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Anil Makhija

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Professor Anil K. Makhija is a Senior Associate Dean at the Fisher College of Business, The Ohio State University, where he has been on the faculty since 1999.  He holds the Dean’s Distinguished Professorship in Finance, and is also the Academic Director of the National Center for the Middle Market at OSU.  In the past, he has chaired Fisher College’s Department of Finance, served as an Associate Dean, and has held the David A. Rismiller Professorship in Finance.

Professor Makhija’s research and teaching interests are in the field of corporate finance, and focus on issues relating to capital structure, corporate governance, and utilities.  In his recent work, he examines how the personal leverage of CEOs is related to corporate leverage, how CEO age affects corporate investment policy, why some CEOs work for a one-dollar salary, and the relation between non-debt tax shields and firm leverage.  Recently, he was awarded the Best Paper Award at University of Michigan’s Mitsui Conference for his co-authored work on the relation between CEO personal and corporate leverage.

 Professor Makhija’s work has appeared in major academic journals, including the Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Journal of Business, Journal of Corporate Finance, Financial Management Journal, Journal of Banking and Finance, Journal of Economic Behavior and Organization, etc.  He is currently co-editing with Profs. Kose John and Stephen Ferris Advances in Financial Economics, and has served on several editorial boards.

Professor Makhija is the recipient of numerous teaching awards.  Executive MBA classes at Fisher have chosen him for their Outstanding Faculty Award for ten out of the last eleven graduating classes.  He has also received the Outstanding Teacher Award multiple times from the full-time and evening MBA students. He was awarded the Pace Setter’s Teaching Award, the highest honor for teaching at Fisher, for sustained excellence in teaching.  Prior to moving to Fisher in 1999, he was bestowed with the Chancellor’s Distinguished Teaching Award at the University of Pittsburgh, the highest teaching honor at that institution.  Recently, he was also awarded the Alumni Distinguished Teaching Award at Ohio State, thus earning the highest teaching honor at Ohio State as well.  Dr. Makhija has chaired over ten doctoral theses.

As Senior Associate Dean, Professor Makhija works with department chairs to address college-wide faculty issues such as recruitment, promotion and tenure processes, annual reviews, and the handling of a variety of other faculty personnel issues including compensation, research, and support.  He also provides oversight, in coordination with the Associate Dean of Executive Programs, for activities of Fisher’s Executive Education Center.   His responsibilities include the oversight of Fisher’s nearly dozen centers of excellence, and of globalization initiatives through the Office of Global Business.  He has recently overseen the establishment of a new center, in collaboration with GE Capital, dedicated to building capabilities of middle market firms through research, corporate outreach, and student activities.  The center has been widely covered by elite media, such as Wall Street Journal, The Economist, New York Times, NPR, CNN Money, Bloomberg Businessweek, etc.

During Professor Makhija’s tenure, the finance department at Fisher, which consisted of some 20 faculty members, ranked among the top 10 or top 20 in comparisons of finance departments internationally (e.g., in surveys by Financial Management Journal and Journal of Financial Research). It consistently ranked in the top 10 for research productivity according to ASU Finance Rankings.

Professor Makhija has participated in consulting or executive education programs in the U.S. and abroad for dozens of organizations, including American Electric Power, Dayton Power and Light, Huntington Bank, GKN (US., U.K., Spain, Australia), Dubrovnik Banking and Finance Series and IFC (Croatia), Nationwide Insurance, Mellon Bank, BARNA (Dominican Republic), , Chilectra (Chile), Textron—Cessna, Bell, Ryder, Czech Management Center (Czech Rep.), Weirton Steel, Westinghouse, Duquesne Light, Banc One Leasing, Universidad del Pacifico (Peru), ENDESA (Chile), Wisconsin Electric, Limited Brands, Santa Maria (Ecuador), American Gas Association, Ross Heart Hospital, Life Style Real Estate Communities, New Sabina, Diamond Power, King Abdullah Institute (Saudi Arabia), Alliance Data, RG Barry, Scotts Miracle Grow, Bob Evans, Greif, Cardinal Health, etc.

As Associate Dean for executive programs, Makhija was responsible for the development of the college’s Executive MBA program and its non-credit offerings to practicing executives.  Under his direction, Fisher’s Executive MBA program ranked 14th in the world by Business Week.  For non-degree offerings, The Economist scored Fisher’s Customized Programs 1st or 2nd in the world.

