Professor of Financial Economics

Anderson Graduate School of Management

Personal Information

Birth date: November 20, 1947

Marital status: Married, 5 children

UCLA address: Anderson Graduate School of Management


Los Angeles, California 90024

(310) 825-2922

Business address: FinEcon

10877 Wilshire Boulevard, Suite 710

Los Angeles, California 90024

(310) 208-2827


Ph.D. Financial Economics, Stanford University, 1975

M.S. Statistics, Stanford University, 1974

A.B. (Interdepartmental) Physics, Philosophy and Psychology, Stanford University, 1970

Teaching Positions & Professional Positions

1987-Present: Professor of Finance and Director of the Bank of America Research Center,

Anderson Graduate School of Management, UCLA

1990-Present: President, FinEcon: Financial Economic Consulting

1988-1990: Vice-President and Director of the Securities Litigation Group, Economic Analysis Corporation

1979-1986: Assistant and Associate Professor of Finance, UCLA

1983-1984: Visiting Professor of Finance, California Institute of Technology

1977-1979: Assistant Professor of Finance, University of Southern California

1975-1977: Assistant Professor of Finance, University of Arizona

Courses Taught

Information Systems and Corporate Valuation

The Law and Finance of Corporate Acquisitions and Restructurings

Corporate Financial Theory

The Theory of Finance in the UCLA Law School

Security Valuation and Investments

A wide variety of executive and community education programs

Special Education Programs Include

The U.S. Business School in Prague - Special Finance Program, Summer 1991

The Nissan Program for Historically Black Colleges, Director, Summer 1989

The Lead Program for Business Education of Minority High School Students, 1987-Present

Consulting and Professional Activities

Selected Service at UCLA

Twice chairman of finance department

Twice Vice-Chairman of the Anderson School

Three time member of the staffing and promotin committee

Service to Scholarly Journals and Organizations

Served as an associate editor for a variety of scholarly and business journals including: the Journal of Finance, Journal of International Business Studies, Journal of Business and Economics, Journal of Financial Research, Journal of Futures Markets, and the Investment Management Review.

Served as a reviewer for numerous finance and economics journals including: the American Economic Review, Journal of Political Economy, Journal of Financial Economics, Journal of Business, Journal of Financial and Quantitative Analysis, and the Review of Economics and Statistics.

Memberships in Professional Societies

American Finance Association 1973-Present

Member of Board of Directors, 1987-1989

Western Finance Association 1973-Present

Member of Board of Directors, 1982-1985

Vice-President, 1987

American Economic Association 1973-Present

American Statistical Association 1992-Present

International Association of Financial Engineers 1993-Present

American Law and Economics Association 1995-Present

Human Behavior and Evolution Society 1995-Present

Research Evaluation

Project reviewer for the National Science Foundation: 1979-Present

Program committee for the Western Finance Association: 1982-1988

Selected Board and Committee Memberships

Chairman, Mayor Riordanís Blue Ribbon Commission on Los Angelesí Muncipal Investments

Pension Policy Board, The Aerospace Corporation: 1985-Present

Forms Engineering Corporation: 1976-Present

Trustee, Kellow Trust: 1982-1991

Selected Consulting Clients

Merrill Lynch (Obtained futures brokers license, owned a seat of the International Monetary Market of the Chicago Mercantile Exchange)

Chase Manhattan Bank

Thrifty Corporation

Wynn Oil

Resorts International

Expert Witness

Numerous cases involving the application of financial economics

Media Experience

Occasional author for theWall Street Journal and the Los Angeles Times

Occasional commentator for local television and radio stations

Lecturer on valuation theory, appraisal practice and securities pricing


Cornell, B., 1996, Social Decoding and Ethnic Discrimination, revising draft for possible publication by the University of Chicago Press.

Cornell, B., 1994, Corporate Valuation, in Handbook of Modern Finance, Third Edition, Dennis Logue ed., Warren Gorham Lamont,, Boston, MA.

Cornell, B., 1993, Corporate Valuation: Tools for Effective Appraisal and Decision Making, Business One Irwin, New York, NY.

Academic Articles

Cornell, B. and A.E. Bernardo, 1996, The Valuation of Complex Derivatives by Major Investment Firms: Empirical Evidence, Journal of Finance, (forthcoming)

Cornell, B. and I. Welch, 1996, Culture, Information and Screening Discrimination, Journal of Political Economy, (forthcoming, June 1996).

