PETER TUFANO

Sylvan C. Coleman Professor of Financial Management
Senior Associate Dean for Planning and University Affairs

Harvard Business School

Baker Library 359
Soldiers Field Road
Boston, Massachusetts 02163

Tel (617) 495-6855
ptufano@hbs.edu
www.people.hbs.edu/ptufano


EDUCATION

Ph.D. in Business Economics (Finance), Harvard University, June 1989

M.B.A. with high distinction (Baker Scholar), Harvard University, June 1984

A.B., summa cum laude, Economics, Harvard University, June 1979

ACADEMIC APPOINTMENTS

7/1/84-8/31/85                Instructor in Business Administration, Harvard Business School.

7/1/89-6/30/94                Assistant Professor of Business Administration, Harvard Business School.

7/1/94-6/30/98                Associate Professor of Business Administration, Harvard Business School.

7/1/98-10/2000               Professor of Business Administration, Harvard Business School.

11/2000-current              Sylvan C. Coleman Professor of Financial Management, Harvard Business School.


HBS ADMINISTRATIVE ASSIGNMENTS

 

7/2000-6/2003               Course Head, Finance 2 Course; designed and led course in MBA required curriculum

7/2001- 2/2003              Unit Head, Finance Area, Harvard Business School

2/2003-12/2007             Senior Associate Dean and Director of Faculty Development

12/2007 - current           Senior Associate Dean for Planning and University Affairs

 

UNIVERSITY SERVICE

Member, Harvard University Allston Financing Advisory Board (2006-present)
Member, Harvard University Debt Asset Management Committee (2007-present)

Member, Harvard University Social Science Task Force Planning Committee (2008-present)

Member, Harvard University, Common Spaces Steering Committee (2008-present)

 

HBS MBA TEACHING ASSIGNMENTS

 

1985, 1989-91              First Year Finance

1991-1992                    Capital Markets

1992-1995                    Financial Instruments

1995-1999                    Corporate Financial Engineering

2000-2005                    Finance 2

2005-current                 Corporate Financial Engineering

2009-                            Consumer Finance

Also taught in various HBS Executive Programs, supervised Independent Studies, and Field Studies in Finance.  Member of dissertation committees of various doctoral students.  Program chair for CUES Advanced Leadership Institute and Consumer Finance Executive Education Programs.

PRIZES AND HONORS

Aspen Institute Center for Business Education, Faculty Pioneer Award Finalist, 2008

World Technology Network, Fellow (Finance), 2008

Filene Research Fellow, 2005-current, Filene Research Institute

Apgar Award for Innovation in Teaching, 2002, Harvard Business School

Greenhill Award, 1997 and 2001, Harvard Business School

Smith Breeden Prize, 1996, awarded to the best paper published in the Journal of Finance.

Berol Faculty Fellow, Harvard Business School, 1995-1996

Faculty Research Fellow, National Bureau for Economic Research, 1994-current

Dean's Doctoral Fellow, 1985 - 1988

Phi Beta Kappa, 1979

RESEARCH INTERESTS

Consumer Finance

Corporate Financial Engineering

Financial innovation

Mutual funds

PUBLICATIONS

"Savings Whilst Gambling: An Empirical Analysis of U.K. Premium Bonds," American Economic Economic Review Papers and Proceedings 98,2 (May 2008). 321-326. An expanded version of this paper, which includes additional results, is also available.

"Using Financial Innovation to Support Savers: From Coercion to Excitement," with Daniel Schneider, forthcoming in Access, Assets and Poverty, ed. Rebecca Blank and Michael Barr (Russell Sage, 2008).

"Where Does it Go? Spending by the Financially Constrained," with Shawn A. Cole and John Thompson, forthcoming in Harvard Joint Center on Housing Studies volume (Rev. Jan 2008).

"Assessing the Costs and Benefits of Brokers: A Preliminary Analysis of the Mutual Fund Industry," with Dan Bergstresser and John Chalmers, forthcoming Review of Financial Studies (Rev. January 2008).

"Mutual Fund Fees Around the World," with Ajay Khorana and Henri Servaes, forthcoming Review of Financial Studies (Rev. July 2007).

