Joel Stern

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Joel M. Stern was Chairman and Chief Executive Officer of Stern Value Management, formerly Stern Stewart & Co, and the creator and developer of economic value added (EVA). He was a recognised authority on financial economics, corporate performance measurement, corporate valuation and incentive compensation and was a pioneer and leading advocate of the concept of shareholder value. [1] He was also active in academia, and in the media. [2]

Economic value added

In corporate finance, as part of fundamental analysis, economic value added (EVA) is an estimate of a firm's economic profit, or the value created in excess of the required return of the company's shareholders. EVA is the net profit less the capital charge ($) for raising the firm's capital. The idea is that value is created when the return on the firm's economic capital employed exceeds the cost of that capital. This amount can be determined by making adjustments to GAAP accounting. There are potentially over 160 adjustments but in practice only several key ones are made, depending on the company and its industry. EVA is a service mark of Stern Value Management.

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 prices, interest rates and shares, 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.

Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to effect a sale of a business. In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, establish a formula for estimating the value of partners' ownership interest for buy-sell agreements, and many other business and legal purposes such as in shareholders deadlock, divorce litigation and estate contest. In some cases, the court would appoint a forensic accountant as the joint expert doing the business valuation.

After graduating from the University of Chicago's graduate program in Finance and Economics (MBA, Chicago-Booth, 1964), he joined the Chase Manhattan Bank where he ultimately ran Chase Financial Policy, their global consulting operation. During this time, he developed EVA. In 1982, after 18 years at Chase Manhattan, he started Stern Stewart.

University of Chicago Private research university in Chicago, Illinois, United States

The University of Chicago is a private research university in Chicago, Illinois. Founded in 1890, the school is located on a 217-acre campus in Chicago's Hyde Park neighborhood, near Lake Michigan. The University of Chicago holds top-ten positions in various national and international rankings.

A consulting or consultancy firm is a business of one or more experts (consultants) that provides professional feedback to an individual or an organization for a fee. The types of firms vary, such as technology and advertising firms.

He is the author of two books and the co-author of six others – all in financial economics. He is the executive editor of the Journal of Applied Corporate Finance [3] and is a member of the Editorial Board of the Journal of Financial Management and Analysis .

The Journal of Applied Corporate Finance is a quarterly academic journal covering research in corporate finance, including risk management, corporate strategy, corporate governance, and capital structure. It also features roundtable discussions among corporate executives and academics on topics such as integrity in financial reporting. It was established in 1988 and is published by Wiley-Blackwell. The editor-in-chief is Donald H. Chew, Jr. From 2004 to 2013, the journal was owned by Morgan Stanley, but is now owned and operated by its editors and by Carl Ferenbach, a retired private equity investor.

He taught at or has served on the adjunct faculties of several graduate business schools in America and abroad, including University of Maryland’s Robert H. Smith School of Business, Carnegie Mellon University's Tepper School of Business, [4] The University of Chicago (Chicago-Booth), the University of Cape Town, [5] Singapore Management University, [6] Universidad Francisco Marroquín, Universidad EAFIT, and the Lauder Business School. [7] He is also part of the Executive Advisory Committee of the William E. Simon Graduate School of Business Administration at the University of Rochester and is a member of the University of Chicago's Council on the Graduate School of Business. [8]

A business school is a university-level institution that confers degrees in business administration or management. According to Kaplan business schools are "educational institutions that specialize in teaching courses and programs related to business and/or management". Such a school can also be known as school of management, school of business administration, or colloquially b-school or biz school. A business school teaches topics such as accounting, administration, strategy, economics, entrepreneurship, finance, human resource management, management science, management information systems, international business, logistics, marketing, organizational psychology, organizational behavior, public relations, research methods and real estate among others.

The Tepper School of Business is the business school of Carnegie Mellon University. It is located in the university’s 140-acre (0.57 km2) campus in Pittsburgh, Pennsylvania, US.

University of Cape Town Graduate School of Business

The Graduate School of Business (GSB) is the business school of the University of Cape Town (UCT), South Africa's oldest university.

