Don Chance
Professor, Department of Finance
Contact
dchance@lsu.edu
225-578-0372
2909 Business Education Complex North
Personal Website
Education
- PhD Finance, Louisiana State University, 1980
- MBA Finance, University of Mississippi, 1973
- BS Business Administration, University of Montevallo, 1972
Distinctions
Norman V. Kinsey Distinguished Chair in Finance
Don M. Chance, Ph.D., CFA, holds the Norman V. Kinsey Distinguished Chair in Finance at the E. J. Ourso College of Business at Louisiana State University. He previously held the James C. Flores Endowed Chair of MBA Studies and the William H. Wright, Jr. Endowed Chair for Financial Services at LSU, and the First Union Professorship in Financial Risk Management at Virginia Tech. Prior to his academic career, he worked for a large southeastern bank. He has been a visiting scholar at universities in Hong Kong, Australia, Korea, Singapore, Scotland, and in the U. S.
Professor Chance has had numerous articles published in academic and practitioner journals and has authored five books: An Introduction to Derivatives and Risk Management, 10th ed. co-authored with Robert Brooks, Essays in Derivatives: Risk Transfer Tools and Topics Made Easy (2nd ed.), Analysis of Derivatives for the CFA Program, Financial Risk Management: An End User Perspective, and Foundations of the Pricing of Financial Derivatives:: Theory and Analysis, co-authored with Robert Brooks.
He has extensive experience conducting professional training programs and serving as an expert witness through his LLC, Omega Risk Advisors. He has also been heavily involved in the derivatives and risk management curriculum in the CFA program, for which he was recognized with the C. Stewart Shepard Award. He is a member of LSU's Supplemental Retirement Plan Oversight Committee. He introduced the proposal to convert LSU's grading system to the Plus-Minus model and chaired the university's promotion and tenure committee for several years.
In his spare time he performs as a solo guitar, keyboard, and vocal act. He has traveled to more than 50 countries, and in March, 2016 he completed a 26-mile hike on the Inca Trail to Machu Picchu. He also authored a novel, The Assignment.
Chance, D., Bui, D., and Stephens, C. (2019). Does the Choice between Listing on the NYSE versus Nasdaq Matter? An Examination of Firms that Voluntarily Move from the NYSE to Nasdaq. 19(7), 18-48.
Chance, D. (2019). FI-nance or Fi-NANCE: How 100 Experts Pronounce the Word. Journal
of Financial Education, 45, 294-309.
Brooks, R., Chance, D., and Hemler, M. (2019). The Superior Performance of Covered
Calls on the S&P 500: Rethinking an Anomaly. Journal of Derivatives, 27(No. 2, Winter,
2019), 50-61.
Chance, D. (2019). An Option Pricing Approach to Corporate Dividends and the Capital Investment Financing Decision. Review of Financial Economics, 37, 541-553.
Chance, D. and Kim, S. (2017). An Empirical Analysis of Corporate Currency Risk Management Policies and Practices. Pacific-Basin Finance Journal, 47, 109-128.
Chance, D., Muthuswamy, J., Hanson, T. A, and Li, W. (2016). A Bias in the Volatility Smile. Review of Derivatives Research, 20(1), 47-90.
Chance, D. (2016). The Alphas of Asset Allocators. Journal of Investing, 25(4), 34-56.
Chance, D., Ferris, S., and Cicon, J. (2015). Poor Performance and the Value of Corporate
Honesty. Journal of Corporate Finance, 33, 1-18.
Chance, D. and McCarthy, M.. Measuring and Managing Market Risk (Level II).
Chance, D. and Edleson, M. (2015). Risk Management: An Introduction (Level I).
Chance, D. and Brooks, R. (2014). Some Subtle Relationships and Results in Option Pricing. Journal of Applied Finance.
Chance, D. and Yang, T. (2014). The Price-Taker Effect on the Valuation of Executive Stock Options. Journal of Financial Research, 37(1), 27-54.
Chance, D. and , . (2014). Basics of Derivatives Pricing and Valuation (Level I).
Chance, D., Brooks, R., and Cline, B. (2012). Private Information and the Exercise of Executive Stock Options. Financial Management, 41(3), 733-764.
Chance, D. and Yang, T. (2011). The Tradeoff Between Compensation and Incentives in Executive Stock Options. Quarterly Journal of Finance, 1(4), 733-766.
