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Stephen Foerster

Professor, Finance-Economics

Education

  • BA, Hons Bus - UWO
  • MA, Pennsylvania
  • PhD, Pennsylvania
  • Chartered Financial Analyst (CFA)

Contact Information

Profile

Steve Foerster is a Professor of Finance at Richard Ivey School of Business, where he has taught since 1987. He received a BA (Honors Business Administration) from The University of Western Ontario, and an MA and PhD from the Wharton School, University of Pennsylvania. He obtained the Chartered Financial Analyst (CFA) designation in 1997 and has taught Financial Management, Investments, and Portfolio Management courses in the HBA, MBA, and Executive MBA Programs. He has won numerous teaching awards.

Foerster has written over 90 cases and technical notes in the areas of investments and financial management. He has over 40 publications including empirical studies in leading academic journals such as the Journal of Financial Economics, the Journal of Finance, the Journal of Financial and Quantitative Analysis, as well as practitioner-oriented publications such as Canadian Investment Review. He has also co-authored Cases in Financial Management and is editor of Finance and Money Market Cases.

Foerster has been a consultant and executive training course designer and facilitator in portfolio management, finance for non-financial executives, value based management, risk management and other investment areas to such companies as Alcan Inc., Bank of Montreal, BMO Nesbitt-Burns, Falconbridge, Canadian Securities Institute, Harris Bank, Institute of Canadian Bankers, J.D. Irving, Noranda, Royal Bank, RBC Asset Management, RBC Dexia, RBC Dominion Securities, Scotia Capital Markets, Siemens, Syngenta, and the Toronto Stock Exchange. Foerster is a member of the Editorial Boards of Financial Analysts Journal and Pacific-Basin Finance Journal, the Advisory Board of Canadian Investment Review and Financial Economics Network (FEN) Courses, Cases and Teaching Abstracts Journal. Foerster is currently a member of UWO's joint pension board and was formerly a director and chair of the Investment Committee of Foundation Western (UWO's alumni endowment fund) and was on the Advisory Board of Tremont Capital Opportunity Trust.

Teaching

  • Managing Financial Resources, EMBA
  • Portfolio Management, MBA
  • Ivey Financial Analysis, Executive Education
  • J.D. Irving Finance for Leaders, Executive Education
  • Canadian Investor Relations Institute/Ivey Investor Relations Certification Program, Executive Education

Selected Publications

  • "Double Then Nothing: Why Stock Investments Relying on Simple Heuristics May Disappoint" (S. Foerster), Review of Behavioral Finance, (2012), forthcoming.
  • "Back to Fundamentals: The Role of Expected Cash Flows in Equity Valuation" (S. Foerster and S. Sapp), North American Journal of Economics and Finance, 22:3, (2011), pp. 320-343.
  • "Trading Volume and Stock Investments" (J. Brown, D. Crocker and S. Foerster), Financial Analysts Journal, 65 (2009), pp. 67-84.
  • "Second time lucky? Withdrawn IPOs that return to the market", (C. Dunbar and S. Foerster), Journal of Financial Economics, 87 (2008), pp. 610-635.
  • "The Changing Role of Dividends: A Firm-level Study from the Nineteenth to the Twenty-first Century" (S. Foerster and S. Sapp), Canadian Journal of Economics, 39:4, (2006), pp. 1316-1344.
  • "The Dividend Discount Model in the Long-Run: A Clinical Study" (S. Foerster and S. Sapp),  Journal of Applied Finance, Fall/Winter (2005), pp. 55-75.
  • "Valuation of Financial Versus Non-Financial Firms: A Global Perspective" (S. Foerster and S. Sapp), Journal of International Financial Markets, Institutions & Money, 15 (2005), pp. 1-20.
  • "The Long Run Performance of Global Equity Offerings" (S. Foerster and A. Karolyi), The Journal of Financial and Quantitative Analysis, 35 (2000), pp. 499-528; William F. Sharpe Award for Scholarship in Financial Research.
  • "The Effect of Market Segmentation and Investor Recognition on Asset Prices: Evidence from Foreign Stock Listings in the US" (S. Foerster and A. Karolyi), The Journal of Finance, 54 (1999), pp. 981-1013.
  • "Multimarket Trading and Liquidity: A Transaction Data Analysis of Canada-U.S. Interlisting" (S. Foerster and A. Karolyi), Journal of International Financial Markets, Institutions & Money, 8 (1998), pp. 393-412.
  • "The Transmission of U.S. Election Cycles to International Stock Returns" (S. Foerster and J. Schmitz), Journal of International Business Studies, 28:1, (1997), pp. 1-25.
  • "Finite Sample Properties of Generalized Methods of Moments in Tests of Conditional Asset Pricing Models" (W. Ferson and S. Foerster), The Journal of Financial Economics 36, (August 1994), pp. 29-55.
  • "Interlistings and Stock Price Reactions: The Case of Canada and the U.S." (S. Foerster and A. Karolyi), Journal of International Business Studies 24:4, (1993), pp. 763-784.
  • "General Tests of Latent Variable Models and Mean Variance Spanning" (W. Ferson, S. Foerster and D. Keim), The Journal of Finance 48 (March 1993), pp. 131-156.

Research/Course Development

  • Stock Investments
  • Behavioural Finance
  • Wealth Management
  • Initial Public Offerings
  • Portfolio Management

Experience

  • Previous Teaching: The Wharton School (1984-86)
  • UWO Pension Plan: Joint Pension Board Member (2008-present)
  • Foundation Western (Endowment): Director and Investment Committee Member, Chair (1995-2007)
  • Tremont Capital Opportunity Trust: Advisory Board (2003-2007)
  • Northwest Mutual Fund: Advisory Board (2001-2003)
  • Management Consultant

Expertise

  • Initial Public Offerings
  • Stock Markets
  • Behavioural Finance
  • Cross-Listings
 

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