c o n n e c t w i t h r i c e

Finance Excellence

business.rice.edu

2 Jones Graduate school of BusIness

The global economic crisis illustrates the importance of strong financial skills, globalawareness, and high ethical standards. At the Jones Graduate School of Business we excel at developing principled, innovative thought leaders in global communities. We are dedicated to scholarship and teaching at the highest levels.

Finance is one of the key faculty research and teaching areas within the Jones School, with Financial Times continuing to rank our program among the very best in the world for finance—7th in the most recent review. The Jones School finance faculty have contributed greatly to the increase in the school’s research productivity of 67 percent in the top 40 academic and practitioner journals tracked by the Financial Times. Within three years, Jones School faculty research rankings have climbed from 52nd to 20th internationally based on per capita productivity. This increase can be attributed to both internal development and successful recruiting of exceptional junior and senior faculty. With the launch of new programs, we have increased the faculty by more than 20 percent.

The Jones Graduate School of Business is rapidly becoming one of the world’s premier research business schools. Our reputation for excellence is based on support for our current faculty and recruiting of great faculty. Along with important faculty hires in other areas, we continue to grow our strength in finance with the recent additions of Kerry Back as the J. Howard Creekmore Professor of Finance, Jefferson Duarte as the Gerald D. Hines Associate Professor of Real Estate Finance, and Associate Professor Alex Butler. With the arrival of these highly regarded scholars and inspirational teachers, the finance faculty group is in an exceptionally strong position to participate in the Jones School’s recently initiated PhD in Business program, with applications being accepted in finance for fall 2010.

We are also proud to feature the El Paso Corporation Finance Center, a state-of-the-art facility that supports training in the data and analytical tools used by practitioners as well as direct involvement in equity portfolio management and simulation courses in commodities and fixed income management. Rice MBA students have won several awards for their investment analyses and portfolio management with the student managed fund, the M.A. Wright Fund.

At Rice University we are committed to cultivating an environment that encourages intellectual growth, inspires curiosity and the desire to learn, and that drives research. I encourage you to read this brochure, which highlights our internationally recognized finance faculty and provides a few examples of our MBA alumni whose educational experiences at Rice were second to none. The Jones Graduate School has a truly award-winning finance faculty—recognized by their students for excellence in the classroom and by their peers for outstanding contributions to finance research.

Warm regards,

Bill GlickDean H. Joe Nelson III Professor of ManagementJesse H. Jones Graduate School of Business Rice University (713) 348-5928 bill.glick@rice.edu

MESSAGE FROM THE DEAN

1business.rice.eduH O U S T O N

The finance area and its curriculum at the Jones Graduate School of Business reflects the broad interests, experience and expertise of our faculty, ranging from basic financial management to more technical subjects such as options and other derivatives, and financial modeling.

The exceptional accessibility of the finance faculty is also the hallmark of our new doctoral program in finance, debuting in the fall of 2010, which aims to provide students with the knowledge and skills necessary to become first rate scholars in financial economics. The essence of the finance doctoral program is the opportunity to learn from and work with a top quality faculty on a broad range of topics in modern finance.

Our faculty’s research specialties include all major areas, from corporate financial policies to issues in investments and mathematical finance, with their papers consistently published in the top academic journals of the finance profession.

There’s never been a better time to connect with the finance program at Rice.

THE HOUSTON CONNECTION

n Fourth-largest city in the United States. n 2008 No. 1 Best City to Live, Work and Play

according to Kiplinger’s Personal Finance. n Houston boasts more Fortune 500 headquarters

than any other U.S. city except New York. n Of the world’s 100 largest non-U.S.-based corporations,

more than half have operations in Houston. n Foreign governments have established 90 consular

offices in metropolitan Houston, ranking third behind New York and Los Angeles.

Image courtesy of www.VisitHoustonTexas.com

2 Jones Graduate school of BusIness

Finance

3business.rice.eduF A C U L T Y

RicE ADvANTAGE: future BusIness leaders

GEORGE KANATASJesse H. Jones Professor of Finance Finance Area Coordinator kanatas@rice.edu

Education: B.S., The City College of New York; Ph.D., Johns Hopkins University

Joined Rice: 1994

Prior Faculty Appointments: Northwestern University, University of Illinois-Chicago, Indiana University, University of South Florida

Research Interests: Financial intermediation, corporate finance

Dr. Kanatas’ research has dealt with bank capital regulation, deposit insurance, loan contracting under imperfect information, the effects of product market competition on corporate financial policy, and most recently the effects of social culture on economic decisions.

Teaching Interests: Corporate finance, financial strategy, managerial economics, economics of organizations

Dr. Kanatas has taught a variety of courses at the MBA, Executive MBA, and doctoral levels. He currently teaches the managerial economics course in the full-time MBA program, a course on the economics of organizations in the MBA for Professionals program and part of the core finance course in the MBA for Executives program.

strong, principled leadership is critical to any successful entity. We believe in fostering skills and values that enable our students to become tomorrow’s business leaders.

