Craig W. Holden

Last updated
Craig W. Holden
Died2021
Bloomington, IN
Nationality American
Academic career
Institution Indiana University Bloomington
Alma mater University of California, Los Angeles
Doctoral
advisor		 Michael Brennan

Craig Woodworth Holden was the finance department chair and Gregg T. and Judith A. Summerville Chair of Finance [1] at the Kelley School of Business at Indiana University. His research focused on market microstructure. He was secretary-treasurer of the Society for Financial Studies. [2] He was an associate editor of the Journal of Financial Markets. [3] His M.B.A. and Ph.D. were from the Anderson School of Management at UCLA. [4] He received the Fama-DFA Prize for the second best paper in capital markets published in the Journal of Financial Economics in 2009, [5] the Spangler-IQAM Award for the best investments paper published in the Review of Finance in 2017-2018, [6] and the Philip Brown Prize for the best paper published in 2017 using SIRCA data. His research has been cited more than 4,300 times. [7] He has written two books on financial modeling in Excel: Excel Modeling in Investments and Excel Modeling in Corporate Finance. [8] He has chaired 22 dissertations, been a member or chair of 62 dissertations, [9] and serves on the program committees of the Western Finance Association [10] and European Finance Association. [11]

Contents

Research

Holden's research has appeared in leading journals, including the Journal of Finance , [12] [13] Journal of Financial Economics , [14] Review of Financial Studies , [15] Review of Finance , [16] Journal of Business , [17] Journal of Financial Markets, [18] [19] Review of Corporate Finance Studies, [20] Critical Finance Review, [21] Journal of Corporate Finance, [22] Journal of Financial Intermediation, [23] Journal of Empirical Finance, [24] [25] Foundations and Trends in Finance, [26] Financial Analysts Journal , [27] Journal of Business Finance and Accounting, [28] Mathematical Finance, [29] and Management Science. [30] His working papers are posted on the Social Science Research Network. [31] [32] [33] [34] His research has received attention in the Financial Times . [35] and other media. He is best known for the following publications:

Teaching

Holden created three courses in market microstructure at Indiana University:

Holden's book, Excel Modeling in Investments (Fifth Edition) teaches students how to build investments models in Excel. It covers fixed income, portfolio management, security analysis, asset pricing, international investments, options, futures, and other derivatives. [39] [40] His book, Excel Modeling in Corporate Finance (Fifth Edition) teaches students how to build corporate finance models in Excel. It covers time value of money, firm and project valuation, capital structure, capital budgeting, financial planning, and real options. [41] His Excel modeling books have been translated into Chinese and Italian. [42] [43] [44]

He has published papers about teaching in FEN Educator [45] and the Journal of Financial Education. [46]

Related Research Articles

Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade". Its concern is thus the interrelation of financial variables, such as share prices, interest rates and exchange rates, as opposed to those concerning the real economy. It has two main areas of focus: asset pricing and corporate finance; the first being the perspective of providers of capital, i.e. investors, and the second of users of capital. It thus provides the theoretical underpinning for much of finance.

<span class="mw-page-title-main">Capital asset pricing model</span> Model used in finance

In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio.

<span class="mw-page-title-main">Efficient-market hypothesis</span> Economic theory that asset prices fully reflect all available information

The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.

In corporate finance, capital structure refers to the mix of various forms of external funds, known as capital, used to finance a business. It consists of shareholders' equity, debt, and preferred stock, and is detailed in the company's balance sheet. The larger the debt component is in relation to the other sources of capital, the greater financial leverage the firm is said to have. Too much debt can increase the risk of the company and reduce its financial flexibility, which at some point creates concern among investors and results in a greater cost of capital. Company management is responsible for establishing a capital structure for the corporation that makes optimal use of financial leverage and holds the cost of capital as low as possible.

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to the risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system. It can be defined as "financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries". It refers to the risks imposed by interlinkages and interdependencies in a system or market, where the failure of a single entity or cluster of entities can cause a cascading failure, which could potentially bankrupt or bring down the entire system or market. It is also sometimes erroneously referred to as "systematic risk".

A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, mergers & acquisitions, or to expand business. The term is usually applied to longer-term debt instruments, with maturity of at least one year. Corporate debt instruments with maturity shorter than one year are referred to as commercial paper.

Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.

Financial modeling is the task of building an abstract representation of a real world financial situation. This is a mathematical model designed to represent the performance of a financial asset or portfolio of a business, project, or any other investment.

A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth but do not necessarily result in significant changes in the real economy.

