John McConnell

Burton D. Morgan Chair of Private Enterprise Emeritus
Distinguished Professor Emeritus of Management

Education

Ph.D., Management, Purdue University, 1974
M.B.A., Finance, University of Pittsburgh, 1969
B.A., Economics, Denison University, 1968

Professor McConnell's primary teaching interests were financial markets, corporate finance, real estate finance, and banking. His current research interests are in the areas of corporate finance, corporate governance, securities markets, and financial derivatives.

He has published more than 100 articles in leading peer-reviewed finance, economics and management journals including the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, the Journal of Financial and Quantitative Finance and others. His recent publications include: “Existing Methods Provide Unreliable Estimates of the Marginal Value of Cash,” Critical Finance Review, 2021, forthcoming (with J. T. Halford, V. Sibilkov and N. Zaiats), “The Effect of Short-Sale Restrictions on Corporate Managers,” Journal of Risk and Financial Management, 2023, Vol. 16, No. 11, pp. 486-496, (with B. Liu and A. Schrowang), “Guilty by Political Association: The Impact of Political Scandals on Connected Firms,” Journal of Law and Economics, 2023, forthcoming, (with A. Knill, B. Liu, and C. Seagraves).

He has been recognized for his scholarly contributions as the Distinguished Scholar of the Eastern Finance Association (2002) and as a Fellow of FMA (2007). He has won numerous teaching awards, including the Salgo-Noren Outstanding Teaching Award (1993, 1995, 2011, 2012 and 2018) and the Most Effective MSM Teacher Award (1992). He has received research support from the National Science Foundation, the Department of Housing and Urban Development, the Small Business Administration, the Center for the Study of Futures Markets, and the Catalyst Institute.

Professor McConnell has served on the board of directors of the Federal Home Loan Bank of Indianapolis (1983-86), Harrington Financial Group, Inc. (1993-2000), and Harrington West Financial Group, Inc. (1999-2009). He has been a consultant to Goldman, Sachs & Co., Merrill Lynch Capital Markets, Inc., the Federal Home Loan Bank System, the Federal Home Loan Mortgage Corp., and numerous law firms, corporations, and government agencies. He is an associate editor of the Journal of Financial and Quantitative Analysis, the Journal of Applied Corporate Finance, and the Journal of Fixed Income.

