William Kracaw

Color portrait of William Kracaw

Professor of Finance, David and Shirley Sykes Professor, Department Head of Finance

Office Address 352B Business Building
Phone Number 814-863-0486
Email Address wak4@psu.edu

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William Kracaw is the David and Shirley Sykes Professor, and Chairman of the Department of Finance at the Smeal College of Business. Professor Kracaw holds a B.S. in Chemical Engineering, MBA, and PhD in Business Administration from the University of Utah. He previously held an appointment at the Krannert Graduate School of Management at Purdue University.His teaching interests include financial markets, institutions, and financial risk management. Professor Kracaw has published research on a broad range of topics in financial intermediation,corporate governance and control,corporate risk management, and markets for derivative securities. His articles have appeared in several leading academic and professional journals, including the Journal of Finance, the Journal of Financial and Quantitative Analysis, Financial Management, and the Journal of Financial Intermediation. Professor Kracaw is the author of two books, Financial Risk Management, and Financial Institutions and Capital Markets. He has also served on the board of editors of two academic journals and previously on the board of directors of the Financial Management Association. Professor. Kracaw has consulted with a number of commercial banks, investment banks, and government agencies. In executive education, he has taught various courses in derivative markets, financial risk management, and international finance.

Expertise

Professor Kracaw is currently doing research on the impact of corporate governance structure on financial policy and strategy.

Education

Ph D, Finance, The University of Utah, 1980

MBA, The University of Utah, 1975

BS, Chemical Engineering, The University of Utah, 1970

Courses Taught

B A 597I – Independent Study (1)
Formal courses given on a topical or special interest subject which may be offered infrequently.

FIN 408 – Financial Markets and Institutions (3)
Functional analysis of major credit institutions; sources and uses of funds; impact of government regulation.

FIN 410 – Derivative Markets (3)
Functions, techniques, and impact of speculation conducted through forward markets; the nature of speculative transactions, pricing, and methods of trading.

FIN 577 – Financial Engineering and Corporate Strategy (2)
Study and application of derivative strategies, financial innovation, and modern financial techniques to re-engineer risk exposure and enhance strategicopportunities.

FIN 581 – Fundamentals of Financial Markets (2)
Operation, structure of money, bond markets and concepts; and techniques used in evaluating and managing fixed income portfolios.

FIN 596 – Individual Studies (variable)
Creative projects, including nonthesis research, which are supervised on an individual basis and which fall outside the scope of formal courses.

FIN 597A – Topics in Finance (3)
This course covers selected topics in Finance. Students will analyze topics such as risk management, usages of derivatives, investment policies, risk and return for financial assets, firm valuation, and capital structure. The topics may change from year t

FIN 597B – Topics in Finance (4)
This course covers selected topics in Finance. Students will analyze topics such as risk management, usages of derivatives, investment policies, risk and return for financial assets, firm valuation, and capital structure. The topics may change from year t

FIN 601 – PH.D. DISSERTATION FULL-TIME
NO DESCRIPTION.

Selected Publications

Kracaw W., Kini O., Mian S., "The Nature of Discipline by Corporate Takeovers." Journal of Finance, vol. 59, no. 4, 2004.
Kracaw W., Campbell T., "Optimal Speculation Under Costly External Finance." Corporate Risk Management: Theory, Practice and New Development, (Risk Publications), 1999.
Kracaw W., Ze M., "The Wealth Effects of Bank Financing Announcements in Highly Leveraged Transactions." Journal of Finance, 1996.
Kracaw W., Kini O., Mian S., "Corporate Takeovers, Firm Performance, and Board Composition." Journal of Corporate Finance, 1995.
Kracaw W., Lewellen W., Woo C., "Corporate Growth, Corporate Strategy, and Choice of Capital Structure." Managerial and Decision Economics, 1992.
Kracaw W., Campbell T., "Financial Intermediation and the Market for Interest Rate Swaps." Journal of Financial Intermediation, 1991.
Kracaw W., Kini O., McConnell J., "Corporate Takeovers and Interest Rates." Journal of Applied Business Research, 1991.
Kracaw W., Johnston E., McConnell J., "Day-of-the-Week Effects in Financial Futures Markets: An Analysis of GNMA, T-Bond, and T-Bill Futures Markets." Journal of Financial and Quantitative Analysis, 1991.
Kracaw W., Campbell T., "Bank Funding Risks, Risk Aversion and the Choice of Futures Hedging Instrument: Comment." Journal of Finance, 1990.
Kracaw W., Campbell T., "Corporate Risk Management and the Incentive Effects of Debt." Journal of Finance, 1990.
Kracaw W., Lewellen W., "Inflation, Corporate Growth and Corporate Leverage." Financial Management, 1987.
Kracaw W., Campbell T., "Optimal Managerial Incentive Contracts and the Value of Corporate Insurance." Journal of Financial and Quantitative Analysis, 1987.
Kracaw W., Blum G., Lewellen W., "The Execution Costs of Common Stock Trades by Individual Investors." Journal of Financial Research, 1986.
Kracaw W., Campbell T., "The Market for Managerial Labor and Capital Markets Equilibrium." Journal of Financial and Quantitative Analysis, 1985.
Kracaw W., Huang R., "Stock Market Returns and Real Activity: A Note." Journal of Finance, 1984.
Kracaw W., Campbell T., "Information Production, Market Signalling, and the Theory of Financial Intermediation: Reply." Journal of Finance, 1982.
Kracaw W., Campbell T., "Sorting Equilibria in Financial Markets: The Incentive Problem." Journal of Financial and Quantitative Analysis, 1981.
Kracaw W., Campbell T., "Information Production, Market Signalling, and the Theory of Financial Intermediation." Journal of Finance, 1980.

Editorship

Journal of Managerial Issues, Editorial Board, September 1990 - Present