4 Jones Graduate school of BusIness F A C U L T Y

KERRY BACK J. Howard Creekmore Professor of Finance kerry.e.back@rice.edu

Education: B.A. (Economics), Western Kentucky University; Ph.D. (Economics), University of Kentucky

Joined Rice: 2009

Prior Faculty Appointments: Texas A&M, Northwestern University, University of Pennsylvania, Indiana University, Washington University in St. Louis

Research Interests: Market microstructure, asset pricing, real options

Dr. Back’s research focuses on investments and markets. He has studied the efficiency of different market structures and the design of auctions for new issues. He has also studied asset pricing models and the real option approach to corporate investment.

Teaching Interests: Investments, derivative securities, fixed income

Dr. Back has taught a wide variety of courses at different institutions at the MBA, Executive MBA, and doctoral levels. He is the author of two textbooks: A Course in Derivative Securities, and Asset Pricing and Portfolio Choice Theory. He teaches Investments to MBA and MBA for Executives students at Rice.

the Jones school provides a wealth of opportunity to professors as well as students. I am honored to be a part of an institution renowned for its high-quality faculty, students and research.

RicE ADvANTAGE: oPPortunItY

ALEXANDER W. BUTLER Associate Professor of Finance alex.butler@rice.edu

Education: B.A. (Mathematical Economic Analysis), Rice University; M.B. (Finance), Indiana University; Ph.D. (Finance), Indiana University

Joined Rice: 2009

Prior Faculty Appointments: University of Texas at Dallas, University of South Florida, Rice University, Louisiana State University, Indiana University

Research Interests: Financial intermediation, institutions, corporate finance

Dr. Butler’s work integrates research in corporate finance and financial institutions, covering the external financing decisions of firms and governments. He studies how corruption, political and social connections, and institutions affect financial and economic decisions and outcomes.

Teaching Interests: Financial markets, financial institutions, corporate finance, empirical methods in finance

Dr. Butler teaches the core finance courses in the undergraduate and MBA for Executives programs. He previously has taught financial markets and institutions courses at undergraduate, masters and doctoral levels. His approach to teaching involves hands-on learning and incorporates cutting-edge knowledge and research into the curriculum.

RicE ADvANTAGE: collaBoratIon

the Jones school provides excellent opportunities for collaboration with students, other faculty members, the business community here in houston and colleagues around the world.

F A C U L T Y

JEFFERSON DUARTE Gerald D. Hines Associate Professor of Real Estate Financejefferson.duarte@rice.edu

Education: B.Sc. (Civil Engineering), Instituto Tecnologico de Aeronautica (ITA), Brazil; M.B.A. and Ph.D. (Finance), University of Chicago

Joined Rice: 2008

Prior Faculty Appointments: University of Washington

Research Interests: Empirical finance

Dr. Duarte’s current research projects include the effect of trust and regulation in financial markets, residential mortgage credit derivatives, and empirical option pricing. He also has published papers on the term structure of interest rates, the effect of mortgage refinancing on interest-rate volatility, and the relationship between private information and firms’ cost of capital.

Teaching Interests: Real estate finance, empirical and theoretical option pricing, risk management

Dr. Duarte teaches real estate finance at the Jones School. He has also taught PhD and MBA level courses on option pricing models, term structure models, empirical asset pricing and risk management.

RicE ADvANTAGE: research

research is the noblest activity performed by an educator. a successful researcher teaches us about new ideas and previously unknown facts.

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RicE ADvANTAGE: resources

JEFF FLEMING Associate Dean of Academic Affairs Houston Endowment Professor of Finance jfleming@rice.edu

Education: B.A. (Economics and Business), Cornell College; M.B.A. and Ph.D. (Business Administration), Fuqua School of Business, Duke University

Joined Rice: 1993

Research Interests: Derivative securities, role of information in financial markets, financial econometrics, volatility modeling

Dr. Fleming’s research contributions are in evaluating the performance of option pricing models, the role of information and trading activity on the movement of financial asset prices, and the economic importance of volatility modeling on the performance of investment decisions.

Teaching Interests: Futures and Options I

Dr. Fleming teaches an introductory elective on derivative securities to second-year students in the full-time MBA and MBA for Professionals programs. The course emphasizes both theory and applications and relies on basic finance principles to demonstrate the key ideas.

the Jones school provides tremendous support for faculty research. the culture enables you to leverage faculty expertise with the resources that are necessary to conduct top quality research.

F A C U L T Y

RicE ADvANTAGE: thouGht leadershIP

GUSTAVO GRULLON Associate Professor of Finance grullon@rice.edu

Education: B.B.A. (Finance and Economics), University of Puerto Rico, Rio Piedras Campus; Ph.D., Cornell University

Joined Rice: 1998

Research Interests: Empirical corporate finance, empirical asset pricing

Dr. Grullon has done extensive research on corporate payout policy, capital structure and the interaction between product market competition and managerial decisions. His work has provided rational explanations to interesting anomalies documented in the asset pricing literature, such as the closed-end fund discount, the tendency of investors to buy familiar stocks and the apparent ability of managers to forecast future stock returns and interest rates. His current research focuses on how real options affect stock returns, and how cultural factors affect the behavior of firms and investors.

