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Sean Cleary

Professor, CFA, ICD.D, Executive Director, Institute of Sustainable Finance

Overview

Dr. Sean Cleary is the Executive Director of the newly-established Institute for Sustainable Finance based at Smith, as well as the founder and Director of the Master of Finance program.

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Academic Area

  • Finance

Interest Topics

Faculty Details

Profile

Full Bio

Dr. Sean Cleary is the Executive Director of the newly-established Institute for Sustainable Finance based at Smith, as well as the founder and Director of the Master of Finance program.

He holds a Ph.D. in finance from the University of Toronto, an MBA, and the Institute of Corporate Directors (ICD.D) designation. He is a CFA charter holder, is a current member of the CFA Society Toronto Advisory Council, and is a former member of the Board of Directors for the Toronto CFA Society and the Atlantic Canada CFA Society (where he served as President).

Dr. Cleary has authored 14 finance textbooks and has published more than 30 research articles, including several in top tier finance journals. His publications have been cited over 3,400 times and he has received several major research grants. His most recent research and educational interests focus on the field of sustainable finance.

He is an Associate Editor for two finance journals and frequently serves as a reviewer for many of the top finance journals. Dr. Cleary regularly serves as an expert witness on cost of capital and capital markets.

Academic Degrees

Ph.D., Finance
University of Toronto (1998)

M.B.A., Finance
Saint Mary’s University (1989)     

B.Ed., Secondary
Saint Francis Xavier University (1984)

B.A.,  Economics
Acadia University (1983) 

Academic Experience

Smith School of Business, Queen’s University 
BMO Professor of Finance (2008-2014)
Director of Master of Finance (2008-2014)

Saint Mary’s University
Associate Dean and Pengrowth Nova Scotia Professor in Petroleum Financial Management (2007-2008)
Professor (2006-2007)
Associate Professor: Finance (2000-2001, 2002-2006)
Assistant Professor: Finance (1998-2000)
Lecturer: Finance and Statistics (1990-1993)

York University 
Assistant Professor: Finance (2001-2002)

The University of Lethbridge
Assistant Professor: Finance (1997-1998)

The University of Toronto
Lecturer: Business Finance (1994-1997)

Ryerson University
Lecturer: Investment Finance (1994-1997)

WSC Investment Services 
Instructor for CSC and CFA Seminars (1996 - Present)

Publications

Academic Journals

“An Efficient and Functional Model for Predicting Bank Distress: In and Out of Sample Evidence,” 2016. Co-authored with Greg Hebb, Dalhousie University. Journal of Banking and Finance, Vol. 64, March 2016, 101–111.

“Managerial Practices and Corporate Social Responsibility,” 2015. Co-authored with Najah Attig, Saint Mary’s University. Journal of Business Ethics, Vol. 131 (No. 1), 121-136.

“Organization Capital and Investment Cash Flow Sensitivity: The Effect of Management Quality Practices,” 2014. Co-authored with Najah Attig, Saint Mary’s University. Lead Article - Financial Management, Vol. 43 (No. 3), 473-504. 

“Corporate Legitimacy and Investment-Cash Flow Sensitivity,” 2014. Co-authored with Najah Attig, Saint Mary’s University, Sadok El Ghoul, University of Alberta, and Omrane Guedhami, South Carolina University. Journal of Business Ethics, Vol. 121 (No. 2), 297-314. 

“Debt Rating Initiations: Natural Evolution or Opportunistic Behavior?” 2013. Co-authored with Laurence Booth, University of Toronto, and Lynnette Purda, Queen’s University. Journal of Modern Accounting and Auditing, Vol. 9 (No. 12), 1574-1595.

“Institutional Investment Horizons and the Cost of Equity Capital,” 2013, Co-authored with Najah Attig, Saint Mary’s University, Sadok El Ghoul, University of Alberta, and Omrane Guedhami, South Carolina University. Financial Management, Vol. 42 (No.2), 2013, 441-477.

