Wayne State University School of Business Administration

Sudip Datta

T. Norris Hitchman Endowed Chair and Professor of Finance

sdatta@wayne.edu
(313) 577-0408

Academic Degrees

  • Ph.D. State University of New York, Binghamton
  • M.A. State University of New York, Binghamton
  • B.Sc. Presidency College, India 

Research Interests

  • Corporate restructuring
  • Corporate governance
  • Executive compensation
  • Investment banking
  • Earnings management
  • Analysts’ earnings forecasts
  • Information signaling in financial markets
  • Internal capital allocation efficiency in conglomerates
  • Corporate bankruptcy
  • Capital structure and debt structure choices
  • Insider trading
  • Product market competition
  • Financial market efficiency

Teaching Interests

  • Corporate Finance
  • Corporate Valuation: Techniques, Models and Strategic Applications
  • Equity Valuation
  • Special Topics in Corporate Valuation
  • Seminar in Corporate Finance
  • Corporate Financial Management
  • Business Financial Management
  • Managerial Finance
  • Advanced Managerial Finance
  • Financial Statement Analysis for Decision-Making

Bio

Dr. Datta is Professor of Finance and holds the T. Norris Hitchman Endowed Chair. His research interests and publications span a broad range of finance topics that include mergers and acquisitions, divestitures, executive compensation, initial public offerings of debt securities, capital structure decisions and debt structure choice, insider trading, corporate bankruptcy, corporate pension funding decisions, internal corporate restructuring, and corporate downsizing. A prolific researcher, he has published numerous articles in recent years in journals.

Professional Experience & Certification

Consulting Experience

Finance expert for Melick, Porter and Shea, LLP, Boston, MA and Tishkoff and Associates L.L.P. Engaged in corporate valuation and valuation of executive stock option grants, divorce settlement, financial asset valuation. He has expertise in business valuation, estimation of financial damages/forgone earnings due to job related injuries, valuation of executive and employee stock options, valuation of shareholder damages due to stock price manipulation, insider-trading related damages, private company valuation, mergers/acquisitions, initial public offering and seasoned offerings of securities etc.

Additional Experience

  • Professor and T. Norris Hitchman Endowed Chair in Finance - Wayne State University, Fall 2004 – present
  • Professor and Robert and Julia Dorn Chair - Bentley College, Fall 2000 - Spring 2004
  • Associate Professor and Robert and Julia Dorn Chair - Bentley College, Fall 1998 – Spring 2000
  • Associate Professor - Bentley College, Fall 1995 - Spring 1998
  • Assistant Professor - Bentley College, Fall 1989 - Spring 1995