Maureen Patricia O'Hara is an American financial economist. O'Hara is the Robert W. Purcell Professor of Management, a professor of finance, and acting director in Graduate Studies at the Samuel Curtis Johnson Graduate School of Management at Cornell University. She has won numerous awards and grants for her research, served on numerous boards, served as an editor for numerous finance journals, and chaired the dissertations of numerous students. In addition, she is well known as the author of Market Microstructure Theory. She was the first female president of the American Finance Association. She has been awarded honorary doctorates from three European universities.

Market microstructure is a branch of finance concerned with the details of how exchange occurs in markets. While the theory of market microstructure applies to the exchange of real or financial assets, more evidence is available on the microstructure of financial markets due to the availability of transactions data from them. The major thrust of market microstructure research examines the ways in which the working processes of a market affect determinants of transaction costs, prices, quotes, volume, and trading behavior. In the twenty-first century, innovations have allowed an expansion into the study of the impact of market microstructure on the incidence of market abuse, such as insider trading, market manipulation and broker-client conflict.

The Journal of Financial and Quantitative Analysis is a peer-reviewed academic journal published eight times a year by the Michael G. Foster School of Business at the University of Washington in cooperation with the W. P. Carey School of Business at Arizona State University, Boston CollegeCarroll School of Management, HEC Paris, the Purdue UniversityKrannert School of Management, and the University of Illinois at Urbana-ChampaignGies College of Business. It publishes theoretical and empirical research in financial economics. Topics include corporate finance, investments, capital markets, securities markets, and quantitative methods of particular relevance to financial researchers.

David Hirshleifer is an American economist who is currently a Distinguished Professor of Finance and Economics at the University of California, Irvine, where he also holds the Merage Chair in Business Growth. From 2018 to 2019, he served as President of the American Finance Association, and is an associate at the NBER. Previously, he was a professor at UCLA, the University of Michigan, and Ohio State University. His research is mostly related to behavioral finance and informational cascades. In 2007, he was listed as one of the 100 most-cited economists in the world by Web of Science.

In finance, momentum is the empirically observed tendency for rising asset prices or securities return to rise further, and falling prices to keep falling. For instance, it was shown that stocks with strong past performance continue to outperform stocks with poor past performance in the next period with an average excess return of about 1% per month. Momentum signals have been used by financial analysts in their buy and sell recommendations.

Michael J. Brennan is emeritus professor of finance at the UCLA Anderson School of Management. Brennan co-designed the Brennan-Schwartz interest rate model and was a pioneer of real options theory. His writings on real options and asset pricing, corporate finance, derivative securities, market microstructure, the role of information in capital markets, and risk management have been published extensively.

Campbell Russell "Cam" Harvey is a Canadian economist, known for his work on asset allocation with changing risk and risk premiums and the problem of separating luck from skill in investment management. He is currently the J. Paul Sticht Professor of International Business at Duke University's Fuqua School of Business in Durham, North Carolina, as well as a research associate with the National Bureau of Economic Research in Cambridge, Massachusetts. He is also a research associate with the Institute of International Integration Studies at Trinity College Dublin and a visiting researcher at the University of Oxford. He served as the 2016 president of the American Finance Association.

Söhnke Matthias Bartram is a professor in the Department of Finance at Warwick Business School (WBS). He is also a research fellow in the Financial Economics programme and the International Macroeconomics and Finance programme of the Centre for Economic Policy Research (CEPR), a charter member of Risk Who's Who, and a member of an international think tank for policy advice to the German government. Prior to joining the University of Warwick, he held faculty positions at Lancaster University and Maastricht University and worked for several years in quantitative investment management at State Street Global Advisors as Head of the London Advanced Research Center.

Avanidhar Subrahmanyam is a professor and named chair at the University of California Los Angeles. He is an expert in stock market activity and behavioral finance, and has published a number of papers on financial markets.

Factor investing is an investment approach that involves targeting quantifiable firm characteristics or “factors” that can explain differences in stock returns. Security characteristics that may be included in a factor-based approach include size, low-volatility, value, momentum, asset growth, profitability, leverage, term and carry.

<span class="mw-page-title-main">Orly Sade</span> Israeli professor of financial economics

Orly Sade is a financial economist based out of the Hebrew University of Jerusalem who has been noted for her research regarding behavioral and experimental finance and crowdfunding platforms. Sade is the Israel Associate Professor of Finance at the Department of Finance, School of Business Administration at the Hebrew University of Jerusalem. She is the first female professor in the field of finance at Hebrew University.

