Finance
popularity drives new majors, faculty research

Only a few years ago, the subject of finance was taught as part of the accounting area of the school, and before that it was just part of an undifferentiated "general business" area, as it was at many other business schools. But finance has emerged today as the most popular major in the college, both among undergraduates and among fulltime MBA students.

Some of the interest in the finance major is due to the career potential offered in the financial services and corporate finance industries. But long before graduation, students recognize the potential of the Finance program through two hands-on learning tools: managing a $2.5 million real money portfolio and using the powerful on-line research resources in the Financial Analysis Lab.

International research reputation

The faculty publish in the top research journals in the fields of business finance, financial institutions, financial markets and investment management. In fact, in the 2005 Journal of Finance Literature, a review of the top seven finance journals over the last 50 years placed Jun-Koo Kang, MSU Federal Credit Union Endowed Chair in Financial Institutions and Investments, at 135 among 17,573 authors, based on how prolific his research has been. In the same article, titled "Prolific Authors in the Finance Literature: A Half Century of Contributions," G. Geoffrey Booth, Finance department chair and Frederick S. Addy Distinguished Chair in Finance, was ranked at 32 when the top 72 finance journals were considered.

During 2005, Naveen Khanna, A.J. Pasant Endowed Chair in Finance, published in the Journal of Financial Economics on the role of debt and operating efficiency in firms' critical strategy decisions, and in the Journal of Financial Markets on the feedback effect of stock prices on firm value. Mark Schroder, Philip J. May Endowed Professor of Finance, publishes frequently on asset pricing and optimal portfolio consumption problems, most recently in the Journal of Finance and in Stochastic Processes and Their Applications. The department also includes business law faculty, whose expertise includes legal issues surrounding business practices, such as sexual harassment and environmental law.

Teaching Recognition

Richard Simonds, professor of Finance, was selected by the Broad School college advisory council to receive the 2004 John D. and Dortha J. Withrow Teacher-Scholar Award. The award is given annually to a faculty member in the Broad School who has rendered distinguished service through excellence in institutional and scholarly activities. Past winners include Paulette Stenzel, professor in the business law area, and Charles Hadlock, Kirt Butler and Mike Mazzeo, all associate professors of Finance.

• Charles J. Hadlock