Faculty & Research

Kenneth M. Eades

Kenneth M. Eades, Professor of Business Administration; Area Coordinator, Finance; Academic Director of the Center for Asset Management (Interim)

  • BS, University of Kentucky; PhD, Purdue University
Office: FOB 284
Phone: +1-434-924-4825
E-mail: Eades@virginia.edu

Biography

Professor of Business Administration Kenneth M. Eades teaches First Year and Second Year finance courses for the fulltime program. He also teaches MBAE and GEMBA programs as well as several Executive Education programs.  

His research focuses on corporate finance issues including dividend policy, mergers and acquisitions, investments, defined benefit pensions and pricing of convertible securities. He is the author of more than 50 Darden cases and three textbooks and has received both research and teaching awards. Eades has served as the faculty representative on Darden's Alumni Board and as a member of Darden's Board of Trustees. He has been head of the finance area since 1995 and currently holds the interim title of Academic Director of the Center for Asset Management.

Professor Eades joined the Darden faculty in 1988. He previously taught at Purdue University,  University of Michigan and Northwestern University.

Publications

Articles:

"Company Valuation in Mergers and Acquisitions: How is Discounted Cash Flow Applied by Leading Practitioners?" with Todd Brotherson, Robert Harris, and Robert Higgins, Journal of Applied Finance, (2014).

 “The Role of Professors in Improving Financial Literacy,” co-authored with Jonathan Fox, Arthur Keown and Michael Staten. Journal of Applied Finance, Volume 23, No. 1, 2013, 138-144.

"Best Practices in Estimating the Cost of Capital: Survey and Synthesis," with Todd Brotherson, Robert Harris, and Robert Higgins, Journal of Applied Finance, Volume 23, No. 1, 2013, 17-35.

“A Test of the Relative Pricing Effects of Dividends and Earnings: Evidence from Simultaneous Announcements in Japan,” with Robert Conroy and Robert Harris, The Journal of Finance, June 2000, 1199-1227. (Nominated for best corporate finance paper).

Books:   
 
 Eades Case Studies in FinanceCase Studies in Finance, 7th Edition with Robert Bruner and Michael Schill, McGraw-Hill/Irwin, New York, 2010. [YOUTUBE:  Meet the authors]

Image for The Portable MBA

The Portable MBA, 5th Edition with Timothy Laseter, Ian Skurnik, Peter Rodriguez, Lynn Isabella, and Paul Simko. John Wiley & Sons, New Jersey, 2010.

Case Studies in Financial Decision Making, 3rd Edition with Diana Harrington, Hinsdale, Ill: Dryden Press, 1994.

Computer tutorial:

Finance Interactive, with Robert Bruner and Robert Harris, Graduate Management Admission Council and McGraw Hill/Irwin Publishing, 2001 (Revised 2010 as GMAC product.)

Working paper:

“Applying Returns-based Style Analysis to Defined Benefit Pension Funds,” co-authored with Joanne Doyle and Brooks Marshall, April 2014.

 

Expertise

Capital Markets
Capital Structure Management
Corporate Finance
Dividend Policy
Defined Benefit Pensions
Investment Banking
Mergers and Acquisitions

MBA Courses

First Year Finance
Corporate Financial Policies

Corporate Financial Policies (FIN 8423)

Corporate Financial Policies (CFP) extends the corporate finance topics that were introduced in First-Year Finance and then enhanced in the Valuation course.  The viewpoint of the course is predominantly that of the chief executive office, chief financial officer and treasurer of a corporation.  The objective of the course is to become familiar with the various aspects normally attributed to a CFO’s job.  Topics include: hedging, enterprise risk management, bankruptcy, resource allocation, dividend policy, raising external funds, determination of the cost of capital, evaluating investment opportunities and investor relations.

Course Syllabus          

First Year Finance (FMP)

FMP Syllabus Q2 2013 (TBA) 

FMP Syllabus Q3 2013 (TBA)

Teaching Materials

Cases:
  • AutoZone, Inc. (share repurchases) (UVA-F-1672)
  • Aurora Textiles (capital investment) (UVA-F-1536)
  • Delphi Corporation (bankruptcy) (UVA-F-1617)
  • Genzyme and Relational Investors (activist investor) (UVA-F-1660) (with Pedro Matos)
  • Hershey Corporation (governance/merger) (UVA-F-1409)
  • Horizon Lines (bankruptcy) (UVA-F-1668)
  • J&L Railroad (hedging with derivatives) (UVA-F-1053)
  • Target Corporation (capital budgeting) (UVA-F-1563)
  • The Timken Company (corporate acquisition) (UVA-F-1472)
  • University of Virginia Health System: The Long-term Acute Care Hospital Project (capital investment) (UVA-F-1676)
  • Worldwide Paper Company (capital investment) (UVA-F-1372)

Featured Video

Professor Eades on Ethics at Darden

Darden faculty and administration highlight some of the ways they incorporate business ethics into their specialty areas across the Darden enterprise and not just in the core ethics classes. In this video, we hear from Professor Kenneth Eades of Darden's Finance faculty.