Phillip Braun
Phillip Braun

FINANCE
Clinical Professor of Finance

Print Overview

Professor Phillip A. Braun specializes in the study of emerging market economies and financial markets. He is the author of a number of articles, most recently a series of papers studying the emerging Islamic economies.

Prof. Braun joined the Kellogg School of Management as a Visiting Professor of Finance after spending two years across town at the Booth School of Business at the University of Chicago and 10 years working and teaching in Asia. Most recently Professor Braun was a Senior Member of the Policy Advisor Group to the Prime Minister’s office in Thailand, as well as, an Executive Director of the Booker Group, a publicly traded Investment Bank in Thailand and a Professor of Finance at the Sasin Graduate School of Business of Chulalongkorn University. Prior to this he was a Managing Director of Corporate Finance at CLSA Emerging Markets, specializing in Financial Advisory work throughout Asia.

Prior to moving to Asia is when Prof Braun was on the Finance Faculty at Kellogg School of Management as an Assistant Professor. Prof Braun was rated by BusinessWeek as one of the Top Finance Professors in the United States when he was at Kellogg at that time, when the students selected him as the Teacher of the year.

He is the recipient of several academic awards, including the Merrill Lynch Capital Markets Research Professorship for Outstanding Research and the First Chicago Bank Research Professorship. His PhD dissertation was a runner-up for the Zellner Prize given by the American Statistical Association.

Braun earned a bachelor's degree in economics with honors from Oberlin College in 1981. He received a master's degree in economics with honors from Washington University in St. Louis in 1986 and a PhD in business, specializing in finance and economics at the GSB in 1993.

Selected Publications With Dan Nelson and Alain Sunier, "Good News, Bad News, Volatility, and Betas," Journal of Finance (1995). With George Constantinides and Wayne Ferson, "Time Nonseparability in Aggregate Consumption: International Evidence," European Economic Review (1993). With Stefan Mittnik, "Misspecifications in Vector Autoregressions and their Effects on Impulse Responses and Variance Decomposition's," Journal of Econometrics (1993). With Victor Zarnowitz, "Twenty-two Years of the NBER-ASA Quarterly Economic Outlook Surveys: Aspects and Comparisons of Forecasting Performance," Business Cycles, Indicators, and Forecasting, James Stock and Mark Watson, eds., University of Chicago Press (1993). With Ilan Yaniv, "A Case Study of Expert Judgment: Economists' Probabilities Versus Base-Rate Model Forecasts," Journal of Behavioral Decision Making (1992).

Print Vita
Education
PhD, 1993, Business, Finance and Economics, Graduate School of Business, University of Chicago
MA, 1986, Economics, Washington University in St. Louis, with Honors
BA, 1981, Economics, Oberlin College, with Honors

 
Print Research

 
Print Teaching
Full-Time / Part-Time MBA
Finance I (FINC-430-0)

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

Finance 1 covers managers’ and investors’ most fundamental finance decision: how to value a project or an asset. Managers must determine the value of building a factory, entering a new market, or purchasing an entire firm when deciding in which projects to invest. Similarly, individuals must assess the value of financial securities to decide how to invest their wealth. Using a combination of lectures and business cases, Finance 1 teaches the three principal methods for valuing projects or assets: discounted cash flow, multiples, and real options. These valuation tools lay the foundation for all work in capital markets and corporate finance.

Pre-requisite: Business Analytics I (DECS-430). Business Analytics II (DECS-431) and Accounting for Decision Making (ACCT-430) are recommended and may be taken concurrently.

Accelerated Corporate Finance (FINC-440-0)

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

Corporate finance covers the financial knowledge you need to run a firm, whether the firm is a multi-billion dollar international conglomerate or a three-person start up. Accelerated Corporate Finance will combine the material from Finance 1 and Finance 2 in an intensive one-quarter course. We will cover valuation (discounted cash flow, multiples, and real options), capital structure (how firms finance themselves and how they manage risk), and payout policy (should firms return capital to investors and if so how). For more details, you should read the descriptions of Finance 1 and Finance 2. The logical concepts will be covered in class, technical skills and intuition will be developed in class and through online exercises, and then the logic and tools will be applied to a set of valuation, financing, risk management, and payout cases. Given the pace of the course, students are expected to be prepared to put in the extra effort in class and outside of class. Basic finance knowledge (discounting) and accounting is assumed

Pre-requisite: Business Analytics I (DECS-430). Business Analytics II (DECS-431) and Accounting for Decision Making (ACCT-430) are recommended and may be taken concurrently.

Finance II (FINC-441-0)

Corporate Finance (FINC-441) covers the financial knowledge you need to run a firm, whether the firm is a multi-billion international conglomerate or a three-person start up. You will learn how to answer the three fundamental question of corporate finance. (1) Capital structure or the funding decision: which source(s) of capital should you use to fund the firm’s project? (2) Capital budgeting or the investment decision: which projects should you invest in? (3) Dividend decision: how should you deploy the capital that the project returns. We will cover the three fundamental methods for valuing projects and firms: discounted cash flow (or net present value), real options, and multiples analysis. The class begins with a theoretical framework. The world of finance is very complex. Without a logical structure that you can use to frame and answer questions, you will rapidly become lost and will be unable to defend your position. The theoretical framework is valuable, however, only if you can use it to examine real world decisions. Thus the majority of class time will be devoted to applying the logical framework.
This course is important for anyone who plans to run a firm or a division, who hopes to be involved in the investment or funding decisions of the firm, who plans to work for a service provider who will assist the firm in analyzing these decisions (e.g., banking and consulting), or who plans to invest in firms or advise clients who will invest in firms. Even if you initially specialize in a different functional area, you want to understand how the finance function works. The most brilliant idea isn’t useful if you cannot get it funded.

