Carl H. Lindner College of BusinessCarl H. Lindner College of BusinessUniversity of Cincinnati

Carl H. Lindner College of Business

Michael Ferguson

Associate Professor
Professional Summary
Michael Ferguson
Professor Ferguson graduated from Indiana University. Prior to joining UC he taught at the University of Arizona and Indiana University. Earlier he worked for First Chicago (now JP Morgan Chase) and the Commodity Futures Trading Commission.
Contact Information
E-mail:
Office:
415 Carl H. Lindner Hall
Phone:
513-556-7080
Fax:
513-556-0979
Teaching Interest
  • Investments
  • Corporate Finance
Research Interest
  • Investments
  • Financial Institutions
  • Financial Contracting
History

Institution:
University of Cincinnati
Title:
Associate Professor of Finance


Institution:
University of Cincinnati
Title:
Assistant Professor of Finance
End Date:
2004-06-30


Institution:
Indiana University
Title:
Visiting Assistant Professor of Finance
End Date:
1999-07-31


Institution:
University of Arizona
Title:
Visiting Assistant Professor of Finance
End Date:
1996-08-31


Institution:
Commodity Futures Trading Commission
Title:
Financial Economist
End Date:
1993-06-30


Institution:
Indiana University
Title:
Associate Instructor/Research Assistant
End Date:
1991-07-31


Institution:
First National Bank of Chicago
Title:
Internal Consultant
End Date:
1986-06-30


Assignments

Description
Finance Department Ph.D. program Co-ordintator Recruit new students...Advise current students...administer comprehensive exam
Dates:
2001-09-01 - 2014-09-30



Description
MS Finance...Admissions...Recruiting...Advising
Dates:
2011-11-01 - 2012-06-30



Awards | Honors

Organization:
Lindner College of Business
Name:
Dean's List of Teaching Excellence
Year Received:
2016


Organization:
Lindner College of Business
Name:
Dean's List of Teaching Excellence
Year Received:
2016


Organization:
Lindner College of Business
Name:
Dean's List of Teaching Excellence
Year Received:
2015


Organization:
Lindner College of Business
Name:
Dean's List of Teaching Excellence
Year Received:
2015


Organization:
Lindner College of Business
Name:
Dean's List of Teaching Excellence
Year Received:
2015


Organization:
Financial Management Association
Name:
Best Paper in Investments, Semi-finalist
Year Received:
2014


Organization:
Lindner College of Business
Name:
Lindner Research Fellow
Year Received:
2014


Organization:
Lindner College of Business
Name:
Dean's List of Teaching Excellence
Year Received:
2013


Organization:
Lindner College of Business
Name:
Dean's List of Teaching Excellence
Year Received:
2012


Organization:
Southwest Finance Association
Name:
AAII Best Paper in Investments
Year Received:
2012


Organization:
Financial Management Association
Name:
Best Paper in Investments, Semi-finalist
Year Received:
2011


Organization:
Financial Management Association
Name:
Best Paper in Corporate Finance, Semi-finalist
Year Received:
2009


Organization:
American Finance Association
Name:
Smith-Breeden Prize, Finalist
Year Received:
2004


Organization:
Southern Finance Association
Name:
Best Paper on Futures or Options
Year Received:
1995


Organization:
Financial Management Association
Name:
Best Paper in Futures or Options on Futures
Year Received:
1993


Organization:
IU Kelley School of Business
Name:
Schuyler F. Otteson Undergraduate Teaching Excellence Award, Finalist
Year Received:
1991


Organization:
IBM
Name:
IBM Thomas Watson National Merit Scholarship
Year Received:
1981


Organization:
Indiana Univeristy
Name:
Indiana University Distinguished Scholarship
Year Received:
1981


Education

Institution:
Indiana University
Location:
Bloomington, Indiana
Major:
Finance
Dissertation:
Large Shareholders in the Market for Corporate Control
Completed:
1992
Degree:
Ph D


Institution:
Indiana University
Location:
Bloomington, Indiana
Major:
Finance
Completed:
1989
Degree:
MBA


Institution:
Indiana University
Location:
Bloomington, Indiana
Major:
Finance (with Honors)
Dissertation:
Honors Thesis: An Analysis of Market Timing Strategies
Completed:
1985
Degree:
BS


Published Contributions

Michael Ferguson, Doina Chichernea, Haimont Kassa,  (2015). Idiosyncratic Risk, Investor Base, and Returns. Financial Management, 267-293.


Michael Ferguson, Hui Guo, Haimont Kassa,  (2014). On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns. Journal of Financial and Quantitative Analysis, 271-295.


