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Dr Gerhard Hambusch

Biography

Gerhard is a Senior Lecturer (Finance) in the UTS Business School with research and teaching interests in Corporate Finance, Banking, and Ethics. His excellence in teaching has been recognized through a citation from the Australian Government and a university-wide teaching award at UTS.  The International Journal of Managerial Finance recently named one of his research papers "Outstanding Paper of the Year." Recent publications also include the analysis of momentum in sovereign bonds published in the Journal of Fixed Income. 
Gerhard earned the right to use the Chartered Financial Analyst designation and is a member of CFA Institute and the CFA Society of Sydney since 2008. He also serves as a volunteer and subject matter expert for CFA Institute and is a member of the Australasia Advocacy Council formed by CFA Societies Australia and CFA Society New Zealand in 2016.  In the UTS Business School, Gerhard serves as the CFA Program Partnership Director and the CAIA (Chartered Alternative Investment Analyst) Partnership Director.
Before joining the UTS Business School, Gerhard completed his PhD at the University of Wyoming (USA).  Gerhard also holds Master's degrees from the University of Wyoming (USA), the Friedrich Alexander University Erlangen-Nuremberg (Germany) and the EM Strasbourg Business School (France). Selected financial industry experience includes supporting a large funds-of-funds private equity portfolio managed in Frankfurt (Germany) as well as supporting a middle-market buyout fund managed in Chicago, IL (USA). 

Professional

Member of CFA Institute and the CFA Society of Sydney

Image of Gerhard Hambusch
Senior Lecturer, Finance Discipline Group
Associate Member, QFRC - Quantitative Finance
Doctor of Philosophy
Chartered,
Download CV  (PDF 386 Kb, 2 pages)
Phone
+61 2 9514 7749

Research Interests

Corporate Finance
Banking
Capital Regulation
Ethics in Finance
Can supervise: Yes
25602 Ethics in Finance (Subject Coordinator)
25765 Corporate Finance

Chapters

Hambusch, G. 2013, 'Ethics and Investment Professionalism' in 2015-2016 Claritas Investment Certificate, Volume One.

Conferences

Hambusch, G. 2013, 'Embedding Ethics in the Business Curriculum', CFA Institute Program Partner Conference, Virginia, USA.
Neil, J.A., Freeman, L.M., Waller, D.S., Hambusch, G. & Waite, K. 2012, 'Developing graduate attributes in ethics: UTS online ethics portal', Proceedings of UTS Teaching & Learning Forum, UTS, Sydney, Australia.
Glover, K. & Hambusch, G. 2011, 'Agency conflicts and the provision of debt when prices are mean reverting', International Finance and Banking Society Conference 2011, Rome, Italy.
Hambusch, G. 2011, 'The implications of mean reversion on investment and corporate financial policy', Quantitative Methods in Finance 2011 Conference, Sydney Australia.
Finnoff, D., Hambusch, G. & Shaffer, S. 2010, 'Optimal management of mean reverting losses', Annual Conference of the Multinational Finance Society, Barcelona, Spain.
Hambusch, G., Shaffer, S. & Finnoff, D. 2009, 'Intertemportal effects of capital requirements on risk taking behavior of banks', Seminar Presentation, Centre for Macroeconomic Analysis, Australian National University, Canberra, Australia.
Hambusch, G. 2009, 'Optimal management of mean reverting losses', Quantitative Methods in Finance 2009 Conference, Sydney, Australia.
Hambusch, G. 2009, 'Intertemporal effects of capital requirements on risk taking behaviour of banks', European Financial Management Association Conference, Milan, Italy.
Hambusch, G. 2009, 'Intertemporal effects of capital requirements on risk taking behaviour of banks', 27th Australasian Economic Theory Workshop, Auckland, New Zealand.

