Professor Vefa Tarhan

Ralph Marotta Professor of Free Enterprise

 

Professor Vefa Tarhan

Ralph Marotta Professor of Free Enterprise
Loyola University Chicago
820 N. Michigan Avenue
Chicago, Illinois, 60611

Telephone: (312) 915-7073 (Office)
(847) 251-1574 (Home)
Fax: (847) 251-1625 (Home)
E-mail: vtarhan@luc.edu

EDUCATION

Ph.D., University of California at Santa Barbara, 1978.

M.A., University of California at Santa Barbara, 1974.

B.A., Robert College, Istanbul, Turkey, 1971.

WORK EXPERIENCE

August 2000, to present, Ralph Marotta Professor of Free Enterprise, Loyola University Chicago August 1998 to 2000, Visiting Professor of Finance, Kellogg Graduate School of Management, Northwestern University.

August 1991 to August 1998, Chairman and Professor of Finance, Loyola University of Chicago.

June 1988 to August 1990, Visiting Associate Professor Finance, Kellogg Graduate School of Management, Northwestern University.

September 1983 to June 1988, Associate Professor Finance, Loyola University of Chicago.

September 1978 to September 1983, Assistant Professor Finance, Loyola University of Chicago.

September 1976 to June 1978, Lecturer, University of California at Santa Barbara.

PUBLICATIONS IN JOURNALS

"The Asian Currency Crisis of 1997-98: Is the Turkish Economy vulnerable to a similar crisis?", Money and Finance in the Global Economy, March, 2002

"Share Repurchases and Firm Performance: New Evidence on the Agency Costs of Free Cash Flow" (with Tom Nohel), Journal of Financial Economics, August 1998.

"Does the Federal Reserve Affect Asset Prices?", Journal of Economic Dynamics and Control, July-September 1995.

"Policy and Volatility of Asset Returns," Journal of Economics and Business, August-October 1993.

"Performance Economies Associated with Small and Medium-Sized Banks" (with Paul Spindt), Journal of Banking and Finance, April 1993.

"Money Supply Announcements and the Market's Perception of Federal Reserve Policy" (with Steve Strongin), Journal of Money, Credit and Banking, May 1990.

"Bank Reserve Adjustment Process and the Use of Reserve Carryover as a Reserve Management Tool: Reply" (with Paul Spindt), Journal of Banking and Finance, March 1989.

"Unanticipated Interest Rates, Bank Stock Returns and the Nominal Contracting Hypothesis," Journal of Banking and Finance, January 1987.

"The Federal Reserve's New Operating Procedures: A Post Mortem" (with Paul Spindt), Journal of Monetary Economics, January 1987.

"Bank Reserve Adjustment Process and the Use of Reserve Carryover as a Reserve Management Tool" (with Paul Spindt), Journal of Banking and Finance, March 1984.

"Bank Earning Asset Behavior and Causality Between Reserves and Money: Lagged versus Contemporaneous Reserve Accounting" (with Paul Spindt), Journal of Monetary Economics, September 1983.

"Liquidity Structure Adjustment Behavior of Large Money Center Banks" (with Paul Spindt), Journal of Money, Credit and Banking, May 1980.

OTHER PUBLICATONS

"The Crash of the Internet Stocks" World Finance, June 2002 (Published in three parts).

"The Investment Decisions: A primer", Global Finance, August 2002.

"The Cash Flows and the Capital Budgeting Decision methods", Global Finance, September, 2002.

"A Myopic Look at the Economy: The decision for Early Elections", World Finance, August 2002.

"Are There Synergies in Bank Mergers?", Center for Financial and Policy Studies Working Paper Series, July 1993.

"An Empirical Examination of the Market for Corporate Control in the Banking Sector," Proceedings, the 28th Annual Conference on Bank Structure and Competition, November 1992.

"The Impact of Open Market Operations on Interest Rates," Department of Finance, Kellogg Graduate School of Management Working Paper Series, April 1990.

"Federal Reserve System and Its Role in Commercial Banking" (with Nicholas A. Lash and Paul Spindt), in N. Apostolou et al., Handbook of Accounting and Financial Management for Banks, McGraw Hill, 1989.

"The Conduct of Open Market Operations During 1979-1982," Special Studies Paper, Board of Governors of the Federal Reserve System, July 1986.

"The Response of Bank Stock Returns to Money Supply Announcements," Proceedings, Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 1984.

"Individual Bank Reserve Management Behavior," Economic Perspective, Federal Reserve Bank of Chicago, July 1984.

"Reserve Accounting Regimes, Bank Behavior and Monetary Control: An Empirical Analysis," Special Studies Paper, Board of Governors of the Federal Reserve System, July 1983.

"Bank Reserve Adjustment Process and the Use of the Reserve Carryover: Implications for the Proposed Contemporaneous Reserve Accounting Regime," Staff Memoranda, Federal Reserve Bank of Chicago, May 1983.

"The Adjustment of Bank Portfolios to Interest Rate and Deposit Shocks," Special Studies Paper, May 1979.

PAPERS UNDER REVIEW

"Investor Valuation of Mergers and Acquisitions Transactions as Joint Investment and Financing Decisions" (with Paul Spindt and Tom Nohel).

"The Cash Flow Sensitivity of Investments: An Integrated Approach to Investment, Financing, and Distribution Decisions" (with Todd Pulvino)

RESEARCH IN PROGRESS

"An Empirical Examination of Financing and Investment Decisions in Joint Decision Framework" (with Tom Nohel and Todd Pulvino).

"The Impact of Open Market Operations: A Test of the Price Pressure Hypothesis" (with Ravi Jagannathan).

"Firm Performance Following Rights Offerings" (with Tom Nohel).

