Inspiring Personalities.

Inspiring Personalities. Annual Report 2012 Department of Finance, Accounting & Real Estate EBS Universität für Wirtschaft und Recht

Contents Welcome............................. 1 Highlights............................ 2 Intellectual Capital.................... 4 Teaching.............................. 5 FARE Develops an Action Learning Programme with BOSCH....... 6 Master in Finance (MSc)............... 7 A New Family of Master of Arts Degrees (MA)......................... 9 Seminars with external Speakers...... 11 Students & Alumni................... 12 Trends & Perspectives................ 13 Research............................ 14 Investment Advisory Services in Germany The Bankers View.......... 14 Work in Progress..................... 14 Publications......................... 15 Dissertations......................... 16 Faculty.............................. 17 Sponsors and Partners................ 28

EBS Business School 1 Welcome by our students championing national and international competitions in the areas of Finance, Accounting and Real Estate. Moreover, new faculty and staff members have joined the department, helping to sustain and advance our production of intellectual capital. Prof Niels Dechow, PhD, Head of Department As new head of department, it is my pleasure to provide you with an overview of our activities in 2012. Our sixth annual report documents that many things continue developing very satisfactorily for the EBS Business School and for the FARE Department, in particular. There is no doubt that the contributions of sponsors provide essential support for the FARE Department in its development of new research insights and new approaches in teaching. We appreciate this support sincerely, and we hope that this annual report will provide you with an overview of the many academic highlights brought about in 2012. For the development of our activities and the production of results, we depend on the continuing support of our sponsors. On behalf of the entire department, I would like to thank all our partners for their sponsorships, interest and support in 2012. Across all levels of the institution, we were confirmed in our approach to management education and research. School-wide accreditations by international EQUIS and German Wissenschaftsrat were followed up With this annual report, we invite our partners and sponsors to reflect with us on the purpose of FARE, or if you like its value in use. As in previous years, the report portrays new faculty members, and introduces our activities throughout 2012. But more importantly, we hope that it will also make readers reflect on the question, what it takes to craft durable management knowledge in times of volatility? I believe that the report underlines one central message for the years to come. Our pathway to progress relies on cooperation and finding new ways of sharing knowledge with each other. We must bundle resources and capacities within the department, across the faculties of our university, and in cooperation with partners and sponsors. Everyone knows something, but excellence can only emerge between us, when and where we nurture our exchange of knowledge and curiosity. Therefore, I hope that you will strive together with us in 2013, and support us in our endeavours to maintain and build intellectual capital. In the following pages, we briefly present some of those initiatives, by which we already see the contours of future cooperation with industry and professional bodies. We hope that your reading about them will inspire new ideas, questions and continuous support. Yours sincerely, Prof Niels Dechow, PhD Head of Department

2 EBS Business School Highlights of 2012 Faculty Update Professor Sandra Paterlini was appointed to the professorship and chair of Financial Econometrics and Asset Management. She will start in her new position in January 2013. Find out more on page 17. The Fare Department Professors elected Professor Niels Dechow as their new Head of Department. In September 2012 Mrdjan Mladjan was appointed a fellowship at FARE for teaching and researching Financial Economics; page 17 reveals more. Third year in a row Prof Rasa Karapandza has been awarded the Students Award of Class Room Excellence by the EBS Student Body for his outstanding commitment and engagement. Addressing the topic Planning in times of volatility Professor Niels Dechow gave the key note speech at PWC Munich, awarded recognition by the Germany Land of Ideas initiative a joint project of the German government and the national industry federation honoring outstanding innovations. A new Bosch Summer School concept was launched in October 2012 under the patronage of Prof Dr Rolf Tilmes. The FARE Department will lead the new summer school concept in cooperation with the technology manufacturer BOSCH. See page 6. Students Three students from the Masters in Finance programme won the German CFA Institute Research Challenge. We congratulate Kacper Taczek, Han Wool Park and Sebastian Engelbrecht. CFA winners: Kacper Taczek, Han Wool Park and Sebastian Engelbrecht.»Recently, I was part of the team which represented our university in the CFA Research Challenge. The preparation for the presentation of our valuation report to a panel of industry experts was one of the most intensive practical learning experience of my life. I benefited from the fruitful col laboration with my international team members, the valuable guidance of our academic coordinator, Prof Ferdinand Mager, and our industry coordinator, Mr. Sebastian Seitz.«Andreea Talmaciu, MSc Three EBS Bachelor students, Luisa Hauck, Peter Wibbe and Luca Witttenberg, won the controlling case competition War of Talents against teams from Mannheim Business School, WHU, University of Cologne, University of Zürich and others. In the Real Estate area, Master of Science and Doctoral students obtained recognition. Master Student Alexander Immler won the prize in the International Competition of Master s Theses on Economics and Finance, for his outstanding Thesis on the subject The Allocation to Real Estate in Multi Asset Portfolio. Review and Application of Existing Methodologies.

