BIO

Paul H. Schultz is the John W. and Maude Clark Professor of Finance at the University of Notre Dame. He received his B.A. from Macalester College, and his M.B.A. and Ph.D. in Finance and Economics from the University of Chicago. His expertise is in corporate finance and market microstructure. His recent research interests include the collapse of internet stock prices, arbitrage and the prices of dual class shares, and the ability of mutual funds to pick stocks.

Schultz’s paper, “Options and the Bubble,” co-authored with Robert Battalio, was named as one of eight finalists for the 2006 Smith Breeden Award, given by the Journal of Finance. He had previously won the Smith Breeden Award for his paper, “Why Do Nasdaq Market Makers Avoid Odd-Eighth Quotes,” co-authored with Bill Christie. He has also received several outstanding teaching awards, as well as grants and fellowships, including the Morgan Stanley Equity Market Microstructure Research Grant in 2004.

Paul is the director of the Center for the Study of Financial Regulation.

AREAS OF EXPERTISE

• Corporate Finance
• Market Microstructure

EDUCATION

• BA, Macalester College
• MBA, University of Chicago
• Ph D, University of Chicago

TEACHING

• Financial Policy

HOMEPAGE

• www.nd.edu/~pschultz

PUBLICATIONS

"Mispricing of Dual-Class Shares: Profit Opportunities, Arbitrage, and Trading," (with Sophie A Shive), To appear in Journal of Financial Economics, forthcoming.

"Rational Cross-Sectional Differences in Market Efficiency: Evidence from Mutual Funds," To appear in Journal of Financial and Quantitative Analysis, Forthcoming.

"Downward Sloping Demand Curves, the Supply of Shares, and the Collapse of Internet Stock Prices," (with ), To appear in Journal of Finance, 63, April (2nd Quarter/Spring), 2008, 351-378.

"Options and the Bubble," (with Robert Battalio),  Journal of Finance, 61, October (4th Quarter/Autumn), 2006, 2071 - 2102.

"Liquidity: Urban Versus Rural Stocks," (with Tim Loughran),  Journal of Financial Economics, 78, 2005, 341-374.

"The Role of IPO Underwriting Syndicates: Pricing, Information Production, and Aftermarket Liquidity," (with Shane Corwin),  Journal of Finance, 60, 2005, 443-486.

"Weather, Stock Returns, and the Impact of Localized Trading Behavior," (with Tim Loughran),  Journal of Financial and Quantitative Analysis, 39, 2004, 343-364.

"Pseudo Market Timing and the Long-Run Performance of IPOs,"  Journal of Finance, 58, 2003, 347-381.

"Who Makes Markets,"  Journal of Financial Markets, 6, 2003, 49-72.

"Corporate Bond Trading: A Peek Behind the Curtain,"  Journal of Finance, 56, 2001, 677-698.

"Do the Individuals Closest to Internet Firms Believe They Are Overvalued?" (with Mir Zaman),  Journal of Financial Economics , 59, 2001, 347-381.

"Stock Splits, Tick Size and Sponsorship,"  Journal of Finance, 55, 2000, 429-450.

"Regulatory and Legal Pressures and the Costs of Nasdaq Trading,"  The Review of Financial Studies, 13, January (1st Quarter/Winter), 2000, 917-957.

"Dealer Markets Under Stress: The Performance of Nasdaq Market Makers During the November 15, 1991 Market Break," (with William Christie),  Journal of Financial Services Research, 13, 1999, 205-229.

"The Effect of Nasdaq Market Reform on Trading Costs and Depths," (with Michael Barclay, William Christie, Jeffrey Harris, Eugene Kandel),  Journal of Finance, 54, 1999, Jan-34.

"The Initiation and Withdrawal of Odd-Eighth Quotes Among Nasdaq Stocks: An Empirical Analysis," (with William Christie),  Journal of Financial Economics, 52, 1999, 409-442.

"The Trading Profits of SOES Bandits," (with Jeffrey Harris),  Journal of Financial Economics, 50, 1998, 39-62.

"The Importance of Firm Quotes and Rapid Executions: Evidence from the January 1994 SOES Rule Change," (with Jeffrey Harris),  Journal of Financial Economics, 45, 1997, 135-166.