Michael Ferguson, Bradley Stevenson,  (2014). Depositor Discipline and the Bank's Incentive to Monitor. Journal of Financial Economic Policy, 98-111.


Michael Ferguson, Steven  Mann,  (2004). Execution Costs and Their Intraday Variation in Futures Markets. Derivatives Markets and Foreign Exchange Markets, Financial Markets (Volume 4), Jeff Madura (editor).


Michael Ferguson, Richard Shockley,  (2003). Equilibrium 'Anomalies'. Journal of Finance, 2549-2580.


Michael Ferguson, Steven  Mann,  (2001). Execution Costs and Their Intraday Variation in Futures Markets. Journal of Business, 125-160.


Michael Ferguson, Stephen Peters,  (2000). Is Lending Discrimination Always Costly?. Journal of Real Estate Finance and Economics, 23-44.


Michael Ferguson, Steven Mann, Leonard  Schneck,  (1998). Concentrated Trading in the Foreign Exchange Futures Markets: Discretionary Liquidity Trading or Market Closure?. Journal of Futures Markets, 343-362.


Michael Ferguson, Stephen Peters,  (1997). Cultural Affinity and Lending Discrimination: The Impact of Underwriting Errors and Crisk Distribution on Applicant Denial Rates. Journal of Financial Services Research, 153-168.


Michael Ferguson, Stephen Peters,  (1997). Cultural Affinity and Lending Discrimination: The Impact of Underwriting Errors and Crisk Distribution on Applicant Denial Rates. Discrimination in Financial Services, George J. Benston, W. Curt Huner, and George G. Kaufman (editors).


Michael Ferguson, Stephen  Peters,  (1997). What Constitutes Evidence of Discrimination in Lending?. The Economics of Housing, John M. Quiqley (editor).


Michael Ferguson, Leonard Schneck, Steven Mann,  (1996). Depth and Tightness. Chicago Board of Trade Research Symposium Proceedings, 85-124.


Michael Ferguson, Corinne Bronfman,  (1995). Don't Ask, Don't Tell and Other Contracting Considerations. Journal of Corporation Law, 155-175.


Michael Ferguson, Stephen  Peters,  (1995). What Constitutes Evidence of Discrimination in Lending?. Journal of Finance, 739-748.


Michael Ferguson, Corinne Bronfman,  (1995). Would Greater Transparency Increase or Decrease Contracting Costs?. Journal of Financial Engineering, 127-145.


Michael Ferguson,  (1994). Ownership Structure, Potential Competition, and the Free Rider Problem in Tender Offers. Journal of Law, Economics and Organization, 35-62.


Michael Ferguson, Leonard Schneck,  (1993). The Flight to Quality: Evidence from the Futures Markets. Review of Futures Markets, 103-132.


Michael Ferguson,  (1991). Study Guide for F301: Introduction to Corporate Finance. Indiana University, .


Michael Ferguson,  (1990). Study Guide for F250: Personal Finance. Indiana University, .



Accepted Contributions



Research in progress

Title:
Fan Loyalty and Team Performance


Status:
Writing Results

Research Type:
Scholarly


Title:
Is Bank Capital a Double-Edged Sword? The Impact of Forced Recapitalizations


Status:
Writing Results

Research Type:
Scholarly


Title:
The Impact of a Strategic Regulator on Executive Compensation and Fraudulent Misreporting

Description:
The passage of Sarbanes-Oxley Act in 2002 reflects the regulator’s strategic response to an epidemic of corporate fraud in the late 1990s. Recognizing the dynamic interplay between the manager’s decision to commit fraud and the regulator’s decision to investigate the firm, we empirically investigate the shareholder-manager-regulator nexus that determines the equilibrium relationships between the degree of reliance on equity based compensation (EBC), the firm’s growth potential, the extent of fraudulent reporting, and the intensity of fraud detection. Using a sample of recently prosecuted fraud firms collected from SEC litigation releases of the last 10 years and employing the bivariate probit model with partial observability, we find that fraud has mainly been concentrated in high-growth ‘new economy’ industries and fraud has mainly been detected during the recent economic downturn in those industries. Furthermore, greater reliance on EBC increases both the probability of fraud being committed and the conditional probability of detecting fraud. More importantly, greater fraud penalties due to the enactment of SOX reduce both of the probabilities. Using panel regressions, we also find strong evidence that EBC is positively associated with growth potential and negatively associated with fraud penalty in the (relatively fraud-prevalent) high-tech industries, while no such associations exist in the (relatively fraud-free) manufacturing industries. Overall, our empirical results highlight the importance of treating the regulatory agency as a rational player in the fraud commission and detection game. The interaction between the firm manager and the regulator determines the two unobservable probabilities that determine the level of observed fraud. In turn, the firm’s shareholders (or board of directors) rationally incorporate the implied fraud commission and detection probabilities into the optimal equity-based compensation contract awarded to the manager.