"Board Structure, Mergers and Shareholder Wealth: A Study of the Mutual Fund Industry," with Ajay Khorana and Lei Wedge, Journal of Financial Economics 85, 2 (August 2007), 571-598

"New Savings from Old Innovations: Asset Building for the Less Affluent," with Daniel Schneider, in Financing Low-Income Communities, ed. Julia Sass Rubin (Russell Sage, 2007).

"H&R Block's Refund Anticipation Loan: Perilous Profits at the Bottom of the Pyramid,"  with David Rose and Daniel Schneider, in Business Solutions for Reaching the Poor, ed. K. Rangan and J. Quelch (Jossey Bass, 2006).

"Splitting Tax Refunds and Building Savings: An Empirical Test," with Sondra Beverly and Daniel Schneider, Tax Policy and the Economy 20 (2006) 111-162.  A condensed policy-makers' version of this piece was published as "Leveraging Tax Refunds to Encourage Savings" with Sondra Beverly and Daniel Schneider.  Retirement Security Project Policy Brief 2005-8 (August 2005).

"Reinventing Savings Bonds," with Daniel Schneider, Tax Notes (October 31, 2005), 1-20.  An expanded and updated version of this paper was published as a New America Issue Brief, entitled "Reinventing Savings Bonds: Policy Changes to Increase Private Savings" (April 2006).

"Explaining the Size of The Mutual Fund Industry Around the World," with Ajay Khorana and Henri Servaes, Journal of Financial Economics 78 (October 2005), 145-185.

"e-Information," with Sanjiv Das and Asis Martinez-Jerez, Financial Management 34 (Autumn 2005), 103-137.

"A Real-World Way to Manage Real Options," with Thomas Copeland, Harvard Business Review (March 2004), 90-99.

"Selling Company Shares to Reluctant Employees: France Telecom's Experience," with Francois Degeorge, Dirk Jenter and Alberto Moel, Journal of Financial Economics 71 (January 2004), 169-202.

"Financial Innovation," in Handbook of the Economics of Finance (Volume 1a: Corporate Finance), George Constantinides, Milton Harris and Rene Stulz, eds. (Elsevier, 2003), 307-336.

"When are Real Options Exercised?  An Empirical Study of Mine Closings," with Alberto Moel,  Review of Financial Studies 15 (2002), 35-64.

"HBS-JFE Conference Volume: Complementary Research Methods," Journal of Financial Economics 60 (2001), 179-185.

"Cephalon, Inc.: Taking Risk Management Theory Seriously," with George Chacko and Geoffrey Verter, Journal of Financial Economics 60 (2001), 449-485.  A shortened version of this piece was published as "Raising Contingent Capital: The Case of Cephalon" in the Journal of Applied Corporate Finance 15 (Spring 2002), 57-70.

"Collaborating with Congregations: Opportunities for Financial Services in the Inner City," with Larry Fondation and Patricia Walker, Harvard Business Review (July-August 1999), 57‑68.

"The Determinants of Stock Price Exposure: Financial Engineering and the Gold Mining Industry," Journal of Finance 53 (June 1998), 1015-1052.

"Bidding for Antamina: Incentives in a Real Option Context," with Alberto Moel,  in Project Flexibility, Agency and Competition, Michael J. Brennan and Lenos Trigeorgis, eds. (Oxford University Press, 2000), 128 -150.  Reprinted in Game Choices: The Intersection between Real Options and Game Theory (Risk Publications, 2000).

"Agency Costs of Corporate Risk Management," Financial Management (Spring 1998), 67-77.  Also in Corporate Risk: Strategies and Management, Gregory W. Brown and Donald H. Chew, eds. (Risk Books, 1999), 117-130.

"Costly Search and Mutual Fund Flows," with Erik Sirri, Journal of Finance 53 (October 1998), 1589-1622.

"The Global Financial Systems Project," with Robert C. Merton, in Intellectual Venture Capital: Essays in Honor of Dean John H. McArthur, Thomas K. McCraw and Jeffrey L Cruikshank, eds. (HBS Press, 1999) 67-98, 277-292.