EBS Business School 3 The picture below shows the winners of the International Aareal Award of Excellence in Real Estate Research 2012: Dr. Alexander Reichardt in the category of Dissertation/PhD, Dr. Martin Wersing in the category of research paper and Norman Ebner in the category of MSc-/BSc-/Diploma Thesis. University accreditation In 2012 the EBS Business School obtained two highly recognized accreditations: the EQUIS seal of quality and a 10-year accreditation by the German Council of Science and Humanities. The 3-year accreditation by the European Quality Improvement System EQUIS is an ac creditation granted to business schools that meet the highest inter - national standards in management education. Key deciding factors for granting ac creditation to EBS Business School were excellence in teaching and research, the international dimension of programmes, the outstanding support provided for students, a broad-based programme portfolio in executive education and a strong practical orientation through excellent links to the corporate world. Other FARE Highlights The new Publication of Investment Advisory Services in Germany The bankers view gives insights into the daily work environment of investment advisors and relationship managers in retail and private banking industry. For further information see page 14. The Private Finance Institute (PFI) held its 15 th Conference Kontakte 2012: Financial Planning Praxis and provided discussions among experts on economic, legal and tax law issues. Additionally, PFI held its 10th Annual conference Euroforum Private Banking & Family Office. Leading experts provided first hand experience and best practices. Dr Carsten Lehr, Managing Director of the Finance Agency of the Federal Finance Agency, Dr. Carsten Lehr, inaugurated the series of the Wiesbadener Real Estate Talks with his keynote speech on Debt Management in the 21 st century. New ways of thinking in property investment management were explored at the 13 th EBS Real Estate Congress. Andrew Smith, Global Head of Property, Aberdeen Asset Manage ment, talked about the Euro zone debt crises, and how it has changed property investors behaviour. He introduced a new model for property investment. EBS Business School is one of 130 business schools worldwide that have received this prestigious seal of quality. In Germany EBS Business School is only the 4th higher education institution to receive the EQUIS hallmark. Apart from EBS Business School, only WHU Otto Beisheim School of Management, University of Cologne and University of Mannheim fulfill the strict requirements for EQUIS accreditation in Germany. EBS Business School received the maximum term of 10-year accreditation by the Wissen - schaftsrat (German Council of Science and Humanities). This academic seal of approval is awarded to private higher education institutions whose teaching and research performance meet recognized academic standards. The eight priority areas assessed include the academic quality of teaching and research, infrastructure and facilities, as well as quality assurance and development. In awarding the 10-year accreditation, the Council highlighted EBS convincing growth strategy, the University's outstanding success in the acquisition of third-party funding and its broad self-conception as an institution dedicated to education and research.

4 EBS Business School Developing Intellectual Capital At FARE, faculty develops and nurtures intellectual capital via research projects, conference activities and guest lectures. Throughout the world, FARE represented EBS at more than 20 occasions: Finance Prof Reint Gropp, PhD, Federal Reserve Bank, San Francisco, US Prof Ulrich Hommel, PhD, EFMD Higher education research conference, Lorange Institute, Holgan, Switzerland Prof Ulrich Hommel, PhD, Stockholm University, School of Business, Sweden Prof Rasa Karapandza, PhD, Finance Seminar, House of Finance, Goethe University, Frankfurt Prof Rasa Karapandza, PhD, Finance Seminar, University of St. Gallen Prof Dr Ferdinand Mager, Annual Meeting, Eastern Finance Associations, Boston, US Prof Dr Ferdinand Mager, 16 th Annual Conference, Swiss Society for Financial Market Research, Zurich Prof Dr Ferdinand Mager, Midwest Finance Association Annual Conference, Chicago, US Prof Dr Rolf Tilmes, 15 th conference Kontakte: Financial Planning Praxis, Bingen Prof Dr Rolf Tilmes, 10 th Annual Conference Euroforum Pirvate Banking & Family Office, Hamburg Accounting Prof Dr Adrian Cloer, Masaryk University, Brno, Czech Republic Prof Niels Dechow, PhD, Global Management Accounting Research Symposium, Copenhagen Business School, Denmark Prof Niels Dechow, PhD, Interdisciplinary Perspectives on Accounting, Cardiff Business School, UK Prof Niels Dechow, PhD, 8 th Conference on New Directions in Management Accounting, European Institute for Advanced Studies in Management (EIASM), Brussels Prof Niels Dechow, PhD, Lund School of Economics & Management, Sweden Real Estate Jan Mutl, International Conference Asian Real Estate Society (ASRES) and the American Real Estate and Urban Eco nomics Association (EREUEA), Singapore Jan Mutl, Research colloquium Economics, University of Siegen Prof Dr Nico Rottke FRICS CRE, 13 th EBS Real Estate Conference, Oestrich-Winkel Prof Dr Nico Rottke FRICS CRE, ARES American Real Estate Society Conference, Florida, USA Prof Dr Nico Rottke FRICS CRE, Congress of the Architekten- und Stadtplanerkammer Hessen, Wiesbaden Prof Dr Nico Rottke FRICS CRE, Megatrends Conference, Real Estate, Berlin