Publications & Presentations

Publications

  • Does Executive Compensation Determine Firm Performance?: An Analysis of Newly Appointed CEOs (with Mai Iskandar-Datta and Kartik Raman), Corporate Ownership and Control (Forthcoming).
  • Executive Compensation and Internal Capital Market Efficiency, (with Ranjan D’Mello and Mai Iskandar-Datta), Journal of Financial Intermediation (2009), vol. 18, p. 242-258.
  • Is there Information Content in Corporate Asset Writedowns?, (with Mai Iskandar-Datta), International Journal of Managerial Finance (2008), vol. 4, p. 200.
  • Are Convertible Bond Calls Harbingers of Bad News? (with Kartik Raman), Corporate Ownership and Control (Summer 2007) vol. 4, issue 4, pp. 183-192.
  • Managerial Stock Ownership and the Maturity Structure of Corporate Debt (with Mai Iskandar-Datta and Kartik Raman), Journal of Finance (October, 2005) vol. 60,.pp. 2333-2350.
  • Executive Compensation Structure and Corporate Equity Financing Decisions (wih Mai Iskandar-Datta and Kartik Raman), Journal of Business (September 2005), vol. 78, pp. 1860-1889.
  • In Defense of Incentive Compensation: Evidence on Corporate Acquisition Policy (with Mai Iskandar-Datta and Kartik Raman), Journal of Applied Corporate Finance (Fall 2004), vol. 16, pp 82-88.
  • Convertible Bond Calls: Resolution of the Information Content Puzzle (with Mai Iskandar-Datta and Kartik Raman), Journal of Financial Intermediation (2003), vol. 12, pp. 155-276.
  • Value Creation in Corporate Asset Sales: The Role of Managerial Performance and Lender Monitoring (with Mai Iskandar-Datta and Kartik Raman), Journal of Banking and Finance (2003), vol. 27, pp. 351-375.
  • Value Creation in Corporate Divestitures (with Mai Iskandar-Datta and Kartik Raman), Corporate Finance Review (Jan/Feb 2003), vol. 7, pp. 25-36.
  • Executive Compensation and Corporate Acquisition Decisions(with Mai Iskandar-Datta and Kartik Raman), Journal of Finance (December 2001), vol. 56, pp. 2299-2336.
  • Debt Structure Adjustments and Long-run Stock Price Performance (with Mai Iskandar-Datta and Kartik Raman), Journal of Financial Intermediation (2000), vol. 9, pp. 427-453.
  • Do Bank Relationships Matter in Public Debt Offerings? (with Mai Iskandar-Datta and Ajay Patel), Journal of Applied Corporate Finance (Winter 2000), vol. 12, no. 4, pp 120-127.
  • Some Evidence on the Uniqueness of Initial Public Debt Offerings (with Mai Iskandar-Datta and Ajay Patel), Journal of Finance (April 2000), vol. 55, pp. 715-743.
  • Bank Monitoring and the Pricing of Corporate Public Debt (with Mai Iskandar-Datta and Ajay Patel), Journal of Financial Economics (March 1999) vol. 51, no. 3, pp. 435-449.
  • The Pricing of Initial Public Offers of Corporate Straight Debt (with Mai Iskandar-Datta and Ajay Patel), Journal of Finance (March 1997) vol. 52, no. 1, pp. 379-396.
  • Market’s Pricing of Debt IPOs (with Mai Iskandar-Datta and Ajay Patel), Journal of Applied Corporate Finance (Spring 1999), vol. 12, no. 1, pp. 86-91.
  • Who Gains From Corporate Asset Sales? (with Mai E. Iskandar-Datta), Journal of Financial Research (Spring 1996) vol.19, no. 1, pp. 41-58.
  • New Evidence on the Valuation Effects of Convertible Bond Calls (with Mai E. Iskandar-Datta), Journal of Financial and Quantitative Analysis (June 1996) vol. 31, no. 2, pp. 295-307.
  • Takeover Defenses and Wealth Effects on Securityholders: The Case of Poison Pill Adoptions (with Mai E. Iskandar-Datta), Journal of Banking and Finance (August 1996) vol. 20, no. 7, pp. 1231-1250.
  • Does Insider Trading Have Information Content in the Bond Market? (with Mai E. Iskandar-Datta), Journal of Banking and Finance (April 1996) vol. 20, no. 3, pp. 555-575.
  • Managerial Self-Interest, Pension Financial Slack and Corporate Pension Funding (with Mai E. Iskandar-Datta and Edward J. Zychowicz), The Financial Review (November 1996) vol 31, no. 4, pp. 695-720.
  • The Value of Analyst Recommendations: A Test of "The Announcement Effect" and "The Valuable Information Effect" (with W. Scott Bauman and Mai E. Iskandar-Datta), Journal of Business Finance and Accounting (July 1995) vol. 22, no. 5, pp. 659-670.
  • Reorganization and Financial Distress: An Empirical Investigation (with Mai E. Iskandar-Datta), Journal of Financial Research (Spring 1995) vol 18, no. 1 pp. 15-32.
  • Pension Plan Terminations, Excess Asset Reversions and Securityholder Wealth (with Mai E. Iskandar-Datta and Edward J. Zychowicz), Journal of Banking and Finance (May 1995) vol. 19, no. 2, pp. 245-259.
  • The Information Content of Bankruptcy Filing on Securityholders of the Bankrupt Firm: An Empirical Investigation (with Mai E. Iskandar-Datta), Journal of Banking and Finance (August 1995) vol. 19, no. 5, pp. 903-920.
  • Corporate Partial Acquisitions, Total Firm Valuation and the Effect of Financing Method (with Mai E. Iskandar-Datta), Journal of Banking and Finance (April 1995) vol. 19, no. 1, pp. 97-115.
  • Bond and Stock Market Response to Unexpected Earnings Announcements (with Upinder S. Dhillon), Journal of Financial and Quantitative Analysis (December 1993) vol. 28, no. 4, pp 565-577.

