University of Pittsburgh

Faculty

Kuldeep Shastri

Roger S. Ahlbrandt Sr. Endowed Chair in Finance
Professor of Business Administration

Office: 368B Mervis Hall
Phone: 412-648-1708
E-mail: kuldeep@katz.pitt.edu
Homepage: www.pitt.edu/~ks112354

Degrees

PhD, Financial Economics, UCLA
MBA, Finance, University of Pittsburgh
BTech, Electrical Engineering, Indian Institute of Technology (Delhi, India)

Courses Recently Taught

Introduction to Finance (Executive MBA Program)
Introduction to Derivatives (Full-Time and Evening MBA Programs)
Derivatives: Applications to Valuation and Value Creation (Full-Time and Evening MBA Programs)
Theory of Finance (PhD Program)
Topics in Market Microstructure (PhD Program)
Efficiency of Financial Markets (Executive MBA Program)

Interest Group

Finance

Profile

Kuldeep Shastri teaches in the areas of corporate finance, derivatives, financial engineering, investments, and market microstructure.

In addition to teaching at the Katz School, Shastri has lectured extensively in Central and Eastern Europe, South America, and Southeast Asia, and has held visiting positions at the Czech Management Center in Prague, the Indian School of Business in Hyderabad, the International Management Center in Budapest, Thammasat University in Bangkok, and Universidad Tecnica Federico Santa Maria in Guayaquil.

Shastri's research interests are focused in three main areas: (1) The valuation and use of derivative instruments, (2) The analysis of the structure and operational efficiency of financial markets (market microstructure and (3) Corporate finance. Examples of his work in derivative securities include the valuation of foreign currency options and options on futures, the information content of option prices, the valuations of warrants traded on the Stock Exchange of Thailand, and the impact of dividends on option valuation.

Shastri's research on market microstructure involves the analysis of the impact of derivative markets on the efficiency of the underlying security markets, the trading environment of American Depository Receipts and closed-end funds, the measurement of information asymmetry in markets and the comparative reaction of New York Stock Exchange and NASDAQ listed stocks to information shocks. His research in corporate finance examines the incentive effects of loans provided to executives, the relation between the exercise of employee stock options and a firm's capital structure and the differential information content of insider trades that are funded by loans provided to executives by the firm versus ones directly funded by the executive.

Shastri has published more than 45 papers in a variety of journals including The Financial Review, Journal of Accounting, Auditing and Finance, Journal of Banking and Finance, Journal of Business Finance and Accounting, Journal of Finance, Journal of Financial and Quantitative Analysis, Journal of Financial Research, Journal of Futures Markets, Journal of International Money and Finance, Journal of Labor Research, and Pacific-Basin Finance Journal. In addition to writing articles for academic journals, Shastri is a co-author of the 4th edition of a textbook entitled, "Financial Theory and Corporate Policy." This textbook provides a bridge between theory and practice and presents a unified treatment of finance combining theory, empirical evidence and applications. The book has recently been translated into Chinese and German.

He has made more than 90 presentations at national and international conferences including the Financial Management Association, the American Finance Association, the European Finance Association, the American Stock Exchange Options Colloquium, the Cornell/Queen's Derivative Symposium, the INQUIRE, the Western Finance Association, and the Pacific-Basin Finance Conference.

He was chair of the Board of Trustees (2002-03), president (2001-02), vice president of programs (1998-99), and director (1996-97, 1999-2000) of the Eastern Finance Association and an academic director of the Financial Management Association International (2002-05). He is currently a director of the Pittsburgh chapter of the Financial Executive International (FEI) and chairperson of FEI's Academic Relations Committee.

Recent Publications

"Information Revelation in Futures Markets: The Evidence from Single Stock Futures," Journal of Futures Markets 28, April 2008, pp. 335-353. Co-authors: Ram Thirumalai and Chad Zutter

"Information, Incentive Alignment and Company-Loan Financing of Insider Trades," Financial Management, forthcoming. Co-authors: Jon Garfinkel and Kathleen Kahle.

Financial Theory and Corporate Policy, Fourth Edition, Addison-Wesley, 2005. Coauthors: Thomas Copeland and Fred Weston

"Solutions Manual for Financial Theory and Corporate Policy." Fourth Edition, Addison-Wesley, 2005. Coauthors: Thomas Copeland and Fred Weston.

"Firm Performance, Capital Structure and the Tax Benefits of Employee Stock Options," Journal of Financial and Quantitative Analysis 35, March 2005, pp. 135-160. Coauthor: Kathleen Kahle.

"Executive Loans," Journal of Financial and Quantitative Analysis 34, December 2004, pp. 791-812. Coauthor: Kathleen Kahle.

"The Impact of Options Trading on the Market Quality of the Underlying Security: An Empirical Analysis." Journal of Finance 53, April 1998, pp. 717-732. Co-authors: Raman Kumar and Atulya Sarin.

"The Allocation of Informed Trading across Related Markets: An Analysis of the Impact of Changes in Equity-Option Margin Requirements." Journal of Finance 50, December 1995, pp. 1635-1653. Co-authors: Stewart Mayhew and Atulya Sarin.

"The Behavior of Option Price Around Large Block Transactions in the Underlying Security: Some Empirical Evidence on Inter-market Frontrunning." Journal of Finance 47, July 1992, pp. 879-890. Co-authors: Raman Kumar and Atulya Sarin.

Recent Working Papers

"A Comparison of Initial Public Offerings and Reverse Mergers as Alternate Mechanism to Going Public," with Ioannis Floros.

"An Analysis of Alternate Paths used by non-US firms to list in US Markets," with Ioannis Floros.

"The Choice of Payout on Equity: The Evidence from Brazil," with Marcus Braga-Alves.

"Valuation, Operating Performance and Corporate Governance: The Evidence from the Voluntary Market Reform in Brazil," with Marcus Braga-Alves.

"International Governance and Equity Trading Costs," with Thomas Boulton.

Awards and Honors

Dean's Distinguished Service Award, The Joseph M. Katz Graduate School of Business, University of Pittsburgh, 2002-03.

Katz Excellence in Teaching Award, MBA Program, The Joseph M. Katz Graduate School of Business, University of Pittsburgh, 2001-02, 2004-05 and 2006-07.

Distinguished Professor Award, Brazil International Executive MBA Program, The Joseph M. Katz Graduate School of Business, University of Pittsburgh, 2002, 2005, and 2008.

Distinguished Professor Award, Executive MBA Program, The Joseph M. Katz Graduate School of Business, University of Pittsburgh, 1984, 1989, and 1995.

Member, Beta Gamma Sigma, 1994-present.

Member, Sigma Xi, 1990-present.

Outstanding Teacher Award, Young Managers Program, The International Management Center, Budapest, Hungary, 1990.

External Service and Assignments

Member, Board of Directors, Financial Executive International—Pittsburgh Chapter, 2003-present.

Member, Board of Editors, Pacific-Basin Finance Journal, 2003-present.

Member, Board of Editors, Review of Financial Economics, 1999-present.

Associate Editor, Journal of Financial Research, 2006 - present.

Associate Editor, Financial Review, 1998 - present.

Consulting Activities

Shastri has provided consulting services for a number of organizations in the areas of derivative valuation and risk management.

Personal Interests

In his spare time, Shastri likes to cook, attend Pitt Panther football and basketball games, and watch Pittsburgh Steelers football games.