Cornell, B., F. Longstaff and E. Schwartz, 1996, Throwing Good Money After Bad? Cash Infusions and Distressed Real Estate, Journal of the American Real Estate and Urban Economics Association, 24: 23-41.

Cornell, B., 1995, An Hypothesis Regarding the Origins of Ethnic Discrimination, Rationality and Society, 7 (January): 4-29.

Cornell, B, 1994, Change Reinforces Use of DCF Method, Natural Gas, 11 (October): 5-15.

Cornell, B., 1993, Adverse Selection, Squeezes and the Bid-Ask Spread on Treasury Securities, Journal of Fixed Income, 3 (June): 39-47.

Cornell, B. and E. Sirri, 1992, The Reaction of Investors and Stock Prices to Insider Trading, Journal of Finance, 47 (July): 1031-1059.

Cornell, B., 1992, Liquidity and the Pricing of Low-grade Bonds, Financial Analysts Journal, 48 (January/February): 63-68.

Cornell, B. and K. Green, 1991, Measuring the Investment Performance of Low-grade Bond Funds, Journal of Finance, 66 (March): 29-48.

Cornell, B. and G. Morgan, 1990, Using Finance Theory to Measure Damages in Fraud on the Market Cases, UCLA Law Review, 37 (No. 2): 883-924.

Cornell, B., 1990, The Incentive to Sue: An Option Pricing Approach, Journal of Legal Studies, 17 (No. 1): 173-188.

Cornell, B., 1990, Volume and R2, Journal of Financial Research, 13 (No. 13): 1-7.

Cornell, B., 1990, Measuring the Term Premium: An Empirical Note, Journal of Economics and Business, 42 (No. 1): 89-93.

Cornell, B., W. Landsman and A. Shapiro, 1989, Cross Sectional Regularities in the Reaction of Stock Prices to Bond Rating Changes, Journal of Accounting, Auditing and Finance, 4 (No. 4): 460-479.

Cornell, B. and A. Shapiro, 1989, The Mispricing of U.S. Treasury Bonds: A Case Study, The Review of Financial Studies, 2 (No. 3): 297-310.

Cornell, B., 1989, The Impact of Data Errors on Measurement of the Foreign Exchange Risk Premium, Journal of International Money and Finance, 8: 147-157.

Cornell, B. and W. Landsman, 1989, Security Price Response to Quarterly Earnings Announcements and Analyst Forecast Revisions, The Accounting Review, 64 (October):


Cornell, B. and A. Shapiro, 1988, Financing Corporate Growth, Journal of Applied Corporate Finance, 1 (Summer): 6-22.

Cornell, B. and K. Engelmann, 1988, Measuring the Cost of Corporate Litigation: Five Case Studies, Journal of Legal Studies, 17 (June): 135-162.

Cornell, B. and A. Shapiro, 1987, Corporate Stakeholders and Corporate Finance, Financial Management, 16 (Spring): 5-14.

Cornell, B., A. Shapiro and W. Landsman, 1987, The Impact on Bank Stock Prices of Regulatory Responses to the International Debt Crisis, Journal of Banking and Finance,

3: 161-178.

Cornell, B., 1987, Pricing Interest Rate Swaps: Theory and Empirical Evidence, Proceeding of Conference on Swaps and Hedges, Saloman Brothers Center, New York University.

Cornell, B., 1987, Forecasting the Eleventh District Cost of Funds, Housing Finance Review, 6 (Summer): 123-135.

Cornell, B. and K.R. French, 1986, Commodity Own Rates, Real Interest Rates, and Money Supply Announcements, Journal of Monetary Economics, 18 (July): 3-20.

Cornell, B. and A. Shapiro, 1986, The Reaction of Bank Stock Prices to the International Debt Crisis, Journal of Banking and Finance, 10: 55-73.

Cornell, B., 1985, Inflation Measurement, Inflation Risk, and the Pricing of Treasury Bills, Journal of Financial Research, 9 (Fall): 193-202.

Cornell, B. and A. Shapiro, 1985, Interest Rates and Exchange Rates: Some New Empirical Evidence, Journal of International Money and Finance, 4: 431-442.

Cornell, B., 1985, The Weekly Pattern in Stock Returns: Cash versus Futures, Journal of Finance, 40 (June): 583-588.

Cornell, B., 1985, The Income Approach to Valuation, Proceedings of the Wichita State University Conference on the Appraisal of Railroads and Public Utilities.