“Institutional Investment Horizon and Investment-Cash Flow Sensitivity.” Co-authored with Najah Attig, Saint Mary’s University, Sadok El Ghoul, University of Alberta, and Omrane Guedhami, South Carolina University. Journal of Banking & Finance, Vol. 36, (No. 4), 2012, 1164-1180.

“Capital Market Developments in the Post-October 1987 Period: A Canadian Perspective.” Coauthored with Laurence Booth from the University of Toronto. Review of Accounting and Finance, Vol. 8 (No.2), 2009, 155-175.

“Cash Flow Volatility, Financial Slack and Investment Decisions,” 2008, China Finance Review, Number 1, Vol 2, 63-86. Co-authored with Laurence Booth from the University of Toronto. 

“The Investment Nature of Income Trusts and Their Role in Diversified Portfolios,” Canadian Journal of Administrative Sciences. Co-authored with Greg MacKinnon from Saint Mary’s University, (Vol 24(4)), 2007, 314-325. 

“The U-Shaped Investment Curve: Theory and Evidence.” Co-authored with Paul Povel, University of Minnesota, and Michael Raith, University of Southern California, Lead article, Journal of Financial and Quantitative Analysis, Vol. 42 (No. 1), March 2007. 

“Financial Constraints and Investment: An Alternative Empirical Framework.” Co-authored with Bert D’Espallier, Hasselt University, Anales de Estudios Economicos y Empresariales, Vol. 17, 2007, 9-41. 

“Dividend Smoothing and Debt Ratings.” Co-authored with Laurence Booth and Varouj Aivazian, both from the University of Toronto. Lead article, Journal of Financial and Quantitative Analysis, Vol. 41(No. 2), June 2006, 439-452. 

“International Corporate Investment and the Relationships between Financial Constraint Measures,” Journal of Banking and Finance, Volume 30 (5), 2006, 1559-1580. 

“Are U.S. Variables Good Predictors of Foreign Equity Risk Premiums?” 2006. Co-authored with John Schmitz, President, Sci-Vest Capital Management Inc., The Cyprus Journal of Sciences.

“Income Trusts: Past Performance and Future Prospects.” Co-authored with Greg MacKinnon of Saint Mary’s University. Canadian Investment Review, Winter 2005, 53-54.

“Dividend Policy and the Role of Contracting Environments” FSR Forum, December 2005, 1320. Co-authored with Laurence Booth and Varouj Aivazian, both from the University of Toronto.

“Corporate Investment and Financial Slack: International Evidence,” The International Journal of Managerial Finance, 2005, 140-163. 

“Industry Factors Do Not Explain Momentum in Canadian Stock Returns,” Investment Management and Financial Innovations, 2005(2), 49-60. Co-authored with John Schmitz, President, Sci-Vest Capital Management Inc., and David Doucette, Saint Mary’s University.

“Do Emerging Market Firms Follow Different Dividend Policies from U.S. Firms?” The Journal of Financial Research, Fall 2003, 371-387. Co-authored with Laurence Booth and Varouj Aivazian, both from the University of Toronto.

“Dividend Policy and the Organization of Capital Markets.” Journal of Multinational Financial Management, Spring 2003, 101-121. Co-authored with Laurence Booth and Varouj Aivazian, both from the University of Toronto.

“The Risk-Adjusted Performance of Closed-End Funds and the Impact of Discounts.” Journal of Today, December 2002, 119-133. Co-authored with Greg Hebb of Dalhousie University and Greg MacKinnon from Saint Mary’s University.  

“Transactions Costs on the TSE,” Canadian Investment Review, Spring 2002, 20-26. Co-authored with John Schmitz, President, Sci-Vest Capital Management Inc., and Kevin Kerr, TD Securities, Toronto. 

“What Has Worked on Bay Street,” Canadian Investment Review, Winter 2001, 25-34. Coauthored with John Schmitz, President, Sci-Vest Capital Management Inc.

“The Sensitivity of Canadian Corporate Investment to Liquidity,” Canadian Journal of Administrative Sciences, September 2000, 217-232. 