EBS Business School 5 Teaching Activities 2012 has been a productive year for FARE. At EBS, the FARE pro - fessors manage one of the largest course portfolios at EBS. Many of these have been taught by FARE faculty, but also we have benefited from a great team of external lecturers. Just like the FARE faculty they were appreciated very much by students.»it is very valuable that EBS Business School professors link their theoretical expertise with real life practice.«master Students, Class 2012 In addition to our teaching activities, FARE faculty has been active in developing new and exciting courses, addressing full-time students and managers in finance and industry. Students job prospects matter to us at FARE, as they are one of the features by which we as a private business school want to differentiate ourselves in a competitive market. For our BSc students FARE faculty developed an action learning concept with BOSCH. Together we will run an eight week summer school. It is called action learning. More than 50 students applied for 24 spaces and interviewed with BOSCH in December. We are very excited about the positive feedback we received from BOSCH. Franziska Nick, Head of HR personnel- and organizational development department at BOSCH Thermo Technology Division, observed that our students have: Interesting application profiles with outstanding experience in internships and internationally. Moreover, Markus Relecker, Commercial Manager at BOSCH Thermo Technology noted about their presentation performance that: During the selection interviews, I saw how many EBS Bachelor students presented. It astounded me that their performance is virtually on par with that of our management trainees. From 2013 our MSc in Finance Program will allow students the choice between two alternative study tracks. One is quantitative and geared towards a career in banking. The other more managerial track is geared towards a career in Corporate Finance. Last but not least, FARE faculty also brought to life a new programme, designed in response to practitioners life-long learning needs. The MA allows participants in our continuing education to conclude their course work with an officially accredited Master in Arts degree, later abbreviated as an MA on personal business cards.

6 EBS Business School Teaching Activities continued FARE Develops an Action Learning Program with BOSCH In 2012 German technology manufacturer BOSCH placed a tender with an invited group of top tier German Business Schools to develop a new concept for internships and student placements. Led by the FARE Department, EBS Business School won this tender with the presentation of a new summer school concept. The summer school concept was launched by BOSCH at EBS on October, 31 st, 2012. During the summer break (2013), twenty-four students from the Bachelor in Management programme will work in teams on a number of business projects developed in cooperation by BOSCH Business units and the FARE department. The summer school will last for eight weeks, starting off with a two week workshop on Behavioural Controlling led by Professor Niels Dechow, PhD. Subsequently, for a period of six weeks students will work in groups at one of two BOSCH business units on specific operational challenges in sales, services and production. In cooperation with BOSCH staff, EBS faculty will supervise students on their de - velopment of the specific projects, their focus and their solution approaches. The combination of EBS teaching, BOSCH business reality and student-based project work goes by a name called Action Learning. Typically, innovative inter - national business schools work by this concept on a post-graduate level. EBS Business School is the first in Germany to introduce action learning. It is implemented in the EBS Bachelor programme. The aim of the programme is to challenge students to bridge their studies with the practices of industry. Action learning is challenging. It requires of the participants that they develop the skill to translate theory into practice, and moreover that they find their way in balancing principles with pragmatics. EBS Business School and the FARE Department are excited about the prospects of this cooperation in several respects. First of all, the summer school concept offers EBS University new ways of thinking about career services and its role as a mediator between industry and students. Moreover, the project-based work set within a specific theme behavioural controlling offers industry and students a framework for a structured content, rich internships and easily measurable outcomes. The Summer School offers BOSCH a unique opportunity to observe the conduct of future candidates while at work with BOSCH. Finally, our action-learning approach, where faculty goes visiting with students in the field, allows us to help students maximize the value gained from their studies at EBS. In cooperation with BOSCH, EBS Business School challenges participants to consider current challenges in management and control. It is not too difficult to establish measurements in practice. But it remains a challenge to moderate necessary trade-offs in ways that make it transparent by which priorities goals are set, and by which measures they are achieved. To the extent that the summer school is successful students will present clear problemidentifications; develop a thorough analysis and suggest sensible action alternatives. At the end of the summer school, students will present to BOSCH Board Members and Business Unit Management and receive formal feedback on their performance on site, from both EBS faculty and BOSCH Human Resources. Moreover, students will be introduced to the personalized feedback approach that HR employs in their structured management development programs. Trainers from these programmes will offer students professional personality profiles; introduce BOSCH project management and other relevant tools and concepts throughout the summer school. We are confident that our students will learn as much from the process, as they will learn from the final assessment of their analyses and action suggestions. Last but not least, we will learn a lot about our students ability to perform in practice. We look forward to reporting more on this initiative to run for the first time during the months of June and July, 2013. Together with BOSCH we intend to make this summer school a recurring phenomenon, each year with a new academic and practical focus. This year, the focus of this activity is Germany. But in principle, we could also take our summer school concept abroad in cooperation with our international partner schools and business partners. To receive updates on this activity and/or to discuss a similar initiative in your organization, please contact: Prof Niels Dechow, PhD, niels.dechow@ebs.edu, Head of Department FARE or Prof Dr Rolf Tilmes, rolf.tilmes@ebs.edu, Dean of EBS Business School and Vice President EBS University.