Teaching Interests: Corporate investment policy, corporate financial policy, mergers and acquisitions

Dr. Grullon teaches several courses in corporate finance to second-year MBA students. His goal is to provide students with the financial and economic tools that are essential for making sound investments and financial decisions. His courses combine theory, empirical evidence and practical application.

We are deeply committed to educating and inspiring our students to become thought leaders who are ethical, creative and knowledgeable in all areas of business.

JOHN HUND Visiting Assistant Professor of Finance jhund@rice.edu

Education: (Political Economy), Williams College; Ph.D., University of Texas at Austin

Joined Rice: 2006

Prior Faculty Appointments: Tulane University, University of Texas

Research Interests: Credit risk in corporate finance, emerging markets, risk management methodology, probability of default and corporate governance

Dr. Hund’s research focuses on the estimation of default risk, primarily in emerging markets, as well as the influence of default on corporate decision making.

Teaching Interests: Corporate finance, risk management, international finance, fixed income analytics

Dr. Hund has taught Fixed Income Analytics at the MBA level, Risk Management and Financial Innovation in the undergraduate program, and lectured on asset pricing at the Ph.D. level.

RicE ADvANTAGE: InnovatIon

Innovation is the cornerstone of all growth: economic, cultural, and personal. the Jones school fosters a creative environment where great leaps of thought can lead to such growth.

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F A C U L T Y

SÉBASTIEN MICHENAUD Assistant Professor of Finance michenaud@rice.edu

Education: M.Sc. (Business), HEC Paris, Jouy-en-Josas, France; M.Sc. (Economics), Delta-EHESS, Paris, France; Ph.D. (Finance), HEC Paris

Joined Rice: 2008

Research Interests: Corporate finance, behavioral finance

Dr. Michenaud ‘s research focuses on corporate finance and behavioral finance with a special interest in the effects financial analysts may have on corporate financial decisions.

Teaching Interests: Corporate finance and investments

Dr. Michenaud teaches corporate finance to the MBA for Professionals, examining the many aspects of corporate investment and financing, and how financial policy impacts corporate value.

RicE ADvANTAGE: InvestMent

the Jones school believes in investing in faculty as well as students through opportunities for research and collaboration with colleagues worldwide.

NISHAD KAPADIA Assistant Professor of Finance nishadk@rice.edu

Education: B.S. (Mathematics), St Xavier’s College, Bombay University; M.B.A. (Finance), Indian Institute of Management, Bangalore; Ph.D. (Finance), University of North Carolina at Chapel Hill

Joined Rice: 2007

Research Interests: Empirical asset pricing

Dr. Kapadia’s research is focused on empirical asset pricing. He enjoys working with data to test theoretical predictions. His work includes understanding why individual stocks in the U.S. have become more volatile over time, the effect of skewness (a small probability of extremely high returns) on stock prices and the effects of financial distress.

Teaching Interests: Investments, applied finance, risk management

Dr. Kapadia teaches courses that apply finance theory to real-world situations. These include case studies on risk management, how and why companies manage financial risk, and applied finance, techniques in financial modeling for valuation and portfolio optimization.

RicE ADvANTAGE: teachInG atMosPhere

the atmosphere in the finance group at the Jones school is exceptional – everyone is collegial, friendly and happy to help. this makes it a fantastic place to teach and do research.

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BARBARA OSTDIEK Associate Professor of Finance Academic Director, El Paso Corporation Finance Center ostdiek@rice.edu

Education: B.A. (International Affairs), University of Nebraska – Lincoln; Ph.D. (Finance), Fuqua School of Business, Duke University

Joined Rice: 1994

Research Interests: Volatility dynamics, information flow, market linkages

Dr. Ostdiek’s research interests focus on modeling, measuring, and understanding financial market volatility. This central theme has led her to investigate topics such as volatility timing strategies, rational information flow across markets, and the relationship between information flow, volatility, and trading activity. Her current research focuses on parsimonious covariance estimation using high frequency data, the performance of “naive” volatility timing strategies, and volatility timing by mutual fund managers.

Teaching Interests: Economic environment of business, portfolio management

Dr. Ostdiek teaches an economics course that provides a framework to develop a robust understanding of the major forces at work in the modern economy. She also teaches a portfolio management course that focuses on understanding asset allocation in terms of risk and return and provides students an opportunity to dissect complex “post-modern” portfolio management strategies.

F A C U L T Y

the Jones school and rice offer an excellent academic community. the finance Group thrives on the collegial exchange of ideas and information. this atmosphere fosters excellence – both in research and in the classroom.

RicE ADvANTAGE: coMMunItY

BRADLEY PAYE Assistant Professor of Financebpaye@rice.edu

Education: B.A. (Economics), Washington and Lee University; Ph.D. (Economics), University of California, San Diego

Joined Rice: 2004

Research Interests: Asset pricing, financial econometrics, corporate finance, neurofinance

Dr. Paye’s research focuses on risk and return in asset markets over the business cycle. Several of his papers examine the strength and stability of linkages between current macroeconomic conditions and future stock market returns. Ongoing research explores how humans make financial decisions using recently developed functional Magnetic Resonance Imaging (MRI) techniques.

