Mitchell A. Petersen
Mitchell A. Petersen

FINANCE
Glen Vasel Professor of Finance
Director of the Heizer Center for Private Equity and Venture Capital

Print Overview

Mitchell Petersen is the Glen Vasel Professor of Finance. He has published widely in finance and economics. Professor Petersen's research is in the area of empirical corporate finance-the questions of how firms evaluate potential investment projects and how they fund such projects. His recent writing focuses on the funding of small firms and how such funding has been altered by technology and changes in the financial (banking) market. He was awarded the Smith-Breeden Prize for Outstanding Paper in the Journal of Finance in 1995 (for his paper "The Benefits of Lending Relationships: Evidence from Small Business Data") and the Michael Brennan Award for Best Paper in the Review of Financial Studies in 1998 (for his paper "Trade Credit: Theories and Evidence") and 2013 (for his paper "Investment and Capital Constraints: Repatriations Under the American Jobs Creation Act"). He was runner-up for the Brennan Award in 2008 (for his paper "Does the Source of Capital Affect Capital Structure") and 2010 (for his paper "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches").

He has been a member of the editorial board of various journals, including the Journal of Finance, Financial Management, Review of Financial Studies and the Journal of Financial Intermediation. He is also a research associate with the National Bureau of Economic Research (NBER) and was a member of the Moody's Academic Advisory and Research Committee.

Professor Petersen was awarded the Sidney J. Levy Teaching Award in 1996, 1999, 2001, 2003, 2006, 2008, 2010, and 2012 and was voted the Kellogg Professor of the Year in 2000, the Executive MBA Outstanding Professor in 2008, 2010, 2011, 2013, and 2015, and Kellogg Alumni Professor of the Year in 2010. He received his Ph.D. in Economics from the Massachusetts Institute of Technology.



Areas of Expertise
Banking and Financial Institutions
Corporate Bankruptcy
Corporate Capital Structure
Corporate Finance
Debt-Equity Choice
Entrepreneurship
Payout Policy (Dividends, Repurchases)
Pension Funds
Real Options (Investments)
Risk Management
Small Business Management
Taxation

Print Vita
Education
PhD, 1990, Economics, Massachusetts Institute of Technology
AB, 1986, Economics, Princeton University, Summa Cum Laude, Phi Beta Kappa

Academic Positions
Director of Heizer Center for Private Equity and Venture Capital, Kellogg School of Management, Northwestern University, 2007-present
Glen E. Vasel Professor of Finance, Kellogg School of Management, Northwestern University, 2005-present
Glen E. Vasel Associate Professor of Finance, Kellogg School of Management, Northwestern University, 1997-2005
Assistant Professor of Finance, Kellogg School of Management, Northwestern University, 1994-1997
Assistant Professor of Finance, Graduate School of Business, University of Chicago, 1990-1994

Honors and Awards
BGI - Michael Brennan Award - Best Paper, Review of Financial Studies
Executive MBA Program Outstanding Teaching Awards, Kellogg School of Management, 2015, 2013, 2011, 2010, 2008
Kellogg Alumni Professor of the Year Award, Kellogg School of Managment, 2010
Sidney J. Levy Teaching Award, Kellogg School of Management, 2012, 2010, 2008, 2006, 2003, 2001, 1999, 1996
Editor's Choice Award, Review of Financial Studies, 2010
Michael Brennan Award (runner-up), Barclays Global Investors, 2010
Sidney J. Levy Teaching Award, Kellogg School of Business and Management, 2003
Sidney J. Levy Teaching Award, Kellogg School of Business and Management, 2001
L.G. Lavengood Outstanding Professor of the Year Award, Kellogg School of Management, 2000
Outstanding Professor of the Year, Kellogg School of Business and Management, 2000
Sidney J. Levy Teaching Award, Kellogg School of Business and Management, 1999
Michael Brennan Award, Barclays Global Investors, 1998
Sidney J. Levy Teaching Award, Kellogg School of Business and Management, 1996
Smith Breeden Distinguished Paper Award, American Finance Association, 1995