EBS Business School 7 Master in Finance (MSc) Why study finance at a time seemingly characterized by crises, restructuring and downscaling of the financial sector? Why aspire to become a finance professional being the host of criticisms nowadays levelled at finance specialists for engaging in unethical and irresponsible behaviour? Financial markets continue to play a central role in the functioning of the global economy. While financial sector institutions may be transitioning into new business models, there is still a growing demand for finance experts in particular in non-financial companies and consultancy. And still, many EBS graduates go into investment banking. The EBS MSc in Finance enables our students to take advantage of promising career opportunities. We equip students with the relevant knowledge and skills to excel in today s finance world.»this 18 month MSc Finance programme offers me courses in the specialization of finance as well as adjacent fields, a semester abroad and an internship preparing me optimally for an academic or a professional career.«julian Escher, student Key Program Features Internationally Renowned and Educated Faculty Our faculty has been trained or has previously held faculty positions at prestigious international universities and publishes regularly in leading international journals. Focus on Relevance and International Dimension The programme combines a strong focus on academic state-ofthe-art finance skills with practical relevance, e.g. documented by the strong involvement of practitioners in teaching; the curriculum is continuously benchmarked against the international standards of CFA (Chartered Financial Analyst) certification, which ensures that the programme meets the qualification re - quirements of the finance sector. Effective Pedagogy Our faculty delivers state-of-the-art content with a diverse port - folio of teaching methods including lectures, case-based teaching, computer lab sessions, field trips, interactive team-based exercises and student presentations. Small Class Sizes Students receive individual learning support in- and out-of-class that promotes reflection, critical thinking and feedback.»in comparison with the Bachelor studies, learning groups in the Master Programmes are smaller and more intensive, thereby, offering the possibility to additionally discuss special topics that are of students interest.«friederike Faulhaber, student Strong Corporate Network and Career Support EBS partners with more than 200 companies and many of them actively recruit on campus every year; students can get in touch with potential employers during the annual EBS Career Fair, by participating in company recruiting events as well as job interview seminars organized by our partners on campus; partner companies also link up with our students via the ecareer Market and the online student résumé book.»the programme runs in tandem with the industry development, so it actually prepares you for the real world.«naveen Kumar Chaudhary, student Mandatory Study Abroad Semester Our students spend their third semester at one of our 180 partner universities worldwide; they can extend their foreign study experience by taking advantage of one of our MSc/MBA dual degree offerings. Excellent Student Support Caring for our students is a top priority at EBS; students can take advantage of personal coaching and mentoring offerings; they receive personalized career counseling and guidance from our highly committed and qualified support staff. Extra-Curricular Events The academic calendar includes a large number of extra-curricular events such as student-organized symposia, workshops, corporate presentations and company visits that give students the opportunity to develop their professional network and to apply theoretical knowledge in a practical setting.

8 EBS Business School Teaching Activities continued Master in Finance (MSc) 7 Sept Semester 1 Dec 3 7 Jan Semester 2 May 3 7 Aug Semester 3 Jan/Feb 3 Research Methods I 3 Research Methods II 3 24 30 9 Studium Fundamentale I 3 Studium Fundamentale II 3 Advanced Finance I: Corporate Finance 6 Personal Mastery 3 Advanced Accounting 6 Financial Modeling 6 Advanced Finance II: 6 Capital Markets Financial Risk Management* 6 Master Thesis** (15 weeks) Semester Abroad Internship** (6 weeks) Enterprise Risk Management* 6 Asset Pricing & Derivates* 6 Asset Management & 6 Alternative Assets* Advanced Real Estate Financing* 6 Private Wealth Management* 6 Management Control* 6 Strategic Corporate Finance* 6 * Elective (Sem.1: 1 out of 2; Sem. 2: 2 out of 4) ** order interchangeable»after I finished my studies of pure mathematics, I decided that I did not want to pursue a career in academia, and that I wanted to study something a bit less dry. I therefore quickly decided that a Master of Science in Finance was a good choice. The main arguments were the inter-nationality of the student body, and the extensive network via the exchange programmes and double degrees with dozens of business schools in the entire world. When you tell people about studying at a private business school, some get suspicious and you often hear the allegation that the students "buy" their degrees with expensive tuition fees. Not at EBS. Coming here, all I can say is that the MSc Finance Programme is challenging. The workload is ambitious and I make use of my skills in higher mathematics and advanced statistics on a frequent basis. For example, I work on applied programming with different software programmes, and I think we are challenged to really explore matters, understand the underlying concepts etc. No doubt that we all deserve a diploma at the end of these three semesters. In particular, I appreciate the balance between rather theoretical, abstract background knowledge on the one hand and the application of this in project work and guest lectures on the other hand. For my part, I enjoy every time we get to see how theory allows us to explore real-world problems and data. Finally, the internationality of the programme and the possibility of doing a double degree just about anywhere in the world is amazing. Plus our many guest lecturers, company pre - sentations and evening events bring us in direct contact with attractive companies for our professional live. «Max Piper, Master Student, class 2012