Professor Makhija has served as an expert witness in public utility commission, law court, and Financial Accounting Standards Board proceedings, besides submitting sponsored opinions to the Federal Energy Regulatory Commission. He has been featured recently for research in the Wall Street Journal, New York Times, Fox Business News, US News and World Report blog, Chicago Tribune, CFO Magazine, The Motley Fool, Columbus Dispatch, St. Louis Dispatch, Business First, CBS Columbus TV, etc.

Professor Makhija received a PhD in Finance from the University of Wisconsin-Madison, an MBA from Tulane University (Dean’s List, Beta Gamma Sigma Honors Society), and a bachelor’s degree in Chemical Engineering from the Indian Institute of Technology, New Delhi (Dean’s List).

Areas of Expertise

  • Corporate Finance
  • Financial Decision-Making
  • Recapitalization, Privatization Strategies
  • Valuing the Firm
  • Capital Structure
  • Financial Issues of Regulated Firms
  • Public Utilities
  • Education


  • PhD, University of Wisconsin-Madison
  • MBA, Tulane University
  • BTech, Indian Institute of Technology, Delhi
FIN 811 - Financial Management II

The course provides a microeconomic approach to the study of core financial decisions of business firms and the relationship of those decisions to financial instruments and financial markets. Topics covered include capital structure, dividend policy, option pricing, and international risk management. This course is a continuation of BUSFIN 810 (the prerequisite course).

