Heitor Almeida

Professor of Finance and Stanley C. and Joan J. Golder Distinguished Chair in Corporate Finance and Academic Director of iDegrees

Biography

Heitor Almeida is Stanley C. and Joan J. Golder Chair in Corporate Finance and academic director of I-degrees at Gies College of Business. He joined the University of Illinois in 2007, and also works as a research associate for the National Bureau of Economic Research. His research specialties include financial constraints, liquidity management, business groups, financial distress, innovation, and stock repurchases. He serves or has served as associate editor for numerous financial journals, and is currently in that role for the Journal of Financial Intermediation and the Journal of Banking and Finance. He will become managing editor at the Journal of Corporate Finance in January 2021. Almeida received two BAs, one from the Federal University of Minas Gerais at Belo Horizonte in 1991, the other from Central University Una at Belo Horizonte in 1993. He went on to earn a master’s degree in economics from Pontifical Catholic University of Rio de Janeiro and a PhD in economics from the University of Chicago in 2000.

Contact

4034 Business Instructional Facility

515 Gregory Dr

Champaign, IL 61820

217-333-2704

halmeida@illinois.edu

Vita

Google Scholar

SSRN

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Educational Background

PhD Economics, University of Chicago, 2000
Master in Economics, PUC-Rio at Rio de Janeiro, RJ, 1995
BA Business Administration, UNA, Belo Horizonte, UG, 1993
BA Economics, UFMG at Belo Horizonte, MG, 1991

Positions Held

Academic Director of iDegrees, University of Illinois at Urbana-Champaign, 2020 to present
Academic Director of iMBA Programs, Online Programs, University of Illinois at Urbana-Champaign, 2019-2020
Research Associate, National Bureau of Economic Research, 2010 to present
Professor of Finance, University of Illinois at Urbana-Champaign, 2009 to present
Director of the Finance PhD program, University of Illinois at Urbana-Champaign, 2008-2017
Associate Professor of Finance, Finance, University of Illinois at Urbana-Champaign, 2007-2009
Faculty Research Fellow, National Bureau of Economic Research, 2005-2010
Visiting Professor, FGV-Rio, 2001-2003
Assistant Professor of Finance, Stern School of Business, New York University, 2000-2006

Recent Publications

Almeida, H. Forthcoming. The Working Capital Credit Multiplier. Journal of Finance. link >
Almeida, H. (2024). The Cash Flow Sensitivity of Cash: Replication, Extension, and Robustness. Critical Finance Review, 13 (3-4), 351-365. link >
Almeida, H., Acharya, V., Ippolito, F., & Perez-Orive, A. (2021). Credit Lines and the Liquidity Insurance Channel. Journal of Money, Credit, and Banking, 53 (5), 901-938. link >
Almeida, H. (2021). Liquidity Management During the Covid-19 Pandemic. Asia-Pacific Journal of Financial Studies, 50 (1), 7-24. link >

