Professor Randall A. Heron

Professor Heron conducts research in corporate finance and specializes in corporate governance, executive compensation, takeover defenses, and mergers and acquisitions.  Professor Heron has served as a consultant or expert witness for hedge funds, the Department of Justice, the Securities and Exchange Commission, and in corporate fraud and valuation cases.

Areas of Expertise

Corporate Finance, Corporate Governance, Mergers and acquisitions

Academic Degrees

• PhD, Purdue University, 1995
• MBA, Western Illinois University, 1991
• BS, Western Illinois University, 1990

Professional Experience

• Associate Professor of Finance, Indiana University, 2003
• Assistant Professor of Finance, Indiana University, 1997
• Visiting Assistant Professor, University of Notre Dame, 1995-1997

Awards, Honors & Certificates

• 24 Teaching Excellence Awards (see vita for full details)
• Jensen Prize, Journal of Financial Economics, 2007
• Recognized as one of the academic influencers of 2007 (Business Finance Magazine)
• Recognized as a top five newsmaker of 2006 (Workforce Management)
• Research Excellence Award, Kelley School of Business, 2004

Selected Publications

• Heron, R. A., and Lie, E. (2017). Do stock options overcome managerial risk aversion? Evidence from exercises of executive stock options. Management Science, 63(9), 3057-3071. View Full Text
• Heron, R., and Lie, E. (2015). The Effect of Poison Pill Adoptions and Court Rulings on Firm Entrenchment. Journal of Corporate Finance, 35, 286-296.
• Heron, R. A., and Lewellen, W. G. (2013). Reincorporation. In Cheng Fu Lee and Alice C. Lee (Eds.), Encyclopedia of Finance, 2nd Edition, Springer Publications.
• Heron, R. A., and Lie, E. (2009). What Fraction of Stock Option Grants to Top Executives Have Been Backdated or Manipulated? Management Science, 55(4), 513-525.
• Heron, R. A., Lie, E., and Rodgers, K. (2009). Financial Restructuring in Fresh Start Chapter 11 Reorganizations. Financial Management, 38(4), 727-745. 
• Heron, R. A., and Lie, E. (2007). Does Backdating Explain the Stock Price Pattern Around Executive Stock Option Grants? Journal of Financial Economics, 83(2), 271-295.
• Heron, R. A., Lie, E., and Perry, T. (2007). On the Use (and Abuse) of Stock Option Grants. Financial Analysts Journal, 63(3), 17-27.
• Heron, R. A. and Lie, E. (2006) On the Use of Poison Pills and Defensive Payouts by Takeover Targets. Journal of Business, 79(4), 1783-1807.
• Heron, R. A., and Lie, E. (2004). A Comparison of the Motivations for and the Information Content of Different Types of Equity Offerings. Journal of Business, 77(3), 605-632.
• Carow, K., Heron, R. A., and Saxton, T. (2004). Do Early Birds Get the Returns? An Empirical Investigation of Early Mover Advantages in Acquisitions. Strategic Management Journal, 25(6), 563-585.    
• Heron, R. A., and Lie, E. (2002). Operating Performance and the Method of Payment in Takeovers. Journal of Financial and Quantitative Analysis, 37(1), 137-155.
• Haushalter, G. D., Heron, R. A., and Lie, E. (2002). Price Uncertainty and Corporate Value. Journal of Corporate Finance, 8, 271-286.
• Heron, R. A., and Lewellen, W. G. (1998). An Empirical Analysis of the Reincorporation Decision. Journal of Financial and Quantitative Analysis, 33(4), 549-568.
• Carow, K. and Heron, R. A. (1998). The Interstate Banking and Branching Efficiency Act of 1994: A Wealth Event for Acquisition Targets. Journal of Banking and Finance, 22, 175-196.