Dr. Mark Flannery
The work of Bank of America Eminent Scholar Dr. Mark Flannery was recognized by The Journal of Financial Economics.

Flannery’s work recognized by prestigious finance journal

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GAINESVILLE, Fla. – A paper co-authored by Bank of America Eminent Scholar Chair Dr. Mark Flannery and former Warrington College of Business Administration Ph.D. student Kristine Watson Hankins, was awarded second place in the 2012 Jensen Prizes for the Best Papers Published in the Journal of Financial Economics in the Areas of Corporate Finance and Organizations.

Joining Dr. Flannery and Dr. Watson Hankins (Ph.D. Finance, ’06), now an Assistant Professor of Finance at the Gatton College of Business & Economics at the University of Kentucky, as co-authors were Dr. Michael Faulkender, an Associate Professor of Finance at the Robert H. Smith School of Business at the University of Maryland, and Dr. Jason M. Smith, an Assistant Professor of Finance at the Jon M. Huntsman School of Business at Utah State University.

“My colleagues and I are delighted to be recognized with this award from the prestigious Journal of Financial Economics,” Dr. Flannery said. “This is a good example of the cooperative research we strive to produce with our doctoral students at the Warrington College of Business Administration.”

The authors were recognized for their work, “Cash flows and leverage adjustments,” which appeared in the Journal’s March 2012 issue. Building upon recent research analyzing the impact of transaction costs on firm leverage adjustments and how cashflow realizations can provide opportunities to adjust leverage at relatively low marginal cost, the authors found that a firm’s cashflow features affect not only the leverage target, but also the speed of adjustment toward that target. The authors also examine how both financial constraints and market timing variables affect adjustments toward a leverage target.

Dr. Flannery teaches corporate finance and financial management of financial institutions at the graduate level and his research has explored government regulation of the financial sector. In April 2012, Dr. Flannery was appointed to the Federal Reserve Board’s Model Validation Council, which provides the Federal Reserve with expert and independent advice on its process to rigorously assess the models used in stress tests on banking institutions. He has also served as a Senior Advisor to the Department of Treasury’s Office of Financial Research, Resident Scholar at the Federal Reserve Bank of New York and as an Advisory Committee member on the Federal Reserve Bank of Atlanta’s Center for Financial Innovation and Financial Stability among other appointments.

Dr. Flannery received a Bachelor of Arts from Princeton University in 1972, and earned a Master of Arts in Economics (1973), an M. Phil in Economics (1974) and a Ph.D. in Economics (1978) all from Yale University.