Status:
Writing Results

Research Type:
Scholarly


Presentations

Title:
Do Inventors Know More than Investors? Technology Spillover and the Valuation of Patents
Organization:
Financial Management Association
Location:
Nashville, TN
Year:
2014


Title:
Do Inventors Know More than Investors? Technology Spillover and the Valuation of Innovation
Organization:
Midwest Finance Association
Location:
Orlando, FL
Year:
2014


Title:
Do Inventors Know More than Investors? Technology Spillover and the Valuation of Innovation
Organization:
Southern Finance Association
Location:
Fajardo, PR
Year:
2013


Title:
On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns
Organization:
Eastern Finance Association
Location:
Boston, MA
Year:
2012


Title:
On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns
Organization:
Southwest Finance Association
Location:
New Orleans, LA
Year:
2012


Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Organization:
Southern Economic Association
Location:
Washington, DC
Year:
2011


Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Organization:
Southern Finance Associatio
Location:
Key West, FL
Year:
2011


Title:
On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns
Organization:
Financial Management Association
Location:
Key West, FL
Year:
2011


Title:
On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns
Location:
Key West
Year:
2011


Title:
On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns
Organization:
Financial Management Association
Location:
Denver, CO
Year:
2011


Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Organization:
Financial Management Association
Location:
Denver, CO
Year:
2011


Title:
Does Equity-Based Compensation Really Have a ‘Dark Side’? The Influence of Regulatory Discretion
Organization:
Singapore International Conference on Finance
Location:
Singapore
Year:
2011


Title:
Does Equity-Based Compensation Really Have a ‘Dark Side’? The Influence of Regulatory Discretion
Organization:
China International Finance Conference
Location:
Wuhan, China
Year:
2011


Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Organization:
International Banking, Economics, and Finance Association
Location:
San Diego, CA
Year:
2011


Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Organization:
European Financial Management Association
Location:
Porto, Portugal
Year:
2011


Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Organization:
Korea Institute of Finance, Korea-America Economic Association and Korea-America Finance Association
Location:
Seoul, Korea
Year:
2011


Title:
Idiosyncratic Risk, Investor Base, and Returns
Organization:
Midwest Finance Assocation
Location:
Chicago, IL
Year:
2011


Title:
Cross Market Liquidity Shocks: Evidence from the CDS, Corporate Bond and Equity Markets
Organization:
Financial Managment Association
Location:
New York, NY
Year:
2010


Title:
A New Methodology for Measuring and Using the Implied the Impied Market Value of Aggregate Corporate Debt in Asset Pricing: Evidence from S&P 500 Index Put Option Prices
Organization:
Financial Managment Association
Location:
Reno, NV
Year:
2009


Title:
Margin Requirements, Asset Pricing and Welfare Implications
Organization:
Financial Managment Association
Location:
Reno, NV
Year:
2009


Title:
Deal Risk, Liquidity Risk, and the Profitability of Risk Arbitrage
Organization:
Financial Management Association
Location:
Reno, NV
Year:
2009


Title:
Deal Risk, Liquidity Risk, and the Profitability of Risk Arbitrage
Organization:
Eastern Finance Associatio
Location:
Washington, DC
Year:
2009


Title:
The Impact of a Strategic Regulator on Executive Compensation and Fraudulent Misreporting
Organization:
Finance Management Association
Location:
Dallas, Texas
Year:
2008


Title:
Congress and the Stock Market
Organization:
Financial Management Association
Location:
Orlando, FL
Year:
2007


Title:
What's Different About Banks? Depositor Discipline and Active Monitoring
Organization:
Financial Management Association
Location:
Orlando, FL
Year:
2007


Title:
An In-Depth Analysis of Futures Market Liquidity
Year:
2003


Title:
Equilibrium 'Anomalies'
Organization:
University of Missouri
Year:
2002


Title:
"Does Stock Market Momentum Explain the 'Smart Money' Effect?
Organization:
Financial Management Association
Location:
San Antonio, TX
Year:
2002


Title:
Execution Costs and Their Intraday Variation in Futures Markets
Organization:
Financial Management Association
Location:
Orlando, FL
Year:
1999


Title:
Equilibrium 'Anomalies'
Organization:
Western Finance Association
Location:
Santa Monica, CA
Year:
1999


Title:
Equilibrium 'Anomalies'
Organization:
University of Cincinnati
Year:
1999


Title:
Equilibrium 'Anomalies'
Organization:
Arizona State University - West
Year:
1999


Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Organization:
Econometric Society
Location:
New York, NY
Year:
1999


Title:
Equilibrium 'Anomalies'
Organization:
Southern Finance Association
Location:
Marco Island, FL
Year:
1998


Organization:
Financial Management Association
Location:
Chicago, IL
Year:
1998


Title:
Equilibrium 'Anomalies'
Organization:
Financial Managent Association
Location:
Chicago, IL
Year:
1998


Title:
Equilibrium 'Anomalies'
Organization:
Texas A&M University
Year:
1998


Title:
Equilibrium 'Anomalies'
Organization:
California State University - Fullerton
Year:
1998


Title:
Equilibrium 'Anomalies'
Organization:
University of Pittsburgh
Year:
1998


Title:
Is Lending Discrimination Always Costly?
Location:
Chicago, IL
Year:
1998


Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Organization:
University of Cincinnati
Year:
1997


Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Organization:
Indiana University Purdue University-Indianapolis
Year:
1997


Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Organization:
University of Connecticut
Year:
1996


Title:
A Symmetric-Information Model of Credit Rationing
Organization:
European Finance Association
Location:
Oslo, Norway
Year:
1996


Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Organization:
Western Finance Association
Location:
Sunriver, OR
Year:
1996


Title:
Depth and Tightness
Organization:
Chicago Board Of Trade
Location:
Chicago, IL
Year:
1996


Title:
Interbank Credit Market Heterogeneity and Lending Discrimination
Organization:
Federal Reserve Bank of Chicago
Location:
Chicago, IL
Year:
1996


Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Organization:
Federal Reserve Bank of Chicago
Location:
Chicago, IL
Year:
1996


Title:
Depth and Tightness
Organization:
American Finance Association
Location:
San Francisco, CA
Year:
1996


Title:
Depth and Tightness
Organization:
Southern Finance Association
Location:
Sarasota, FL
Year:
1995


Organization:
Financial Management Association
Location:
New York, NY
Year:
1995


Title:
Loan Denial and Default Rates: What Can TheyTell Us About Lending Discrimation
Organization:
Eastern Finance Assocation
Location:
Hilton Head, SC
Year:
1995


Title:
Risk Arbitrageurs, Insider Trading, and the Allocation of Property Rights in Tender Offers
Organization:
University of Arizona
Year:
1995


Title:
Does Size Matter? Ownership Structure and the Division of Gains in Tender Offers
Organization:
University of Arizona
Year:
1994


Title:
Do Speculators Earn Positive Profits?
Organization:
Financial Management Association
Location:
St. Louis, MO
Year:
1994


Title:
Does Size Matter? Ownership Structure and the Division of Gains in Tender Offers
Organization:
Financial Management Association
Location:
St. Louis, MO
Year:
1994


Title:
Concentrated Trading in the Foreign Exchange Futures Markets: Discretionary Liquidity Trading or Market Closure?
Organization:
Financial Management Association
Location:
Chicago, IL
Year:
1993


Title:
Using the Capital Markets to Mitigate Moral Hazard: The Case of Hedge Collateral Agreements
Organization:
Financial Management Association
Location:
Chicago, IL
Year:
1993


Title:
Concentrated Trading in the Foreign Exchange Futures Markets: Discretionary Liquidity Trading or Market Closure?
Organization:
Indiana University
Location:
Bloomington, Indiana
Year:
1993


Title:
Concentrated Trading in the Foreign Exchange Futures Markets: Discretionary Liquidity Trading or Market Closure?
Organization:
Western Finance Association
Location:
Whistler, British Columbia
Year:
1993


Title:
Risk Arbitrageurs, Insider Trading, and the Allocation of Property Rights in Tender Offers
Organization:
University of Arizona
Year:
1993


Organization:
Utah Winter Finance Conference
Location:
Park City, UT
Year:
1993


Title:
Risk Arbitrageurs, Insider Trading, and the Allocation of Property Rights in Tender Offers
Organization:
University of Tulsa
Year:
1992


Organization:
Western Finance Association
Location:
San Francisco, CA
Year:
1992


Title:
The Flight to Quality: Evidence from the Futures Markets
Organization:
Chicago Board of Trade
Location:
Chicago, IL
Year:
1992


Title:
Ownership Struture, Potential Competition, and the Divisions of Gains in Tender Offers
Organization:
Commodity Futures Trading Commission
Location:
Washington, DC
Year:
1991


Title:
Ownership Struture, Potential Competition, and the Divisions of Gains in Tender Offers
Organization:
Concordia University
Location:
Montreal
Year:
1991


Title:
Ownership Struture, Potential Competition, and the Divisions of Gains in Tender Offers
Organization:
Indiana University
Year:
1991