Phil McKnight, Ph.D. is an American born financial theorist and university professor who is best known for his pioneering work in stock market efficiencies and corporate governance.

Biography

Phil earned a Ph.D. in Finance from the University of Bath (United Kingdom) in 1998. He subsequently joined the faculty at Cardiff University (Wales, UK) were he received tenure in 2002. In 2004, Phil moved to Scotland where he taught Corporate Finance and Investments at the University of St. Andrews (Scotland, UK), the third oldest university in the English speaking world. Phil received tenure in 2006 at the University of St. Andrews and claims the move to Scotland was the single greatest experience of his life; having lived and taught at a university which is associated with centuries of historical achievements and which produced three signatories of 1776 American Declaration of Independence: James Wilson, John Witherspoon and Benjamin Franklin.

 

Education

Phil has an accounting degree from the University of Arkansas (Fayetteville), a masters degree in business from Northeastern University, and a PhD in finance from the University of Bath (England, UK). He is also a graduate of the University of California's (Los Angeles, UCLA) personal financial planning program where he graduated with distinction/summa cum laude.  

Faculty Awards

Phil's knowledge and enthusiasm in the classroom garnered him the University of Wisconsin's Lubar School of Business "Gold Star" Excellence in Teaching Award in 2010. 

 

Research Contributions

Phil’s research is focused on three key themes: 1) corporate governance, 2) stock market efficiency, and 3) institutional biases. He is a prolific publisher and his research has made a number of important contributions to the literature including 7 journal papers appearing as the lead article and one of those reaching seminal standing:

“Internal and External Governance Mechanisms: Their Impact on the Performance of Large UK Companies.” Journal of Business, Finance & Accounting, vol. 29 (June/July), 2002 – see SSRN.com.*

“Agency Costs, Corporate Governance Mechanisms and Ownership Structure in Large UK Publicly Quoted Companies: A Panel Data Analysis." Quarterly Review of Economics and Finance, Vol. 49 (2009).**

These papers offer several important contributions including: 1) the first to study changes in board structures and their impact on firm performance, under the effects of a prescribed governance code, 2) the first to study board structure changes using panel data analysis which employs the Breusch-Pagan-Lagrange and Hausman test to differentiate between pooled, random, and fixed effects linear models.

Phil's work has been widely cited, including out of discipline citations in two of the world's leading publications of legal scholarship: 1) the Yale Law Journal and 2) Columbia Law Review.

* This paper has reached seminal standing.

** This paper, as of December 2014, was the top cited paper of all time for Elsevier's Quarterly Review of Economics and Finance Journal, a 52 year old journal. This paper has also reached seminal standing.  

 

Academic Refereed Publications

“The Impact of Stock Characteristics and Regulatory Change on Mutual Fund Herding.” Applied Financial Economics, Vol. 24 No. 3, 2014 – T. Hou.

 

“The Credit Crunch and Insider Trading.” Financial Markets, Institutions & Instruments, Vol. 23 No. 2, 2014 – M. Tavakoli. Lead Article.

 

“Insider Employee Stock Option Trading and Stock Prices.” The European Journal of Finance, Vol. 20 No. 1 (2014) – M. Tavakoli.

 

“Forecast Bias and Analyst Independence.” International Journal of Economics and Business Administration, Vol. 1 No. 2, 2013 – S. Todd.

 

“Insider Trading and Stock Prices.” International Review of Economics and Finance, Vol. 22 No. 1 (2012), with – M. Tavakoli.

 

“Momentum Strategies, Information Diffusion, and Investor Conservatism in the Asian-Pacific Region.” Afro-Asian Journal of Finance and Accounting, Vol. 3 No. 2 (2012) – T. Hou.

 

“Equity Underwriting Relationships and Analyst Independence in Europe.” Financial Markets, Institutions & Instruments, Vol. 19 (2010) with – C. Weir. Lead Article.