Journal Articles

Q. Qi, J. McConnell (2021). "Does CEO Succession Planning (Disclosure) Create Shareholder Value?" Journal of Financial and Quantitative Analysis
X. Fang, Z. Jiang, B. Liu,, M. Zhou, J. McConnell (2021). "Ease-of-processing Heuristics and Asset Prices: Evidence from the Exchange-traded Repo Market in China." Journal of Financial Markets
Faccio, M. & McConnell, J. (2020). "Death by Pokémon GO: The Economic and Human Cost of Using Apps While Driving." Journal of Risk and Insurance vol. 87 (3), 815-849.
J. T. Halford, J. McConnell, V. Sibilkov, & N. Zaiats (2020). "Existing Methods Provide Unreliable Estimates of the Marginal Value of Cash." Critical Finance Review
A. Knill, B. Liu, J. McConnell (2020). "Media Partisanship and Fundamental Corporate Decisions." Journal of Financial and Quantitative Analysis
McConnell, J. & Gao, C. (2018). "Investment Performance of Credit Risk Transfer Securities (CRTs): The Early Evidence." Journal of Fixed Income vol. 28 (2), 6-15.
Cheng, Yingmei and Liu, Baixiao and McConnell, John J. and Rosenblum, Aaron (2017). "When Is Good News Bad and Vice Versa? The Fortune Rankings of America's Most Admired Companies." Journal of Corporate Finance | Related Website | Download |
Baixiao Liu, John J. McConnell, Wei Xu (2016). "The power of the pen reconsidered: The media, CEO human capital, and corporate governance." Journal of Banking and Finance | Download |
McConnell, J., & Buser, S. (2011). "The Origins and Evolution of the Market for Mortgage Backed Securities." Annual Review of Financial Economics vol. 3 173-192. | Download |
McConnell, J., & Saretto, A. (2010). "Auction Failures and the Market for Auction Rate Securities." Journal of Financial Economics vol. 97 (3), 451-469. | Download |
McConnell, J., Cooper, M., & Ovtchinnikov, A. (2010). "What's the Best Way to Trade Using the January Barometer?" Journal of Investment Management vol. 8 (4), 1-15. | Download |
Liu, B., McConnell, J., & Saretto, A. (2010). "Why Did Auction Rate Bond Auctions Fail During 2007-2008?" Journal of Fixed Income vol. 20 (2), 5-18.
Ovtchinnikov, A., & McConnell, J. (2009). "Capital Market Imperfections and the Sensitivity of Investment to Stock Prices." Journal of Financial and Quantitative Analysis vol. 44 (3), 551-578. | Related Website | Download |
Dahya, J., Dimitrov, O., & McConnell, J. (2009). "Does Board Independence Matter in Companies with a Controlling Shareholder?" Journal of Applied Corporate Finance vol. 21 (1), 67-78. | Download |
McConnell, J., Servaes, H., & Lins, K. (2008). "Changes in Insider Ownership and Changes in the Market Value of the Firm." Journal of Corporate Finance vol. 14 (2), 92-106. | Download |
Dahya, J., Dimitrov, O., & McConnell, J. (2008). "Dominant Shareholders, Corporate Boards and Corporate Value: A Cross-Country Analysis." Journal of Financial Economics vol. 87 (1), 73-100. | Download |
McConnell, J., & Xu, W. (2008). "Equity Returns at the Turn-of-the-Month." Financial Analysts Journal vol. 64 (2), 49-64. | Download |
Dahya, J., & McConnell, J. (2007). "Board Composition, Corporate Performance, and The Cadbury Committee." Journal of Financial and Quantitative Analysis vol. 42 (3), 535-564. | Related Website | Download |
Faccio, M., Masulis, R., & McConnell, J. (2006). "Political Connections and Corporate Bailouts." Journal of Finance vol. 61 (6), 2597-2635. | Download |
Faccio, M., McConnell, J., & Stolin, D. (2006). "Returns to Acquirers of Listed and Unlisted Targets." Journal of Financial and Quantitative Analysis vol. 41 (1), 197-220. | Related Website | Download |
Cooper, M., McConnell, J., & Ovtchinnikov, A. (2006). "The Other January Effect." Journal of Financial Economics vol. 82 (2), 315-342. | Download |
Dahya, J., & McConnell, J. (2005). "Outside Directors and Corporate Board Decisions." Journal of Corporate Finance vol. 11 37-60. | Download |
McConnell, J., & Ovtchinnikov, A. (2004). "Predictability of Long-Term Spinoff Returns." Journal of Investment Management vol. 2 (3), 35-44. | Download |
Denis, D. K., & McConnell, J. (2003). "International Corporate Governance." Journal of Financial and Quantitative Analysis vol. 38 (1), 1-36. | Related Website | Download |
Denis, D. K., McConnell, J., Ovtchinnikov, A., & Yu, Y. (2003). "S&P 500 Index Additions and Earnings Expectations." Journal of Finance vol. 58 (5), 1821-1840. | Download |
McConnell, J. (2002). "Learning from a Keynote Speaker: Lessons from Merton Miller's PACAP Addresses." Pacific-Basin Finance Journal vol. 10 (4), 359-369. | Download |
Dahya, J., McConnell, J., & Travlos, N. (2002). "The Cadbury Committee, Corporate Performance, and Top Management Turnover." Journal of Finance vol. 57 (1), 461-483. | Download |
Lie, E., Lie, H., & McConnell, J. (2001). "Debt-Reducing Exchange Offers." Journal of Corporate Finance vol. 7 (2), 179-207. | Download |
McConnell, J., Ozbilgin, M., & Wahal, S. (2001). "Spin-offs, Ex Ante." Journal of Business vol. 74 (2), 245-280. | Download |
Wahal, S., & McConnell, J. (2000). "Do Institutional Investors Exacerbate Managerial Myopia?" Journal of Corporate Finance vol. 6 (3), 307-329. | Download |
Carow, K., Erwin, G., & McConnell, J. (1999). "A Survey of U.S. Corporate Financing Innovations: 1970-1997." Journal of Applied Corporate Finance vol. 12 (1), 55-69. | Download |