Cornell, B. and O. Sand, 1985, The Value of Rate Base Options in the Eurocredit Market, Journal of Bank Research, 16 (Spring): 22-28.

Cornell, B., 1983, The Money Supply Announcements Puzzle: Review and Interpretation, American Economic Review, 73 (September): 644-658.

Cornell, B., 1985, The Money Supply Announcements Puzzle: Reply, American Economic Review, 75 (June): 565-566.

Cornell, B., and K.R. French, 1983, Taxes and the Pricing of Stock Index Futures, Journal of Finance, 38 (June): 675-695.

Reprinted in Proceedings of the Seminar for the Analysis of  Securities Prices, University of Chicago Press, 1983.

Cornell, B., 1983, Money Supply Announcements and Interest Rates: Another View, Journal of Business, 56 (January): 1-25.

Reprinted in Proceedings of the Seminar for the Analysis of Securities Prices, University of Chicago Press, 1983.

Cornell, B., 1983, Monetary Policy and the Daily Behavior of Interest Rates, Journal of Business and Economics, 35: 189-203

Cornell, B. and A. Shapiro, 1983, Managing Exchange Risk, Midland Corporate Financial Journal, 1 (Fall): 16-31.

Reprinted in New Developments in International Finance, Ed. J.M. Stern and D.H. Chew, Basil Blackwell, New York, 1988.

Cornell, B. and K.R. French, 1983, The Pricing of Stock Index Futures, Journal of Futures Markets, 3 (Fall): 1-14.

Reprinted in Readings in Futures Markets, Vol. V and in Selected Writings on Futures Markets: Explorations in Financial Futures, both published by the Chicago Board of Trade, 1984.

Cornell, B., 1982, Money Supply Announcements, Interest Rates, and Foreign Exchange, Journal of International Money and Finance, 1: 201-208.

Cornell, B. and M.R. Reinganum, 1981, Forward versus Futures Prices: Evidence From the Foreign Exchange Markets, Journal of Finance, 36 (December): 1035-1046.

Cornell, B., 1981, Taxation and the Pricing of Treasury Bill Futures, Journal of Finance,

36 (December): 1169-1176.

Cornell, B., 1981, The Relationship Between Volume and Price Variability in Futures Markets, Journal of Futures Markets, 1 (Fall): 303-316.

Cornell, B., 1981, Relative versus Absolute Price Changes: An Empirical Study, Economic Inquiry, 16 (April): 302-309.

Cornell, B., 1981, The Consumption Based Asset Pricing Model: A Note on Potential Tests and Applications, Journal of Financial Economics, 9 (March): 103-110.

Cornell, B. and R. Roll, 1981, Strategies for Pairwise Competitions in Markets and Organizations, Bell Journal of Economics, 12 (Spring): 201-216.

Cornell, B., 1981, What is the Future for Floating Rate Bonds, Chase Financial Quarterly,

1 (Fall): 27-38.

Cornell, B., 1980, The Denomination of Foreign Trade Contracts Once Again, Journal of Financial and Quantitative Analysis, 15 (November): 933-945.

Cornell, B., 1980, Inflation, Relative Price Changes and Exchange Risk, Financial Management, 9 (Spring): 30-35.

Cornell, B., 1979, Asymmetric Information and Investment Performance Measurement, Journal of Financial Economics, 7 (December): 381-390.

Cornell, B. and D. Capozza, 1979, Treasury Bill Pricing in the Spot and Futures Markets, Review of Economics and Statistics, 61 (November): 513-520.

Reprinted in Interest Rate Futures: Concepts and Issues, Robert Dame, Inc. 1981.

Cornell, B. and D. Capozza, 1979, A Variance Forecasting Test of the Option Pricing Model, Financial Review, 7: 381-390.

Cornell, B., 1979, Relative Price Changes and Deviations from Purchasing Power Parity, Journal of Banking and Finance, 3: 263-279.

Cornell, B., 1979, A Note on Capital Asset Pricing and the Theory of Indexed Bonds, Southern Journal of Economics, 45: 1239-1247.

Cornell, B., 1979, Do Money Supply Announcements Affect Short-term Interest Rates, Journal of Money, Credit and Banking, 11 (February): 80-86.

Cornell, B., 1978, Risk, Currency Substitution and the Exchange Rate, Proceedings of the Fall 1978 Conference, Federal Reserve Bank of San Francisco.