His media involvements include being the financial policy columnist for the London Sunday Times [9] [10] and The Financial Times . He has also written for the Wall Street Journal editorial page, [11] the New York Times and Fortune amongst others. He also has appeared on national business news programs, including Bloomberg TV’s Taking Stock with Pimm Fox , [12] CNBC Asia’s Squawk Box [13] [14] , CNN’s Moneyline and Wall Street Week , where he was a rotating panelist for 17 years.

<i>Financial Times</i> Daily broadsheet business newspaper owned by Nikkei Inc. and based in London

The Financial Times (FT) is an English-language international daily newspaper owned by Nikkei Inc, headquartered in London, with a special emphasis on business and economic news.

<i>Fortune</i> (magazine) American multinational business magazine

Fortune is an American multinational business magazine headquartered in New York City, United States. It is published by Fortune Media Group Holdings, owned by Thai businessman Chatchaval Jiaravanon. The publication was founded by Henry Luce in 1929. The magazine competes with Forbes and Bloomberg Businessweek in the national business magazine category and distinguishes itself with long, in-depth feature articles. The magazine regularly publishes ranked lists, including the Fortune 500, a ranking of companies by revenue that it has published annually since 1955.

CNBC Asia television station

CNBC Asia is a Southeast Asian pay television business channel in Asia. A subsidiary Of NBCUniversal, it is the Asian service of the CNBC. Its programmes originate from Singapore, Hong Kong and Sydney.

He died on May 21st, 2019. [15]

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The Wharton School of the University of Pennsylvania is the business school of the University of Pennsylvania, a private Ivy League university in Philadelphia, Pennsylvania. Established in 1881 through a donation from Joseph Wharton, the Wharton School is the world's oldest collegiate school of business. Furthermore, Wharton is the business school that has produced the highest number of billionaires in the US.

Stanford Graduate School of Business professional school of Stanford University, in Stanford, California

The Stanford Graduate School of Business is the graduate business school of Stanford University in Stanford, California.

University of Chicago Booth School of Business graduate business school located in Chicago, Illinois, at the University of Chicago, formerly known as the University of Chicago Graduate School of Business

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Universidad Francisco Marroquín university in Guatemala

Francisco Marroquín University, also known by the abbreviation UFM, is a private, secular university in Guatemala City, Guatemala. It describes its mission as "to teach and disseminate the ethical, legal, and overall economic principles of a society of free and responsible persons."

The New York University Leonard N. Stern School of Business is the business school of New York University. It is also a founding member of the Association to Advance Collegiate Schools of Business. Established as the School of Commerce, Accounts and Finance in 1900, the school changed its name in 1988 in honor of Leonard N. Stern, an alumnus and benefactor of the school. One of the most prestigious business schools in the world, it is also one of the oldest. The school is located on NYU's Greenwich Village campus next to the Courant Institute of Mathematical Sciences. Its alumni include some of the wealthiest in the world, as well as top business leaders and executives.

David Gilbert Booth is an American businessman and the Executive Chairman of Dimensional Fund Advisors, which he co-founded with Rex Sinquefield.

James E. Schrager is a Clinical Professor of Entrepreneurship and Strategy at the University of Chicago Booth School of Business. He studies the use of strategy to help executives predict outcomes, and has three times won the Emory Williams Award for Teaching Excellence. He was named by BusinessWeek magazine as one of the top twelve U.S. teachers of entrepreneurship.

Robert C. McCormack was United States Deputy Assistant Secretary of Defense for Production Support from 1987 to 1988; Deputy Under Secretary of Defense for Industrial and International Programs from 1988 to 1990; and Assistant Secretary of the Navy from 1990 to 1993.

Joseph D. Piotroski is an American Professor of Accounting at Stanford University's Graduate School of Business and a Senior Fellow at the Asian Bureau of Finance and Economic Research (ABFER). Professor Piotroski was the inaugural Center for Global Business and the Economy Research Fellow at the Stanford GSB. Prior to joining the faculty at Stanford in 2007, Professor Piotroski was an Associate Professor of Accounting at the University of Chicago Booth School of Business . 

