Richard S. Ruback

Richard S. Ruback

Baker Foundation Professor
Willard Prescott Smith Professor of Corporate Finance, Emeritus

Baker Foundation Professor
Willard Prescott Smith Professor of Corporate Finance, Emeritus

Finance
+1 (617) 495-6422
 
Richard S. Ruback
Unit
Contact Information
(617) 495-6422
Publications Research Summary
Corporate Control and Valuation
Richard S. Ruback's research and course development focus on applied corporate finance-in particular, corporate control transactions and valuation. His research on corporate control has yielded case studies on major transactions, such as the RJR Nabisco leveraged buyout, and their consequences (examined in a three-case series on Southland Corporation, owner of the 7-Eleven convenience-store chain). It includes a study (with Paul Healy and Krishna G. Palepu) that examines the postmerger performance and determinants of the long-term financial success of large merged firms. Ruback's work on valuation has produced a series of cases that highlight effective valuation tools and the consequences of their use. It includes a study (with Steven Kaplan) of how cash flow forecasts are valued in capital markets.

Richard S. Ruback is a Baker Foundation Professor and the Willard Prescott Smith Professor of Corporate Finance, Emeritus at the Harvard Business School. He is currently focusing his research in applied corporate finance, especially on corporate-control transactions and valuation. His course development work parallels his research interests. He has taught a variety of corporate finance courses throughout his career.  Over the last few years, he and Royce Yudkoff have been developing and teaching a new second year case course titled “The Financial Management of Smaller Firms” and a field course called “Entrepreneurship through Acquisition”.  Recently, Ruback and Yudkoff published their book, HBR Guide to Buying a Small Business.  Published by Harvard Business Review Press, the book is a practical roadmap through the steps required to find, evaluate, negotiate and finance the acquisition of a smaller firm.

Ruback earned his Ph.D. in business administration at the University of Rochester in 1980 and taught at MIT's Sloan School before joining the HBS faculty as a visiting professor in 1987. He was appointed associate professor in 1988 and full professor in 1989. Ruback has served as an editor for the Journal of Financial Economics and is the author of numerous articles on corporate finance and valuation.

Ruback has served as a consultant to corporations on corporate finance issues and has acted as an independent advisor to outside directors. He also served as an expert witness on valuation and security issues.

Books
Journal Articles
Book Chapters
  • Baker, Malcolm, Richard Ruback, and Jeffrey Wurgler. "Behavioral Corporate Finance: A Survey." In The Handbook of Corporate Finance, Volume 1: Empirical Corporate Finance, edited by Espen Eckbo. New York: Elsevier/North-Holland, 2007. View Details
  • Ruback, R. S. "Do Target Shareholders Lose in Unsuccessul Control Contests?" In Corporate Takeovers: Causes and Consequences, edited by A. J. Auerback. Chicago: University of Chicago Press, 1988. View Details
  • Ruback, R. S. "An Overview of Takeover Defenses." In Mergers and Acquisitions, edited by A. J. Auerback. Chicago: University of Chicago Press, 1988. View Details
  • Ruback, R. S. "The Conoco Takeover and Stockholder Returns." In The Law and Finance of Corporate Acquisitions, edited by Ronald J. Gilson. Mineola, NY: Foundation Press, 1986. View Details
Working Papers
  • Ruback, Richard S. "Valuation When Cash Flow Forecasts Are Biased." Harvard Business School Working Paper, No. 11-036, October 2010. View Details
  • Gilson, Stuart C., Edith Hotchkiss, and Richard Ruback. "Valuation of Bankrupt Firms." Harvard Business School Working Paper, No. 99-064, December 1998. View Details
  • Myers, S. C., and R. S. Ruback. "A Discounting Rule for Risky Assets." NBER Working Paper Series, No. 2219, April 1987. View Details
Cases and Teaching Materials
Other Publications and Materials
Research Summary
Corporate Control and Valuation
Richard S. Ruback's research and course development focus on applied corporate finance-in particular, corporate control transactions and valuation. His research on corporate control has yielded case studies on major transactions, such as the RJR Nabisco leveraged buyout, and their consequences (examined in a three-case series on Southland Corporation, owner of the 7-Eleven convenience-store chain). It includes a study (with Paul Healy and Krishna G. Palepu) that examines the postmerger performance and determinants of the long-term financial success of large merged firms. Ruback's work on valuation has produced a series of cases that highlight effective valuation tools and the consequences of their use. It includes a study (with Steven Kaplan) of how cash flow forecasts are valued in capital markets.