Milbourn

• Ph.D. at Indiana University
• B.A. at Augustana College

News Stories & Tip Sheets:

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The business of sports All-star line-up to teach new sports management class at the Olin Business School March 5, 2008 -- The Olin Business School is introducing a new course in sports management that will feature several luminaries in the field. Executives in league management, television rights, media coverage and corporate sponsorship will be guest speakers in the class. All speakers are available for media interviews.

CEO compensation — appropriate or not? Corporate governance has dark side and bright side Dec. 9, 2004 -- Executive pay is sometimes appropriate, often not. In a perfect business world, corporate governance and decision-making would follow sound and rational processes. And, indeed, Professor Todd Milbourn has discovered that, at times, executives are compensated appropriately and appropriate decisions are taken. This finding is from what he calls the "bright side" of his research. But, the real world can also serve up Disneys, Enrons, and WorldComs. Not all mismanagement, however, makes the front pages or drives companies into bankruptcy. More commonly it goes on unnoticed or as accepted practice, says Milbourn, associate professor of finance at the Olin School of Business at Washington University in St. Louis. His collaborative research also reveals a "dark side," where companies reward chief executive officers simply for being lucky and where "yes men" often rule.

Expensing stock options New FASB rule on expensing employee stock options will reduce reported income of firms May 4, 2004 -- Download The recently proposed rule by the Financial Accounting Standards Board (FASB) that requires companies to treat employee stock-option compensation as an expense on corporate income statements will reduce the reported income of firms, according to Todd Milbourn, a professor of finance at the Olin School of Business at Washington University in St. Louis. The new rule, if finalized after a 90-day comment period, will go into effect next year.

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Research interests: Corporate finance, managerial career concerns, management compensation, and economics of asymmetric information

Todd Milbourn

Selected Publications:

• "Incentive Compensation When Executives Can Hedge the Market: Evidence of Relative Performance Evaluation in the Cross-Section," Journal of Finance, with G. Garvey, forthcoming 2003
• "CEO Reputation and Stock-Based Compensation," Journal of Financial Economics, forthcoming 2003
• "Sunflower Management and Capital Budgeting," Journal of Business, with A. Boot and A. Thakor, forthcoming 2003
• "Managerial Career Concerns and Investments in Information," Rand Journal of Economics, with R. Shockley and A. Thakor, 2001
• "EVA versus Earnings: Does it matter which is more highly correlated with stock returns?" Journal of Accounting Research, with G. Garvey, 2000
• "Theory of Certification Requirements in Financial Services Regulation," Journal of Financial Services Research, with A. Boot and S. Dezelan, 2000
• "Megamergers and Expanded Scope: Theories of Bank Size and Activity Diversity," Journal of Banking and Finance, with A. Boot and A. Thakor, 1999
• "How Do You Win the Capital Allocation Game?" Sloan Management Review, with J. Boquist and A. Thakor, 1998
• "EVA and Total Quality Management," Journal of Applied Corporate Finance, with J. Bacidore, J. Boquist, and A. Thakor, Summer 1997
• "The Search for the Best Financial Performance Measure," Financial Analysts Journal, with J. Bacidore, J. Boquist, and A. Thakor, 1997

Academic/professional activities:

• Member: American Finance Association; American Economic Association; Financial Management Association; and Western Finance Association
• Ad hoc referee: The Review of Financial Studies; Journal of Business; Journal of Financial Intermediation; Journal of Banking and Finance; European Economic Review; Journal of Economics; Financial Management

Awards/honors:

• Indiana University School of Business, MBA Teaching Excellence Award, 1995
• Indiana University Doctoral Student Association, Associate Instructor Teaching Award, 1995
• Phi Beta Kappa member since 1991
• Beta Gamma Sigma member since 1996

Personal interests: Professor Milbourn enjoys spending time with his family and sports.