William Kracaw

Department Chair , David Sykes Professor of Finance
Department: Finance
Office: 352B Business Building
Phone: 814-863-0486
Fax: 814-865-3362
E-mail: wak4@psu.edu
Member of Faculty Since: 1991


William Kracaw is the David and Shirley Sykes Professor, and Chairman of the Department of Finance at the Smeal College of Business. Professor Kracaw holds a B.S. in Chemical Engineering, MBA, and PhD in Business Administration from the University of Utah. He previously held an appointment at the Krannert Graduate School of Management at Purdue University. His teaching interests include financial markets, institutions, and financial risk management. Professor Kracaw has published  research on a broad range of topics in financial intermediation, corporate governance and control, corporate risk management, and markets for derivative securities. His articles have appeared in several leading academic and professional journals, including the Journal of Finance, the Journal of Financial and Quantitative Analysis, Financial Management, and the Journal of Financial Intermediation.

Professor Kracaw is the author of two books, Financial Risk Management, and Financial Institutions and Capital Markets. He has also served on the board of editors of two academic journals and previously on the board of directors of the Financial Management Association. Professor. Kracaw has consulted with a number of commercial banks, investment banks, and government agencies. In executive education, he has taught various courses in derivative markets, financial risk management, and international finance.

Current Research

Professor Kracaw is currently doing research on the impact of corporate governance structure on financial policy and strategy.


Financial Markets
Derivatives and Financial Risk Management

Publication List

William Kracaw, Omesh Kini, and Shehzsd Mian, "The Nature of Discipline in Corporate Takeovers", Journal of Finance, 2004, 59-4,

Tim Campbell and William Kracaw, "Optimal Speculation under Costly External Finance", Corporate Risk Management: Theory, Practice, and New Development, 2004, 1, 131-141.

William Kracaw and Marc Zenner, "The Wealth Effects of Bank Financing Announcements in Highly Leveraged Transactions", Journal of Finance, 1996, 51-5, pp. 1931-1946.

Omesh Kini, William Kracaw, and Shehzad Mian, "Corporate Takeovers, Firm Performance, and Board Composition", Journal of Corporate Finance, 1995, 1-3/4, pp. 383-412.

Tim Campbell and William Kracaw, "Financial Intermediation and the Market for Interest Rate Swaps", Journal of Financial Intermediation, 1991, 1-4, pp. 362-384.

Tim Campbell and William Kracaw, "Corporate Risk Management and the Incentive Effects of Debt", Journal of Finance, 1990, 45-5, pp. 1673-1686.


PhD, Finance, University of Utah, 1980

MBA, University of Utah, 1975

BS, Chemical Engineering, University of Utah, 1970


FIN 577, Financial Engineering, Risk Management, and Corporate Strategy