“Diversification with Canadian Stocks: How Much is Enough?” Canadian Investment Review, Fall 1999, 21-25. Co-authored with David Copp, Mount Allison University.

“The Relationship Between Firm Investment and Financial Status,” Journal of  Finance, April 1999, 673-692. Received at least one vote from the editorial board for the top Corporate Finance Paper Award during the year of publication.

“Momentum in Stock Returns and Time-Varying Risk,” Canadian Journal of Administrative Sciences, September 1998, 279-291. Co-authored with Michael Inglis, University of Toronto. One of five nominations for “best 1998 CJAS paper.” 

Books and Book Chapters

Corporate Finance, First US Edition. Co-authored with Laurence Booth from the University of Toronto and Pamela (Petereson) Drake) from Virgina Commonwealth University. John Wiley & Sons. In progress – publication date 2013. 

Introduction to Corporate Finance, First three editions. Co-authored with Laurence Booth from the University of Toronto. John Wiley & Sons Canada Limited (2007, 2010, 2013). This is an Introductory Canadian Finance text that was written from “scratch.” 

Investments: Analysis and Management, First, Second and Third Canadian Editions, co-authored with Charles P. Jones of North Carolina State University, John Wiley & Sons Canada Limited (1999, 2004, 2008). I was solely responsible for the development of all three Canadian editions, the first being based on an adaptation of the sixth U.S. edition, authored by Professor Jones.

The Canadian Securities Exam Fast Track Study Guide, First, Second, Third and Fourth Editions (2001, 2006, 2009, 2013) – sole author. Published by John Wiley & Sons Canada Limited. 

Finance in a Canadian Setting, Sixth Edition, co-authored with Peter Lusztig and Bernard

Schwab, both of the University of British Columbia, John Wiley & Sons Canada Limited, March, 2001. I was solely responsible for the development of this edition of the text, based on an adaptation of the fifth edition, authored by Professors Lusztig, Schwab and Randall Morck of University of Alberta.

Market Efficiency, a chapter in the CFA Institute Investment Series book entitled Investments: Principles of Portfolio and Equity Analysis (Wiley, 2011), which is currently used as CFA Level 1 material within the Candidate Body of Knowledge.

“Introduction to Financial Markets,” (on-line course). Developed all seven modules for the Bourse de Montreal, 2002. 

“Derivatives for the Retail Investor,” (on-line course). Developed two modules (Forwards and Future, and Options) for the Bourse de Montreal, 2002. 

“Derivatives for the Institutional Investor,” (on-line course). Developed two modules (Options and Derivatives for Equity and Index Products) for the Bourse de Montreal, 2002.

“Investment Strategies and Asset Allocation,” Chapter 5, Investment Management Techniques, The Canadian Securities Institute, 1999.

“Equity Securities,” Chapter 12, Investment Management Techniques, The Canadian Securities Institute, 1999.

Cases

“Time Value of Money: The Buy versus Rent Decision,” with Stephen Foerster. Ivey Publishing, August 2014.

Work-in Progress

“The Cash Effect and Market Reaction over Three Decades,” 2015, Working Paper. Co-authored with Fatma Sonmez, Queen’s University. Under review.

“Institutional Investors, Monitoring and Corporate Finance Policies,” 2015, Working Paper. Coauthored with Jun Wang, The University of Western Ontario.

Teaching

Student Supervision

External Examiner for several PhD students.

Supervisor, Queen’s MSc Finance Student, Wayne Charles

Served as co-director for the Investment Management of Portfolios in Atlantic Canada Training Program (IMPACT) at Saint Mary’s University. This innovative program has students manage a portfolio of over $150,000 of “real” money (2005-2008).

Served as faculty advisor to several MBA students preparing their Management Research Project (MRP) in finance (FIN 669) to satisfy their MBA requirements: 

Robert March, “Using Canadian and US Macroeconomic Variables to Predict Canadian Equity Risk Premiums” (1999).

