Michael Faulkender

<p>Michael Faulkender's research focuses on empirical corporate finance in the areas of capital structure, risk management, corporate liquidity, and executive compensation. His work has been published in the Journal of Finance, Journal of Financial Economics, and Review of Financial Studies and has been cited in the Wall Street Journal, Washington Post, and The New York Times. He was awarded the Barclay's Global Investors / Michael Brennan Best Paper Award in the Review of Financial Studies in 2013, was runner up for that prize in 2006, and won the Jensen Prize for Corporate Finance – Second Prize in the Journal of Financial Economics in 2013.</p>

High Corporate Taxes Incentivize Corporate Debt

Multinational American companies with significant operations in countries with low corporate taxes take on less debt than companies that face higher taxes, according to a new study from the Smith School. A link between higher corporate taxes and debt levels is predicted by economic theory, but some recent studies have failed to find such a connection. In this new study, however, the authors assume U.S. companies will keep their foreign profits abroad indefinitely. Read more ...

Mega-Merger Rekindles Debate Over Corporate Taxes

Two massive drug companies, New York-based Pfizer and Dublin-based Allergan (maker of Botox), are discussing a merger that could end up being the biggest in a year of blockbuster combinations. The merger also reignites debate over the corporate tax rate in the U.S., given that Pfizer's CEO has made it clear that a chief goal of the plan is to cut Pfizer's tax rate. Smith School finance professor Michael Faulkender shares insights. Read more...

Shaming Your Highly Paid CEO

Can U.S. companies be embarrassed out of paying their CEOs hundreds of times what the average worker makes? The SEC wants to find out. By a 3-2 vote, the agency recently ordered that companies begin disclosing the ratio of their CEO’s pay to that of the median employee. The rule’s backers believe it's indefensible that CEO pay has grown in the last-half century from 50 times what the average worker makes to roughly 300 times, even as middle-class wages have stagnated. Smith School professors Hui Liao and Michael Faulkender have differing viewpoints. Read more...

Dodd-Frank Is Turning Five: Did It Deliver?

The fifth anniversary of the landmark Dodd-Frank legislation, Congress's response to the financial crisis of 2007-08, arrives next month, prompting reflections on whether it has done what the Democratic-controlled Congress that passed it intended: Increase transparency and accountability in the banking system and — most importantly — reduce the likelihood of another crisis. Smith School professor Mike Faulkender gives the legislation mixed reviews and offers suggestions for reform. Read more...

Business Lessons Could Hold Clues to How Bin Laden’s Death Will Impact Al Qaeda, Economy

MEDIA ALERT: May 3, 2011

Business Lessons Could Hold Clues to How Bin Laden’s Death Will Impact Al Qaeda, Economy

UMD’s Smith School of Business Experts Offer Insights

With the 10-year U.S. manhunt for Osama Bin Laden ending in the terrorist leader’s death, the world is watching for the impacts. Lessons from business could hold clues to how the loss of the leader might impact the Al Qaeda organization and the global economic climate.

Organizational Effects

Professor Paul Tesluk weighs in on how Bin Laden’s death may affect the Al Qaeda organization.

Corporate Inversion Crackdown

Michael Faulkender, associate professor of finance in the University of Maryland's Robert H. Smith School of Business, says companies will find ways around the Department of the Treasury's new measures to deter U.S. firms from relocating headquarters to countries with lower tax rates – the basis of a “corporate inversion.” Instead of focusing on this business strategy, he says, U.S. officials should target and lower the corporate tax rate.


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