ACCT-430 and MECN-430 are recommended.

This version of Finance II is designed for students who took Finance I in or before Summer 2014. This course will be offered in Fall 2014 in Evanston & Chicago and offered in Winter 2015 in Chicago


Investments (FINC-460-0)

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

This course aims at developing key concepts in investment theory from the perspective of a portfolio manager rather than an individual investor. The goal of this class is to provide you with a structure for thinking about investment theory and show you how to address practical investment problems in a systematic manner. Instead of focusing on pure theoretical models, the emphasis is given on the empirical facts observed in asset prices in worldwide capital markets, understanding whether they manifest new dimension of systematic risk, and how to design smart portfolios to take advantage of multiple sources of systematic risk.

Topics include capital allocation and optimal portfolio selection; diversification, risk, and various models linking risks with returns, such as, the CAPM, the Fama-French 3-Factor Model (‘value’ and ‘size’ investing), ‘momentum investing’ and the Carhart’s 4-Factor Model, and Ross’s multifactor APT to account for multiple sources of systematic risk; risk-adjusted returns, measures of fund performance, and various trading strategies used by Hedge Funds; market efficiency (including empirical anomalies and behavioral finance). Among other topics, impact of borrowing constraint and transaction costs and illiquidity; risk management issues, such as, portfolio insurance; Bond valuation and the term structure of interest rates; the Black-Scholes/Merton option pricing model; etc. may be covered as time permits.

This is a quantitative course. We discuss many cases, but case studies will require ability to do statistical analysis similar to what might be applied in practice. The course develops an applied analytical framework of financial investments. Therefore students interested in this course are expected to have sound knowledge of Statistics and Regression Analysis.

Asset Management Practicum II (FINC-934-0)

This course counts toward the following majors: Finance

Students enrolled in this sequence of courses will manage a portion of the Kellogg School’s endowment. The courses will combine investment theory with exposure to leading practitioners. Students will rotate across roles of industry analysts, traders, quantitative analysts, and portfolio managers. Students must take three of the four AMP courses: FINC-933, FINC-934, FINC-935, FINC 936

Co-requisites: Over the three-quarter sequence students must take three* or four quarter credits in additional asset management-related courses from the following list:
*Three courses if one of the three is either FINC-460 or FINC-470

FINC-442-0 Financial Decisions

FINC-444-0 Advanced Topics in Finance

FINC-447-0 Financial Strategy and Tax Planning

FINC-451-0 Money Markets and the Fed

FINC-460-0 Investments*

FINC-462-0 Portfolio Management

FINC-463-0 Security Analysis

FINC-464-0 Fixed Income Securities

FINC-465-0 Derivative Markets I

FINC-467-0 Derivative Markets II

FINC-470-0 Empirical Methods in Finance*

FINC-936-0 Asset Management Practicum IV

FINC-941-0 Macroeconomic Policy and Global Capital Markets

FINC-970-0 Empirical Methods in Finance

ACCT-451-0 Financial Reporting and Analysis

ACCT-452-0 Financial Reporting and Analysis II



Asset Management Practicum III (FINC-935-0)

This course counts toward the following majors: Finance

Students enrolled in this sequence of courses will manage a portion of the Kellogg School’s endowment. The courses will combine investment theory with exposure to leading practitioners. Students will rotate across roles of industry analysts, traders, quantitative analysts, and portfolio managers. Students must take three of the four AMP courses: FINC-933, FINC-934, FINC-935, FINC 936

Co-requisites: Over the three-quarter sequence students must take three* or four quarter credits in additional asset management-related courses from the following list:
*Three courses if one of the three is either FINC-460 or FINC-470

FINC-442-0 Financial Decisions

FINC-444-0 Advanced Topics in Finance

FINC-447-0 Financial Strategy and Tax Planning

FINC-451-0 Money Markets and the Fed

FINC-460-0 Investments*

FINC-462-0 Portfolio Management

FINC-463-0 Security Analysis

FINC-464-0 Fixed Income Securities

FINC-465-0 Derivative Markets I

FINC-467-0 Derivative Markets II

FINC-470-0 Empirical Methods in Finance*

FINC-936-0 Asset Management Practicum IV

FINC-941-0 Macroeconomic Policy and Global Capital Markets

FINC-970-0 Empirical Methods in Finance

ACCT-451-0 Financial Reporting and Analysis

ACCT-452-0 Financial Reporting and Analysis II



Global Initiatives in Management (GIM) (INTL-473-0)

This course counts toward the following majors: International Business

This course offers students an opportunity to learn about non-U.S. business environments within an innovative and flexible framework that combines traditional classroom-based learning with structured in-country field research. From its inception in 1989 as one class of 34 students covering the Soviet Union, the program has grown to become a cornerstone of the Kellogg experience for many students. The school currently sponsors 13 GIM courses composed of approximately 400 students traveling to 15 countries. Evanston full-time students gain admission to GIM classes through the bidding process in the fall quarter. Classroom instruction is held during the winter quarter, followed by two weeks of field research abroad and seminar presentations of written student reports during the spring quarter. (TMP and EMP GIM classes sometimes follow different schedules.) GIM courses are organized by student leaders under the guidance of a faculty adviser. If you would like to become a GIM student leader, please contact the IBMP office for more information.

Executive MBA
Managerial Finance I (FINCX-430-0)
Managerial Finance I introduces the basic techniques of finance. Topics include discounting techniques and applications; evaluation of capital expenditures; and estimating cost of capital and bond and stock valuation.