Simon Sagar, “Do Canadian Investors Overreact?” (2000). Simon also presented his paper at the 1999 Atlantic Schools of Business (ASB) conference in Halifax. 

Kevin Kerr, “Bid-Ask Spreads and Commissions on the TSE” (2000).

Scott LeBlanc, “An Investigation of Derivative Use: A Case Study of Cambior Inc.” (2000).

David Doucette, “Industry Momentum in Canadian Stock Returns” (2001).

Balakrishna Murty, “The Effect of Board Composition on Firm Value: Some Canadian Evidence” (2003). Bashir Jallow, “US Economic Factors and International Equity Risk Premia Predictability” (2005). Kathy Isnor, “The Effect of Corporate Governance Policies on the Corporate Bond Rating” (2005).

Interests

Investments, Business Finance and Corporate Finance. I have also taught numerous courses and delivered seminars in many preparatory programs designed to prepare students to write exams for all three levels of the CFA program and the CSC for over 10 years. 

Research

Interests

Empirical studies in corporate finance and investments.

Presentations

Conference Proceedings

I have published numerous articles in conference proceedings, as summarized below: 

European Financial Management Association annual conference, 2008, 2006, 2005, 2002.

Hawaii International Conference on Business, 2002.

Multinational Finance Society annual conference, 2001.

Atlantic Schools of Business annual conferences, 2000, 1998.  ASAC annual conferences, 2006, 2001, 2000.

Conference Best Paper Awards

“The Information Content of Institutional Investment Horizon: Evidence from Firms’ Implied Cost of Equity,” 2012, Working Paper, Co-authored with Najah Attig, Saint Mary’s University, Sadok El Ghoul, University of Alberta, and Omrane Guedhami, South Carolina University. Chosen Best Paper in Banking and Finance – 2012 European Business Research Conference.

“Income Trusts: Why All the Fuss and What About the Future?” 2006. Co-authored with Greg MacKinnon from Saint Mary’s University. Chosen as the best paper in the Finance division for the 2006 ASAC Conference in Banff, Alberta.

“The U-Shaped Investment Curve: Theory and Evidence” 2004. Co-authored with Paul Povel, University of Minnesota, and Michael Raith, Rochester University. Presented at the 2004 NFA Conference and received award as the “Best Paper in Managerial Finance.”

“The Sensitivity of Canadian Corporate Investment to Liquidity.” Published in conference proceedings for the 1999 ASAC Conference in Saint John, New Brunswick.  Chosen as the best paper in the Finance division for this conference.

Conference Presentations:

Keynote Speaker (Finance Area) – ASAC 2012 Annual Conference.

I have presented papers at numerous conferences, as summarized below: 

World Finance Conference, 2014, 2013, 2011, 2010.

Paris Financial Management Conference, 2014.

Northern Finance Association annual conferences, 2013, 2011, 2010, 2008, 2005, 2004, 2002, 2000, 1996.

Multinational Finance Society annual conferences, 2010, 2001, 1999.

European Financial Management Association annual conference, 2008, 2006, 2005, 2002. 

Hawaii International Conference on Business, 2002.

Eastern Finance Association annual conferences, 2003, 2000.

Atlantic Schools of Business annual conferences, 2000, 1998, 1996.

ASAC annual conferences, 2006, 2000, 1999.

Financial Management Association annual conferences, 2013, 2011, 2010, 2008, 2005, 2004, 2001, 1999, 1996.

Southern Finance Association annual conference, 2008.

Finance Workshops (Invited Presentations)

Atlantic Canada CFA Society, 2006.

Melbourne Centre for Financial Studies, 2006.

Melbourne CFA Society, 2006.

Monash University (Caulfield), 2006.

University of Melbourne, 2006.

University of New South Wales, 2006.

University of Sydney, 2006.

University of Manitoba CGA Finance Conference 2005

Wilfred Laurier University, 2002.

University of Western Ontario, 2001.

York University, 2001, 2010.

Dalhousie University, 2001, 2013.

Queen’s University, 2000.

Saint Mary’s University, 2002, 2001, 2000, 1999.

