Simon Business School
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Faculty Profile

Clifford W Smith
Louise and Henry Epstein Professor of Business Administration and Professor of Finance and Economics
Phone: 585.275.3217
Office: 3-202C Carol Simon Hall

Bio

He is currently chairman of the board of Home Properties, a multifamily real estate investment trust (REIT) with operations primarily along the East Coast of the United States, and was formerly chair of the compensation committee, chair of the governance committee, and lead director. Smith has served as president of the Risk Theory Society, president of the Financial Management Association National Honor Society, vice president for Global Services of the Financial Management Association International, vice president of the International Economics and Finance Society, a member of the board of advisors of the International Association of Financial Engineers, and a member of the board of directors of the Financial Management Association and the Southern Finance Association. Students in the Executive MBA Program have given him their Superior Teaching Award 21 times; students in the MBA Program have given him their Superior Teaching Award 16 times. In 2003, he received the FMA Fellows Award by the Financial Management Association International. He was named Distinguished Scholar by the Southern Finance Association in 2000, and Distinguished International Visiting Scholar by the British Accounting Association in 1991. In 1986, he was given the first Special Award for a Perfect Teaching Rating by the School, in 1983, he was chosen a University Mentor in recognition of his scholarship and teaching.

Teaching Interests

Financial Economics

Research Interests

Professor Smith has research interests in the fields of corporate financial policy, derivative securities and financial intermediation. He has published 16 books and over 90 articles in leading finance and economics journals. He is an advisory editor of the Journal of Financial Economics; an associate editor of the Journal of Risk and Insurance, Financial Practice and Education, the Review of International Economics, the Journal of Financial Services Research, the Journal of Derivatives, and the Journal of Financial Research; a member of the editorial board of the Review of International Economics; and a member of the advisory board of the Journal of Applied Corporate Finance, The Financier, Contemporary Finance Digest, and The Arbitrageur. His paper, “Trading Cost for Listed Options: The Implications for Market Efficiency” (with Susan M. Phillips), was awarded the Pomerance Prize for Excellence in Options Research by the Chicago Board Options Exchange for 1980; his paper, “On the Convergence of Insurance and Finance Research,” was awarded the Alpha Kappa Psi-Spangler Award by the American Risk and Insurance Association for 1996.

Professional History

Louise and Henry Epstein Professor of Business Administration and Professor of Finance and Economics
University of Rochester Simon School of Business, Rochester NY
July 1998 -
Visiting Professor
University of Georgia, Terry College of Business, Athens GA
2008 - 2008
Visiting Professor
Emory University, Goizueta Business School, Atlanta GA
2005 - 2005
Vice President
Global Services
1999 - 2001
Board of Directors
Southern Finance Association
1996 - 1998
Clarey Professor of Finance
University of Rochester Simon School of Business, Rochester NY
July 1988 - June 1998
Distinguished Visiting Professor
George Mason University School of Law, Fairfax VA
1997 - 1997
Visiting Professor
Universidade do Porto, Faculdade de Economia
1997 - 1997
Vice President
International Economics and Finance Society
1995 - 1996
President
Financial Management Association National Honor Society
1993 - 1994
President
Risk Theory Society
1993 - 1994
Visiting Professor
City University Business School, London
1991 - 1994
Board of Advisors
International Association of Financial Engineers
1991 - 1994
Secretary
Risk Theory Society
1992 - 1993
Professor
University of Rochester Simon School of Business, Rochester NY
July 1986 - June 1988
Associate Professor
University of Rochester Simon School of Business, Rochester NY
July 1980 - June 1986
Visiting Associate Professor
Univeristy of Chicago, Graduste School of Business, Chicago IL
1980 - 1980
Assistant Professor
University of Rochester Simon School of Business, Rochester NY
July 1974 - June 1980
Directorate of Economic & Policy Research
Securities and Exchange Commission, Financial Economist
1977 - 1977

