Colette Southam is an Adjunct Associate Professor at the Ivey Business School and Associate Professor of Finance, Director of the Master of Finance Program, and Director of the Centre for Experiential Learning at Bond University (Australia) where she teaches International Finance and Mergers & Acquisitions using the case method. Colette leads the Australian Business Case Network. Previousy, Colette was on faculty at Ivey where she taught Corporate Finance and International Finance in the HBA, EMBA and Ph.D. programs and was a faculty mentor with the Ivey Field Project. Prior to undertaking graduate studies in business, she was a molecular geneticist at the Ontario Veterinary College where she worked with a team from academia, the biotechnology industry, and Health Canada to develop gene probes to detect pathogens in meat.
Colette's research focuses on international and corporate finance with specific interests in market segmentation and its mitigation by cross-listing, executive compensation, and capital raising. Additionally, she has co-authored two articles about real options and is working with an interdisciplinary team to create a real-options valuation model for carbon sequestration and to quantify the potential economic impact of mineral carbonation. Colette enjoys working on industry-supported research projects which provide her with the opportunity to combine her science background with finance and economic fundamentals.
- Ph.D., Ivey
- M.B.A., Northern Arizona
- B.Sc. (Hons), Guelph
Recent Refereed Articles
Mark, T.; Southam, C.; Bulla, J.; Meza, S.,
2016, "Cross-category indulgence: Why do some premium brands grow during recession?", Journal of Brand Management, January 23(5): 114 - 129.
Abstract: © 2016 Macmillan Publishers Ltd. Reports about luxury categories and premium brands growing during recession are multiple. This marketplace behavior, however, is counterintuitive to what traditional economics would predict. The authors propose and test a theory to explain why demand for premium brands may grow despite a contraction in the economy. They define cross-category indulgence as the strategy of moving across categories (in contrast to moving within category) to satisfy the desire to indulge while dealing with budgetary constraints. The authors test empirically for cross-category indulgence using a unique dataset that compares dining in with dining out. They find support for cross-category indulgence and rule out other possible explanations for the increase in demand for a premium brand. The authors discuss that premium brand managers that understand this marketplace behavior and create opportunities for their brand to be the leader in their category may alleviate a decrease in demand for their brand during tough economic times.
Link(s) to publication:
Power, I. M.; McCutcheon, J.; Harrison, A. L.; Wilson, S. A.; Dipple, G. M.; Kelly, S.; Southam, C.; Southam, G.,
2014, "Strategizing carbon-neutral mines: A case for pilot projects", Minerals, May 4(2): 399 - 436.
Abstract: © 2014 by the authors; licensee MDPI, Basel, Switzerland. Ultramafic and mafic mine tailings are a valuable feedstock for carbon mineralization that should be used to offset carbon emissions generated by the mining industry. Although passive carbonation is occurring at the abandoned Clinton Creek asbestos mine, and the active Diavik diamond and Mount Keith nickel mines, there remains untapped potential for sequestering CO2 within these mine wastes. There is the potential to accelerate carbonation to create economically viable, large-scale CO2 fixation technologies that can operate at near-surface temperature and atmospheric pressure. We review several relevant acceleration strategies including: bioleaching of magnesium silicates; increasing the supply of CO2 via heterotrophic oxidation of waste organics; and biologically induced carbonate precipitation, as well as enhancing passive carbonation through tailings management practices and use of CO2 point sources. Scenarios for pilot scale projects are proposed with the aim of moving towards carbon-neutral mines. A financial incentive is necessary to encourage the development of these strategies. We recommend the use of a dynamic real options pricing approach, instead of traditional discounted cash-flow approaches, because it reflects the inherent value in managerial flexibility to adapt and capitalize on favorable future opportunities in the highly volatile carbon market.
Link(s) to publication:
Chung, C. C.; Lee, S. H.; Beamish, P. W.; Southam, C.; Nam, D.,
2013, "Pitting real options theory against risk diversification theory: International diversification and joint ownership control in economic crisis", Journal of World Business, January 48(1): 122 - 136.
Abstract: This study examines how MNE divestment decisions differ according to real options versus risk diversification perspectives. We develop competing hypotheses in relation to international diversification and joint ownership control. Empirical results give consistent support to the real options perspective. We find that large MNEs with greater international diversification are less likely to divest their subsidiaries during times of economic crisis. The negative effect of joint ownership control is however manifested in both crisis-stricken and non-crisis country subsidiaries as well as in their interaction effect.