Journal articles

Glover, K. & Hambusch, G. 2016, 'Leveraged investments and agency conflicts when cash flows are mean reverting', Journal of Economic Dynamics and Control, vol. 67, pp. 1-21.
View/Download from: Publisher's site
Gregory, K.G. & Hambusch, G. 2015, 'Factors driving risk in the U.S. banking industry: The role of capital, franchise value and lobbying', International Journal of Managerial Finance, vol. 11, no. 3, pp. 1-35.
View/Download from: UTS OPUS or Publisher's site
Hambusch, G., Hong, J.K. & Webster, E. 2015, 'Enhancing Risk-adjusted Return using Time Series Momentum in Souvereign Bonds', The Journal of Fixed Income, vol. 25, no. 1, pp. 96-111.
View/Download from: UTS OPUS or Publisher's site
This article studies an actively managed bond strategy based on time series momentum in sovereign bond markets. The author assesses the performance of an active strategy and investigates diversification benefits in comparison with a passive buy-and-hold strategy when each strategy is combined with international equity indexes. The analysis provides evidence that the active strategy offers higher expected returns without increasing return volatility. Importantly, and in comparison with the passive strategy, the active strategy results in both significant return and diversification enhancements when combined with international equity indexes. Therefore, the author suggests that his active momentum strategy can serve fund managers as an alternative to common long-only passive bond strategies to enhance the riskadjusted return of a combined portfolio of sovereign bonds and equitie
Glover, K. & Hambusch, G. 2014, 'The trade-off theory revisited: On the effect of operating leverage', International Journal of Managerial Finance, vol. 10, no. 1, pp. 2-22.
Waller, D.S., Freeman, L.M., Hambusch, G., Waite, K., Neil, J. & Wray-Bliss, E. 2014, 'Embedding Ethics in the Business Curriculum: A Multi-Disciplinary Approach', Journal of Business Ethics Education, vol. 11, pp. 239-260.
View/Download from: UTS OPUS
In response to recent corporate ethical and financial disasters there has been increased pressure on business schools to improve their teaching of corporate ethics. Accreditation bodies, such as the Association to Advance Collegiate Schools of Business (AACSB), now require member institutions to develop the ethical awareness of business students, either through a dedicated subject or an integrated coverage of ethics across the curriculum. This paper describes an institutional approach to the incorporation of a comprehensive multi-disciplinary ethics framework into the business curriculum. We discuss important implications for the assessment of ethics within institutional assurance practices, and address critical issues related to the support of academics when required to incorporate new ethics material within their subject which may be outside their field of expertise. As an example, the successful application of the framework within the marketing discipline is presented and discussed.

Other

Glover, K. & Hambusch, G. 2012, 'Leveraged Investments and Agency Conflicts When Prices Are Mean Reverting'.
We analyse the effect of differing uncertainty assumptions on the costs of shareholder-bondholder conflicts arising from partially debt-financed investments. A partial equilibrium model, valid for a large class of diffusion processes, is developed and then applied to the specific cases of a geometric Brownian motion (GBM) and a mean-reverting (MR) process. This allows for the comparison of the two scenarios and contributes to the ongoing discussion on the effects of mean reversion on investment and financing behaviour. We find that agency costs are much lower under MR dynamics and, through the application of a novel agency cost decomposition, we show that for a high expected growth in future profits (high growth GBM) agency costs are driven mainly by suboptimal financing decisions, as opposed to suboptimal (default and investment) timing decisions. The situation is reversed for lower growth assumptions and for an increase in the speed of mean reversion. Our results on the components and drivers of agency costs are valuable to both policy makers and regulators alike.
Hambusch, G. & Shaffer, S. 2012, 'Forecasting Bank Leverage'.
Standard early warning models to predict bank failures cannot be estimated during periods of few or zero failures, precluding any updating of such models during times of good performance. Here we address this problem using an alternative approach, forecasting the simple leverage ratio (equity/assets) as a continuous variable that does not suffer from the small sample problem. Out-of-sample performance shows some promise as a supplement to the standard approach, despite measurable deterioration in prediction accuracy during the crisis years.
Hambusch, G. & Shaffer, S., 'Forecasting Bank Leverage'.
Standard early warning models to predict bank failures cannot be estimated during periods of few or zero failures, precluding any updating of such models during times of good performance. Here we address this problem using an alternative approach, forecasting the simple leverage ratio (equity/assets) as a continuous variable that does not suffer from the small sample problem. Out-of-sample performance shows some promise as a supplement to the standard approach, despite measurable deterioration in prediction accuracy during the crisis years.