Paper Presentations (last few years only)

  • Executive Compensation and Internal Capital Market Efficiency (with Ranjan D’Mello and Mai Iskandar-Datta), to be presented at the Financial Management Association Meetings, Orlando in October, 2007.
  • Managerial Stock Ownership and Maturity Structure of Corporate Debt (with Mai Iskandar-Datta and Kartik Raman), presented at the Financial Management Association Meetings, New Orleans October, 2004.
  • Convertible Bond Calls: Resolution of the Information Content Puzzle (with Mai Iskandar-Datta and Kartik Raman), presented at the Financial Management Association Meetings, Denver October, 2003.
  • Executive Compensation Structure and Corporate Equity Financing Decisions (with Mai Iskandar-Datta and Kartik Raman), presented at the Financial Management Association Meetings, San Antonio October, 2002
  • Executive Compensation and Corporate Acquisition Decisions(with Mai Iskandar-Datta and Kartik Raman), presented at the Financial Management Association Meetings, Toronto in October, 2001. This paper won the competitive Outstanding Paper Award in Corporate Finance.

Outstanding Paper Award in Corporate Finance

  • Value Creation in Corporate Asset Sales: The Role of Managerial Performance and Lender Monitoring (with Mai Iskandar-Datta and Kartik Raman), at the Financial Management Association International Meeting, Paris, France, May 2001.
  • Debt Structure Adjustments and Long-run Stock Price Performance (with Mai Iskandar-Datta and Kartik Raman) at the Financial Management Association Meetings, Seattle in October, 2000.
  • Managerial Performance and Value Creation in Corporate Asset Sales (with Mai Iskandar-Datta and Kartik Raman) at the Financial Management Association Meetings, Orlando in October, 1999.
  • Bank Monitoring and the Pricing of Corporate Public Debt (with Mai Iskandar-Datta and Ajay Patel), at the Financial Management Association International Meetings, Lisbon, Portugal held in June, 1998 and at the Financial Management Association Meetings, Chicago in October, 1998.
  • Session chair at Southern Finance Association meeting in November 1997 in Baltimore.
  • Are Debt Offers Informative?: New Evidence from Straight Bond IPOs (with Mai Iskandar-Datta and Ajay Patel). Financial Management Association annual meetings, New Orleans, October 1996 and First Annual FMA International meeting in May 1997 in Zurich, Switzerland.
  • Valuation Effects And Signalling Implications of Initial Public Debt Offers (with Mai Iskandar-Datta and Ajay Patel), Southern Finance Association meeting held in November 1995 in Sarasota, FL. This paper won the outstanding paper award at the conference.
  • Valuation Effects of Corporate Straight Debt Offerings: An Empirical Investigation of the Anomalous Price Behavior (with Mai Iskandar-Datta). Financial Management Association. Meetings, New York, October 1995.
  • An Investigation of the Returns on Initial Public Offerings of Bonds (with Mai Iskandar-Datta and Ajay Patel). French Finance Association meetings, Bordeaux, France, June 1995.
  • An Investigation of the Returns on Initial Public Offerings of Bonds (with Mai Iskandar-Datta and Ajay Patel). Financial Management Association Meetings, St. Louis, October 1994. This paper was nominated for the best paper award at the Southern Finance Association meeting held in November 1994 in Charleston, SC.

Invited Seminar Presentations

  • Invited to present at the Eli Broad School (Finance Dept. seminar) at Michigan State University in March, 2007.
  • Invited to present at the Lally School of Business, Rensselaer Polytechnic Institute (Finance Dept. seminar) in February, 2007.
  • Invited to present at the Finance Dept. seminar at University of Connecticut, Storr, CT in November, 2003.
  • Invited to present at the Finance Dept. seminar at University of Alabama, Tuscaloosa on October 24, 2003.
  • Invited presentation at the Finance Dept., Wayne State University, Detroit, MI on March 7, 2003.
  • Invited presentation at the Finance Dept., Freeman School of Management, Tulane University, April 12, 2002.
  • Invited presentation at Weatherhead School of Management, Case Western Reserve University, April 3, 2000.

