Finance Department

The Market’s Reaction to Unexpected, Catastrophic Events: The Case of Airline Stock Returns and the September 11th Attacks

Using the multivariate regression model methodology, we investigate the reaction of airline stock prices to the attack . We test whether the market reaction on September 17th, the first trading day after the attack, was the same for each airline or whether the market distinguished among airlines based on firm characteristics (i.e., rational pricing).

Sponsor: OSU

PIs: Betty Simkins, Dave Carter

Does Fuel Hedging Make Economic Sense? The Case of the US Airline Industry

We investigate jet fuel hedging behavior of firms in the US airline industry during 1994-2000 to examine whether such hedging is a source of value for these companies . The results show that jet fuel hedging is positively related to airline firm value.

Sponsor: OSU

PIs: Betty Simkins, David Carter

Portland State University Dan Rogers

Asymmetric Exposure to Foreign-Exchange Risk: Financial and Real Option Hedges Implemented by U.S. Multinational Corporations

This study investigates the influence of both financial and operational hedges on the foreign-exchange exposure of U.S. multinational corporations.

Sponsor: OSU

PIs: Betty Simkins, David Carter

University of South Florida: Christos Pantzalis

Natural Gas Storage Forecasts and Natural Gas Prices

This research project involves studying the weekly natural gas storage forecasts provided by energy companies, financial institutions, and consultants . We investigate how natural gas prices react to storage forecasts and analyze market forces in the natural gas industry.

Sponsor: OSU

PIs: Betty Simkins, Marian Turac

Georgia State University: Gerry Gay

The Retrospective Life Insurance Method: A Pedagogic Spreadsheet Application

This research project involves creating an innovative Excel spreadsheet model, referred to as the Retrospective Method Spreadsheet, that has been successfully used in risk management and insurance, and personal finance courses to demonstrate the retrospective life insurance method.

Sponsor: OSU

PIs: Betty J. Simkins

Auburn University Montgomery: David Lange

Deregulation in the Power Industry: Valuation and Risk Analysis of Energy Tolling Arrangements

Examines energy tolling arrangements. One counterparty provides natural gas to run the electricity generation power plant and sells or trades on the open market the electricity that it produces. The other counterparty owns and operates the power plant. This research project involves valuation and risk analysis of these arrangements.

Sponsor: OSU

PIs: Betty J. Simkins

An Innovative Approach to Teaching Finance: Using Live Cases in the Case Course

This project describes an innovative way to use “live cases” in the case course, in order to bridge the theory/practice gap and expose students to real issues an area company is currently investigating.

Sponsor: OSU

PIs: Betty J. Simkins

Does Board Diversity Matter in Corporate Governance?

Examines relationship between board diversity and firm value for corporations for the 1990s. Board diversity is defined as the percentage of women, African-Americans, Asians, and Hispanics on the board of directors. This is important because it presents the first empirical evidence examining whether board diversity is associated with improved financial value.

Sponsor: OSU

PIs: Betty J. Simkins, David Carter, William Simpson