Education

UNC-Chapel Hill - 1975
Ph D
Economics
Emory University - 1969
BA
Economics

Publications

2014
Managerial Economics and Organizational Architecture 6th ed
Contribution Type: Book, Textbook-Revised
Journal/Publisher/Proceedings Publisher: McGraw Hill Irwin
Issue: 6
2013
Fundamentos economicos da arquitetura organizacional
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Sumários Revista da ESPM
Volume: 6
Issue: 1
2013
On the Choice of Organizational Form: Theory and Evidence from the Insurance Industry
Contribution Type: Book, Chapter in Scholarly Book-New
Journal/Publisher/Proceedings Publisher: Kluwer Academic Publishers
Issue: 2013
2013
Debt and taxes: Evidence from the real estate industry
Contribution Type: Journal Article, Professional Journal
Journal/Publisher/Proceedings Publisher: Journal of Corporate Finance
Volume: 20
2012
Vertical integration to avoid contracting with potential competitors: evidence from bankers’ banks
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Financial Economics
Volume: 105
Issue: 1
2012
The Economic Determinants of Vertical Organizations: Evidence from Bankers' Banks
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Financial Economics
2009
Managerial Economics and Organizational Architecture
Journal/Publisher/Proceedings Publisher: McGraw-Hill/Irwin
Issue: 5th Edition, 2009
2009
Using Organizational Architecture to Lead Change
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 21
Issue: 2, Spring 2009
2009
Using Organizational Architecture to Lead Change*
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 21
Issue: 2
2008
Bonds
Journal/Publisher/Proceedings Publisher: The Concise Encyclopedia of Economics
Issue: 2008
2008
University of Rochester Roundtable on Bankruptcy and Bailouts: The Case of the US Auto Industry
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Finance
Volume: 18
Issue: 2, Fall/Winter 2008
2007
Agency Conflicts and Risk Management
Journal/Publisher/Proceedings Publisher: Review of Finance
Volume: 11
Issue: 1, 2007
2007
Managerial Economics and Organizational Architecture
Journal/Publisher/Proceedings Publisher: Mc-Graw-Hill/Irwin
Issue: 4th Edition, 2007
2007
On Governance and Agency Issues in Small Firms
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Small Business Management
Volume: 45
Issue: 1, January 2007
2006
On the Debt Capacity of Growth Options
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Business
Volume: 79
Issue: 1, January 2006
2005
Economía empresarial y arquitectura de la organización
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: McGraw-Hill
2005
Morgan Stanley Roundtable on Capital Structure and Payout Policy
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 17
Issue: 1, Winter 2005
2005
The Capital Structure Puzzle: The Evidence Revisited
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 17
Issue: 1, Winter 2005
2005
University of Rochester Roundtable on Corporate M&A and Shareholder Value
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 17
Issue: 4, Fall 2005
2005
Agency Problems and the Corporate Charter
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Law, Economics & Organization
Volume: 21
Issue: 2, October 2005
2003
Boundaries of the firm: evidence from the banking industry
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Financial Economics
Volume: 70
Issue: 3
2003
Corporate governance, ethics, and organizational architecture
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 15
Issue: 3
2002
Designing organizations to create value: From strategy to structure
Contribution Type: Book, Scholarly-New
Journal/Publisher/Proceedings Publisher: McGraw Hill Professional
2001
La teoría del juego en la estrategia empresarial
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Harvard Deusto Business Review
Issue: 103
2001
Managerial economics and organizational architecture
Contribution Type: Book, Scholarly-New
Journal/Publisher/Proceedings Publisher: McGraw-Hill/Irwin
Volume: 4
2000
An introduction to game theory and business strategy
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 13
Issue: 2
1999
Teaching the Economics of Organizations
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Financial Practice and Education
Volume: 9
1997
Management fads and organizational architecture
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 10
Issue: 2
1996
Organizational architecture: A managerial economics approach
Contribution Type: Book, Scholarly-New
Journal/Publisher/Proceedings Publisher: Irwin
1995
The economics of organizational architecture
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 8
Issue: 2
1995
Transfer pricing and the control of internal corporate transactions
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 8
Issue: 2
1994
Corporate voting: Evidence from charter amendment proposals
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Corporate Finance
Volume: 1
Issue: 1
1994
Ethics, incentives, and organizational design
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of Applied Corporate Finance
Volume: 7
Issue: 2
1989
Rational Voting: Evidence from Corporate Charter Amendments
Contribution Type: Book, Scholarly-New
Journal/Publisher/Proceedings Publisher: Tulane University
1989
Compensation Alternatives for Occupational Disease and Disability
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: The Journal of Risk and Insurance / Wiley
Volume: 56
Issue: 2
1988
Ownership structure and voting on antitakeover amendments
Contribution Type: Journal Article, Academic Journal
Journal/Publisher/Proceedings Publisher: Journal of financial economics
Volume: 20
1987
Ownership structure and the monitoring of managers
Contribution Type: Book, Scholarly-New
Journal/Publisher/Proceedings Publisher: University of Rochester, Managerial Economics Research Center, William E. Simon Graduate School of Business Administration

Current Research Programs

Debt and Taxes: Evidence from REITs
with M. Barclay and S. Heitzman, Journal of Corporate Finance (forthcoming)
Mechanisms of Board Turnover: Evidence from Backdating
with Fredrick L. Bereskin. We analyze board turnover of firms implicated in stock-option backdating to assess the effectiveness of board elections within the corporate governance process. Our evidence suggests that the high reelection rate among nominated directors is of limited value in assessing the effectiveness of shareholder voting. Independent directors and non-independent directors depart boards though different mechanisms; independent directors primarily are not renominated, while non-independent directors generally resign. Critically, each of these decisions is affected by the anticipated outcome of a potential shareholder vote. We also find that directors who are named as responsible for backdating experience net reductions in both the quality and quantity of their directorships.
On the Choice of Organizational Form: Theory and Evidence from the Insurance Industry
with David Mayers, in Handbook of Insurance, edited by G. Dionne (Kluwer Academic Publishers: Boston MA) (forthcoming)
Regulatory Change and Organizational Innovation: Banker's Banks
To be submitted to the Journal of Law, Economics, and Organization
Strategic Capital Structure Management: Evidence from SEOs
Submitted to the Journal of Finance
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