Other Publications

Articles

Almeida, H. (2020). Bank Lines of Credit as Contingent Liquidity: Covenant Violations and their Implications. Journal of Financial Intermediation. link >
Almeida, H., Hsu, P., Li, D., & Tseng, K. (2019). More Cash, Less Innovation: The Effect of the American Jobs Creation Act of Patent Vlaue. Journal of Financial and Quantitative Analysis. link >
Almeida, H. (2018). Is it Time to Get Rid of Earnings-per-Share. Review of Corporate Finance Studies. link >
Almeida, H., Kristine, H., & Williams, R. (2017). Risk Management with Supply Contracts. Review of Financial Studies, 30 (12), 4179–4215. link >
Almeida, H., Cunha, I., Ferreira, M., & Restrepo, F. (2017). The Real Effects of Credit Ratings: The Sovereign Ceiling Channel. Journal of Finance, 249-290.
Almeida, H., Fos, S., & Kronlund, M. (2016). The Real Effects of Share Repurchases. Journal of Financial Economics. link >
Almeida, H., Acharya, V., & Baker, M. (2015). Introduction: New Perspectives on Corporate Capital Structures. Journal of Financial Economics.
Almeida, H., Kim, H., & Kim, C. (2015). Internal Capital Markets in Business Groups: Evidence from the Asian Financial Crisis. Journal of Finance, 2539-2586.
Almeida, H., Acharya, V., & Ippolito, F. (2014). Credit Lines as Monitored Liquidity Insurance: Theory and Evidence. Journal of Financial Economics, 287-319.
Almeida, H., Acharya, V., & Campello, M. (2013). Aggregate Risk and the Choice Between Cash and Lines of Credit. Journal of Finance, 68 2059-2116.
Almeida, H., Calabro, L., & Kambil, A. (2012). Cash Matters. CFO Insights.
Almeida, H., Campello, M., Laranjeira, B., & Weisbenner, S. (2012). Corporate Debt Maturity and the Real Effects of the 2007 Credit Crisis. Critical Finance Review, 1 (1), 3-58.
Almeida, H., Campello, M., & Weisbach, M. (2011). Corporate Financial and Investment Policies when Future Financing is not Frictionless. Journal of Corporate Finance, 17 675-693. link >
Almeida, H., Wolfenzon, D., Park, S., & Subrahmanyam, M. (2011). The Structure and Formation of Business Groups: Evidence from Korean Chaebols. Journal of Financial Economics, 99 447-475.
Almeida, H., & Campello, M. (2010). Financing Frictions and the Substitution Effect Between Internal and External Funds. Journal of Financial and Quantitative Analysis, 45 589-622. link >
Almeida, H., Campello, M., & Galvao, A. (2010). Measurement Errors in Investment Equations. Review of Financial Studies, 23 3279-3382.
Almeida, H., Adams, R., & Ferreira, D. (2009). Understanding the Relationship Between Founder-CEOs and Corporate Performance. Journal of Empirical Finance, 16 136-150. link >
Almeida, H., & Philippon, T. (2008). Estimating Risk-Adjusted Costs of Financial Distress. Journal of Applied Corporate Finance, 105-111. link >
Almeida, H., & Philippon, T. (2007). The Risk-Adjusted Cost of Financial Distress. Journal of Finance, 62 (6), 2557-2586. link >
Almeida, H., & Campello, M. (2007). Financial Constraints, Asset Tangibility and Corporate Investment. Review of Financial Studies, 20 1429-1460. link >
Avharya, V., Campello, M., & Almeida, H. (2007). Is Cash Negative Debt? A Hedging Perspective on Corporate Financial Policies. Journal of Financial Intermediation, 16 515-554.
Almeida, H., & Wolfenzon, D. (2006). A Theory of Pyramidal Ownership and Family Business Groups. Journal of Finance, 61 2637-2681. link >
Almeida, H., & Wolfenzon, D. (2006). Should Business Groups Be Dismantled? The Equilibrium Costs of Efficient Internal Capital Markets. Journal of Financial Economics, 79 99-144. link >
Almeida, H., Campello, M., & Liu, C. (2006). The Financial Accelerator: Evidence from International Housing Markets. Review of Finance, 10 1-32. link >
Adams, R., Almeida, H., & Ferreira, D. (2005). Powerful CEOs and Their Impact on Corporate Performance. Review of Financial Studies, 18 1403-1432. link >
Almeida, H., & Wolfenzon, D. (2005). The Effect of External Finance on the Equilibrium Allocation of Capital. Journal of Financial Economics, 75 133-164. link >
Almeida, H., Campello, M., & Weisbach, M. (2004). The Cash Flow Sensitivity of Cash. Journal of Finance, 59 1777-1804. link >
Almeida, H., & Bonomo, M. (2002). Optimal State-Dependent Rules, Credibility and Inflation Inertia. Journal of Monetary Economics, 49 1317-1336. link >

Other Publications

Almeida, H. (2012). How CFO's are using cash and the choices ahead.
Almeida, H. (2011). Apple investors steadfast, for now".
Almeida, H. (2011). Flight to safety may no longer include America.
Almeida, H. (2010). A funny thing happened on the way to the bank: Huge corporate cash holdings not what they seam".
Almeida, H. (2007). "Decline sets in at the conglomerate.
Almeida, H. (2006). Corporate and Monetary Policy".
Almeida, H. (2006). Corporate Cash Balances and Economic Activity".