"Trading Costs and Exchange Listing: The Case of Firms that Voluntarily Move from the American Stock Exchange to Nasdaq," (with Mir Zaman),  Journal of Finance, 52, 1997, 2103-2112.

"Are Nasdaq Spreads Determined by Competition or Implicit Collusion?" (with William Christie),  Journal of Economic Perspectives, 9, 1995, 199-208.

"Market Structure, Price Discovery, and the Intraday Pattern of Bid-Ask Spreads for Nasdaq Securities," (with K. C. Chan, William Christie),  Journal of Business, 68, 1995, 35-60.

"Aftermarket Support and Underpricing of Initial Public Offerings," (with Mir Zaman),  Journal of Financial Economics, 35, 1994, 199-219.

"Why did Nasdaq Market Makers Stop Avoiding Odd-Eighth Quotes?" (with William Christie, Jeffrey Harris),  Journal of Finance, 49, 1994, 1841-1860.

"Why do NASDAQ Market Makers Avoid Odd-Eighth Quotes?" (with William Christie),  Journal of Finance, 49, 1994, 1813-1840.

"Calls of Warrants: Timing and Market Reaction,"  Journal of Finance, 48, 1993, 681-696.

"Unit Initial Public Offerings: A Form of Staged Financing,"  Journal of Financial Economics, 34, 1993, 199-229.

"Biases and Profit Opportunities in Warrant Markets," (with Beni Lauterbach),  Advance in Futures and Options , 1991.

"Pricing Warrants: An Empirical Study of the Black-Scholes Model and Its Alternatives," (with Beni Lauterbach),  Journal of Finance, 45, 1990, 1181-1209.

"Personal Income Taxes and the January Effect: Small Firm Stock Returns Before the War Revenue Act of 1917: A Note,"  Journal of Finance, 40, 1985, 333-344.

"Transaction Costs and the Small Firm Effect: A Comment,"  Journal of Finance, 38, 1983, 81-88.

PRESENTATIONS

Paul H Schultz, American Finance Association Conference, Philadelphia, PA, "Options and the Bubble."

Paul H Schultz, New York Stock Exchange Entrepreneurial Finance Conference, Half Moon Bay, California, "The Role of IPO Underwriting Syndicates: Pricing, Information Production, and Aftermarket Liquidity."

Paul H Schultz, Purdue University, West Lafayette, IN, "Momentum, Market Frictions, and the Sources of Portfolio Return Autocorrelations."

Paul H Schultz, Vanderbilt University, Nashville, TN, "The Market for New Issues of Municipal Bonds: The Roles of Limited Transparency and Limited Access to Retail Investors," (November4, 2011).

Paul H Schultz, University of Utah, Salt Lake City Utah, "The Market for New Issues of Municipal Bonds: The Roles of Transparency and Limited Access to Retail Investors," (October 2011).

Paul H Schultz, Morgan Stanley Equity Trading Conference, Miami, FL, "Options and the Bubble," ( 2005).

Paul H Schultz, University of North Carolina, Chapel Hill, NC, "Options and the Bubble," ( 2005).

Paul H Schultz, European Finance Association Meeting, Maastricht, Netherlands, "Options and the Bubble," ( 2004).

Paul H Schultz, Dartmouth College, "The Role of IPO Underwriting Syndicates: Pricing, Information Production, and Aftermarket Liquidity," ( 2003).

Paul H Schultz, Southern Methodist University, Dallas, TX, "Dissemination of Information: Urban versus Rural Stock Return Patterns," ( 2003).

Paul H Schultz, , Rice University "Who Makes Markets," ( 2001).

Paul H Schultz, "Corporate Bond Trading Costs and Practices: A Peek Behind the Curtain," ( 1999).

Paul H Schultz, "Regulatory and Legal Pressures and the Costs of Nasdaq Trading," ( 1999).

Paul H Schultz, "The Effect of Nasdaq Market Reform on Trading Costs and Depths," ( 1998).

Paul H Schultz, "The Trading Profits of SOES Bandits," ( 1998).

WORKING PAPERS

"The Market for New Issues of Municipal Bonds: The Roles of Transparency and Limited Access to Retail Investors."