"Interest Rate Exposure and Bank Mergers: A Preliminary Empirical Analysis," with Ben Esty and Bhanu Narasimhan, Journal of Banking and Finance 23 (February 1999), 255-285.

"Board Structure and Fee-Setting in the U.S. Mutual Fund Industry," with Matthew Sevick, Journal of Financial Economics 46 (December 1997), 321-356.

"Business Failure, Judicial Intervention, and Financial Innovation: Restructuring U.S. Railroads in the Nineteenth Century," Business History Review 71 (Spring 1997), 1-40.

"Who Manages Risk? An Empirical Examination of Risk Management Practices in the Gold Mining Industry," Journal of Finance 51 (September 1996), 1097-1137. Co-Winner of Smith Breeden Prize for best paper in the Journal in 1996.

"Pricing Credit Sensitive Debt when Interest Rates, Credit Ratings and Credit Spreads are Stochastic," with Sanjiv Das, Journal of Financial Engineering 5 (June 1996), 161-198.

"How Financial Engineering Can Advance Corporate Strategy," Harvard Business Review (January-February 1996), 136-146.

"The Economics of Pooling," with Erik Sirri, published in The Global Financial System, by D. Crane et al. (Boston: HBS Press, 1995).

"Securities Innovations: A Historical and Functional Perspective," Journal of Applied Corporate Finance 7 (Winter 1995), 90-103.

"Competition and Change in the Mutual Fund Industry," with Erik Sirri, published in Financial Services: Perspectives and Challenges (Boston: Harvard Business School Press, 1993), Samuel L. Hayes, ed. Reprinted in Gestion Collective (1994).

"Financing Change: The Role of Financial Innovation in Mergers and Acquisitions," published in The Deal Decade, Margaret Blair ed., (Washington, D.C.: The Brookings Institution, 1993).

"Financial Innovation and First­Mover Advantages," Journal of Financial Economics 25 (1989), 213-240. Condensed version published as "Financial Innovation and First Mover Advantages," Journal of Applied Corporate Finance 5 (1992), pp. 83-87.

CASE BOOKS

Case Problems in Finance, Twelfth Edition, with W. Carl Kester and Richard Ruback  (Chicago : McGraw Hill, 2004) and Teachers Manual: Case Problems in Finance, Twelfth Edition, with W. Carl Kester and Richard Ruback ( Chicago : McGraw Hill, 2004).

Cases in Financial Engineering: Applied Studies of Financial Innovation, with Robert C. Merton, Scott P. Mason, and André F. Perold (New Jersey: Prentice Hall, 1995) and Teachers' Manual (New Jersey: Prentice Hall, 1996).

UNPUBLISHED WORKING PAPERS

"Just Keep My Money! Supporting Tax-time Savings with US Savings Bonds."  (November 2008).

 

"Consumer Demand for Prize-linked Savings: A Preliminary Analysis," with Nick Maynard and Jan-Emmanuel De Neve (January 2008)

 

"Savings Whilst Gambling: An Empirical Analysis of U.K. Premium Bonds (Expanded Version)" (January 2008). A condensed version of this piece is forthcoming in the American Economic Economic Review Papers and Proceedings (May 2008). 

 

"Bouncing out of the Banking System: An Empirical Analysis of Involuntary Bank Account Closures," with Dennis Campbell and Asis Martinez-Jerez (Rev. December 2007).

 

"Just Keep My Money! Part I: The  Potential for a Refund-Driven Savings Bond Program," (Rev. April 2007).

 

"What Drives Corporate Liquidity?  International Evidence from Survey Data on Strategic Cash and Lines of Credit,” with Karl V. Lins and Henri Servaes (Rev. November 2007).

"Live Prices and Stale Quantities: T+1 Accounting and Mutual Fund Mispricing," with Michael Quinn and Ryan Taliaferro (Rev. November 2007).

"H&R Block's Refund Anticipation Loan: A Paradox of Profitability?"  with David Rose and Daniel Schneider (Rev. Nov. 17, 2005).   A condensed version of this piece has been published under the title "H&R Block's Refund Anticipation Loan: Perilous Profits at the Bottom of the Pyramid,"  with David Rose and Daniel Schneider, in Business Solutions for Reaching the Poor, ed. K. Rangan and J. Quelch (Jossey Bass, 2006).

