Robert L. McDonald
Gaylord Freeman Distinguished Chair in Banking
Professor of Finance
Chair, Finance Department
Robert McDonald is Gaylord Freeman Distinguished Chair in Banking a Professor of Finance. He has been a faculty member at Kellogg since 1984 and also served as Finance department chair and and Senior Associate Dean for Faculty and Research. Before joining Kellogg, he was a faculty member at Boston University and has been a visiting professor at the University of Chicago. He has taught courses in derivatives, corporate finance, taxation, and data analytics.
Professor McDonald's research interests include corporate finance, taxation, derivatives, and applications of option pricing theory to corporate investments. He has won research awards, including the Graham and Dodd Scroll from the Financial Analyst's Federation, the Iddo Sarnat Prize from the Journal of Banking and Finance, the Smith Breeden Prize from the Journal of Finance, and the Review of Financial Studies Prize from the Review of Financial Studies.
Professor McDonald is a research associate of the National Bureau of Economic Research, a former director of the American Finance Association, Former Co-Editor of the Review of Financial Studies, and has served on a number of editorial boards, including those for the Journal of Finance, Management Science, and the Journal of Financial and Quantitative Analysis. He is the author of Derivatives Markets, 3e, and Fundamentals of Derivatives Markets. He received a BA in Economics from the University of North Carolina and a Ph.D. in Economics from MIT.
- Corporate finance
- derivative securities and hedging
- the role of asymmetric information in corporate fund-raising
- application of option pricing theory to corporate decision-making *
- Derivatives
- effects of taxation on decision-making *
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Type/Date Title/Author Article2015The Problematic Delta Test for Dividend Equivalents Tax NotesCase1996Speculating on an acquisition with options: Rjr nabisco -
PhD, 1982, Economics, Massachusetts Institute of Technology
BA, 1975, Economics, University of North Carolina, Highest Honors -
Gaylord Freeman Distinguished Chair Professor of Finance, Kellogg School of Management, Northwestern University, 2018-present
Senior Associate Dean, Faculty and Research, Kellogg School of Management, Northwestern University, 2013-2016
Erwin P. Nemmers Distinguished Professor of Finance, Kellogg School of Management, Northwestern University, 1991-2018
Faculty senate, Finance Department representative, Kellogg School of Management, Northwestern University, 2010-2013
Acting Director, Guthrie Center for Real Estate, Kellogg School of Management, Northwestern University, 2008-2009
Co-director, Financial Markets Research Center, Kellogg School of Management, Northwestern University, 2006-2011
Northwestern University Program Review Council, Kellogg School of Management, Northwestern University, 2002-2005
Acting Director of Kellogg Computer Services, Kellogg School of Management, Northwestern University, 1993-1995
Finance Department Chair, Kellogg School of Management, Northwestern University, 1991-1994
Visiting Associate Professor, Graduate School of Business, University of Chicago, 1989-1990
Associate Professor, Kellogg School of Management, Northwestern University, 1987-1991
Assistant Professor, Kellogg School of Management, Northwestern University, 1984-1987
Assistant Professor, School of Management, Boston University, 1981-1984 -
Elected Director of the American Finance Association, 2010-2013
Sidney J. Levy Teaching Award, Kellogg School of Management, 2006-2007, 2001-2002 -
Editorial Board, Journal of Financial Intermediation, 2016
Associate Editor, Journal of Financial and Quantitative Analysis, 1992
Principles of Finance (KELLG_FE-310-0)
Foundation course for the certificate. Basic principles of finance, focusing on the effects of time and uncertainty on value. First half emphasizes valuation, including discounted cash flows, equity and debt valuation, the term structure of interest rates, portfolio theory, asset pricing, and efficient market theory. Second half examines firms' financing decisions, including capital budgeting, capital structure, and payout policy.
Data Exploration (DECS-461-0)
The ability to quickly and efficiently read, manipulate, and analyze large real-world datasets has become a basic business skill. In this course we use R to explore the basic elements of data management, exploration, and statistical analysis. Specific topics include data acquisition and cleaning; subsetting, filtering, summaries; long and wide formats; data normalization; multi-table operations; accessing SQL data; visualization; basic statistical analysis; the use of simulation in data analysis; machine learning; and reporting. We will emphasize the use of the R packages `dplyr` for data manipulation and `ggplot` for visualization. Classes will involve a blend of lecture and in-class problem solving. Grading will be based on individual homeworks and a final project, which can be done in a group. No previous experience with R is assumed. With assent of the instructor, students may use their own data sets for the final project.
Corporate Finance (BUS_INST-304-0)
Effects of time and uncertainty on valuation and decision making. Discounting techniques, stock and bond valuation, capital budgeting, firm valuation, capital asset pricing model, financial options. May not receive credit for both this course and ECON 360-1. Not for students who have previously taken KELLG_FE 310-0. Prerequisites: ECON 201-0 and ECON 202-0; STAT 210-0 or equivalent; MATH 218-1 or MATH 220-1; and BUS_INST 301-0.