EBS Business School 9»The Master in Finance programme at EBS Business School, with its hands-on approach, is the best academic environment to prepare me to meet the current challenges of the financial world. In comparison to other masters in the finance area, this programme has a unique selection of core modules such as the Ethic Leadership and Personal Mastery. These courses increase my awareness of corporate social responsibility and enhance my chance of becoming a well-rounded leader. Additionally, I am very enthusiastic about the opportunity to earn a further international degree. Out of 200 renowned partner universities of EBS University on all five continents I will pursue a Master Programme in Financial Markets, at EDHEC Business School, France. Moreover, the EBS Career Service Centre and the Corporate Network are steps taken by EBS Business School as a response to today s demand for top qualified specialists. I embrace this attitude toward practice-relevant education.«andreea Talmaciu, Master Student, class 2012 A Family of New Master of Arts Degrees (MA) At EBS Business School members of the FARE Department have led to the development of a new Master of Arts Degree (MA). The MA is a degree concept for seasoned managers wanting to maximize value from their continuing education with a Master s Degree. For that purpose we have designed a part-time Master of Arts Program especially for people in industry and finance. In com - parison to traditional MSc Programmes, our MA is developed to offer practical, hands-on know-how that will help participants to recognize and analyse relevant dimensions of unexpected problems or business challenges in general. In the MA programme scientific rigor is translated into manageable tools, and in our courses we focus both on their use in practice, and the ways that they can help you to communicate about your measures and actions. Participants can choose and combine courses out of our continuing education programme and thus tailor a degree programme that suits their needs and those of their organizations. In practice, what it means is that it is now possible to either specialize or broaden skills all while turning continuing education certificates into a recognized University Master s Degree (MA). In October, 2012 the quality of our efforts in developing this programme were certified by FIBAA, the Accreditation Body auditing higher education in Germany. The relevance of these programmes for a private business school is that we can help shape and qualify a trend in industry, pushing life-long learning professionals increasingly to obtain recognized academic degrees and certifications. A selection of the highlights we emphasize, include: The MA is a part-time programme for working professionals, preventing a loss of salary. Graduates gain an internationally recognized university degree. A modular coursework approach allows participants to structure their education according to individual requirements. Participants earn a number of credit points by each module completed, in between which it is possible to take shorter or longer breaks in the education programme. Renowned lecturers from academia and industry deliver comprehensive, practice-oriented knowledge (and also address company-specific issues). The small-class approach fosters an interactive learning ex - perience and creates an atmosphere for constructive discussion. Personal development courses in communication and mediation as well as one-to-one coaching sessions complete the programme. Networking activities with EBS alumni association gives course participants a head start in their career. For 2013 we will offer three MA specializations in Wealth Manage - ment, Real Estate Investments and Finance and in Real Estate Management. By the design of these degrees, we have built a path by which one can start in continuing education, combine relevant certificate-granting courses and synthesize the learning and insights in a written thesis on our university Masters level. Master in Wealth Management: The Master in Wealth Management is intended for early-career managers, consultants, legal professionals and tax advisors in the area of private banking, wealth management or family office. This programme develops an understanding of all aspects of integrated client services in the areas of financial and estate planning. In order to apply, course candidates must without exception qualify by at least two years of professional experience following their first degree (university, university of applied sciences, university of cooperative education). In addition to their academic profile, other forms of qualification can be taken into account. For example, when applying for the programme applicants can take into account prior training as a Bankfachwirt (bank officer) combined with several years of professional experience and relevant training

10 EBS Business School Teaching Activities continued Master in Wealth Management (MA) 60 ECTS credits Stage III: Master-Workshop (6 ECTS credits), Master-Thesis (18 ECTS credits) = Total of 24 ECTS credits Parallel to stage III: Coaching offering Stage II: Electives with 6 ECTS credits = 18 ECTS credits Electives can be combined to tracks which cover major areas of activity in wealth management Financial Planning V1: Strategy and Business Models in Wealth Management V2: Financial Planning Case Studies V3: Private Real Estate Management Estate Planning V4: Advice Process and Business Models in Estate Planning for Private Clients V5: Estate Planning in the Corporate and International Context, Trusts V6: Estate Planning Case Studies V7: Foundation/Trust Counseling V8: Foundation/Trust Management V9: Hedge Funds V10: Private Equity V11: Commodities Alternative Investments Relationship manager with broad wealth management know how Estate planning expert Expert on alternative investments Stage I: 3 Core Modules with 6 ECTS credits = 18 ECTS credits P1: Foundation in Private Finance and Wealth Management P2: Interdisciplinary Product and Advice Principles P3: Private Financial Management and/or participation in certificate programmes.. Moreover, financial planning certifications by other educational institutions can be counted as course credits, to the extent that these certificates carry the accreditation by the FPSB Financial Planning Standards Board Deutschland e.v. After completing the 1 st stage of the programme (see graph above), participants have the opportunity to acquire alternative forms of certification (DIN ISO 22222, EFA). At the 2 nd stage participants are able to choose from a range of 11 electives, preparing them for other certificate programmes (CFP, CFEP ). The Master in Wealth Management fulfils certification requirements in accordance with 34 f GewO (German Trade, Commerce and Industry Regulation Act). For more information, please contact: jutta.tilmes@ebs.edu or visit www.ebs.edu/mwm Master in Real Estate Investment & Finance: This MA programme offers a research-based, yet practice-focused approach. Course participants acquire sound basic real estate knowledge in the areas of investment and finance. During the 2 nd stage of the programme participants are able to choose from a range of specialist subjects such as project development, asset and risk management, residential real estate management, real estate management or sustainable management. In addition, a range of electives offer the ability to develop specialist knowledge and applied methodological skills. For more information, please contact: nicole.koch@ebs.edu Executive Master in Real Estate Management: This MA programme offers a research-based, yet practice-focused approach. Course participants acquire sound basic real estate knowledge. Through the compulsory module II Sustainable management in the real estate industry participants qualify to assume management positions. A Methodology Workshop and the Master s thesis dealing with an international topic reflect the programme s international dimension. For more information, please contact: nicole.koch@ebs.edu