Chance, D. (2011). Fatal Flaws of the Sharpe Ratio or How to Make Yourself Look Good. Journal of Performance Measurement, 16(1), 20-28.
Chance, D., Shynkevich, A., and Yang, T. (2011). Experimental Evidence on Portfolio Size and Diversification: Human Biases in Naive Security Selection and Portfolio Construction. The Financial Review, 46, 427-457.
Chance, D. and Hemler, M. L. (2001). The Performance of Professional Market Timers: Daily Evidence from Executed Strategies. Journal of Financial Economics, 62, 377-411.
Chance, D., Kumar, R., and Todd, R. (2000). The 'Repricing' of Executive Stock Options. Journal of Financial Economics, 57, 129-154.
Chance, D. (1990). Default Risk and the Duration of Zero Coupon Bonds. Journal of Finance, 45, 265-274.
Chance, D. and Ferris, S. P (1987). The Effect of 12b-1 Plans on Mutual Fund Expense Ratios: A Note. Journal of Finance, 42, 1077-1086.
Chance, D. (1983). Floating Rate Notes and Immunization. Journal of Financial and
Quantitative Analysis, 18, 365-380.
Teaching Interests: risk management, financial derivatives, fixed income securities, corporate finance
Research Interests: risk management, financial derivatives, indexing, exchange traded funds, fixed income securities
- MBA Admissions and Curriculum, Committee Member (August 1, 2013 - July 31, 2014)
- Promotion and Tenure Committee, Committee Member (August 1, 2013 - July 31, 2014)
- Promotion and Tenure Committee, Committee Member (August 1, 2012 - July 31, 2013)
- MBA Admissions and Curriculum, Committee Member (August 1, 2012 - July 31, 2013)
- C. Stewart Shepard Award, CFA Institute, 2015
- Distinguished Faculty Award, LSU, 2014
Chance, D. (2019). Financial Risk Management for End Users. Singapore: World Scientific Press.
Chance, D. (2019). The Assignment (work of fiction).
Chance, D. (2015). Derivatives Exchanges In Elizabeth Sheedy (Ed.), The Professional Risk Managers' Handbook Series (pp. 151-176). Wilmington, DE: PRMIA (Professional Risk Managers International Association).
Chance, D. and Brooks, R. (2015). An Introduction to Derivatives and Risk Management, 10th edition. Mason, Ohio: Cengage Publishing.
Chance, D. and Peterson, P. (2013). Real Options and Investment Valuation In David Larrabee and Jason Voss (Ed.), Valuation Techniques: Discounted Cash Flow, Earnings Quality, Measures of Value Added, and Real Options New York/John Wiley: CFA Institute.
Chance, D., Dhar, P., and Simkins, B. (2013). A Financial Analysis of the Decision to Purchase a Hybrid Vehicle Energy Finance and Economics: Analysis and Valuation, Risk Management, and the Future of Energy (pp. 477-490). New York: Wiley.
Chance, D. and Brooks, R. (2012). An Introduction to Derivatives and Risk Management, 9th edition. Mason, Ohio: Cengage Publishing.
Chance, D. (2008). Essays in Derivatives, 2nd ed.. New York: John Wiley.
Chance, D. (2003). Analysis of Derivatives for the CFA Program. Charlottesville, VA: Association for Investment Management and Research.
Internet; WalletHub; Gave expert opinion on why credit card interest rates continue to be high; 2022
TV; WAFB TV; WAFB Channel 9 spoke with Department of Finance Professor Don Chance to find out how likely it is that someone will win Louisiana's Covid 19 vaccinated lottery's $1 million jackpot.; 2021
Internet; WalletHub; Gave expert opinion on how the recent COVID evolutions impact stock prices in the short and long run; 2021
Internet; Wallethub.com; gave expert opinion on how Covid has effected car insurance and the different marketing tactics car insurance companies use.; 2021
Internet; WalletHub; Gave expert opinion on how the recent COVID evolutions impact stock prices in the short and long run; 2020
Internet; WalletHub; Gave expert opinion on how the recent COVID evolutions impact stock prices in the short and long run; 2020
Internet; WalletHub; Gave expert opinion on how the recent COVID evolutions impact stock prices in the short and long run; 2020
Other; Aaron Beam Speaks; 35-minute interview; 2020
Internet; Politico; Quoted in article about new tax law and the economy; 2018
Other; LSU Graduate School Newsletter; Featured Faculty Member More ; 2017