Smith School Hosts 21st Annual Conference on Financial Economics & Accounting

The University of Maryland’s Robert H. Smith School of Business hosted the world’s most dynamic researchers in finance and accounting for the 21st Annual Conference on Financial Economics & Accounting (CFEA), Nov. 12-13, 2010, in College Park, Md. The event was held in conjunction with the 2010 Maryland Finance Symposium. Myron Scholes, winner of the 1997 Nobel Prize for Economics for his Black-Scholes theory and Frank E. Buck Professor of Finance, Emeritus, at Stanford University, gave the keynote address.

The two-day conference is a who’s who in the world of finance and accounting, bringing the top researchers together to share their latest findings. Sessions topics ranged from executive compensation and asset pricing in the finance arena to fair value accounting and disclosure. The University of Maryland is a member of a consortium of eight universities sponsoring the conference, including New York University, Indiana University, University of North Carolina, Georgia State University, University of Southern California, Rutgers University, and University of Texas.

Scholes, the Friday evening reception keynote speaker, is a co-inventor of the Black-Scholes option pricing model, which provides a fundamental conceptual framework for valuing derivatives and has become the standard for pricing and managing risk. The reception was held at the university’s Samuel Rigg’s Alumni Center.

Scholes discussed risk management and uncertainty in times of crises, with respect to the current financial landscape and presented a toolkit for risk management. “Managing under uncertainty is not risk minimization – to minimize risk, you can’t make returns,” said Scholes. When he first started out in the business, risk management was “cash versus risky projects,” he said.

"The conference drew top research and researchers in finance and accounting from around the globe. We had a record number of submissions (exceeding the previous record at NYU) and attracted a record number of conference participants,” said conference organizer Lemma W. Senbet, The William E. Mayer Chair Professor of Finance and director of the Smith School's Center for Financial Policy. “Virtually all the top universities of the world were represented on the conference program as presenters, session chairs, and discussants. We are thrilled that Myron Scholes, Nobel laureate, was the conference keynote speaker and Michael Greenberger was the luncheon keynote speaker."

The Center for Financial Policy at the Smith School launched in November 2009 and develops thought leadership in financial policy that impacts corporate performance, capital allocation and the stability of the global financial system. Located in Washington, D.C., at the Smith’s School’s campus in the Ronald Reagan Building and International Trade Center, the center is well-situated to take a leadership role with its globally recognized faculty and its extensive relationships with key policymakers, practitioners and academics.

Please visit the 21st Annual Conference on Financial Economics & Accounting (CFEA) website for more information and to download papers from the conference.

Alissa Arford, Office of Marketing Communications