Link(s) to publication:
Boeh, K.; Southam, C.,
2011, "Impact of initial public offering coalition on deal completion", Venture Capital, October 13(4): 313 - 336.
Abstract: Measures of underwriter and top management team prestige have been shown to signal the underlying quality of a company in an initial public offering (IPO). We extend these measures to include the entire coalition (i.e., managers, board, venture capitalists (VCs), underwriters, auditors, and both sets of lawyers) and surprisingly find VCs to have the highest explanatory power in predicting IPO outcomes (completion or withdrawal). Companies with deep management and a separation of the CEO/chair role are more likely to hire prestigious underwriters and successfully complete IPOs. Although companies with prestigious VCs are more likely to have prestigious underwriters, companies with VC-backing are more likely to withdraw the offering, likely to take advantage of better market opportunities. Companies with prestigious underwriters are more likely to have successful IPOs, although we show that the capabilities of underwriters and other intermediaries are more likely driven by activity level (i.e., market share), rather than prestige in affecting IPO outcome. Using an agency framework, we test how signals of monitoring, information asymmetry, bonding, and incentive alignment affect IPO outcomes and show that signals of lower agency costs are associated with a greater likelihood of IPO completion. Finally, because many of these measures are shown to endogenously affect IPO completion, a selection bias may exist in previous IPO studies as up to 70% of IPOs filed annually are not completed. © 2011 Copyright Taylor and Francis Group, LLC.
Link(s) to publication:
Southam, C.; Sapp, S.,
2010, "Compensation Across Executive Labor Markets: What Can We Learn from Cross-Listed Firms?", Journal of International Business Studies, February 41(1): 70 - 87.
Abstract: There is wide consensus that chief executive officers (CEOs) of US firms earn significantly more than their Canadian counterparts. Using a matched sample, we find that the majority of this difference is due to US CEOs earning 50% more than CEOs of Canadian non-cross-listed firms. We find no such US premium'' for Canadian cross-listed firms, because the use of options allows the cross-listed firms to keep pace with their neighbors to the south. While firms that list only in Canada compete in the labor market defined by their national boundary, cross-listed firms appear to be competing directly with their US counterparts for executive talent. In investigating alternative explanations for the elimination of the compensation differential for Canadian cross-listed firms, we find evidence consistent with both the bonding and the rent extraction hypotheses.
Gyles, C. L.; De Grandis, S. A.; Southam, C.; Brunton, J. L.,
1988, "Cloning and Nucleotide Sequencing of the Genes Determining Verocytotoxin Production in Porcien Edema Disease Isolates of E. coli", Microbial Pathogenesis, December 5(6): 419 - 426.
Abstract: The structural genes determining the edema disease principle were cloned from the total cellular DNA of iEscherichia colii strain 412 (O139: K82) isolated from a case of porcine edema disease. An assay for cytotoxicity in Vero cells was used to detect the edema disease principle. A 7.5 kb iEcoiRI-iSailI fragment specifying cytotoxin production was subcloned in pUC18. Sequences which specified production of cytotoxin were localized to a 0.9 kb region by transposon Tn5 mutagenesis. A 2.4 kb iEcoiRI-iBgilII fragment encompassing this region was subcloned into pUC18. Using nucleotide sequence analysis, two open reading frames separated by 12 bp were identified. They encoded proteins of 319 (A subunit) and 87 (B subunit) amino acids which both had N-terminal sequences typical of iE. colii signal peptides. Comparison of these with the published sequence for the Shiga-like toxin II (SLT-II) showed 91% overall nucleotide sequence similarity. The nucleotide sequence similarity extended to 200 base pairs upstream of the putative A subunit translational start site suggesting a common regulatory mechanism. The deduced amino acid sequences of the processed A and B subunits had 94% and 84% similarity, respectively. These findings confirm the close genetic relationship between SLT-II and edema disease principle.
Honours & Awards
- Bond Business Dean’s Honourable Mention for Outstanding Teaching Performance, January 2016
- Top 20 Best Selling Case Award (Alex Sharpe’s Portfolio), Ivey Publishing, 2015
- Bond Business Dean’s Teaching Excellence Award, January 2014
- Bond Business Dean’s Teaching Excellence Award, September 2013
- Bond Business Dean’s Teaching Excellence Award, May 2013