George M. Constantinides is a financial economist, known for his work on portfolio management, asset pricing, derivatives pricing, and capital markets behavior. He is the Leo Melamed Professor of Finance at the University of Chicago Booth School of Business and a board member of Dimensional Fund Advisors.

Entrepreneurial finance is the study of value and resource allocation, applied to new ventures. It addresses key questions which challenge all entrepreneurs: how much money can and should be raised; when should it be raised and from whom; what is a reasonable valuation of the startup; and how should funding contracts and exit decisions be structured.

Douglas Warren Diamond is the Merton H. Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business. He specializes in the study of financial intermediaries, financial crises, and liquidity. He is a former president of the American Finance Association. and the Western Finance Association, a fellow of the Econometric Society, the American Academy of Arts and Sciences, and the American Finance Association.

Mauro F. Guillén is a Spanish/American sociologist, political economist, management educator, Professor at the Wharton School of the University of Pennsylvania, Director of the Joseph H. Lauder Institute of Management and International Studies, and Director of the Penn Lauder Center for International Business Education and Research (CIBER).

Sally Blount is the Michael L. Nemmers Professor of Strategy at the Kellogg School of Management at Northwestern University, where she is the former dean and alumna. She serves on the boards of directors for Abbott Laboratories, Ulta Beauty, and the Joyce Foundation and on advisory boards for the Aspen Institute, the Chicago Innovation Awards, the Indian School of Business, the Hong Kong University of Science and Technology, and the Fundação Dom Cabral. In 2012, she co-chaired the World Economic Forum’s conference on Latin America.

Walter Baets Belgian author and academic

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Pietro Veronesi is the Chicago Board of Trade Professor of Finance at the University of Chicago, Booth School of Business. He is also a research associate of the National Bureau of Economic Research and a research fellow of the Center for Economic and Policy Research. Additionally, he is a former director of the American Finance Association and co-editor of the Review of Financial Studies.

Afua Osei

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References

  1. "Joel Stern appointed visiting professor at UCT Graduate School of Business". Bizcommunity.com. 2003-02-05. Retrieved 2015-09-05.
  2. "GSB | Chicago: The Distinguished Alumnus Awards: Joel Stern". Chicagobooth.edu. Archived from the original on 2013-01-23. Retrieved 2015-09-05.
  3. "Journal of Applied Corporate Finance – Editorial Board". Journal of Applied Corporate Finance. CiteSeerX   10.1.1.183.2245 . doi:10.1111/(ISSN)1745-6622.
  4. "Joel Stern". Tepper School of Business. Retrieved 2016-03-21.
  5. "Visiting Faculty & Teaching Fellows at the GSB". www.gsb.uct.ac.za. Retrieved 2016-03-21.
  6. "Faculty Profiles | Welcome to Lee Kong Chian School of Business (SMU)". business.smu.edu.sg. Retrieved 2016-03-21.
  7. "Course of Pioneering Financial Expert Professor Joel Stern at Lauder Business School – Lauder Business School". Lauder Business School. 2014-09-30. Retrieved 2016-03-21.
  8. "Council on Chicago Booth | The University of Chicago Booth School of Business". Chicagobooth.edu. Retrieved 2016-03-21.
  9. Stern, Joel (October 3, 1999). "Boardroom controls give conglomerates a boost". The Sunday Times.
  10. Stern, Joel (May 23, 1999). "Why debt really doesn't give more value than equity". The Sunday Times.
  11. "Annual Reports and Stock Prices". pqasb.pqarchiver.com. Retrieved 2016-03-21.
  12. "Stern: The Fiscal Cliff Effect Will Be Negligible". Bloomberg.com. Retrieved 2016-03-21.
  13. Holliday, Katie (2013-06-21). "It May Feel Overdone but Perhaps Sell-Off Is Justified". CNBC. Retrieved 2016-03-21.
  14. "Central Bank Easing Sparks Stock Market-Economy Divide". CNBC. Retrieved 2016-03-21.
  15. "Adiós a Joel M. Stern | Universidad Francisco Marroquín". ufm.edu. 2019-05-22. Retrieved 2019-05-23.