EBS Business School 11 Seminars with external Speakers At the FARE Department our courses benefit from frequent visits of practitioners and guest faculty presenting to our students in the finance, accounting and real estate programmes. We like to thank all of them for their contribution to our programmes. Dr Michael Adams, Deutsche Bank FX Risk Management of Multinational Corporations Dr Daniel Arnold, Deutsche Reihenhaus AG Familienleben in der Stadt: Projektentwicklung im Spannungsfeld von gesellschaftlichem Wandel und Re-Urbanisierung Christof Bechtel, Bank of America Merill Lynch The SiC AG Dual Track Process Michael Bücker, Commerz Real AG, Wiesbaden Offen, Geschlossen oder Spezialisiert? Perspektiven von Immobilienfondsprodukten Frank Cerveny, European Securities and Markets Authority (Esma) The Role of the Rating Agencies in the Current Euro Crisis the regulatory perspective Ulrich Böckmann, Nomura Bank GmbH Cross-border M&A Theory and real life John L. Glascock, PhD FRICS, College of Business University of Cincinnati, USA China, Europe and the USA 2060: Three Key Challanges for Society and Real Estate over the next 50 years? Thomas Ehlke, Nomura Bank GmbH Cross-border M&A Theory and real life Dipl. Kfm. Christian Held, Bayer AG Cash Management Dr Ingo Koch, Samson International AG Performance Management Professor Dr Stephan Kudert, Eurpa-Universität Viadrina Eine goldige Idee Wie der Kauf von Gold die Finanzverwaltung verzweifeln lässt Dr Carsten Lehr, Bundesrepublik Deutschland Finanzagentur GmbH Herausforderungen für das Schuldenmanagement im 21. Jahr hundert Dr Ulrich Pidun, The Boston Consulting Group Integrating strategy and risk Prof Dr Richard Raatzsch, EBS Business School Moral, Macht und Wirtschaft wie Wissen zur Gefahr werden kann Dr Konrad Richter, McKenzie Enterprise Risk Management Dr Utz Schäfer, JP Morgan Private Equity & Leveraged Buyouts Ervin Schellenberg, EquityGate Advisors GmbH Valuation with Multiples Martin Scholich, StB/WP, PricewaterhouseCoopers WPG AG Unternehmensberatung in der Finanzmarktkrise Dr Wolf Schumacher, Aareal Bank AG Im Spannungsfeld zwischen Staatsschuldenkrise, Regulierung und weltweiter Konjunkturabschwächung Susan Spinner, CFA Institute Capital Markets Ethics Dr Wilhelm Kross, PMI Risk Management Professional Risk Analytics in Real-Life-Organizations»Through workshops and company events I have the possibility to meet representatives from top-class financial services providers and extend my personal network for future career opportunities.«julian Escher, student»you speak to fund managers, bankers and finance professionals so frequently that you get a good feeling for the industry. This close relationship with the industry makes EBS a special place to study.«naveen Kumar Chaudahary, student

12 EBS Business School Students & Alumni It is important for faculty at the FARE department to help our students enhance their career prospects. We do so via our course development and teaching activities. For example, we are keen to enable students towards a professional qualification such as the Chartered Financial Analyst (CFA), next to their studies at EBS. We acknowledge and appreciate that our students value our contacts to the corporate world as much as we do, and that we are able to offer the possibility for studying abroad. On average our faculty-student ratio equals just about 33 students per professor. In this section, we offer a view into the career goals of our students and draw attention to some interesting facts, how they perform salary-wise. Core results of the Universum Alumni survey 343 EBS Alumni participated at the annual Universum Alumni survey in 2012. The survey revealed the following: Top Career goals of EBS Alumni To be competitively and intellectually challenged To be a leader or manager of people To be entrepreneurial or creative/innovative Annual Salary of Alumni in Germany After 7 years of working experience EBS graduates earn 55% more than graduate students of other universities in Germany. Compared to the average income of 63 347 of graduate students in business and commerce, EBS graduates earn 98 464 (source: Universum Alumni survey 2012). 98,464 63,347 EBS alumni All alumni Industry Affiliation of EBS Alumni Top preferred industries of current EBS students Management consulting Banks Financial Services Strategy Consulting Real Estate Automotive Retailers Media and advertisement Fast moving consumer goods Educational and research institutions 5% 4% 4% 4% 3% 3% 12% 11% 8% 17% Strategy Consulting Automotive Management consulting Banks Financial Services Media and advertisement Fashion and accessories Fast moving consumer goods Auditing and Accounting Business services and operational consulting 13% 11% 11% 8% 8% 18% 27% 27% 24% 35% Graduate Student Data of MSc Finance Since the first intake started in 2008, a total number of 50 students have graduated the MSc Finance Program. The chart below illustrates an increase of the number of graduates from 2008 until 2011 and shows how the programme has gained popularity among students. Currently 35 students are enrolled in our MSc Finance programme. For 2014 our goal is to sign up 50 students in our programme. Current intake 2012: 35 new registered students 35 new students (September 2012) 30% thereof international 25% thereof women Graduate Number 60 50 40 30 20 10 0 2008 2009 2010 2012 2014 Graduate number