Editorial Positions
Associate Editor, Journal of Finance, 2004-2013
Associate Editor, Financial Management, 2002-2009
Editor, Journal of Financial Management, 1998-2002
Associate Editor, Journal of Finanicial Intermediation, 1995-1997
Associate Editor, Review of Financial Studies, 1995-1997

Print Research
Research Interests
Empirical corporate finance (how firms, especially small firms, are financed and, risk management, and the role of debt markets in funding investments)

Articles
Petersen, Mitchell A. and Michael Faulkender. 2012. Investment and Capital Constraints: Repatriations Under the American Jobs Creation Act. Review of Financial Studies. 25(11): 3351-3388.
Petersen, Mitchell A.. 2009. Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches. Review of Financial Studies. 22: 435-480.
Faulkender, Michael and Mitchell A. Petersen. 2006. Does the Source of Capital Affect Capital Structure?. Review of Financial Studies. 19(1): 45-79.
Berger, Allen, Nathan Miller, Mitchell A. Petersen, Raghuram G. Rajan and Jeremy Stein. 2005. Does Function Follow Organizational Form? Evidence From the Lending Practices of Large and Small Banks. Journal of Financial Economics. 76(2): 237-269.
Petersen, Mitchell A. and Raghuram G. Rajan. 2002. Does Distance Still Matter? The Information Revolution in Small Business Lending. Journal of Finance. 57(6): 2533-2570.
Petersen, Mitchell A. and S.Ramu Thiagarajan. 2000. Risk Measurement and Hedging: With and Without Derivatives. Financial Management. 29(4): 5-29.
Petersen, Mitchell A.. 1999. Banking Consolidation and Small Firm Finance: Discussion of 'How Important are Small Banks to Small Business Lending?' New Evidence from a Survey of Small Firms, by Jith Jayarantne and John Wolken. Journal of Banking and Finance. 2
Petersen, Mitchell A.. 1999. Banks and the Role of Lending Relationships: Evidence from the U.S. Experience. Rassegna Economica. 63(1): 37-62.
Petersen, Mitchell A. and Raghuram G. Rajan. 1997. Trade Credit: Theories and Evidence. Review of Financial Studies. 10(3): 661-691.
Petersen, Mitchell A. and Raghuram G. Rajan. 1995. The Effect of Credit Market Competition on Lending Relationships. Quarterly Journal of Economics. 110(2): 407-443.
Petersen, Mitchell A.. 1994. Cash flow Variability and Firm's Pension Choice: A Role for Operating Leverage. Journal of Financial Economics. 36(3): 361-383.
Fialkowski, David and Mitchell A. Petersen. 1994. Posted versus Effective Spreads: Good Prices or Bad Quotes?. Journal of Financial Economics. 35(3): 269-292.
Petersen, Mitchell A. and Raghuram G. Rajan. 1994. The Benefits of Lending Relationships: Evidence from Small Business Data. Journal of Finance. 49(1): 3-37.
Petersen, Mitchell A.. 1992. Pension Reversions and Worker-Stockholder Wealth Transfers. Quarterly Journal of Economics. 107(3): 1033-1056.
Working Papers
Petersen, Mitchell A., Michael Faulkender and Kristine W Hankins. 2015. Understanding Precautionary Cash at Home and Abroad.
Petersen, Mitchell A. and Justin Murfin. Forthcoming. Loans on sale: Credit market seasonality, borrower need, and lender rent seeking.
Petersen, Mitchell A.. 2004. Information: Hard and Soft.
Book Chapters
Petersen, Mitchell A.. 1996. "Allocating Assets and Discounting Cash Flows: Pension Plan Finance." In Pensions, Savings, and Capital Markets, edited by Phyllis Hernandez, John Turner, Richard Hinz, Washington, DC: US Department of Labor.
Petersen, Mitchell A.. 1996. "Do 401(k) Plans Replace Other Employer-Provided Pensions?." In Advances in the Economics of Aging, edited by David A. Wise, 219-240. Chicago, IL: University of Chicago Press.
Cases
Petersen, Mitchell A.. 2004. Western-Southern Enterprise. Case 5-104-019 (KEL075).
Petersen, Mitchell A. and Rashmi Singhal. 2007. Vioxx: Too Risky for Merck?. Case 5-207-253 (KEL289).
Petersen, Mitchell A.. 2014. Teuer Furniture (A): Discounted Cash Flow Valuation. Case 5-313-509(A) (KEL778).
Petersen, Mitchell A. and Robert O'Keef. 2004. West Teleservices. Case 5-104-020 (KEL074).
Furfine, Craig and Mitchell A. Petersen. 2014. The Right of Acquisition: Options in Commercial Real Estate. Case 5-114-001 (KEL819).
Petersen, Mitchell A.. 2015. Schumpeter Finanzberatung GmbH: Evaluating Investment Risk. Case 5-314-503 (KEL913).
Petersen, Mitchell A.. 2014. Teuer Furniture (B): Multiples Valuation. Case 5-313-509(B) (KEL788).
Petersen, Mitchell A., Rajiv Chopra and Alex Williamson. 2013. Grupo Pão de Açúcar: Strategic Use of Trade Credit. Case 5-312-508 (KEL744).

