Michael Ferguson
Assoc ProfessorProfessional Summary
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
Phone:
513-556-7080
Fax:
513-556-0979
Teaching Interest
- Investments
- Corporate Finance
Research Interest
- Investments
- Financial Institutions
- Financial Contracting
Organization:
University of Cincinnati
Title:
Associate Professor of Finance
Organization:
University of Cincinnati
Title:
Assistant Professor of Finance
End Date:
2004-06-30
Organization:
Indiana University
Title:
Visiting Assistant Professor of Finance
End Date:
1999-07-31
Organization:
University of Arizona
Title:
Visiting Assistant Professor of Finance
End Date:
1996-08-31
Organization:
Commodity Futures Trading Commission
Title:
Financial Economist
End Date:
1993-06-30
Organization:
Indiana University
Title:
Associate Instructor/Research Assistant
End Date:
1991-07-31
Organization:
First National Bank of Chicago
Title:
Internal Consultant
End Date:
1986-06-30
Description
MS Finance...Admissions...Recruiting...Advising
Dates:
2011-11-01
Description
Finance Department Ph.D. program Co-ordintator
Recruit new students...Advise current students...administer comprehensive exam
Dates:
2001-09-01
Organization:
Southwest Finance Association
Name:
AAII Best Paper in Investments
Year Received:
2012
Organization:
Financial Management Association
Name:
Best Paper in Investments, Nominee
Year Received:
2011
Organization:
Financial Management Association
Name:
Best Paper in Corporate Finance, Nominee
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
Organization:
Indiana University
Location:
Bloomington, Indiana
Major:
Finance
Dissertation:
Large Shareholders in the Market for Corporate Control
Completed:
1992
Degree:
Ph D
Organization:
Indiana University
Location:
Bloomington, Indiana
Major:
Finance
Completed:
1989
Degree:
MBA
Organization:
Indiana University
Location:
Bloomington, Indiana
Major:
Finance (with Honors)
Dissertation:
Honors Thesis: An Analysis of Market Timing Strategies
Completed:
1985
Degree:
BS
Published Contributions
Title:
"Execution Costs and Their Intraday Variation in Futures Markets" in Derivatives Markets and Foreign Exchange Markets
Author(s):
Ferguson, Michael
Mann, Steven
Mann, Steven
Year Published:
2004
Publisher:
Sage Publishing
Publicly available:
Yes
Title:
Equilibrium 'Anomalies'
Page(s):
2549-2580
Author(s):
Ferguson, Michael
Shockley, Richard
Shockley, Richard
Year Published:
2003
Publisher:
Journal of Finance
Publicly available:
Yes
Title:
Execution Costs and Their Intraday Variation in Futures Markets
Page(s):
125-160
Author(s):
Ferguson, Michael
Mann, Steven
Mann, Steven
Year Published:
2001
Publisher:
Journal of Business
Publicly available:
Yes
Title:
Is Lending Discrimination Always Costly?
Page(s):
23-44
Author(s):
Ferguson, Michael
Peters, Stephen
Peters, Stephen
Year Published:
2000
Publisher:
Journal of Real Estate Finance and Economics
Publicly available:
No
Title:
Concentrated Trading in the Foreign Exchange Futures Markets: Discretionary Liquidity Trading or Market Closure?
Page(s):
343-362
Author(s):
Ferguson, Michael
Mann, Steven
Schneck, Leonard
Mann, Steven
Schneck, Leonard
Year Published:
1998
Publisher:
Journal of Futures Markets
Publicly available:
Yes
Title:
"Cultural Affinity and Lending Discrimination: The Impact of Underwriting Errors and Crisk Distribution on Applicant Denial Rates" in Discrimination in Financial Services
Author(s):
Ferguson, Michael
Peters, Stephen
Peters, Stephen
Year Published:
1997
Publisher:
Kluwer Academic Publishers
Publicly available:
Yes
Title:
"What Constitutes Evidence of Discrimination in Lending?" in The Economics of Housing
Author(s):
Ferguson, Michael
Peters, Stephen
Peters, Stephen
Year Published:
1997
Publisher:
Edward Elgar Publishing
Title:
Cultural Affinity and Lending Discrimination: The Impact of Underwriting Errors and Crisk Distribution on Applicant Denial Rates
Page(s):
153-168
Author(s):
Ferguson, Michael
Peters, Stephen
Peters, Stephen
Year Published:
1997
Publisher:
Journal of Financial Services Research
Publicly available:
Yes
Title:
Depth and Tightness
Page(s):
85-124
Author(s):
Ferguson, Michael
Schneck, Leonard
Mann, Steven
Schneck, Leonard
Mann, Steven
Year Published:
1996
Publisher:
Chicago Board of Trade Research Symposium Proceedings
Title:
Don't Ask, Don't Tell and Other Contracting Considerations
Page(s):
155-175
Author(s):
Ferguson, Michael
Bronfman, Corinne
Bronfman, Corinne
Year Published:
1995
Publisher:
Journal of Corporation Law
Title:
What Constitutes Evidence of Discrimination in Lending?
Page(s):
739-748
Author(s):
Ferguson, Michael
Peters, Stephen
Peters, Stephen
Year Published:
1995
Publisher:
Journal of Finance
Publicly available:
Yes
Title:
Would Greater Transparency Increase or Decrease Contracting Costs?