Chakravarty, S., & McConnell, J. (1999). "Does Insider Trading Really Move Stock Prices?" Journal of Financial and Quantitative Analysis vol. 34 (2), 191-209. | Related Website | Download |
Lie, E., & McConnell, J. (1998). "Earnings Signals in Fixed-Price and Dutch Auction Self-Tender Offers." Journal of Financial Economics vol. 49 (2), 161-186. | Download |
Allen, J., & McConnell, J. (1998). "Equity Carve-outs and Managerial Discretion." Journal of Finance vol. 53 (1), 163-186. | Download |
Khanna, A., & McConnell, J. (1998). "MIPS, QUIPS and TOPrS: Old Wine in New Bottles." Journal of Applied Corporate Finance vol. 11 (1), 39-44. | Download |
Angbazo, L., McConnell, J., Megbolugbe, I., & Yang, T. (1998). "Mortgage Prepayment Float: Pricing and Risk Analysis." Journal of Fixed Income vol. 7 (4), 83-93. | Download |
Chakravarty, S., & McConnell, J. (1997). "An Analysis of Prices, Bid/Ask Spreads and Bid and Ask Depths Surrounding Ivan Boesky's Illegal Insider Trading in Carnation's Stock." Financial Management vol. 26 (2), 18-34. | Download |
McConnell, J., & Allen, J. (1997). "The Management Buyout of White Hen Pantry." Journal of Financial Education vol. 23 113-119.
Erwin, G., & McConnell, J. (1997). "To Live or Let Die? An Empirical Analysis of Piecemeal Voluntary Corporate Liquidations." Journal of Corporate Finance vol. 3 (4), 325-354. | Download |
McConnell, J., Dybevik, H., Haushalter, D., & Lie, E. (1996). "A Survey of Evidence on Domestic and International Stock Exchange Listings with Implications for Markets and Managers." Pacific-Basin Finance Journal vol. 4 347-376. | Download |
McConnell, J., & Singh, M. (1996). "Implementing an Option-Theoretic CMO Valuation Model with Recent Prepayment Data." Journal of Fixed Income vol. 5 (4), 45-55. | Download |
McConnell, J., Tashjian, E., & Lease, R. (1996). "Prepacks: An Empirical Analysis of Prepackaged Bankruptcies." Journal of Financial Economics vol. 40 (1), 135-162. | Download |
McConnell, J., Lease, R., & Tashjian, E. (1996). "Prepacks as a Mechanism for Resolving Financial Distress: The Evidence." Journal of Applied Corporate Finance vol. 8 (4), 99-106. | Download |
Allen, J., Lummer, S., McConnell, J., & Reed, D. (1995). "Can Takeover Losses Explain Spin-off Gains?" Journal of Financial and Quantitative Analysis vol. 30 (4), 465-485. | Related Website | Download |
Servaes, H., & McConnell, J. (1995). "Equity Ownership and the Two Faces of Debt." Journal of Financial Economics vol. 39 (1), 131-157. | Download |
McConnell, J., & Kadlec, G. (1995). "Investor Base, Cost of Capital and New Listings on the NYSE." Journal of Applied Corporate Finance vol. 8 (1), 59-63. | Download |
Miller, J., & McConnell, J. (1995). "Open-Market Share Repurchase Programs and Bid-Ask Spreads on the NYSE: Implications for Corporate Payout Policy." Journal of Financial and Quantitative Analysis vol. 30 (3), 365-382. | Related Website | Download |
McConnell, J., & Singh, M. (1994). "Rational Prepayments and the Valuation of Collateralized Mortgage Obligations." Journal of Finance vol. 49 (3), 891-921. | Download |
Kadlec, G., & McConnell, J. (1994). "The Effect of Market Segmentation and Illiquidity on Asset Prices: Evidence from Exchange Listings." Journal of Finance vol. 49 (2), 611-636. | Download |
McConnell, J., & Singh, M. (1993). "Valuation and Analysis of Collateralized Mortgage Obligations." Management Science vol. 39 (6), 692-709. | Download |
Clark, R., McConnell, J., & Singh, M. (1992). "Seasonalities in NYSE Bid-Ask Spreads and Stock Returns in January." Journal of Finance vol. 47 (5), 1999-2014. | Download |
McConnell, J., & Schwartz, E. (1992). "The Origin of LYONs: A Case Study in Financial Innovation." Journal of Applied Corporate Finance vol. 4 (4), 82-89. | Download |
Martin, K., & McConnell, J. (1991). "Corporate Performance, Corporate Takeovers and Management Turnover." Journal of Finance vol. 46 (2), 671-687. | Download |
Kini, O., Kracaw, W., & McConnell, J. (1991). "Corporate Takeovers and Interest Rates." Journal of Applied Business Research vol. 7 (3), 62-77.
Johnston, E., Kracaw, W., & McConnell, J. (1991). "Day-of-The-Week Effects in Financial Futures: An Analysis of GNMA, T-Bond, T-Note and T-Bill Contracts." Journal of Financial and Quantitative Analysis vol. 26 (1), 23-44. | Related Website | Download Download |
McConnell, J., & Singh, M. (1991). "Prepayments and the Valuation of Adjustable Rate Mortgage-Backed Securities." Journal of Fixed Income vol. 1 (1), 21-35. | Download |
McConnell, J., & Servaes, H. (1991). "The Economics of Pre-packaged Bankruptcy." Journal of Applied Corporate Finance vol. 4 (2), 93-97. | Download |
McConnell, J., & Servaes, H. (1990). "Additional Evidence on Equity Ownership and Corporate Value." Journal of Financial Economics vol. 27 (1), 595-612. | Download |
McConnell, J., Lease, R., & Schallheim, J. (1990). "Realized Returns and the Default and Prepayment Experience of Financial Leasing Contracts." Financial Management vol. 19 (2), 11-20. | Download |
Lummer, S., & McConnell, J. (1989). "Further Evidence on the Bank Lending Process and the Capital-Market Response to Bank Loan Agreements." Journal of Financial Economics vol. 25 (1), 99-122. | Download |
McConnell, J., & Johnston, E. (1989). "Requiem for a Market: An Analysis of the Rise and Fall of a Financial Futures Contract." Review of Financial Studies vol. 2 (1), 1-23.