"Do Fools Rush In?: Rewards to Buying and Selling the Newest Financial Products," Harvard Business School Working Paper (Rev. July 1996).

SHORT PIECES

"Just keep our money," Washington Post Op Ed (October 8, 2008).

"Ranking Risk and Finance," with Henri Servaes, Financial Times (June 9, 2006).

"Comment on 'Special Purpose Vehicles and Securitization' by Gary Gorton and Nicholas Souleles," forthcoming in M. Carey and R. Stulz, eds., The Risks of Financial Institutions ( University of Chicago Press).

"Forward" to Over-the-Counter Derivatives: A Guide to Business and Legal Risk Management and Documentation, by Robert M. McLaughlin (McGraw Hill, 1999), xiii-xv.

"An Analysis of Structured Notes and Mortgage Backed Securities," published in "Managing Risk in the 90's: What Should You be Asking About Derivatives?" by Cathy E. Minehan and Katerina Simons, New England Economic Review (Sept/Oct 1995), 3-25.

Contributor to "Using Derivatives: What Senior Managers Must Know," Harvard Business Review (January/February 1995), 33-41.

Comment on "Managing Costs of Remote Control: Recent Management Accounting Practices in Historical Perspective," by H. Thomas Johnson, published in Inside the Business Enterprise: Historical Perspectives on the Use of Information, Peter Temin, ed., (Chicago: University of Chicago Press, 1991).

PUBLISHED CASE STUDIES

"American Barrick Resources Corporation: Managing Gold Price Risk," with Jon Serbin and "Update on Barrick Gold Company,"  in Managing Metal Price Volatility, Rob Jameson ed., (London: Risk Books, 1997).

"Banc One Corporation: Asset and Liability Management," with Ben Esty and Jonathan Headley, Journal of Applied Corporate Finance 7 (Fall 1994), 33-51, with "Commentary," with Ben Esty, 63-65.

TEACHING MATERIAL

"An Overview of the Corporate Financial Engineering Course at Harvard Business School," Harvard Business School Working Paper (April 1997).

CASE STUDIES

Notes:
Cases marked with with [TN] have a teaching note available to qualified instructors.

Cases marked with an asterisk(*) appear in the book Cases in Financial Engineering: Studies of Applied Financial Innovation by Scott P. Mason, Robert C. Merton, Andre F. Perold, and Peter Tufano (New York: Prentice Hall, 1995). Teaching notes appear in the Teachers Manual to Cases in Financial Engineering: Studies of Applied Financial Innovation by Scott P. Mason, Robert C. Merton, Andre F. Perold, and Peter Tufano (New York: Prentice Hall, 1996).

Cases marked with the symbol (§) appear in the book Case Problems in Finance, Twelfth Edition, with W. Carl Kester and Richard Ruback  (Chicago : McGraw Hill, 2004) and  Teachers Manual: Case Problems in Finance, Twelfth Edition, with W. Carl Kester and Richard Ruback ( Chicago: McGraw Hill, 2004).

"The Christmas Eve Closing, " 2009 (209-043), with Andrea Ryan.

"First National Bank's Golden Opportunity," 2007 (208-072), with Shawn Cole, Daryl Collins and Daniel Schneider.

"Central Bank: The ChexSystem Qualifile® Decision," 2007 (208-029) with Dennis Campbell, Asis Martinez-Jerez and Emily McClintock Ekins.

"H& R Block 2006," 2007 (307-091), with Arijit Roy and Emily McClintock Ekins.

"BASIX," 2007 (207-099), with Shawn Cole. 