EBS Business School 13 Trends & Perspectives The concept of traditional individual asset ownership is being complemented or even replaced with consumers appreciation of shared access and collaborative consumption. Marketing faculty at EBS engage with this trend already, for example, by studying new approaches to organized car sharing. These trends and trendstudies are fascinating and quite possibly relevant for our own work at FARE because they call into question how we understand the nature of resources. It used to be the case that financial capital was considered the only significant resource to have. In the light of the growing service sector, intellectual capital has more recently gained attention. Now, current trend studies suggest that resources are increasingly seen as tied to networks not to individuals or financial assets. As a consequence, we might find ourselves challenged in our current ways of understanding value as well as the processes of value creation and destruction. Why is this so? In contemporary society networks are open rather than closed, complex rather than simple, on the move rather than stable. In other words, networks are dynamic but fragile. In order to work in this environment, simple calculation practices may not be adequate in giving us the means to negotiate the complexities of this new situation. Similarly, contemporary valuation approaches, regardless of their technical sophistication, may not adequately account for the characteristics and ongoing development of network resources. In order for us to become able to assess the volatility and/or manage the sustainability of dynamic but fragile networks, consistent ongoing attention, the appreciation of a manifold of experiences as well as trust in ourselves is required to assess what is needed. In simplified terms, finance, accounting and real-estate may soon be moving back from a hands-off rating approach to embrace a more traditional hands-on approach that requires the ability to discuss-up networks that act in resourceful ways (DNR). FARE will approach this DNR by orchestrating dynamic theme-based collaboration with partners in ways that allow us to bring together financial, academic and practice-focused resources for the mutual benefit. Our value-in-use depends on a general responsiveness to contemporary issues and a regular exchange of ideas and activities with our partners. Beyond classical course-work and research activities, our collaboration with sponsors and partners can involve a range of knowledge transfer activities. That is the essence of (continuing) education. To sustain these objectives, FARE will pursue a number of initiatives in 2013 and beyond: To engage innovatively in research and teaching we will enable our MSc students taking part in mini-seminars in which we work collaboratively with invited guests and partners to present and discuss work-in-progress. To complement and strengthen our competences, we will be looking for faculty candidates working at the intersection of Finance, Accounting and Real-Estate. To build and strengthen our emerging profile in risk analysis and management, we aim to establish a Competence Centre together with one or more sponsors. To further our academic partnerships with professional bodies such as the CFA Institute and RICS, we negotiate with the Institute of Management Accountants (IMA) to offer courses enabling our students to obtain a CMA qualification. To integrate business and law at EBS University, FARE considers joint education programmes together with law school faculty to allow the studies of law, finance, accounting, controlling, taxation and real-estate to intersect. For more information please contact Prof Niels Dechow, PhD, Head of Department at niels.dechow@ebs.edu

14 EBS Business School Research Next to education, research and knowledge dissemination is at the core of our activities. For our faculty 2012 was a productive year. Work in progress was presented at numerous international conferences on risk management practice. A great of number of papers were submitted and accepted in a broad variety of academic and practitioner-oriented journals. Our research output shows clearly that a strategic competence at FARE lies in the area of risk analysis and risk management. Across finance, accounting, controlling, taxation and real estate we are now able to cluster our knowledge in ways that give our Depart ment a distinct profile. The following pages document our knowledge output and give an insight to doctoral work at the department shaping career profiles and relevant knowledge. Investment Advisory Services in Germany The Bankers View The results of an extensive empirical research project by the PFI Private Finance Institute were published in 2012, after 1.400 bank employees from all client segments and banking groups took part in a survey conducted in 2011. The study revealed several insights in the daily work environment of investment advisors and relationship managers in the retail and private banking industry. It became evident that financial advisors feel more and more overburdened by increased regulatory measures which were implemented in the aftermath of the financial market crisis. Although financial advisors show great interest in new regulatory requirements, they have little detailed knowledge about them. However, with regard to the product information sheets, which were introduced by the Investor Protection and Functionality Improve ment Act, financial advisors show very high acceptance levels. Finally the study also allowed significant insights into the sales organization, incentive structures and systems. It identified sales pressure as one source of poor quality in financial service advice. Study results were published in a detailed study report which can be ordered from the PFI Private Finance Institute, please contact rolf.tilmes@ebs.edu. Work in progress My name is Matthäus Tekathen. Upon graduating from EBS, I de - clined an offer from industry in order to pursue a doctoral degree at FARE. Having taken a variety of courses discussing the notion of risk from a variety of finance, ac counting and controlling perspectives, I wanted to explore, how German industry addresses and manages risks in practice. I sup pose you could say, what I really wanted was to make multiple visits in the field, in order to gain insights from a number of companies. That is what I am re - flecting on and analysing on a daily basis. My doctoral studies take shape through a number of individual research projects. Rather than to write a dissertation of several hundred pages, I am writing papers and try to get them published in peerreviewed journals. However in a broader sense, what I want to do is to generate practice insights that I can develop and bring them back to the applied world. The doctoral programme offers me a space to reflect on things that usually one would not have time to consider in practice. This allows me to bring light to a number of paradoxical effects of which quite a few are unintended. For example, intuitively one would think that risk management is all about the reduction of uncertainty. In fact, what I am finding is that risk management initiatives easily can have the opposite effect once organizational ambiguities become clarified and brought to everyone s attention as a potential risk. Among other findings I am publishing this one in a paper already accepted by Management Accounting Research, a so-called peerreviewed A-Level journal. This summer, I will co-present with my supervisor another joint research project at two international venues, one of them hosted by the Accounting, Organizations and Society Journal. First, we are going to Beijing and later to Michigan. The opportunity to present work in progress in front of international expert panels of researchers studying the same stuff is tremendously valuable to me. It allows me to test my ideas, my findings and my analysis before I bring it back into circulation with practitioners in the field. Anyone interested in learning more about my research or about the doctoral studies at FARE is welcome to contact us at macc@ebs.edu. Moreover, we should be more than happy to exchange insights with practitioners on risk management practice.