Teaching Interests: Economics, forecasting

Dr. Paye teaches the core Managerial Economics course across several Jones School programs. Through a combination of lecture and case discussion, he introduces students to key economic ideas including demand analysis, profit maximizing pricing and production decisions, and strategic analysis.

RicE ADvANTAGE: learnInG envIronMent

the Jones school fosters learning through hands-on projects and innovative approaches to teaching. faculty and staff are committed to cultivating an environment that inspires students to learn.

9business.rice.eduF A C U L T Y

YUHANG XING Associate Professor of Financeyxing@rice.edu

Education: B.A., Peking University, Beijing, China; M.S., Northwestern University; Ph.D., Graduate School of Business, Columbia University

Joined Rice: 2003

Research Interests: Empirical asset pricing

Dr. Xing’s research area is empirical asset pricing. In particular, she has worked on topics such as higher moments and the cross-section of expected returns, rational explanations for the value premium, and return predictability across different financial markets.

Teaching Interests: Investments, fixed income management, futures and options

Dr. Xing teaches the elective courses Fixed Income Management and Futures and Options in the full-time MBA program. Both courses combine lectures with hands-on learning through case studies.

RicE ADvANTAGE: eXcellence

Jones school faculty members strive for across-the-board excellence – in teaching, research and mentoring students to become the business leaders we need in the global marketplace.

JAMES P. WESTON Associate Professor of Finance westonj@rice.edu

Education: B.A. (Economics), Trinity College, Hartford, CT; Ph.D. (Economics), University of Virginia

Joined Rice: 2000

Research Interests: Corporate finance, asset pricing, financial econometrics

Dr. Weston’s academic research covers a wide array of corporate finance issues from banking to stock market liquidity, advertising, religious behavior and risk management. Dr. Weston promotes the synergy between corporate finance and asset pricing research techniques. His recent research has uncovered important relationships between stock market returns and corporate managers’ security issuance decisions.

Teaching Interests: Corporate finance, core finance

Dr. Weston’s teaching interests focus mainly on corporate finance and financial institutions. He has taught popular courses on economics and finance in all of the Jones School programs. Dr. Weston currently teaches the flagship first-year MBA core finance course for the full-time program. He seeks to highlight the relevance of course principles to current events in business and to foster a classroom atmosphere conducive to lively discussions.

RicE ADvANTAGE: PrIncIPled

our current economic situation vividly illustrates the importance of principled business leaders. the Jones school cultivates an ethical approach to corporate governance.

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el Paso corPoration Finance center

F i N A N C e C e N T e r

The Jones School’s El Paso Corporation Finance Center (EPFC) brings the markets to the students—and the students to the markets—through integration into the Jones Graduate School finance curriculum, ongoing resources training, and extra-curricular activities such as trading simulations. Under the guidance of director Jill Foote, CFA, PhD, the EPFC is also home to the M.A. Wright Fund, the Jones School’s student-managed investment fund.

“Business school students are here for two years,” comments Foote, who spent 13 years with Goldman Sachs in New York before joining the Rice faculty. “They’re expected to immediately transition into a higher-level job than they had before. A big challenge is to provide a pathway between classroom learning and applying theory, principles and models to live situations. Both the Finance Center and Wright Fund aim to bridge that gap and in the process make the students more knowledgeable and more marketable.”

The EPFC boasts state-of-the-art HP ProLiant Blade Workstations offering industry standard software across financial markets (currency, commodities, energy, equities, fixed income, foreign exchange and real estate). Resources such as Bloomberg, Capital IQ, Factset, and Reuters provide students with access to a wealth of financial data and analytical tools.

In 2009, the EPFC launched a new certificate program in which students undertake an intensive training curriculum to three levels of certification—EPFC Associate, Scholar and Expert. “We’re trying to cover all aspects of the investment world—stocks, bonds, futures, options and swaps, oil markets, commodities markets, foreign exchange and real estate,” says Foote. She and the EFPC staff are also bringing in corporate partners to help develop and deliver training. “We continue to develop partnerships with investment banks and asset management firms to help us stay on the cutting edge of new tools and techniques. In exchange, these firms gain access to our best and brightest students.”

M.A. Wright Fund

Despite a volatile and challenging stock market, the Jones School’s student-run M.A. Wright Fund continues to generate impressive returns. Comprised of students selected through a rigorous application and interview process, the Fund provides Rice MBA students with a hands-on opportunity to learn, develop, and apply effective stock analysis and portfolio management risk and return techniques. The Fund has outperformed its benchmark over the past five years and has supported $10,000 annually in scholarship funds. The program requires a two-semester commitment, with half of the students rolling off each semester to provide continuity of fund management.