  • Damaraju, Nagalakshmi, Jay Barney, and Anil K. Makhija, “Real Options in Divestment Alternatives,” Fourth round revise-and-resubmit (latest version, February, 2013), Strategic Management Journal, SSRN#157182.
  • Cronqvist, Henrik, Anil K. Makhija, and Scott Yonker, “Behavioral Consistency in Corporate Finance: CEO Personal and Corporate Leverage,” Journal of Financial Economics 103, January 2012, 20-40. Best Paper Award, Mitsui Conference, University of Michigan.
  • Davidoff, Steven M., Anil K. Makhija, and Rajesh P. Narayanan, “Fairness Opinions in Mergers and Acquisitions,” for Chapter 27, The Art of Capital Budgeting: Creating Shareholder Value through Mergers and Acquisitions, Edited by H. Kent Baker and Halil Kiymaz, John Wiley & Sons, Inc., 2011.
  • Goto, Mika and Anil K. Makhija, “The Impact of Deregulation and Corporate Structure on Productive Efficiency: The Case of the U.S. Electric Utility Industry, 1990-2004,” Advances in Financial Economics, Volume 13, 2009.
  • Ferris, Stephen P., Tomas Jandik, Robert Lawless, and Anil K. Makhija, “Derivative Suits as a Form of Corporate Governance,” Journal of Financial and Quantitative Analysis, Vol. 42 (1), March 2007, 143-166.
  • Jandik, Tomas and Anil K. Makhija, “Can Diversification Create Value?  Evidence from the Electric Utility Industry,” Financial Management, Vol. 34 (1), Spring 2005, 61-93.
  • Jandik, Tomas and Anil K. Makhija, “Corporate Governance and Debt Structure after Unsuccessful Takeover Attempts,” Journal of Corporate Finance, Vol. 11, 2005, 882-914. Jandik, Tomas and Anil K. Makhija, “Leverage and the Complexity of Takeovers,” Financial Review, Vol. 40, February 2005, 95-112.
  • Makhija, Anil K. and James M. Patton, “The Impact of Firm Ownership Structure on Voluntary Disclosure: Empirical Evidence from Czech Annual Reports,” Journal of Business, Vol. 77, No. 3, July 2004, 457-492.
  • Anderson, Christopher W., Tomas Jandik, and Anil K. Makhija, “Determinants of Foreign Ownership in Newly Privatized Companies in Transition Economies,” Financial Review, Spring 2001.
  • Jandik, Tomas and Anil K. Makhija, “Diversification of Electric Utilities, Optimal Policies, and Efficiency of Regulation,” National Regulatory Research Institute Quarterly Bulletin, Spring 2001.
  • Jandik, Tomas and Anil K. Makhija, “Empirical Evidence on Determinants of Capital Structure,”Advances in Financial Economics, Vol. 6 (2001), 143-160.
  • Makhija, Anil K. and Michael S. Spiro, “Ownership Structure as a Determinant of Firm value: Evidence from Newly Privatized Czech Firms,” Financial Review 41 (August 2000), 1-22.
  • Anderson, Christopher W., and Anil K. Makhija, “Deregulation, Disintermediation, and Agency Costs of Debt: Evidence from Japan,” Journal of Financial Economics, Vol. 51, 2 (1999).
  • Hingorani, Archana, Kenneth Lehn, and Anil K. Makhija," Investor Behavior in Mass Privatization:  The Case of the Czech Republic," Journal of Financial Economics, Vol. 44, No. 3 (June 1997), 349-396.
  • Ferris, Stephen P., Narayanan Jayaraman, and Anil K. Makhija, “The Response of Competitors to Announcements of Bankruptcy," Journal of Corporate Finance, Vol. 3, No. 4 (December 1997).
  • Lehn, Kenneth and Anil K. Makhija, “EVA, Accounting Profits, and CEO Turnover,” Journal of Applied Corporate Finance, Fall 1997 issue.
  • Ferris, Stephen P., Narayanan Jayaraman, and Anil K. Makhija, “The Impact of Chapter 11 Filings on the Risk and Return of Securityholders, 1979-1989,” Advances in Financial Economics, Vol.  2 (1996), pp. 93-118.
  • Lawless, Robert M., Stephen P. Ferris, Narayanan Jayaraman, and Anil K. Makhija, "A Glimpse at Professional Fees and Other Direct Costs in Small Firm Bankruptcies,"University of  Illinois Law Review, Volume 1994, No. 4, pp. 847 - 888.
  • Ferris, Stephen P., Yash P. Joshi, and Anil K. Makhija, "Valuing an East European Company,"International Journal of Strategic Management, Vol. 28, No. 6 (1995), pp. 48-60.
  • Hingorani, Archana N. and Anil K. Makhija, "Valuation in a Transitional Economy: The Case of Spolana Chemicals," in Firm Behavior in Emerging Market Economies, edited by Daniel Fogel, Odyssey Press, Dover (N.H.), 1995.
  • Hingorani, Archana, Anil K. Makhija, and Kuldeep Shastri, "The Impact of Calls of Preferred on Shareholders' Wealth," Journal of Banking and Finance, Vol. 18 (1994), 1095 - 1111.
  • Jayaraman, Narayanan, Praveen  Kumar, and Anil K. Makhija, "Product Market Innovations, Capital Structure and Financial Distress: Theory and Evidence," abstracted in Journal of Finance, Vol. 49, No.3 (July 1994), p.1075.
  • Joshi, Yash P. and Anil K. Makhija, "Managerial Incentives for Undertaking Exchange Offers,"Managerial and Decision Economics, Vol. 15, No. 4 (July/August 1994), pp. 369-381.