Awards & Recognitions

  • Recipient of the Distinguished Research Award (2008) Wayne State University School of Business Administration.
  • T. Norris Hitchman Endowed Chairholder at the School of Business Administration, Wayne State University.
  • Ranked as one of the top Finance researchers worldwide over a 50-year period based on both research productivity as well as quality-adjusted published articles. See article titled “Prolific Authors in the Finance Literature: A Half Century of Contributions” by Jean L. Heck and Philip L. Cooley in the Journal of Finance Literature (Winter 2005). This article examines the 50-year period 1953-2002 (my career started in 1989), states in its abstract “The prolific authors identified in this study are truly remarkable.” A subsequent follow-up article by Terrance Jalbert (University of Hawaii) scheduled to appear in the Journal of Financial Education (2008) that updates the Heck and Cooley ranking, ranks me at #62 (Heck and Cooley ranking was #301).
  • Robert and Julia Dorn Professorship: first recipient of a professorship in the Finance Department, Bentley College.
  • Won the competitive Outstanding Paper Award in Corporate Finance at the 2001 Financial Management Association's annual meeting held in Toronto, Canada, in October 2001.
  • Listed in Who’s Who in the World, Who’s Who in America, Who’s Who in Finance and Industry, and Who’s Who in American Education.
  • Won the 1996 Bentley College Scholar of the Year award for outstanding achievements in scholarly research. This is a lifetime achievements award in scholarly research presented on a competitive basis to a faculty member chosen from the pool of all faculty members of the institution.
  • The paper entitled “Who Gains From Corporate Asset Sales?” (with Mai Iskandar-Datta) competitively won the outstanding paper award from the Journal of Financial Research among all the articles published in that journal during 1996.
  • Won the Bentley College Publication Award for 1994, 1995, 1996, 1997.1998, 1999, 2000, and 2001.
  • "Insider-Trading Reports Are Linked to Price of Bonds" by Warren Getler, The Wall Street Journal, February 8, 1995 (page C1). This full length article was written drawing attention to my study.
  • "Does Insider Trading Have Information Content in the Bond Market? (co-authored with Mai E. Iskandar-Datta), Journal of Banking and Finance, which has significant policy implications for the Securities and Exchange Commission regarding a loophole in the current insider trading laws. I was also quoted in an article related to insider-trading which was published in the Middlesex News on July 2, 1995. The article has also been referenced in a book entitled “Insider Trading” by William K.S. Wang (Professor of Law, University of California, Hastings College of the Law) and Marc I. Steinberg (Radford Professor of Law, Southern Methodist University School of Law), published by Little, Brown and Company (now Aspen Law and Business) in 1997.
  • Won the competitive Outstanding Paper Award at the 1995 national annual conference of the Southern Finance Association held in Sarasota, Florida (November 1995).
  • Published articles in the reading list of many reputed finance programs, e.g. University of Rochester, Indiana University, UC-Berkeley, Florida State University, among several others.
  • Recognized for valuable research on corporate earnings expectations (published in the Journal of Financial and Quantitative Analysis) that opens up new horizons for the fixed income securities markets by Institutional Brokers Estimate System (IBES) in its "IBES Innovator" (April 1994) (disseminated to over 4000 earnings analysts worldwide). Research results also published on The Bloomberg on-line system.

Professional Memberships

Editorial Boards

  • Review of Financial Economics
  • International Journal of Managerial Finance
  • Corporate Ownership and Control

Ad hoc reviewer for:

  • Journal of Finance
  • Journal of Financial Economics
  • Journal of Business
  • Journal of Financial and Quantitative Analysis
  • Journal of Financial Intermediation
  • Journal of Corporate Finance
  • Journal of Empirical Finance
  • Journal of Banking and Finance
  • Financial Management
  • Journal of Financial Research
  • Journal of International Money and Finance 
  • Managerial and Decision Economics
  • Journal of Business Research
  • Journal of Money, Credit and Banking
  • Review of Financial Economics

Professional Affiliations

  • American Finance Association
  • Financial Management Association
  • Western Finance Association
  • Southern Finance Association
  • Eastern Finance Association

Media/Professional Citations

  • Radio Interview WDET 101.9 FM June 1, 2009 on GM’s bankruptcy announcement.
  • The Wall Street Journal, Investor's Business Daily, The Washington Post, The Detroit News, Detroit Free Press, Worcester Telegraph, Economic Intuition, The Bowne Review of CFOs and Investment Bankers, CFA Digest, The Clarion Ledger, among others.
  • Interviewed for a Detroit Free Press (Sunday - September 30, 2007) special article in the supplementary section on “Taking the Buyout” -- "Running your home finances like a small business."  
  • Radio Interview WWJ 950 AM July 26, 2007 on stock market decline. Radio Interview WWJ 950 AM August 16, 2007 on stock market condition (Paul Snyder show at 7:41pm).
  • Radio Interviews: “Inside Detroit” show by Mildred Gaddis WCHB (1200 AM) on March 24, 2006.