WHERE THEORy MEETS PRAcTicE

JILL FOOTE Senior Lecturer in Finance Director, El Paso Corporation Finance Center jfoote@rice.edu

Education: B.A. (Economics and Managerial Studies), Rice University (Magna Cum Laude and Phi Beta Kappa); M.A. (Economics), New York University; Ph.D. (Economics), Fordham University

Joined Rice: 2002

Research Interests: As director of the El Paso Corporation Finance Center, Foote also directs the M.A. Wright Fund, the student-managed investment portfolio, and is faculty advisor to the Rice Finance Club. She has 13 years of experience from Goldman Sachs in New York, where, among other positions, she was vice president, managing a large group involved in strategic initiatives, new business ventures, risk management, and operational, regulatory, and financial audits and risk reviews. She is a Chartered Financial Analyst.

The Wright Fund curriculum is designed for students who hope to pursue a career in securities research or investment management. Foote has noticed a significant improvement in the quality of employment opportunities for Wright Fund participants. “We are placing virtually all of our students in both large and small investment management firms, high-profile investment banks, as well as investment analysis/research and corporate finance positions.”

The Fund runs a diversified balanced portfolio with 30 to 50 stocks and a few fixed income assets. Winner of numerous awards, the Wright Fund hosted the 2009 Texas Investment Portfolio Symposium where a team of Wright Fund students won the Portfolio Manager’s Competition. The M. A. Wright Fund was established in 1995 with a generous gift from the family of Myron “Mike” A. Wright, the former Chairman of then Humble Oil, now ExxonMobil.

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A L U m N i12 Jones Graduate school of BusIness

the Jones school distinguishes itself by its culture of integrity, excellence and camaraderie. My experience there was amazing—the school, its students and faculty, inspire the pursuit of excellence. I found knowledge, mentors and friends among the finance faculty. Professor Jeff fleming’s class provided a thorough understanding of options and derivatives, and Professor George Kanatas provided a true philosophical and economic approach to understanding intrinsic value. Professors Gustavo Grullon and James Weston were always available and willing to engage in thoughtful discussions and enabled me to work with them on enriching research projects; I continually received their mentorship as they encouraged my interest in and passion for finance which ultimately led me to further my studies, continuing on to a Phd in finance.

JORGE A. MURILLO Rice MBA ‘04PhD (Finance and Economics), Columbia UniversityAssociate Goldman Sachs

as head of MBa recruiting for citigroup’s Global commodity business, I am actively involved with hiring students annually from the Jones school. I have found that the skill sets of Jones students are equal to (and usually greater than) than competitor schools. typically the differentiating factor is that Jones students seem to be much less individualistic which is good when I am seeking team players.

GREGORY J BROUSSARD Rice MBA ‘01 Director, Global Commodities Citigroup

A L U m N i 13business.rice.edu

I had not had one business-related class as an engineering undergraduate, so the finance curriculum at the Jones school provided me the means to transition my career from the technical side to the financial side.

FRANCES VALLEJO Rice MBA ‘96Vice President and Treasurer ConocoPhillips 2009 Female Senior Executive of the Year, Houston Hispanic Chamber of Commerce

there’s no doubt my courses at the Jones school provided me with a firm understanding of business and financial concepts. Group case studies and presentations especially helped enhance my communication and interpersonal skills. It’s the ability to listen, articulate problems, and come up with a coherent solution that clients are looking for. But you also need that solid grounding in economic theory to thoughtfully frame problems, identify causes and possible solutions, and then build a consensus to address them.

MICHAEL FRIEzO Rice MBA ‘80 Managing Director, Head of Equity Capital Markets - Americas Deutsche Bank

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ProGraMs

P r O g r A m S

Rice MBA Full TimeThe Rice MBA is earned in an intimate, focused and interactive environment that encourages both independent thinking and strong relationships. As a result, the Rice MBA program meshes with today’s business world and fosters thinking that can shape the future. Rice’s MBA program combines three essential elements: a comprehensive and challenging core curriculum provides a solid foundation of basic business disciplines; a required Action Learning Project, a summer internship, and numerous field-project-oriented electives offer ample opportunities for real-world practice; and a range of specialized electives allows further integration of knowledge and empowers achievement of career objectives. Throughout the Rice experience, students cultivate the ability to articulate problems, explore alternatives and reach solutions. Leadership communications and ethics are integrated across the curriculum with instruction in strategic communications, plus team and individual coaching in oral and written communication.

Rice MBA for ExecutivesThe MBA for Executives program draws experienced managers, professionals and executives from the Houston area. Houston boasts more Fortune 500 company headquarters than any other U.S. city except New York. MBA for Executives students have the opportunity to form lasting relationships with a locally-based faculty and fellow students who are active in the Houston business community. The top-ranked Rice MBA for Executives allows experienced professionals to acquire a valuable education without career interruption and apply classroom knowledge to the workplace immediately. Our rigorous curriculum emphasizes strategic management skills as well as a solid foundation in general business knowledge. Students benefit from outstanding faculty, small classes and opportunities to interact and network with a diverse group of experienced executives. In addition, students have access to our state-of-the-art facility, including the El Paso Corporation Finance Center.

Rice MBA for ProfessionalsThe Rice MBA for Professionals offers a unique opportunity to earn a degree while continuing to work. Students who want to accelerate their careers by enrolling in the Professionals program have the same rigorous learning experience, faculty and facilities as our top-ranked MBA Full-Time and MBA for Executives programs.