 
Print Teaching
Teaching Interests

Corporate finance (valuation, capital structure, and dividend policy), tax strategy, and real options


Full-Time / Part-Time MBA
Accelerated Corporate Finance (FINC-440-0)
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.

Financial Strategy and Tax (FINC-447-0)
Taxes are a crucial component of the most investor’s asset allocation decision. After tax-returns are the portion investors keep. Taxes are also a crucial component of firm’s investment and financing decisions. Unfortunately, knowledge of how taxes work is often left to the experts. This means that many opportunities for creating value for firms and investors are missed. This course will not make you a tax expert. You will still need to hire a tax expert. Instead the objective is to teach you enough of the structure of tax codes (past, current, and future; US and non-US) so that you can ask intelligent tax, business, and finance questions before it is too late. The class is designed to fill the gap between an MBA who is well trained in finance and the tax experts that you will rely on in your career. This is a rare and thus valuable position to be in. We will first develop a set of fundamental tax and finance concepts. We then will apply this to a wide range of investment, financing, and risk management applications. Derivatives is recommended but not required. I will have a tutorial/refresher for those who want it. Ask if you have questions. Course web site.

Executive MBA
Managerial Finance II (FINCX-441-0)
Managerial Finance II analyzes corporate financial decisions. Topics include market efficiency, capital structure, dividend and stock repurchase policy, and firms’ use of options and convertible securities.

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.

Executive Education
Advanced Management Program: Intensive

For high-potential executives with enterprise-level responsibilities, this condensed, immersive experience — enhanced throughout with executive coaching — focuses on developing senior executive leadership agility, driving innovation, identifying growth opportunities and equipping your organization for the challenges and opportunities of the 21st-century.


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Advanced Management Program: The Global Experience

Designed for the the high-potential executive, Kellogg’s Advanced Management Program: The Global Experience provides an immersive journey into leadership agility, driving innovation and identifying growth opportunities. This modular format provides a weeklong, unparalleled intensive week in a global market.


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Business for Scientists and Engineers

For practitioners and academics in science and engineering, this highly focused program provides a solid grounding in business concepts, industry-specific tools and practical frameworks for developing the business acumen you need to advance your life’s work.


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Corporate Finance: Investment Strategies for Creating Shareholder Value

Learn how you can create greater shareholder value by valuing investments more accurately, making more informed financial decisions and designing a more consistent, cohesive corporate investment and finance strategy.


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Executive Development Program

For top-performing, high-potential middle and senior managers, this intensive, collaborative and empowering executive development program delivers the knowledge, tools and frameworks required to succeed and lead with confidence in a general management role.


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The PHYSICIAN CEO™ Program

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Women's Senior Leadership Program

Kellogg created this special leadership program for women executives to equip top female talent to break through the barriers that have historically impeded their career development and empower them to take their place at the highest levels of corporate leadership.


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