"BASIX Simulation Model." 2007 (207-108), with Shawn Cole

"Circle Lending," 2006 (206-137), with Nabil El Hage and Daniel Schneider

"EDuction," 2005 (206-006), with Daniel Schneider

"H&R Block and 'Everyday Financial Services,"  2004, (205-013), with Daniel Schneider

"Williams, 2002," 2003, (203-068), with Joshua Coval and Robin Greenwood. § [TN]

"The Pension Plan of Bethlehem Steel, 2001,"  2002, (202-088), with Zvi Bodie and Akiko Mitsui.§ [TN]

"Ashanti Goldfields Company Limited (A),"  2001 (201-064), with John J. Smutniak.

"Adecco SA's Acquisition of Olsten Corp.,"  2001 (201-068), with Simi Kedia.§ [TN]

"United Grain Growers Limited (A)," 2001 (201-015), with Joshua Musher. § [TN]

"Diageo plc," 2001 (201-033), with George Chacko and Joshua Musher.§ [TN]
"HBS Inc. Simulation Model," (2001), with Joshua Musher.

"Cox Communications," 2000 (201-003), with George Chacko.§ [TN]

"Sara's Options," 2000 (201-005), with Brian Hall and Joshua Musher.

"Laura Martin: Real Options and the Cable Industry," 2000 (201-004), with Mihir Desai. § [TN]

"Contractual Innovation in the UK Energy Markets: Enron Europe, The Eastern Group and the Sutton Bridge Project," 2000, (200-051), with Ben Esty. [TN]

"Sally Jameson 1999," 1999, (200-006), with George Chacko and Henry Reiling.

"The General Motors Corporation (A) Overview," 1998 (299-006), with William Wildern.
"The General Motors Corporation (B) Financial Policies," 1998 (299-007) with William Wildern.
"The General Motors Corporation (C) 1990-1992," 1998, (299-008) with William Wildern.
"The General Motors Corporation (D) 1993-1996," 1998, (299-009) with William Wildern.

"General Property Trust" 1998 (298-123), with John C. Handley, University of Melbourne, Australia.

"Cephalon, Inc.," 1998 (298-116).[TN]

"Bidding for Antamina," 1997 (297-054) and "Copper and Zinc Markets 1996," (297-055). [TN]

"Times Mirror Company PEPs Proposal Review," 1996 (296-089) and "Financial Engineering and Tax Risk: The Case of Times Mirror PEPS," 1996 (297-056), with Robert Santangelo. [TN]

"Tennesee Valley Authority: Option Purchase Agreements," 1996 (296-038). [TN]

"Student Educational Loan Fund, Inc," 1996 (296-046).[TN]

"Aspen Technology: Currency Hedging Review," 1995 (296-027). [TN]

"ABN-AMRO Holding N.V. and Smit Transformatoren N.V. (A),"
"ABN-AMRO Holding N.V. and Smit Transformatoren N.V. (B),"
and "ABN-AMRO Holding N.V. and Smit Transformatoren N.V. (C)," 1996-1997 (296-030/1 and 297-100). [TN]

"The Privatization of Rhone-Poulenc," 1994, with Donald Collat (295-049). [TN]

"MW Petroleum Corporation (A)," 1994, with Tim Luehrman (295-029). [TN]

"MW Petroleum Corporation (B)," 1994, with Tim Luehrman (295-045). [TN]

"Aberlyn Capital Management: July 1993," 1995, with Josh Lerner (294-083). [TN]

"Syscom Computers," 1995, with Ken Froot (295-094).

"Union Carbide Corporation: Interest Rate Risk Management," 1994 (294-057). [TN]

"Banc One Corporation: Asset and Liability Management," 1994, with Ben Esty (294-079). [TN]

"Dell Computer Corporation," 1994 (294-051)

"Enron Gas Services," 1994 (294-076).* [TN]

"Leland O'Brien Rubinstein Associates Incorporated: Portfolio Insurance," 1994 (294-061).* [TN]
"Leland O'Brien Rubinstein Associates Incorporated: SuperTrust," 1994 (294-050).*[TN]

"American Barrick Resources Corporation: Managing Gold Price Risk," 1993 (293-128).* [TN]

"Liability Management at General Motors," 1993 (293-123).* [TN]

ALZA and Bio-Electro Systems Series, 1993, with Josh Lerner. [TN]
"(A) Technological and Financial Innovation," (293-124)*
"(B-1) Rights Offering Strategy," (293-125)
"(B-2) The Rights Offering," (293-126)
"(C) 1988-1992," (283-127)