References

  1. ↑ "Faculty Profile". Kelley School of Business. Retrieved 2020-06-22.
  2. ↑ "Society for Financial Studies" . Retrieved 21 November 2014.
  3. ↑ Journal of Financial Markets Editorial Board . Retrieved 21 November 2014.{{cite book}}: |work= ignored (help)
  4. ↑ "Dissertations UCLA Anderson School of Management". UCLA Anderson School of Management. Archived from the original on 29 November 2014. Retrieved 21 November 2014.
  5. ↑ "Fama-DFA Prizes for the Best Papers Published in the Journal of Financial Economics in the Areas of Capital Markets and Asset Pricing". jfe.rochester.edu. 2012. Archived from the original on September 27, 2011. Retrieved March 20, 2013.Do liquidity measures measure liquidity?, Volume 92, Issue 2, May 2009, Pages 153-181
  6. ↑ "Awards – Review of Finance". revfin.org. Retrieved 2019-07-10.
  7. ↑ "Craig W. Holden Google Scholar Citations". Google Scholar. Retrieved 21 November 2014.
  8. ↑ "Information about Holden Excel modeling books" . Retrieved 24 November 2014.
  9. ↑ "Doctoral Program Placements, Including Chair". Kelley School of Business Doctoral Program Placements. Retrieved 21 November 2014.
  10. ↑ "Western Finance Association - 2016 Program" (PDF).
  11. ↑ "Program Committee and Track Chairs | European Finance Association Conference". www.efa2016.org. Retrieved 2017-01-20.
  12. ↑ Holden, Craig W.; Jacobsen, Stacey (2014). "Liquidity Measurement Problems in Fast, Competitive Markets: Expensive and Cheap Solutions". Journal of Finance. 69 (4): 1747–1785. doi:10.1111/jofi.12127. hdl: 10.1111/jofi.12127 .
  13. ↑ Holden, Craig W.; Avanidhar Subrahmanyam (1992). "Long-Lived Private Information and Imperfect Competition". Journal of Finance. 47: 247–270. doi:10.1111/j.1540-6261.1992.tb03985.x.
  14. ↑ Goyenko, Ruslan; Craig W. Holden; Charles A. Trzcinka (2009). "Do Liquidity Measures Measure Liquidity?". Journal of Financial Economics. 92 (2): 151–181. doi:10.1016/j.jfineco.2008.06.002.
  15. ↑ Holden, Craig W.; Avanidhar Subrahmanyam (1996). "Risk Aversion, Liquidity, and Endogenous Short Horizons". Review of Financial Studies. 9 (2): 691–722. doi:10.1093/rfs/9.2.691.
  16. ↑ Fong, Kingsley Y. L.; Holden, Craig W.; Trzcinka, Charles A. (2017). "What Are the Best Liquidity Proxies for Global Research?". Review of Finance. 21 (4): 1355–1401. doi: 10.1093/rof/rfx003 .
  17. ↑ Holden, Craig W.; Avanidhar Subrahmanyam (2002). "News Events, Information Acquisition, and Stock Price Behavior". Journal of Business. 75 (1): 1–32. CiteSeerX   10.1.1.34.4426 . doi:10.1086/323503. JSTOR   10.1086/323503. S2CID   153412427.
  18. ↑ Holden, Craig W. (2009). "New Low-Frequency Spread Measures". Journal of Financial Markets. 12 (4): 778–813. doi:10.1016/j.finmar.2009.07.003.
  19. ↑ Battalio, Robert; Craig W. Holden (2001). "A Simple Model of Payment For Order Flow, Internalization, and Total Trading Costs". Journal of Financial Markets. 4: 33–71. doi:10.1016/s1386-4181(00)00015-x.
  20. ↑ Holden, Craig W. (2017-03-01). "Do Acceptance and Publication Times Differ Across Finance Journals?". Review of Corporate Finance Studies. 6: 102–126. doi:10.1093/rcfs/cfx009. ISSN   2046-9128.
  21. ↑ Holden, Craig W.; Nam, Jayoung (2019). "Do the LCAPM Predictions Hold? Replication and Extension Evidence". Critical Finance Review. 8 (1–2): 29–71. doi:10.1561/104.00000071. S2CID   197771549. SSRN   2848373.
  22. ↑ Holden, Craig W.; Kim, Daniel S. (2017-06-01). "Performance share plans: Valuation and empirical tests". Journal of Corporate Finance. 44: 99–125. doi:10.1016/j.jcorpfin.2017.03.004.
  23. ↑ Chakravarty, Sugato; Craig W. Holden (1995). "An Integrated Model Of Market And Limit Orders". Journal of Financial Intermediation. 4 (3): 213–241. doi:10.1006/jfin.1995.1010.
  24. ↑ Holden, Craig W.; Leonard L. Lundstrum (2009). "Costly Trading, Managerial Myopia, and Long-Term Investment". Journal of Empirical Finance. 16: 126–135. doi:10.1016/j.jempfin.2008.05.001.