 

“Agency Costs, Corporate Governance Mechanisms and Ownership Structure in Large UK Publicly Quoted Companies: A Panel Data Analysis.” Quarterly Review of Economics and Finance, Vol. 49 (2009) with C. Weir, Lead Article. As of December 2014, this paper ranked 1st on Elsevier’s most cited Articles of all time. This paper has reached seminal status.

 

“The Cadbury Code Reforms and Corporate Governance.” Journal of Corporate Governance, Vol. VIII (2009). with – N. Travlos.

 

“Analysts Forecasts and the Cross-Section of European Stock Returns.” Financial Markets, Institutions & Instruments, Vol. 15 (2006). with – S. Todd, Lead Article.

 

“The Determinants of Momentum in the United Kingdom” Quarterly Review of Economics and Finance, Vol. 46: 227-240 (2006), with T. Hou.

 

“Security Analysis, Agency Costs, and UK Firm Characteristics.” International Review of Financial Analysis, Vol. 14: 493-507 (2005). with – J. Doukas, Lead Article.

 

“European Momentum Strategies, Information Diffusion, and Investor Conservatism.” European Financial Management,  Vol. 11, 313-338, June 2005. with – J. Doukas.

 

“An Explanation of Momentum in Canadian Stocks.” Canadian Journal of Administrative Sciences, Vol. 21 No. 4 (2004). with – T. Hou.

 

“Academic Research Networks: A Key to Enhancing Scholarly Standing.” European Management Journal, vol. 22: pages (2004). with – A. Lowrie, Lead Article.

 

“The Implications of Firm and Individual Characteristics on CEO Pay.” European Management Journal, vol. 22: pages 27-40 (2004). with – C. Tomkins.

 

“Internal and External Governance Mechanisms: Their Impact on the Performance of Large UK Companies.” Journal of Business, Finance & Accounting, vol. 29 (June/July), 2002. with – C. Weir, Lead Article. SSRN Top Download – Rank 500 of 400,676 listed papers – This paper has reached seminal status.

“Investor Reactions, Social Implications and Layoff Announcements in the UK: A comparison between periods.” Journal of Management and Governance, vol. 6, 2002. with – A. Lowrie.

“CEO Age and Top Executive Pay: A UK Empirical Analysis.” Journal of Management and Governance, vol. 4, 2000. with – C. Tomkins.

“Top Executive Pay in the United Kingdom: A Corporate Governance Dilemma.” International Journal of the Economics of Business, vol. 6 no. 2; July 1999.  with – C. Tomkins.

“The Concentration Process in the Dutch Potato Supply Chain: Actors, Factors, and Implications” Supply Chain Management, vol. 3, no. 4: December 1998.  with – M. Rademakers.

PhD. Dissertation: “The implication of firm and individual characteristics on top executive pay in the UK : an agency theory approach”. Phillip J. McKnight PhD Dissertation; The British Library; Identifier: System number 007825554, Shelfmark(s): Document Supply SFX 268212; UIN: BLL01007825554; Publisher: University of Bath, 1998.

“An Explanation of Top Executive Pay: A UK Study.” British Journal of Industrial Relations (BJIR), vol. 34, no. 4: pages 557-566, December 1996.

“Director Independence: The Missing Link.” Accountancy (UK), April, 2000.

“A Wealth of Options.” Accountancy (UK), June 1999.

“Do Share Options Create Shareholder or Executive Wealth? A UK Study.” Benefits and Compensation International, vol. 28 no. 10; June 1999.

“The Options Culture.” Director, vol. 52 no. 5; December 1998.

 

Consulting

Phil is the Managing Principal and founder of Royal Highland Advisors, LLC a Hedge Fund. He is presently developing several exchange traded products (ETF’s) which offer volatility exposure and designed to assist sophisticated traders in managing risks. These ETF's are scheduled for launch in 2016 and will be traded over the NYSE (stock exchange).

 

 

Contact Details

US:    920-319-1444

International: 001 920-319-1444