointly with John A. Boquist and Anjan V. Thakor), Value Integration Associates, 2006

 

Press Items

October 1, 2006:  My interview with Bob Brinker on his show, Money Talk, discussing the backdating of employee stock options:  click here