David Mauer

What has your published research uncovered thus far?

In a paper published in the Journal of Finance in April of 2015, my co-authors and I investigate the influence of credit default swaps on the surge in subprime mortgage defaults during the 2007-2008 financial crisis. We find that the chain of events that led to much higher subprime mortgage defaults during this period was fueled in part by the growth in the credit default swap market. The upshot is that the financial crisis would not have been as severe without credit default swaps.

David C. Mauer joined the faculty of the Belk College of Business in 2015 as the Torrence E. Hemby Sr. Distinguished Professor in Financial Services. Previously, he was on the finance faculties of the University of Iowa, Texas A&M University, Southern Methodist University and University of Wisconsin-Madison. He has won numerous awards for teaching and research, including the prestigious university-wide Altshuler Distinguished Teaching Award at Southern Methodist University.

What brought you to the Belk College of Business?

The Belk College‚Äôs Master of Science in Mathematical Finance program and Ph.D. in Finance program were key attractions. I also have a long history doing research with Steve Ott, Dean of the Belk College, and Finance Department Chair Dolly King. Additionally, the Belk College of Business just happens to be in one of my favorite cities.

Describe your area of expertise.

My expertise is in corporate finance. My research focuses on interactions of financing and investment decisions, the influence of management compensation on corporate policy decisions and real options.

What research do you have in progress?

In one project my co-authors and I are examining benefits of corporate global diversification. We find that globally diversified firms are better hedged to weather domestic recessions and depending on region(s) of foreign operation, global economic shocks. In another project I am studying how government policy uncertainty (e.g., potential changes in corporate tax rates) influences corporate investment and financing decisions. A third stream of research examines financial contracting in bank loans to corporations. In particular, a co-author and I are examining the relationship between restrictive covenants and performance pricing provisions in bank loans.

What industry experience do you have?

I have done consulting work for a variety of Fortune 500 companies including Bank of America, Lockheed Martin and Procter and Gamble. I have also worked with hedge funds, private equity firms and companies that specialize in valuation.

What do you enjoy most about teaching?

I especially enjoy demystifying complex topics and teaching students how to practically implement procedures and strategies that will be valuable on the job.

 

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