Page(s):
127-145
Author(s):
Ferguson, Michael
Bronfman, Corinne
Bronfman, Corinne
Year Published:
1995
Publisher:
Journal of Financial Engineering
Title:
Ownership Structure, Potential Competition, and the Free Rider Problem in Tender Offers
Page(s):
35-62
Author(s):
Ferguson, Michael
Year Published:
1994
Publisher:
Journal of Law, Economics and Organization
Publicly available:
Yes
Title:
The Flight to Quality: Evidence from the Futures Markets
Page(s):
103-132
Author(s):
Ferguson, Michael
Schneck, Leonard
Schneck, Leonard
Year Published:
1993
Publisher:
Review of Futures Markets
Title:
Study Guide for F301: Introduction to Corporate Finaace
Author(s):
Ferguson, Michael
Year Published:
1991
Publisher:
Indiana University
Title:
Study Guide for F250: Personal Finance
Author(s):
Ferguson, Michael
Year Published:
1990
Publisher:
Indiana University
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
Title:
Corporate Hedging and Financial Contracting
Location:
London
Year:
2012
Title:
On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns
Location:
Boston
Year:
2012
Title:
On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns
Location:
New Orleans
Year:
2012
Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Year:
2011
Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Year:
2011
Title:
On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns
Location:
Denver
Year:
2011
Title:
On the Relation between EGARCH Idiosyncratic Volatility and Expected Stock Returns
Location:
Denver
Year:
2011
Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Year:
2011
Title:
Does Equity-Based Compensation Really Have a ‘Dark Side’? The Influence of Regulatory Discretion
Location:
Singapore
Year:
2011
Title:
Does Equity-Based Compensation Really Have a ‘Dark Side’? The Influence of Regulatory Discretion
Location:
Wuhan, China
Year:
2011
Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
Year:
2011
Title:
Do Capital Standards Promote Bank Safety? Evidence from Involuntary Recapitalizations (Working paper, Apr 2011)
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
Location:
Chicago
Year:
2011
Title:
Deal Risk, Liquidity Risk, and the Profitability of Risk Arbitrage
Year:
2009
Title:
Deal Risk, Liquidity Risk, and the Profitability of Risk Arbitrage
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
Year:
2007
Title:
What's Different About Banks? Depositor Discipline and Active Monitoring
Year:
2007
Title:
An In-Depth Analysis of Futures Market Liquidity
Year:
2003
Title:
Equilibrium 'Anomalies'
Year:
2002
Title:
Execution Costs and Their Intraday Variation in Futures Markets
Year:
1999
Title:
Equilibrium 'Anomalies'
Year:
1999
Title:
Equilibrium 'Anomalies'
Year:
1999
Title:
Equilibrium 'Anomalies'
Year:
1999
Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Year:
1999
Title:
Equilibrium 'Anomalies'
Year:
1998
Title:
Equilibrium 'Anomalies'
Year:
1998
Title:
Equilibrium 'Anomalies'
Year:
1998
Title:
Equilibrium 'Anomalies'
Year:
1998
Title:
Equilibrium 'Anomalies'
Year:
1998
Title:
Is Lending Discrimination Always Costly?
Year:
1998
Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Year:
1997
Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Year:
1997
Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Year:
1996
Title:
A Symmetric-Information Model of Credit Rationing
Year:
1996
Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Year:
1996
Title:
Depth and Tightness
Organization:
CBOT
Location:
Chicago
Year:
1996
Title:
Interbank Credit Market Heterogeneity and Lending Discrimination
Organization:
Federal Reserve Bank of Chicago
Year:
1996
Title:
But I Know It When I See It: An Economic Analysis of Vague Rules
Year:
1996
Title:
Depth and Tightness
Year:
1996
Title:
Depth and Tightness
Year:
1995
Title:
Loan Denial and Default Rates: What Can TheyTell Us About Lending Discrimation
Year:
1995
Title:
Risk Arbitrageurs, Insider Trading, and the Allocation of Property Rights in Tender Offers
Year:
1995
Title:
Does Size Matter? Ownership Structure and the Division of Gains in Tender Offers
Year:
1994
Title:
Do Speculators Earn Positive Profits?
Year:
1994
Title:
Does Size Matter? Ownership Structure and the Division of Gains in Tender Offers
Year:
1994
Title:
Concentrated Trading in the Foreign Exchange Futures Markets: Discretionary Liquidity Trading or Market Closure?
Year:
1993
Title:
Using the Capital Markets to Mitigate Moral Hazard: The Case of Hedge Collateral Agreements
Location:
Chicago
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?
Year:
1993
Title:
Risk Arbitrageurs, Insider Trading, and the Allocation of Property Rights in Tender Offers
Year:
1993
Title:
Risk Arbitrageurs, Insider Trading, and the Allocation of Property Rights in Tender Offers
Year:
1992
Title:
The Flight to Quality: Evidence from the Futures Markets
Organization:
Chicago Board of Trade
Location:
Chicago
Year:
1992
Title:
Ownership Struture, Potential Competition, and the Divisions of Gains in Tender Offers
Year:
1991
Title:
Ownership Struture, Potential Competition, and the Divisions of Gains in Tender Offers
Year:
1991
Title:
Ownership Struture, Potential Competition, and the Divisions of Gains in Tender Offers
Year:
1991