Cornell, B., 1978, Determinants of the Bid-Ask Spread on Forward Foreign Exchange Contracts Under Floating Exchange Rates, Journal of International Business Studies,

9 (Fall): 33-41.

Cornell, B., 1978, Using the Option Pricing Model to Measure the Uncertainty Producing Effect of Major Announcements, Financial Management, 7 (Spring): 54-59.

Cornell, B., 1978, Price as a Signal of Quality: Some Additional Experimental Results, Economic Inquiry, 16 (April): 302-309.

Cornell, B. and J.K. Dietrich, 1978, Mean Absolute Deviation versus Least-Square Regression Estimation of Beta Coefficients, Journal of Financial and Quantitative Analysis,

13 (March): 123-131.

Cornell, B., 1978, Monetary Policy, Inflation Forecasting and the Term Structure of Interest Rates, Journal of Finance, 33 (March): 117-127.

Cornell, B. and J.K. Dietrich, 1978, The Efficiency of the Market for Foreign Exchange Under Floating Exchange Rates, Review of Economics and Statistics, 60 (February):


Cornell, B., 1978, Option Pricing in Bear and Bull Markets, Journal of Portfolio Management, 4 (Summer): 30-32.

Cornell, B., 1977, Spot Rates, Forward Rates, and Exchange Market Efficiency, Journal of Financial Economics, 5 (August): 55-65.

Reprinted in Frontiers in International Financial Management, Ed. D.R. Lessard, John Wiley, 1979.

Reprinted in International Finance: Concepts and Issues, Eds., R.W. Kalb and G.D Gay, Robert F. Dame, 1982.

Cornell, B., 1977, Measuring the Informational Content of Consumer Price Announcements, Nebraska Journal of Economics and Business, 16 (Summer): 57-64.

Cornell, B., 1977, Which Inflation Rate Affects Interest Rates, Business Economics,

12 (May): 22-25.

Reprinted in Certified Financial Analysts Digest, 1977.

Cornell, B., 1977, Are Deep Discount Convertibles Underpriced?, Journal of Portfolio Management, 3 (Spring): 55-57.

Cornell, B., 1977, Using the Goldsmith-Nagan Survey to Estimate the Liquidity Premium, Journal of Economics and Business, 2 (February): 148-151.

Cornell, B., 1976, Managing Money in a Competitive Securities Market, Arizona Review,

25 (September): 1-5.

Cornell, B., 1976, Asset Pricing Under Uncertain Inflation: A Note on the Work of Long and Roll, Intermountain Economic Review, 7 (Spring): 85-91.

Cornell, B., 1976, The Arizona Retirement System 1956-1975: An Investment Analysis, 25 (March): 1-5.

Book Reviews and Discussion Comments

Cornell, B., 1988, Statistical Analysis of Price and Basis Behavior: October 12-26, 1987, in The Stock Market: Bubbles, Volatility, and Chaos, Eds., E.D. Dwyer and R.A. Hafer, Kluwer Academic Publishers, 1990.

Cornell, B., 1985, Review of Futures Markets, edited by Manfred F. Streit, Journal of Monetary Economics, 16 (July): 133-135.

Cornell, B., 1985, Review of Exchange Rates and International Macroeconomics, edited by Jacob A. Frenkel, Journal of International Money and Finance, 4: 212-214.

Cornell, B., 1983, Review of Exchange Rate Policy, by Ray A. Batchelor and Geoffrey Wood, Journal of Economic Literature, 21: 1027-1029.

Working Papers

Cornell, B. and S.C. Cheng, 1995, Using the DCF Method to Estimate the Cross-Sectional Variation of Expected Returns.

Cornell, B., 1984, Testing the Tax Timing Option Theory: A New Approach.

Cornell, B. and J.K. Dietrich, 1979, Determinants of Corporate Capital Structure: An Empirical Analysis.

Awards and Honors

Cited as one of the ten most prolific research authors in the field of finance, in Most Frequent Contributors To The Finance Literature, by Jean Louis Heck and Phillip L. Cooley,

Financial Management, Autumn, 1980.

Financial Management Association Prize for Applied Research: 1987

Institute for Quantitative Research in Finance, Research Grant: 1984

Center for the Study of Futures Markets, Research Grant: 1983

Center for the Study of Futures Markets, Research Grant: 1981

Chicago Mercantile Exchange, Research Grant: 1979

Phi Beta Kappa, Stanford University, 1970

Graduated with distinction, Stanford University, 1970