"The Security Issuance Decision: A Direct Test of the Pecking Order Hypothesis" (with Tom Nohel).

PRESENTATIONS

"Joint Estimation of Investment, Financing, Distribution Cash Flow Sensitivities, presented at Tulane University Finance Department Seminar Series, April 2002, and Turkish Central Bank, Research Department, July, 2002.

"The Cash Flow Sensitivities of Investments", presented at the Kellogg Graduate School of Management, Northwestern University, April 2001.

"The Turkish Economy at the Crossroads: One More Time", presented at the Forum Istanbul conference, March 2002.

"The Market Reaction to Mergers and Acquisitions and Post-Merger Firm Performance," presented at the Department of Finance, Olin School of Management, Washington University, Seminar Series, April 1999.

"Corporate Acquisitions and Investment and Financings Perspective," presented at the FMA International Conference, Barcelona, June 1999.

"The Relation Between Post Transaction Firm Performance and Means of Payment," presented at the Tenth Annual Conference of Financial Economics and Accounting, Austin, October 1999.

"Share Repurchases and Firm Performance: New Evidence on the Agency Costs of Free Cash Flow," presented at the First Annual FMA International Conference, Zurich, 1997; Tulane University, May 1997; University of Wisconsin, September 1997; Loyola University Chicago, October 1997.

"Investor Valuation of Corporate Acquisitions as Joint Investment and Financing Decisions," presented at Olin School of Management, Washington University, October 1998; Department of Finance, Kellogg Graduate School of Management, Bag Lunch Seminar Series, November 1998.

"Takeovers and the News in Means-of-Payment," presented at Southern Finance Association Meeting, Key West, November 1996.

"Form of Financing, Investor Reaction and Post-Takeover Firm Performance," Department of Finance, Kellogg Graduate School of Management, Seminar Series, April 1994.

"The Impact of Mergers on Bank Operating Performance," Department of Accounting, Kellogg Graduate School of Management, Seminar Series, March 1993.

"Does the Federal Reserve Affect Prices?" presented at the Western Finance Association Meetings, San Francisco, June 1992; Federal Reserve Bank of Chicago, April 1992; Tulane University, Business School Seminar Series, February 1992.

"Do Mergers Improve Bank Performance?", presented at Bank Merger Mania Symposium organized by the Chicago Clearing Corporation and the Center for Financial and Policy Studies, June 1992.

"Are There Synergies in Bank Mergers?" (with Paul Spindt), presented at Western Finance Association Meetings, San Francisco, June 1992; Federal Reserve Bank of Chicago, April 1992; Southern Finance Association Meetings, November 1991.

"The Ability of the Federal Reserve to Influence Interest Rates," presented at Finance Seminar Series, Northwestern University, December 1989.

"The Reaction of the Interest Rates to Money Supply Announcements," presented at Finance Department Seminar Series, Northwestern University, March 1989.

"Day of the Week Effects in the Cash and Futures Market for Treasury Bills," presented at European Finance Association Meetings, Istanbul, Turkey, September 1988.

"Money Supply Announcements Puzzle," presented at Special Studies Quantitative Methods Workshop, Board of Governors of the Federal Reserve System, Washington D.C., December 1986.

"Money Supply Announcements, the Expected Liquidity Effect and the Inflation Premium Hypotheses: An Empirical Analysis," presented at Western Finance Association meetings, Colorado Springs, June 1986.

"The Federal Reserve's New Operating Procedures: A Post Mortem," presented at American Economic Association Meetings, New York, December 1985.

"Interest Rate Volatility and the Federal Reserve's Operating Procedures," presented at Western Finance Association Meetings, Scottsdale, June 1985.

"Bank Stock Price Response to Unanticipated Interest Rates: A Test of the Nominal Contracting Hypothesis," presented at Mid-West Finance Association Meetings, Chicago, April 1984.

"Bank Reserve Adjustment Process and the Use of Reserve Carryover as a Management Tool - A Microeconomic Approach," presented at Western Finance Association Meetings, Long Beach, June 1983.

"Proposed Changes in the Reserve Accounting System," presented at Federal Reserve Bank of Chicago, May 1983.

"The Bank Reserve Block of the Weekly Money Market Model," presented at Quantitative Methods Workshop, Board of Governors of the Federal Reserve System, July 1982.

"Bank Earning Asset Behavior: Lagged versus Contemporaneous Reserve Accounting," presented at Western Finance Association Meetings, Jackson Hole, June 1981.

"Bank Behavior and Monetary Control," presented at Federal Reserve Bank of Chicago, May 1981.

REVIEWER FOR

Journal of Business
Journal of Monetary Economics
Journal of Money, Credit and Banking
Journal of Banking and Finance
Journal of Economic Dynamics and Control
Journal of Economics and Business
Quarterly Review of Economics and Business

CONSULTING EXPERIENCE

Research Consultant, Federal Reserve Bank of Chicago, 1983-1991

Director, McHenry Savings and Loan, 1986-1994

HONORS/AWARDS

Reid Teaching Award, Olin School of Business, Washington University in St. Louis, 1999.

Outstanding Teacher of the Year, Kellogg Graduate School of Management, Northwestern University, 1990.

Outstanding Teacher Award, Loyola University of Chicago, Graduate School of Business, 1984.

Prochnow Foundation Research Grant, 1990.

Summer Research Grants, Federal Reserve Bank of Chicago, 1984 and 1987.

Summer Research Grants, Loyola University of Chicago, 1980, 1988 and 1990.

Fulbright Fellowship for Graduate School, 1971-1975.

 

 

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Masters in Business AdministrationGraduate School of BusinessLoyola University Chicago