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Douglas Foster

Photo of Douglas Foster

Professor and Head of Discipline

Rm 405
H69 - Codrington Building
The University of Sydney
NSW 2006 Australia

Telephone +61 2 9036 9450
Fax +61 2 9351 6461


F. Douglas Foster is a Professor of Finance at The University of Sydney Business School. He has held faculty positions at the University of Technology Sydney, Australian National University, the University of New South Wales, The Tippie College of Business at the University of Iowa, and The Fuqua School of Business, Duke University.

He was awarded the Ph.D. degree from Cornell University in 1987. His research interests include the use of information-based techniques in market design, funds management, investment banking, corporate finance, and risk management. He has also written experimental and qualitative papers in behavioural finance with a growing focus on individual retirement savings decisions.

Professor Foster has taught a range of courses including Applied Securities Management, Behavioral Finance, Corporate Finance, Corporate Restructuring, Corporate Valuation, Financial Information Technology, Financial Management, Futures and Options, Information and Finance, International Finance, Investments, and Investment Banking.

Research Interests

Professor F. Douglas Foster’s research focuses on information flows and financial markets.

Over the years this has taken many forms. For the early portion of Doug’s research the focus was on intermediation. In particular this was a detailed analysis of securities market design and market efficiency. This work included both theoretical and empirical (transaction level) analyses of markets with a view towards understanding how information might be processed and incorporated into prices and the consequences this would have for volume dynamics. This included analyses of day of the week effects, competition among traders, the role of public news, strategic trading, and the effects of long-lived information. The analysis of trading in these settings also involved research using experimental markets.

Doug has also studied risk management strategies that incorporate statistical learning. This involved building predictive models for agricultural commodities where detailed price representations are incorporated into standard hedging procedures, as well as into the pricing of derivative contracts. Doug has returned to risk management research and is currently studying how firms’ financial hedging and production decisions may be used to manage the consequences of macro uncertainty, e.g. regulatory policy uncertainty. The goal is to consider both operational and financial strategies to jointly manage these risks.

Most recently Doug has been studying funds management, both from the point of view of the fund manager and the fund member. Work on fund managers has included projects looking at the role of institutional trading, emulation strategies, decisions processes for allocating funds to active managers, how brokerage has influenced the investment process, as well as designs of default investment fund structures. From a members’ point of view Doug has looked at the format of reports to members, general views of members as to their retirement savings, how members responded to changes of retirement system defaults, and why members may decide to self-manage their retirement savings.

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Recent Units Taught

  • BUSS4402 Finance Honours A

    2017: S1,
    2016: S1,

  • FINC3023 Behavioural Finance

    2016: S1,

  • FINC6001 Intermediate Corporate Finance

    2017: S2,
    2016: S2,