Timothy Thompson
Timothy Thompson

FINANCE
Senior Lecturer of Finance

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

 
Print Research
Research Interests
Corporate finance and option pricing models

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

 
Print Teaching
Teaching Interests
Corporate finance and option pricing models
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.

Finance II (FINC-431-0)
This course covers the basic financial knowledge needed to run a firm—whether the firm is a multi-billion dollar international conglomerate or a three-person start up. Using a combination of lectures and business cases, we will examine how firms fund their projects (capital structure), how they manage the risks that arise (risk management), and how they allocate the return on their investments (payout policy). This course is designed both for managers who will initially specialize in a different functional area (e.g., marketing, operations) and for managers who will be directly involved in making or analyzing these decisions (e.g., future senior executives, general managers, investment bankers, consultants, securities analysts, money managers, investment advisors).

This version of Finance II is designed for students who took Finance I in or after Fall 2014.

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


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
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.