Schulich School of Business, 2010. Concordia University, 2013.

Awards

Grants & Awards

Co-investigator for a Standard Research Grant in the amount of $130,000 from the Social Sciences and Humanities Research Council of Canada (SSHRC) for the 2013 to 2017 period (Principal investigator - Najah Attig of Saint Mary’s University).

Awarded three Research Grants of $90,000 each over three years from the Queen’s School of Business at Queen’s University (2008-11; 2011-14; 2014-17).

Principal investigator for a Standard Research Grant in the amount of $60,500 from the Social Sciences and Humanities Research Council of Canada (SSHRC) for the 2008 to 2011 period.

Co-investigator for a Standard Research Grant in the amount of $111,000 from the Social Sciences and Humanities Research Council of Canada (SSHRC) for the 2006 to 2009 period (Principal investigator - Najah Attig of Saint Mary’s University).

Principal investigator for a Standard Research Grant in the amount of $70,118 from the Social Sciences and Humanities Research Council of Canada (SSHRC) for the 2003 to 2006 period.

Awarded a Research Grant of $25,000 per year for three years from the Schulich School of Business at York University (July 2001).

Principal investigator for a Standard Research Grant in the amount of $61,530 from the Social Sciences and Humanities Research Council of Canada (SSHRC) for the 1999 to 2002 period.

Awarded Research Grant for $1,500 from Saint Mary’s University (2003-2004).

Awarded Research Grant for 2,500 from Saint Mary’s University (2002-2003).

Awarded Research Grant for $2,500 from Saint Mary’s University (2000-2001).

Awarded Research Grant for $3,030 from Saint Mary’s University (1999-2000).

Awarded Research Grant for $2,000 from Saint Mary’s University (1998-99).

Research Grant in the amount of $20,000 from the Intellectual Infrastructure Partnership Program (IIPP) at the University of Lethbridge (1997-98). 

Research Grant from the University of Lethbridge Research Fund for $4,500 (1997-98).

Service

Professional Activities

Editorial Advisory Board – Investor Lit (2013-present)

Senior Advisor – Toronto CFA Continuing Education Committee (2014-present); Chair (2013-14); Vice-Chair (2012-13)

Chair – Awards Committee – CFA Toronto Board of Directors (2008-2011)

President - Board of Directors for the Atlantic Canada CFA Society (2007-2008). Served on the board from 2001 to 2008.

Editor (Finance area) for the Canadian Journal of Administrative Sciences

Associate Editor for the European Journal of Finance

Editorial Board – Canadian Investment Review (2008-2011).

Served as a reviewer for the Review of Financial Studies, the Journal of Financial and Quantitative

Analysis, Journal of Business, Financial Management, Journal of Money, Credit and Banking, the Journal of Banking and Finance, the European Journal of Finance, the Journal of Corporate

Finance, the Journal of Applied Economics, the Multinational Finance Journal, Financial Review,

Journal of International Financial Management, the International Review of Economics and Finance, the Canadian Journal of Administrative Sciences, the Review of Financial Economics, the Journal of Risk Finance,  and for the Journal of Management and Governance.

Reviewer for several SSHRC grant applications.

External reviewer/examiner for several tenure and renewal applications received for professors at other universities, as well as for Ph.D. dissertations.

Conference chair for 2001 Northern Finance Association Annual Meeting, held in Halifax.

Conference organizing committee and Reviewer for several conferences. 

Completed the Chartered Financial Analyst (CFA) program, and awarded the CFA designation.  Completed the Professional Financial Planning Course offered by the Canadian Securities Institute, as well as the Canadian Securities Course (CSC).

Completed the Investment Funds Institute of Canada’s Mutual Fund Course.

Prepared course materials for several “on-line” finance courses. Instructor for Canadian Securities Course Seminars.

Prepared Course Materials for the Canadian Securities Institute.

Delivered Seminars for the Canadian Securities Institute on the Canadian Securities Course (CSC), Fixed Income Securities and Portfolio Management Techniques.