Working Papers

Almeida, H. Efficiency or resiliency? Corporate choice between financial and operational hedging. link >
Almeida, H. Do Short-term Incentives Affect Long-term Productivity. link >
Almeida, H. Do Short-term Incentives Hurt Innovation. link >
Almeida, H. How Does Health Insurance Affect Firm Employment and Performance? Evidence from Obamacare. link >
Almeida, H. Do Firms Hedge During Distress. link >
Campello, M., & Almeida, H. Financial Constraints and Investment-Cash Flow Sensitivities: New Research Directions.

Honors and Awards

Stanley C. and Joan J. Golder Distinguished Chair in Corporate Finance, University of Illinois, Gies College of Business, 2011 to present
Excellence in Online & Distance Teaching, University of Illinois, 2022
Dean's Impact Award, University of Illinois at Urbana-Champaign, 2021

Grants

UIUC Research Board Grant, University of Illinois at Urbana-Champaign, 2008,2011
Research Grant from the Aspen Institute's Business & Society Program, Aspen Institute's Business & Society Program, 2004

Service

Managing editor, Journal of Corporate Finance, 2021 to present
Associate Editor, Review of Corporate Finance Studies, 2021 to present
Associate Editor, Journal of Banking and Finance, 2017 to present
Associate Editor, Journal of Financial Intermediation, 2013 to present
Associate Editor, Management Science, 2011-2014, 2010-2018

Teaching Interests

Mergers and acquisitions, corporate finance

Research Interests

Financial constraints, international corporate finance, liquidity management, business groups, financial distress, corporate governance and managerial decision-making.

Current Courses

Mergers & Acquisitions Topics (FIN 527) Focuses on identifying ways to increase firm value through mergers and acquisitions (M&A) and corporate restructurings. We will develop your skills in the design and evaluation of transactions. Specific topics addressed in the course are the valuation of companies, structuring of transactions, deal tactics and strategy, valuation of leveraged buyouts, and spin-offs/carve-outs. We will also delve into issues of law, accounting and taxation and how they affect the structuring and outcome of merger transactions. Knowledge about M&A is an important component of any corporate finance professional and is the foundation for effective work in a wide range of fields including corporate development, investment banking, consulting, and advising senior management.
Corporate Finance (FIN 570) In this course, you will learn how to use key finance principles to understand and measure business success as well as identify and promote true value creation. You will also learn financial management tools that allow us to determine the optimal financing and risk management strategies for corporations. In the first part of the course, you will learn how to use accounting information to form key financial ratios to measure a company’s financial health and to manage a company's short-term and long-term liquidity needs. You will also learn how to use valuation techniques to make sound business investment and acquisition decisions. Finally, you will learn how to incorporate risk and uncertainty into investment decisions and evaluate the performance of existing investments. In the second part of the course, you will learn how companies choose how much debt to have and which type of debt to issue. You will also learn how payout decisions (dividends and share repurchases) affect firm value and how to determine a company’s optimal payout policy. Finally, you will learn how to use risk management tools, such as derivatives, and liquidity to mitigate specific risks, such as currency risk. You will apply these tools to develop a financial management framework for M&A decisions, and R&D investments. 4 graduate hours. No professional credit. Credit is not given for FIN 570 if the student has received credit for FIN 584 Corporate Finance I and II (41321, 41322).
The Finance of Mergers and Acq (FIN 572) Focuses on the theory and practice of mergers and acquisitions (M&A), with a focus on the Finance. The Finance of M&A uses tools from different areas of Finance to help managers and investment bankers design successful M&A deals. In particular, we will learn to value and price M&A deals and how to choose the optimal financing mix for an M&A deal. The course focuses on all the major types of M&A deals including strategic M&A, private equity leveraged buyouts (LBOs), and restructuring deals such spinoffs and asset transfers. The course will benefit any student who desires to increase their ability to understand and execute M&A deals, including (but not limited to), entrepreneurs, consultants, bankers, investors, analysts, corporate managers, marketers, strategists, and deal-makers of all types. The course will also deepen students' understanding of financial modeling and capital structure, both in theory and practice. 4 graduate hours. No professional credit.
Corporate Finance (FIN 584)
Seminar in Corporate Finance (FIN 594) Theories, paradigms, and models of nonfinancial corporations; investigates the theoretical foundations and empirical evidence regarding corporate resource allocation, capital structure decisions, and dividend policies; covers in detail contingent claim analysis, signaling theory, and agency theory.