Volume 28 CONTENTS Summer 2002
#1 - CURRICULUM DESIGN AND THE CERTIFIED FINANCIAL PLANNER CERTIFICATION
This paper examines differing techniques for incorporating a financial planning program in an institutionís curriculum by reviewing the Certified Financial Planner Board of Standards registration criteria and programs that are currently registered with the CFP Board. Aligning a curriculum with professional certifications can be used to address the issue of relevance in the finance curriculum often raised by practitioners and academicians. Besides addressing the relevance issue, aligning programs with professional certifications provide students with improved career opportunities and choices. Institutions have many options available in incorporating a financial planning component in the curriculum ranging from undergraduate certificate programs to graduate degree programs. Each type of program faces its own special challenges in developing a successful program. These challenges are explored in this paper and possible techniques for dealing with the challenges are presented.
#2 - FINANCE FACULTY AND PERCEPTIONS OF STUDENT QUALITY
Mike Cudd and John Tanner
A key factor in the career decisions of finance faculty and job satisfaction is the perceived quality of students. A national survey of finance faculty provides feedback on faculty perceptions of student quality, and how those perceptions vary according to respondent demographics. Results of the survey reveal four underlying dimensions of perceived student quality.Perceptions of specific elements of student quality vary significantly according to several respondent demographics such as university type, university enrollment, respondentís experience and academic rank, although overall results provide a dismal picture of the perceived state of student quality, especially in the areas of communications and quantitative skills. The findings should be useful to college administrators for both current and long-term issues concerning curricula design decisions.
#3 - THE IMPACT OF TEAM TEACHING ON STUDENT TEACH EVALUATION:
A FINANCE DEPARTMENT'S EXPERIENCE
Kristine Beck and Maclyn Clouse
Using a three-year sample of teaching evaluations for finance faculty, we find a significant difference in average teaching evaluations for solo and team taught courses. This result is further supported by partitioning the sample by course level (graduate or undergraduate) and whether a course is required or elective. We also pair observations by instructor. All tests indicate that student evaluations of instructors are higher for solo taught courses than for team taught courses. These results have serious implications for faculty evaluation, especially with regard to the tenure process.
#4 - FINANCE FACULTY PERCEPTIONS OF BUSINESS SCHOOLS' PREPARATION
FOR THE TECHNOLOGICAL REVOLULTION
Barrie A. Bailey and Jean L. Heck
To remain competitive in today's business environment, integrating rapid changes in technology into corporate operations and culture is of paramount importance to managers. For financial educators, preparing new graduates to function in this continually evolving technological environment should be taking center stage. The purpose of this paper is to present the results of a survey of finance faculty regarding their institutions' current state of technological preparedness as well as their opinions regarding business school readiness to meet the challenges being imposed by advancing technological demand.
#5 - E-FINANCE: TAXONOMY, CURRICULUM, PEDAGOGY
This paper offers a taxonomy, curriculum, and pedagogy for "e-finance." The taxonomy of the subject includes a glossary of e-finance terms. Curricular and pedagogical discussions direct the reader to various online resources for studying and teaching this critical subject. The paper concludes by discussing e-finance within the context of Joseph Schumpeterís theory of "creative destruction."
#6 - CLASSROOM ANALYSIS OF RETIREMENT PLANS: THE EMPLOYER'S PERSPECTIVE
Stanley R. Adamson and Robert W. Owens
This paper provides classroom exercises for financial comparison of the two major categories of pension plans -- defined benefit and defined contribution. The choice of plan category is typically the prerogative of the employer. Hence, the comparative analysis is presented from the employer's perspective. Although the paper is not intended to usurp the role of the actuary, the abbreviated methodology presented can provide challenging exercises for students and give them a general feel for the major financial components that would be considered in such a decision.
#7 - RISK-NEUTRAL OPTION PRICING FROM EPV WITHOUT CAPM
Explanations of option pricing often begin with the disconcerting requirement that we imagine ourselves in a "risk-neutral world". This is an unrealistic world wherein all securities, whatever their risk, return the same interest rate as risk-free securities. The justification of this assumption is that option prices in a risk neutral world are mathematically the same as those in the real (risk averse) world Ė where asset prices are determined by expected present value (EPV) calculated using a "risk-adjusted" interest rate. This reconciliation is easily and intuitively demonstrable. Contrary to previously published expositions, no reliance on the CAPM is necessary.
#8 - CST JOINT VENTURE
Hugh Grove and Tom Cook
CSTís major decision problem in this case is whether to participate in a joint venture with Intel Corp. CST is a relatively young, high-growth company, providing customer outsourcing services to Fortune 1000 firms. After CST went public in August, 1996 at $14.50 per common share, its stock soared to $36 two months later. Since then, its stock price has fallen steadily to a current low of $10 per share in July 1999. CST has failed to make its recent earnings projections and financial analysts have questioned the viability of this new customer outsourcing industry.