Timothy Thompson - Faculty - Kellogg School of Management

Tim Thompson is Senior Lecturer of Finance. Professor Thompson has taught corporate finance courses in the full- and part-time MBA programs, the EMP program and in the International Executive MBA programs abroad. Prior to joining the Kellogg faculty, Thompson was a Research Consultant in the Consulting division of The Alcar Group, Inc. (now a part of LEK Consultants).

Professor Thompson's courses focus on the application of financial principles to corporate strategic decisions. He teaches Financial Decisions and Corporate Restructuring. In addition to his teaching, Thompson designs and directs selected Custom Executive Programs at the Allen Center, primarily for Société Générale.

Thompson has received the Professor of the Year award in the part-time MBA program (TMP program), the combined MBA programs and, most recently the Kellogg-WHU International Executive MBA program.

Thompson also serves as a consultant to several corporations. He received his MBA from the Graduate School of Business at the University of Chicago.

Areas of Expertise

Corporate Finance
Corporate Bankruptcy
Corporate Capital Structure
Corporate Governance
Corporate Restructuring
Financial Engineering
Payout Policy (Dividends, Repurchases)

Education

MBA, 1982, Finance, Econometrics, University of Chicago

BA, 1978, Mathematics, Lawrence College

PhD (ABD), Finance, University of Chicago

Academic Positions

Senior Lecturer, Finance, Kellogg School of Management, Northwestern University, 1992-present

Visiting Lecturer, Finance, Kellogg School of Management, Northwestern University, 1989-1992

Lecturer, Finance, School of Business, Loyola University of Chicago, 1982-1988

Grants and Awards

Sidney J. Levy Teaching Award, Kellogg School of Management, 2005-2006

L.G. Lavengood Outstanding Professor of the Year Award, Kellogg School of Management, 1996

Part-Time MBA Program Professor of the Year Award, Kellogg School of Management, 1994

Research Interests

Corporate finance and option pricing models

Cases

Raviv, Artur, Timothy Thompson, Phillip Gresh and Shannon Hennessy. 2004. Bed Bath & Beyond: The Capital Structure Decision. Case 5-204-270 (KEL082).

Teaching Interests

Corporate finance and option pricing models

Teaching Materials
Corporate Restructuring (FINC-448) Course Page Financial Decisions (FINC-442) Course Page

Full-Time / Part-Time MBA

Finance I (FINC-430-0)

This course counts toward the following majors: Analytical Finance, Finance

This course studies the effects of time and uncertainty on decision making. Topics include discounted cash flow valuation, stock and bond valuation, the term structure of interest rates, bond duration, capital budgeting under certainty and uncertainty, portfolio theory, asset pricing models and efficient markets.

The prerequisite for this course is knowledge of probability and statistics through linear regression. This requirement may be satisfied with either (i) prior or concurrent registration in Decision Sciences 434, (ii) sufficient previous course work in statistics. Familiarity with basic financial accounting (Accounting 430) and microeconomics (Managerial Economics 430) is recommended.

To qualify for a Finance I (FINC-430) waiver, you must have passed a comparable course with a grade of A. The type and level of material covered in the course are represented by chapters 1-13 and 23 of the text by Brealey and Myers, Principles of Corporate Finance. You need not request a Finance I waiver to enroll in FINC-440 (Turbo). To help you decide whether you should waive Finance I, take the self-assessment test online at www.kellogg.northwestern.edu/finance/curriculum/finance1waiver.htm.

Finance II (FINC-441-0)

This course counts toward the following majors: Analytical Finance, Finance.

This course is the sequel to FINC-430. The primary objective is to examine the financial decisions of firms with regard to their capital budgeting decisions (which investments to make), dividend decisions and capital structure decisions (how to raise capital). We first examine these decisions in an idealized frictionless world in which the firm cannot change its value by altering its dividend or capital structure policy. We then explore the effect of frictions (e.g. taxes, bankruptcy costs, inefficient or uncompetitive financial markets, or self-interested managers) on the firm's financial decisions and how these decisions can affect a firm's value. Prerequisites: FINC-430. Corequisite: DECS-434 or equivalent. ACCT-430 and MECN-430 are recommended.

Financial Decisions (FINC-442-0)

This course counts toward the following majors: Analytical Finance, Finance.

This course uses case studies to enhance the student's understanding of managerial financial decision making, specifically investment and financing decisions. Topics include short- and long-term financing, capital structure and dividend decisions, cost of capital, capital budgeting, firm valuation, financial and operational restructuring, and mergers and acquisitions. The course emphasizes the basic principles of corporate finance and is sufficiently general so as to be of interest to all students. The course provides students with the opportunity to apply the concepts and theories developed in other finance courses. At its most fundamental level, the course attempts to improve problem-solving skills: problem definition, gathering and organizing the relevant information, developing feasible alternative courses of action, evaluating alternative choices, and recommending and defending the best course of action.

Executive MBA

Strategic Financial Management (FINCX-442-0)
Strategic Financial Management examines financial management theory and cases. Students use valuation skills to determine the cost of capital, financing and operating issues faced by the firm.