  • Joshi, Yash P. and Anil K. Makhija, "SEC Regulation of Public Utility Diversification," in Modernizing US Securities Regulations: Economic and Legal Perspectives, Edited by Kenneth Lehn and Robert Kamphius, Business Irwin One (Homewood, Illinois), 1992, pp.313 - 332.
  • Agrawal, Anup, Anil K. Makhija, and Gershon N. Mandelker, "Executive Compensation and Corporate Performance in Electric and Gas Utilities," Financial Management, (Winter 1991), pp. 113‑124.
  • Makhija, Anil K. and Robert Nachtmann, "Variance Effects of Cross-Listing of  NYSE Stocks in Tokyo," Pacific Basin Capital Markets Research, Vol. 1 (1990), pp.  215- 226.
  • Makhija, Anil K. and Michael H. Spiro, "Determinants of Earned Rates of Return on Equity of U.S. Electric Utilities," Economic Letters, 30 (1989), pp. 367-371.
  • Bhandari, Arvind, Theoharry Grammatikos, Anil K. Makhija and George Pappaioannou, "Risk and Return on Newly Listed Stocks: The Post‑Listing Experience," Journal of Financial Research, XII (September 1989), pp. 93‑102.
  • DeBondt, Werner F. M. and Anil K. Makhija, "Throwing Good Money After Bad? Nuclear Power Plant Investment Decisions and the Relevance of Sunk Costs," Journal of Economic Behavior and Organization, 10 (1988), pp. 173‑199.
  • Grammatikos, Theoharry, Anil K. Makhija and Howard E. Thompson, "Financing Corporate Takeovers by Individuals," Managerial and Decision Economics, Vol. 9, No. 3 (September 1988), pp. 227‑235. Also abstracted in Journal of Economic Literature, Vol. XXVII, No. 1 (March 1989), p. 462.
  • Ferris, Stephen P., Robert A. Haugen and Anil K. Makhija, "Predicting Contemporary Volume with Historic Volume at Differential Price Levels: Evidence Supporting the Disposition Effect," Journal of  Finance, Vol. 43, No. 3 (1988), pp. 677‑697.
  • Makhija, Anil K. and Howard E. Thompson, "The Ratepayer and Stockholder Under Alternative Regulatory  Policies: A Reply," Land Economics, Vol. 63, No. 2 (May 1987), pp. 206‑208. Reply to comment on paper in Vol. 62, No. 2 (May 1986).
  • Makhija, Anil K. and H. E. Thompson, "Electric Utility Regulation and the Community: A Theoretical Analysis of Some Effects of Regulation on Community Welfare," Policy Studies Journal, Vol. 15, No. 4 (June 1987), pp. 694‑717.
  • Ferris, Stephen P. and Anil K. Makhija, "The Impact of Regulation on the Riskiness of Electric Utilities," Economic Letters, 25 (1987), pp. 79‑84.
  • Kumar, Raman and Anil K. Makhija, "Volatility of Stock Prices and Market Efficiency," Managerial and  Decision Economics, Vol. 7, No. 2 (June 1986), pp. 119‑122.
  • Makhija, Anil K. and Howard E. Thompson, "The Ratepayer and Stockholder under Alternative Regulatory Policies," Land Economics, Vol. 62, No. 2 (May 1986), pp. 119‑133.  Also abstracted in Journal of  Economic Literature, Vol. XXV, No. 1 (May 1987), p. 591.
  • Makhija, Anil K. and Howard E. Thompson, "Some Aspects of Equilibrium for a Cross‑Section of  Firms Signaling Profitability with Dividends," Journal of Finance, Vol. 41, No. 1 (March 1986), pp. 249‑253.
  • Makhija, Anil K. and Howard E. Thompson, "Capitalized Interest and the Cost of Money to Electric Utilities," Land Economics, Vol. 60, No. 3 (August 1984), pp. 278‑291. Also abstracted in Journal of Economic Literature, Vol. XXIII, No. 2 (June 1985), p. 1038.
  • Makhija, Anil K. and Howard E. Thompson, "Comparison of Alternative Models for Estimating the Cost of  Equity Capital for Electric Utilities," Journal of Economics and Business, 36 (1984), pp. 107‑131.
  • Lim, Jongha, Anil K. Makhija, Oded Shenkar, "In the Eye of the Beholder: The Asymmetric Impact of National Cultural Distance on Target Premiums for U.S. and Foreign Firms in Cross-Border M&As" (November 18, 2012).  Working Paper.  Available upon request.
  • Georgieva, Dobrina, Tomas Jandik, and Anil Makhija, "Adoptions and Eliminations of Economic Profit Plans and Internal Capital Markets Efficiency" (March 1, 2013).  Working Paper.  Available at SSRN:
  • Li, Xiaoyang, Low, Angie and Makhija, Anil K., "Career Concerns and the Busy Life of the Young CEO" (latest version, September 21, 2012). Fisher College of Business Working Paper No. 2011-03-004. Charles A. Dice Center Working Paper No. 2011-4. Available at SSRN:
  • Loureiro, Gilberto Ramos, Makhija, Anil K. and Zhang, Dan, "Why Do Some CEOS Work for a One Dollar Salary?" (March 19, 2011). Charles A. Dice Center Working Paper No. 2011-7; Fisher College of Business Working Paper No. 2011-03-007. Charles A. Dice Center Working Paper No. 2011-7. Available at SSRN:
  • Makhija, Anil K., Low, Angie and Sanders, Anthony B., "The Impact of Shareholder Power on Bondholders: Evidence from Mergers and Acquisitions." Charles A. Dice Center Working Paper No. 2007-5. Available at SSRN: