The inaugural UIC Business Distinguished Speaker Series will be co-hosted by Finance and IDS, and feature the Jerry W. and Carol Lee Levin Distinguished Service Professor of Operations Management at the University of Chicago Booth School of Business, John R. Birge on Friday, April 13. Additional details are below.
Title: Risk Propagation in Supply Chain Networks: Evidence from equity and CDS markets
Abstract: Supply chain networks connect firms in multiple ways, but their role in the propagation of idiosyncratic shocks may differ depending on the firm position in the network. This talk will describe empirical evidence of these differences for both equity returns and credit spreads and will discuss a theoretical model that provides a consistent explanation of the empirical findings. In particular, the results imply that upstream firms tend to mitigate risk propagation as they become more centrally connected while downstream firm connectivity has the opposite effect. In addition, the results provide motivation for a distinct role of the network structure in amplifying effects as flexibility is reduced.
Location: Douglas Hall, Room 310
Speaker Bio: John R. Birge is the Jerry W. and Carol Lee Levin Distinguished Service Professor of Operations Management at the University of Chicago Booth School of Business. Previously, he was Dean of the McCormick School of Engineering and Applied Science and Professor of Industrial Engineering and Management Sciences at Northwestern University. He also served as Professor and Chair of Industrial and Operations Engineering at the University of Michigan, where he also established the Financial Engineering Program. He is the current editor-in-chief of Operations Research, department editor of the operations-finance area at the Production and Operations Management Journal, former Editor-in-Chief of Mathematical Programming, Series B and former President of INFORMS. His honors and awards include the IIE Medallion Award, the INFORMS Fellows Award, the MSOM Society Distinguished Fellow Award, the Harold W. Kuhn Prize, the George E. Kimball Medal, the William Pierskalla Award, and election to the US National Academy of Engineering. He received M.S. and Ph.D. degrees from Stanford University in Operations Research, and an A.B. in Mathematics from Princeton University.