Rice PhD in Business The JGS doctoral program is intended for candidates aspiring to become faculty members at business schools in prestigious research universities. Students engage in both coursework and research as part of their doctoral training. Students close to graduation interview for faculty positions, hoping to start their careers as assistant professors at business schools around the world.

A prospective student chooses an area of study when applying to the doctoral program, Marketing in 2009, Finance in 2010, and other anticipated areas of study include Accounting, and

Management. Each of these areas is supervised by a faculty advisor, a member of the faculty specializing in that area.

Rice Business Undergraduate MinorThe Jones School undergraduate business minor enables students to pursue any of the excellent majors on campus while enhancing their education with select business courses. The integrated curriculum emphasizes knowledge in functional business areas that support the development of core skills: communication, globalization, innovation, leadership, team work and technical business knowledge.

Rice MBA Accolades

n Entrepreneurship Recognition: The Princeton Review and Entrepreneur magazine ranked the Jones School as the No. 5 entrepreneurial graduate school in the U.S.

n Best in Texas: The 2009 Economist ranks the Jones School No. 1 in the Southwest and 22nd in the U.S.

n Top 10 in the U.S.: The Rice MBA for Executives ranked 10th in the U.S. for executive salary. Overall, the program was ranked No. 11 in the U.S., according to the Financial Times 2009 Global Executive MBA rankings.

n Top 10 in the World: The Rice MBA Full-Time program ranked 7th worldwide for “Best in Finance.” Overall the program was ranked 25th in the U.S., according to the Financial Times 2009 full-time Global MBA rankings.

n Top in Research (Intellectual Capital): The Financial Times 2009 full-time Global MBA survey ranked the Rice MBA Full-Time program 20th worldwide in faculty research.

n Top in Jobs: Among U.S. schools, the 2008 U.S. News and World Report ranked the Rice MBA Full-Time program 20th for job placements three months after graduation.

n Top in ROI: The Wall Street Journal 2008 Executive MBA survey placed the Rice MBA for Executives at 11th in the U.S. for Return on Investment.

n Diversity Recognition: Expansión 2009 ranked the Rice MBA Full-Time program 14th in the U.S. and 26th globally.

n Rice MBA is a diversity leader across all three programs. Among US News Top 50 MBA Programs in 2009, our Class of 2011 percentage of women (34%) ranks 13th and underrepresented minorities (13%) ranks 9th. Our Class of 2011 underrepresented minority percentages are 25% in the MBA for Professionals program and 24% in the MBA for Executives program. Although peer school data is not available for these programs, Rice MBAs are exceptionally diverse.

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16 Jones Graduate school of BusIness r e S O U r C e S

About Rice UniversityRice University is consistently ranked one of America’s best teaching and research universities. It is distinguished by its:

n Small size: 2,995 undergraduates and 2,013 graduate students;

n Undergraduate student-to-faculty ratio of five to one; n Eighth-largest endowment per student among

American colleges and universities; n Residential college system which builds

close-knit, diverse communities; n Interdisciplinary, collaborative culture which

integrates teaching and research and both undergraduate and graduate work.

About the Jones Graduate School of BusinessThe Jones Graduate School of Business is one of the world’s leading business schools. One of seven academic units of Rice University, it is named in honor of the late Jesse Holman Jones, a prominent Houston business and civic leader. In 1933, Jones was appointed chairman of a government agency, the Reconstruction Finance Corporation (RFC), which invested in loans to banks and businesses, keeping those institutions afloat. By directing the RFC to purchase stock in troubled financial companies, he effectively infused capital back into the markets and brought many of the banks and businesses back to solvency.

The Jones School is distinguished by its:

n Strong foundation in marketing, finance, accounting, strategy and organizational behavior with areas of excellence in energy, entrepreneurship, health care and real estate;

n Nine to one student-to-faculty ratio creates an interactive classroom experience;

n Unsurpassed teaching and path-breaking research; n High-ranking MBA program among the world’s

business schools;

The Behavioral Lab at the Jones School provides researchers with the latest in audio/visual equipment and editing software to conduct both individual projects and focus groups.

James A. Baker III Institute for Public Policy has established itself as one of the leading nonpartisan public policy think tanks in the country. Since its inception in 1993 the Baker Institute has developed a strong track record of achievement based on the work of Rice University faculty and the institute’s endowed fellows and scholars, who do important research on domestic and foreign policy issues with the goal of bridging the gap between the theory and practice of public policy. The institute also collaborates with experts from academia, government, the media, business and nongovernmental and private organizations. Results of research programs and studies with specific recommendations are then presented to those involved in the formulation and execution of public policy.

The Rice Alliance supports entrepreneurs and early-stage technology ventures in Houston and throughout Texas through education, collaboration and research. Since its founding in 1999, the Rice Alliance has assisted in the launch of over 230 technology companies that have raised more than $500 million in early-stage funding. More than 750 companies have benefited from participation and/or mentoring provided though the Rice Alliance Technology Venture Forum programs. The Rice Alliance has hosted over 100 educational programs and venture forums, attended by more than 24,000 individuals. The Rice University Business Plan Competition has become one of the largest and richest intercollegiate graduate-level business plan competitions in the world. In 2009, more than $800,000 in cash and prizes were awarded.

17business.rice.eduP U b L i C A T i O N S

Alexander W. Butler and Hong Wan. 2009. “Stock Market Liquidity and the Long-Run Stock Performance of Debt Issuers.” Review of Financial Studies, forthcoming.

Alexander W. Butler and Jess Cornaggia. 2009. “Does Access to External Finance Improve Productivity? Evidence from a Natural Experiment.” Journal of Financial Economics, forthcoming.

Alexander W. Butler, Larry Fauver and Sandra Mortal. 2009. “Corruption, Political Connections, and Municipal Finance.” Review of Financial Studies, Vol. 22, No. 7, 2673-2705.

Jefferson Duarte and Lance Young. 2009. “Why is PIN Priced?” Journal of Financial Economics 91 119-138.

Jeff Fleming and Bradley Paye. 2009. “High Frequency Returns, Jumps and the Mixture of Normals Hypothesis.” Journal of Econometrics, forthcoming.

Gustavo Grullon, Bradley Paye, Shane Underwood and James Weston. 2009. “Has the Propensity to Pay Out Declined?” Journal of Financial and Quantitative Analysis, forthcoming.

George Alayannis, Brian Rountree and James P. Weston. 2008. “Do Investors Value Smooth Performance?” Journal of Financial Economics 90, 237-251.

Alexander W. Butler. 2008. “Distance Still Matters: Evidence from Municipal Bond Underwriting.” Review of Financial Studies, Vol. 21, No. 2 (April), 763-784.

Jefferson Duarte. 2008. “The Causal Effect of Mortgage Refinancing on Interest Rate Volatility: Empirical Evidence and Theoretical Implications.” Review of Financial Studies 21 1689-1731.

Jefferson Duarte, Xi Han, Jarrad Harford and Lance Young. 2008. “Information Asymmetry, Information Dissemination and the Effect of Regulation FD on the Cost of Capital.” Journal of Financial Economics 8(1) 24-44.

Jeff Fleming, Chris Kirby and Barbara Ostdiek. 2008. “The Specification of GARCH Models with Exogenous Covariates.” Journal of Futures Markets 28:10, 911-934.

Sébastien Michenaud and Bruno Solnik. 2008. “Applying Regret Theory to Investment Choices: Currency Hedging Decisions.” Journal of International Money and Finance 27:5, 677-694.

Yuhang Xing. 2008. “Interpreting the Value Effect Through the Q-theory: An Empirical Investigation” (previously circulated under the title of “Firm Investments and Expected Equity Returns”). Review of Financial Studies 21:4, 1767-1795.

Kerry Back and S. Baruch, 2007. “Working Orders in Limit Order Markets and Floor Exchanges.” Journal of Finance 61, 1589-1621.

Sohnke Bartram, Greg Brown and John Hund. 2007 “Estimating Systemic Risk in the International Banking System.” Journal of Financial Economics.

Geert Bekaert, Min Wei and Yuhang Xing. 2007. “Uncovered Interest Rate Parity and Term Structure.” Journal of International Money and Finance, 26-1038-1069.

Gregory W. Brown and Nishad Kapadia. 2007. “Firm-specific risk and equity market development.” Journal of Financial Economics 358-388.

Jefferson Duarte, Francis A. Longstaff and Fan Yu. 2007. “Risk and Return in Fixed-Income Arbitrage: Nickels in Front of a Steamroller?” Review of Financial Studies 20(3) 769-811.

Andrew Ang, Robert Hodrick, Yuhang Xing and Xiaoyan Zhang. 2006. “The Cross-Section of Volatility and Expected Returns.” Journal of Finance 51:1, 259-299.

Andrew Ang, Joe Chen and Yuhang Xing. 2006. “Downside Risk.” Review of Financial Studies, 19, 1191-1239.

Alexander Butler, Gustavo Grullon and James P. Weston. 2006. “Can managers successfully time the maturity structure of their debt?” Journal of Finance 61, 1731-1758.

Jason Fink, Kristin Fink and James P. Weston. 2006. “Competition on the NASDAQ and the Growth of Electronic Communication Networks.” Journal of Banking and Finance 2537-2559.

Jeff Fleming, Chris Kirby and Barbara Ostdiek. 2006. “Bootstrap tests of multiple inequality restrictions on variance ratios.” Economics Letters 91:3, 343–348.

Jeff Fleming, Chris Kirby and Barbara Ostdiek. 2006 “Stochastic Volatility, Trading Volume, and the Daily Flow of Information.” Journal of Business 79:3, 1551–1590.

Jeff Fleming, Chris Kirby and Barbara Ostdiek. 2006. “Information, trading and volatility: Evidence from weather-sensitive markets.” Journal of Finance 61:6, 2899–2930.

Jeff Fleming and Bradley S. Paye. 2006. “The impact of microstructure noise on the distributional properties of daily stock returns standardized by realized volatility.” Proceedings of the American Statistical Association, 997–1004.

