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Douglas Foster

Douglas Foster


Professor

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

Telephone +61 2 9036 9450
Fax +61 2 9351 6461
douglas.foster@sydney.edu.au

Bio

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.

2017

4
Journal Article/s

Butt A, Donald MS, F Douglas Foster , Thorp S and Warren GJ 2017 'Design of MySuper Default Funds: Influences and Outcomes', Accounting and Finance, vol.57:1, pp. 47-85 [Link]

2016

4
Journal Article/s

F Douglas Foster and Warren GJ 2016 'Interviews With Institutional Investors: The How and Why of Active Investing', The Journal of Behavioral Finance, vol.17:1, pp. 60-84 [Link]

Fong KYL, F Douglas Foster , Gallagher DR and Lee AD 2016 'How has the Relevance of Institutional Brokerage Changed?', International Review of Finance, vol.16:4, pp. 499-524 [Link]

2015

4
Journal Article/s

F Douglas Foster and Warren GJ 2015 'Why Might Investors Choose Active Management?', The Journal of Behavioral Finance, vol.16:1, pp. 20-39 [Link]

Butt A, Donald S, F Douglas Foster , Thorp S and Warren G 2015 'The Australian superannuation system post Stronger Super: views from fund executives', Law and Financial Markets Review, vol.9:2, pp. 106-12 [Link]

Chen Z, F Douglas Foster , Gallaghera DR and Lee AD 2015 'A model of emulation funds', Accounting and Finance, vol.55:3, pp. 717-48 [Link]

Cheah KK, F Douglas Foster , Heaney R, Higgins T, Oliver B, O’Neill T and Russell R 2015 'Discussions on Long-Term Financial Choice', Australian Journal of Management, vol.40:3, pp. 414-34 [Link]

F Douglas Foster , Ng J and Wee M 2015 'Presentation Format and Financial Literacy: Accessibility and Assessabilty of Retirement Savings Statements', Journal of Consumer Affairs, vol.49:3, pp. 519-49 [Link]

2014

4
Journal Article/s

Rosov S and F Douglas Foster 2014 'Customer foreign exchange orders: When timing really does matter', Australian Journal of Management, vol.39:3, pp. 351-68 [Link]

Rosov S and F Douglas Foster 2014 'Measuring the information content of customer foreign exchange orders', Australian Journal of Management, vol.39:2, pp. 247-64 [Link]

2013

4
Journal Article/s

Chen Z, F Douglas Foster , Gallagher DR and Lee AD 2013 'Does Portfolio Emulation Outperform Its Target Funds?', Australian Journal of Management, vol.38:2, pp. 401-27 [Link]

2011

4
Journal Article/s

F Douglas Foster , Gallagher DR and Looi A 2011 'Institutional trading and share returns', Journal of Banking and Finance, vol.35:12, pp. 3383-99 [Link]

2010

4
Journal Article/s

Heaney R, F Douglas Foster , Gregor S, O'Neill T and Wood R 2010 'Are two heads better than one? An experiment with novice share traders', Australian Journal of Management, vol.35:2, pp. 119-42 [Link]

2007

4
Journal Article/s

Heaney R, F Douglas Foster , Gregor S, O’Neill T and Wood R 2007 'Volatility in Returns from Trading', The Journal of Behavioral Finance, vol.8:1, pp. 35-42 [Link]

2006

4
Journal Article/s

F Douglas Foster and Whiteman CH 2006 'Bayesian Prediction, Entropy, and Option Pricing', Australian Journal of Management, vol.31:2, pp. 181-205 [Link]

2002

4
Journal Article/s

F Douglas Foster and Whiteman CH 2002 'Bayesian Cross Hedging: An Example From the Soybean Market', Australian Journal of Management, vol.27:2, pp. 95-122 [Link]

1999

4
Journal Article/s

F Douglas Foster and Whiteman CH 1999 'An Application of Bayesian Option Pricing to the Soybean Market', American Journal of Agricultural Economics, vol.81:3, pp. 722-27 [Link]

1997

4
Journal Article/s

F Douglas Foster , Smith T and Whaley RE 1997 'Assessing Goodness-of-Fit of Asset Pricing Models: The Distribution of the Maximal R2', The Journal of Finance, vol.52:2, pp. 591-607 [Link]

1996

4
Journal Article/s

F Douglas Foster and Viswanathan S 1996 'Strategic Trading When Agents Forecast the Forecasts of Others', The Journal of Finance, vol.51:4, pp. 1437-78 [Link]

1995

4
Journal Article/s

F Douglas Foster and Viswanathan S 1995 'Can Speculative Trading Explain the Volume–Volatility Relation?', Journal of Business and Economic Statistics, vol.13:4, pp. 379-96 [Link]

F Douglas Foster and Viswanathan S 1995 'Trading Costs of Target Firms Around Corporate Takeovers', Advances in Financial Economics, vol.1, pp. 37-57

1994

4
Journal Article/s

F Douglas Foster and Viswanathan S 1994 'Strategic Trading with Asymmetrically Informed Traders and Long-Lived Information', Journal of Financial and Quantitative Analysis, vol.29:4, pp. 499-518 [Link]

1993

4
Journal Article/s

F Douglas Foster and Viswanathan S 1993 'The Effect of Public Information and Competition on Trading Volume and Price Volatility', The Review of Financial Studies, vol.6:1, pp. 23-56 [Link]

F Douglas Foster and Viswanathan S 1993 'Variations in Trading Volume, Return Volatility, and Trading Costs; Evidence on Recent Price Formation Models', The Journal of Finance, vol.48:1, pp. 187-211 [Link]

1992

4
Journal Article/s

F Douglas Foster 1992 'Syndicates', The New Palgrave Dictionary of Money and Finance, pp. 628-29

1990

4
Journal Article/s

F Douglas Foster and Viswanathan S 1990 'A Theory of the Interday Variations in Volume, Variance, and Trading Costs in Securities Markets', The Review of Financial Studies, vol.3:4, pp. 593-624 [Link]

1989

4
Journal Article/s

F Douglas Foster 1989 'Syndicate Size, Spreads, and Market Power during the Introduction of Shelf Registration', The Journal of Finance, vol.44:1, pp. 195-204 [Link]

Recent Units Taught

  • BUSS4402 Finance Honours A

    2017: S1,
    2016: S1,

  • FINC3023 Behavioural Finance

    2016: S1,

  • FINC5001 Capital Markets and Corporate Finance

    2015: S2,

  • FINC6001 Intermediate Corporate Finance

    2017: S2,
    2016: S2,