Professor Receives FMA Award Web Master | November 4, 2011 Jan Jindra, Ph.D., Assistant Professor of Finance. October 27, 2011 The Financial Management Association International (FMA) conferred its “Best Paper in Financial Institutions and Markets” award on Professor Jindra, Ph.D., Assistant Professor of Finance, and his co-authors last week, during the organization’s annual meeting in Denver, Colorado. FMA awards scholars from around the world in a number of categories, “based on a combination of reviewer scores from the initial paper evaluations and recommendations of the respective program's track chairs”. The paper, titled “Crises, Liquidity Shocks, and Fire Sales at Financial Institutions,” was written in collaboration with professors Jean Helwege of University of South Carolina and Nicole Boyson of Northeastern University. It opposes the popular view that liquidity shocks lead to financial crises and that effective liquidity management by the government can prevent recessions. “The paper's findings may be perceived to be controversial because they indicate that providing liquidity alone does not prevent financial crises,” said Jindra. “Our analysis of commercial banks, investment banks, and hedge funds shows that their behavior during crises is not driven by lack of liquidity but, rather, reflects the importance of credit risk and concerns about growth of the economy.” Jindra previously presented the paper to Menlo faculty and students at the first session of the Fall 2011 Colloquium Series, and is scheduled to present the research at CNMV Conference in Madrid, Spain this November.