Gustavo Grullon, George Kanatas, and Piyush Kumar. 2006. “The Impact of Capital Structure on Advertising Competition.” Journal of Business 79, 3101-3124.

Qing Li, Maria Vassalou and Yuhang Xing. 2006. “Sector Investment Growth Rates and The Cross-Section of Equity Returns.” Journal of Business, 79, 3, 1637-1665.

Bradley Paye and Allan Timmermann. 2006. “Instability of Return Prediction Models.” The Journal of Empirical Finance 13 (3), 274-315.

Alex Butler, Gustavo Grullon and James P. Weston. 2005. “Stock Market Liquidity and the Cost of Issuing Equity.” Journal of Financial and Quantitative Analysis 40, 331-348.

PUBLicATiONS: selected research PuBlIcatIons

P U b L i C A T i O N S

Alexander Butler, Gustavo Grullon and James P. Weston. 2005. “Can Managers Forecast Aggregate Market Returns?” Journal of Finance, 963-986.

Kerry Back and Schmuel Baruch. 2004. “Information in Securities Markets: Kyle Meets Glosten and Milgrom.” Econometrica 72, 433-465.

Jefferson Duarte. 2004. “Evaluating an Alternative Risk Preference in Affine Term Structure Models.” Review of Financial Studies 17(2) 370-404.

Gustavo Grullon, George Kanatas and James P. Weston. 2004. “Advertising, Breadth of Ownership, and Liquidity.” Review of Financial Studies 17, 439-461.

Gustavo Grullon and Roni Michaely. 2004. “The Information Content of Share Repurchase Programs.” Journal of Finance 59, 651-680.

George Kanatas and Jianping Qi. 2004 “Dividends and Debt with Managerial Agency and Lender Holdup.” Management Science 50, 1249-1260.

Maria Vassalou and Yuhang Xing. 2004. “Default Risk and Equity Returns.” Journal of Finance LIX:2: 831-868.

18 Jones Graduate school of BusIness

Kerry Back nBatterymarch Fellow (1991-1992) nBest Paper Award, Review of Financial StudiesnnDistinguishednFacultynMember,nWashingtonnUniversityninnSt.nLouisnnOutstandingnResearchnAward,nMaysnBusinessnSchooln

Alexander Butler nBest paper in Corporate Finance, Financial Management Association meeting (2009) nFinalist, Brattle Prize (2006) nNominee, Smith-Breeden Prize, Journal of Fianance (2005) nBest paper in Corporate Finance, Western Finance Association meeting (2008)

Jefferson Duarte nBest paper, German Fianance Association Meeting (2009) n Second best paper, Campus for Finance Conference (2006)

Jeff Fleming nFinalist, Smith-Breeden Prize, Journal of Finance (1999, 2002) n Inquire Group Europe Prize, Barcelona Meetings (1996) nElective Course Teaching Excellence Award, Jones Student Association (1999, 2000) nAward for Excellence in Teaching, Jones Graduate School (2000, 2003)

Gustavo Grullon nBest paper in Corporate Finance, Financial Management Association meeting (2009) nFinalist, Brattle Prize (2006) nNominee, Smith-Breeden Prize, Journal of Finance (2006) nAward for Scholarship Excellence, Jones Graduate School (2006)

George Kanatas n Indiana University School of Business Doctoral Student Association Mentorship Award

Barbara Ostdiek nFinalist, Smith-Breeden Prize, Journal of Finance (2002) nAward for Excellence in Teaching, Jones Graduate School (2001, 2004)

James Weston nBest paper in Corporate Finance, Financial Management Association meeting (2009) nAlumni Teaching Award, Jones Graduate School (2007) nOutstanding Faculty Teaching Award, MBA Full-Time Program, Jones Graduate School (2006) nOutstanding Research Award, Jones Graduate School (2006)

Yuhang Xing nLehman Brothers Fellowship for Research Excellence in Finance (2002) nExcellence in Research Award, Jones Graduate School (2007)

HONORS AND AWARDS

H O N O r S A N D A W A r D S 19business.rice.edu

20 Jones Graduate school of BusIness e D i T O r i A L r O L e S

Finance and StochasticsFinancial ManagementThe Financial ReviewJournal of Economic Dynamics and ControlJournal of Economic TheoryJournal of Finance

EDiTORiAL ROLES

Journal of Financial and Quantitative AnalysisJournal of Financial IntermediationJournal of Financial ResearchMathematical Finance Mathematics and Financial EconomicsReview of Financial Studies

Jones Graduate School Finance faculty serve on review boards for many of the best journals in the field.

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Finance Faculty (left to right) Jeff Fleming, Kerry Back, George Kanatas, Yuhang Xing, John Hund, Jill Foote, Alexander Butler, Barbara Ostdiek, Bradley Paye, Sébastien Michenaud, Jefferson Duarte, Gustavo Grullon, Nishad Kapadia, James Weston.

Rice UniversityJones Graduate School of Business

Janice & Robert McNair Hall6100 Main Street

Houston, Texas 77005

business.rice.edu