  25. ↑ Ellul, Andrew; Craig W. Holden; Pankaj Jain; Robert Jennings (2007). "Order Dynamics: Recent Evidence from the NYSE". Journal of Empirical Finance. 14 (5): 636–661. doi:10.1016/j.jempfin.2007.02.002.
  26. ↑ Holden, Craig W.; Stacey Jacobsen; Avanidhar Subrahmanyam (2014). "The Empirical Analysis of Liquidity". Foundations and Trends in Finance. 8 (4): 263–365. doi: 10.1561/0500000044 .
  27. ↑ Holden, Craig W. (1991). "Index Arbitrage and The Media". Financial Analysts Journal. 47 (5): 8–9. JSTOR   4479464.
  28. ↑ Holden, Craig W.; Pamela S. Stuerke (2008). "The Frequency of Financial Analysts' Forecast Revisions: Theory and Evidence about Determinants of Demand for Predisclosure Information". Journal of Business Finance and Accounting. 35 (7–8): 860–888. doi:10.1111/j.1468-5957.2008.02108.x. S2CID   154641724.
  29. ↑ Bagnoli, Mark; S. Viswanathan; Craig W. Holden (2001). "On The Existence of Linear Equilibria in Models of Market Making". Mathematical Finance. 11: 1–31. doi:10.1111/1467-9965.00106. S2CID   33081810.
  30. ↑ Bhattacharya, Utpal; Craig W. Holden; Stacey Jacobsen (2012). "Penny Wise, Dollar Foolish: Buy-Sell Imbalances On and Around Round Numbers". Management Science. 15 (2): 413–431. doi:10.1287/mnsc.1110.1364. S2CID   13044134.
  31. ↑ "Craig W. Holden's SSRN Author Page".
  32. ↑ Holden, Craig W. (2015-04-28). "A Theory of Optimal Institutional Trading". SSRN   2470280.{{cite journal}}: Cite journal requires |journal= (help)
  33. ↑ Fong, Kingsley; Holden, Craig; Tobek, Ondrej (2017-07-24). "Are Volatility Over Volume Liquidity Proxies Useful For Global Or US Research?". SSRN   2989367.{{cite journal}}: Cite journal requires |journal= (help)
  34. ↑ Holden, Craig W.; Mao, Yifei; Nam, Jayoung (2018-06-10). "Price Discovery in the Stock, OTC Corporate Bond, and NYSE Corporate Bond Markets". Rochester, NY. SSRN   3193653.{{cite journal}}: Cite journal requires |journal= (help)
  35. ↑ Authers, John. "Selling Shares Like Toothpaste on 1/28/2009". Financial Times. Retrieved 21 November 2014.
  36. ↑ "F335 Security Trading and Market Making". Kelley School of Business Undergraduate Program Course Descriptions. Archived from the original on 7 October 2014. Retrieved 21 November 2014.
  37. ↑ "F535 Security Trading and Market Making". Kelley School of Business MBA Program Course Descriptions. Archived from the original on 5 March 2014. Retrieved 21 November 2014.
  38. ↑ "F635 Market Microstructure". Kelley School of Business Doctoral Program Course Descriptions. Archived from the original on 11 October 2014. Retrieved 21 November 2014.
  39. ↑ "Holden, Excel Modeling in Investments, 5th Edition". www.pearsonhighered.com. Retrieved 2017-01-20.
  40. ↑ "Online resources for Holden Excel Modeling books". Pearson. Retrieved 24 November 2014.
  41. ↑ "Holden, Excel Modeling in Corporate Finance, 5th Edition". www.pearsonhighered.com. Retrieved 2017-01-20.
  42. ↑ Excel Modeling and Estimation in Investments, Third Edition, Chinese Simplified. 机械工业出版社. 2010. ISBN   978-7-111-30587-3 . Retrieved 24 November 2014.
  43. ↑ "Excel Modeling and Estimation in the Fundamentals of Corporate Finance, Third Edition, Chinese Simplified". lib.gdufe.edu.cn. Retrieved 2017-01-20.
  44. ↑ Holden, Craig W. (2007). Esercizi di finanza aziendale con Excel. Pearson. ISBN   978-8871923529 . Retrieved 24 November 2014.
  45. ↑ Holden, Craig W.; Kent L. Womack (2000-09-12). "Spreadsheet Modeling in Finance and Investment Courses". SSRN   241708.
  46. ↑ Holden, Craig W. (1998). "Save Diversification From The CAPM Controversy! An Excel-based Interactive Optimizer To Teach Diversification, Exploiting Mispriced Assets, and Asset Classes". Journal of Financial Education. 24: 49–57. JSTOR   41948280.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.