"Arbitrage in the Government Bond Market," 1993, with Michael Edleson (293-093).* [TN]

"Sally Jameson - Valuing Executive Stock Options," 1993 (293-053).* [TN]

"Goldman, Sachs & Co. Nikkei Put Warrants - 1989," 1992 (292-113).* [TN]

"RJR Nabisco Holdings Capital Corp. 1991," 1992 (292-129).* [TN]

"Shearson Lehman Hutton, Inc. Series" 1990. [TN]
"(A) Entry into the Covered Warrant Business," (291-016).*
"(B) Euromarket Covered Warrant Execution." (291-017).

"Atlantic Corporation," 1985 (286-004).

"Bethlehem Steel Corporation," 1985 (286-010).

STUDENT NOTES

"Introduction to Corporate Financial Engineering," Rev. 2008 (297-053).

"The Law of One Price and the Imperfections Matrix," 2001 (201-100).

"Why Manage Risk?" 1994 (294-107), Rev. 2001.

"Interest Rate Derivatives," 1994 (294-095).* [TN]

"Option Pricing Models in Excel," 1994 (294-060).

OTHER PUBLICATIONS

“The San Francisco Working Families Credit: Analysis of Program Applicants,”  (Rev. May 2006).  

"2005 Global Survey of Corporate Financial Policies and Practices," with Henri Servaes (2006). A series of studies done in cooperation with Deutsche Bank Liability Strategies Group.  Research Reports include:

"CFO Views"

"Corporate Capital Structure"

"Corporate Debt Structure"

"Corporate Liquidity Policy"

"Corporate Dividend Policy"

"Corporate Risk Management"

 

PROFESSIONAL AND CIVIC ACTIVITIES

Co-Editor, FEN-Educator, Financial Economics Network (2000-current); formerly Co-Editor, Finance Course Abstracting Journal, Financial Economics Network (1999) and Advisory Board, Finance Case and Teaching Abstracts, Financial Economics Network (1997-1999).

Associate Editor, Journal of Banking and Finance (2008-present).

Associate Editor, Journal of Finance (2000-2003).
Associate Editor, Financial Management (2000-2006).

Associate Editor, Journal of Financial Services Research (2000-present).

Associate Editor, Journal of Operational Risk (2005-present).

Associate Editor, Finance Research Letters (2004-present).

Chair, Editorial Board, Global Association for Risk Professionals (GARP) Risk Review (2003-current).

Ad-hoc Referee for Journal of Financial Economics, Journal of Finance, Journal of Business, Review of Financial Studies, and other journals.

Conference Organizer, HBS-JFE Conference on Field Based Research in Finance (July 1999). Conference volume published by the Journal of Financial Economics May/June 2001, 60 (23).

Conference Organizer, Harvard University-FDIC Symposium on Consumer Finance (Fall 2006).

Co-organizer, Boston Area Consumer Finance Group, 2008-current

Member of the Global Financial Systems Research Project, Harvard Business School.

Program Committee Member and discussant at various annual meetings of the American Finance Association, Western Finance Association, European Financial Management Association, Financial Management Association and other organizations.

Member of American Finance Association, Western Finance Association, American Economic Association and Financial Management Association.

Research Associate, National Bureau of Economic Research.

 

Member, Mayor's Economic Advisory Board (Boston, Massachusetts).

 

Founder and President, D2D Fund, Inc. (www.d2dfund.org), a non-profit devoted to delivering savings opportunities to low-income families (2000-present).

Trustee, Global Association for Risk Professionals (www.garp.com), Member of Executive Board (2002-present).

Program Coordinator (Consumer Finance), Federal Deposit Insurance Corporation's Center for Financial Research (http://www.fdic.gov/bank/analytical/cfr) (2003-present).

Member, Advisory Committee on Economic Inclusion, Federal Deposit Insurance Corporation (2006-present).

Board Member, NASD Investor Education Foundation (2005-2006).

Board Member, LMI Policy Institute (2007-2008).
 

rev. November 26, 2008