Books

McConnell, J., & Denis, D. J. (2005). "Corporate Restructuring." Edward Elgar Publishing
McConnell, J., & Denis, D. K. (2005). "Governance: An International Perspective." Edward Elgar Publishing

Book Chapters

McConnell, J., McKeon, S., & Xu, W. (2010). "Corporate Governance and Ownership Structure." John Wiley & Sons, Inc
McConnell, J., & Denis, D. J. (2008). "Dividend Policy." Palgrave Macmillan Ltd
McConnell, J., & Denis, D. K. (2005). "Introduction." Edward Elgar Publishing
McConnell, J., & Denis, D. J. (2005). "Introduction to Corporate Restructuring." Edward Elgar Publishing
McConnell, J. (1995). "Securities Transaction Taxes: What Would Be Their Effects on Investors and Portfolios." Irwin Books
McConnell, J., & Lummer, S. (1992). "Bank Credit and Information in Capital Markets." Macmillan Press, Ltd
McConnell, J., & Brickley, J. (1990). "Dividend Policy." Macmillan Press, Ltd
McConnell, J., & Servaes, H. (1990). "What Do We Know About Corporate Performance and Ownership Structure?" Elsevier Science Publishers vol. II
Lummer, S., & McConnell, J. (1989). "Common Stock Valuation Effects of International Joint Ventures." Elsevier Science Publishers

What Stands in the Way of Large Firms Being Replaced?
While innovation and entrepreneurship are often heralded as engines of economic progress, a crucial question remains underexplored: why do new firms so rarely succeed in replacing the old guard? In a forthcoming study for the Journal of Finance, Daniels School professors Mara Faccio and John McConnell find answers.
Full story: What Stands in the Way of Large Firms Being Replaced?
Data Shows Political Connections Cause Resource Misallocation
A new study by finance professors Mara Faccio and John McConnell at Purdue's Mitchell E. Daniels, Jr. School of Business looks at the fall of fascism in 1940s Italy and the connection between corporate interests and political power.
Full story: Data Shows Political Connections Cause Resource Misallocation

Thought Leadership: Daniels School faculty expertise sought by peers
For decades, the Mitchell E. Daniels, Jr. School of Business has produced some of the top thought leaders in management education.
Full story: Thought Leadership: Daniels School faculty expertise sought by peers
Why Private Market Returns May Be Far Greater Than They Seem on Paper
Institutional investors have access to industry-level information through their private equity investments that often informs their investment decisions in the public markets, according to a paper from researchers at Purdue University and Illinois State University.
Krannert’s John McConnell recognized by University College Dublin with honorary doctorate
Krannert Professor John J. McConnell was among seven outstanding leaders across various fields of academia whose career achievements were recognized by University College Dublin (UCD) with honorary doctorates at its recent conferring ceremonies. McConnell, a leading financial economist, is renowned for his stellar leadership in the finance discipline. He is the Burton D. Morgan Distinguished Chair of Private Enterprise (in Finance) at the Krannert School of Management at Purdue University, where he has spent much of his career and won numerous teaching awards.
The Pokémon Paradox: Krannert researchers examine costs and benefits of popular game
When the augmented reality (AR) game Pokémon Go made its debut in 2016, it quickly became the most popular mobile game in U.S. history with more than 20 million active users daily. It’s now at the top of the menu in an industry that generates more than $1 billion in annual revenues. According to a pair of working papers from Purdue University’s Krannert School of Management, tech companies aren’t the only businesses getting a taste of the profits. But how does that balance with the economic costs of playing the game while driving, which include an increased number of vehicular accidents, injuries and even death?

Contact

mcconnj@purdue.edu

Quick links

Personal website
Google Scholar Page

Area(s) of Expertise

Asset Management, Bankruptcy, Business Valuation, Capital Markets, Consulting, Corporate Finance, Corporate Governance, Derivatives, Economics, Executive Compensation, Finance, Financial Economics, Financial Institutions/Banking, Financial Markets, Interest Rates, International Finance, Investment Banking, IPOs, Mergers and Acquisitions, Monetary Policy, Mutual Funds, Private Equity, Public Finance, Real Estate, Stock Market, Taxation, Trading Strategies, Valuation, Venture Capital

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