EBS Business School 15 Publications Anderson, R., Guirgius, H. & Boney, V., 2012/2013, The impact of switching regimes and monetary shocks: An empirical analysis of REITs. Journal of Real Estate Research (forth coming). Behr, P., Guettler, A. & Truebenbach, F., 2012, Using industry momentum to improve portfolio performance. Journal of Banking and Finance 36 5,1414-1423. Dechow, N., 2012, The Balanced Scorecard: Subjects, Concepts and Objects A commentary. Journal of Accounting and Organizational Change 8 4, 511-527. Dechow, N. & Tekathen, M., 2012, Enterprise Risk Management and the Remaking of Accountability and Alignment A German Case. Management Accounting Research (forth coming). Füss, R. & Adams, Z., 2012, Disentangling the short and long-run effects of occupied stock in the rental adjustment process. Journal of Real Estate Finance and Economics 44 4, 570-590. Füss, R., Richter, J., & Thomas, M., 2012, Excess return sources of active property management: A case study. Journal of Property Investment and Finance 30 4. Füss, R., Stein, M., & Zietz, J., 2012, A regime-switching approach to modeling rental prices of U.K. real estate sectors. Real Estate Economics 40 2, 317-350. Hommel, U. & Gerner, M., 2011/2012, Linking strategy to finance and risk-based capital budgeting. The Strategic CFO: Creating Value in a Dynamic Market Environmentk, 9-29. Hommel, U. & Cornuel, E., 2012, Business schools as a positive force for fostering societal change: Meeting the challenges of the postcrisis world. Business and Professional Ethics Journal 31 2, 289-312. Hommel, U., Fabich, M., Firnkorn, L. & Schellenberg, E., 2011/2012, The Strategic CFO: New Responsibilities and increasing job com - plexity. The Strategic CFO: Creating Value in a Dynamic Market Environment, Springer-Verlag,1-5. Hommel, U., Fabich, M., Schellenberg, E., & Firnkorn, L., 2012, The strategic CFO: Creating value in a dynamic market environment. Springer Verlag. Hommel, U., Grass, G. & Prokesch, T., 2012/2013, Ermittlung des Unternehmenswertes im M&A-Prozess. Handbuch Mergers & Acquisitions, 5th edition, Stuttgart: Schäffer-Poeschel, 5 (forth coming).

16 EBS Business School Research continued Hommel, U., King, R. & Pastwa, A., 2012/2013, Do You Know What Your Risk Exposures Are? Global Focus 6 1 (forth coming). Mager, F., Füss R. & Zhao, L., 2012/2013, The impact of Macro - economic Announcements on Implied Volatility. Applied Financial Economics (forth coming). Paterlini, S., Scozzari, A., Tardella, F. & Krink, T., 2012/2013, Exact and heuristic approaches for the index tracking problem with UCITS constraints. Annals of Operations Research 1 16 (forth coming). Paterlini, S., Fastrich, B. & Winker, P., 2012/2013, Carinality versus q-norm constraints for index tracking. Quantitative Finance (forth - coming). Rottke, N., Anderson, R., Medla, H. & Schiereck, D., 2012/2013, Real Estate Merger Motives: An Analytical Review of the Literature. Journal of Real Estate Literature (forth coming). Rottke, N., Anderson, R., Medla, H. & Schiereck, D., 2012/2013, Why Do REIT mergers take place? Evidence from Synergistic Forecasts. Journal of Real Estate Finance and Economics (forth coming). Rottke, N., Bentzien, V. & Zietz, J., 2012, Affordability and Germany s low homeownership rate. International Journal of Housing Markets and Analysis 5 3. Rottke, N., Reichardt, A., Fürst, F. & Zietz, J., 2012/2013, Sustainable building certification and the rent premium: A panel data approach. Journal of Real Estate Research (forth coming). Rottke, N., Reichardt, A., Fürst, F. & Zietz, J., 2012/2013, Sustain - ability and the Leasing Decision of Office Occupiers in the U.S. Journal of Real Estate Finance and Economics (forth coming). Rottke, N., Striewe, N. & Zietz, J., 2012/2013, Corporate governance and the leverage of REITs: The impact of the advisor structure. Journal of Real Estate Research (forth coming). Rottke, N., Zhu, B. & Füss, R., 2012/2013, The Predictive Power of Anisotropic Spatial Correlation Modeling in Housing Prices. Journal of Real Estate Finance and Economics (forth coming). Rottke, N., Zhu, B., Füss, R., 2012/2013, Spatial linkages in returns and volatilities among U.S. regional housing markets. Real Estate Economics (forth coming). Tilmes, R. & Schiereck, D., 2012, Universitäre Lehrprogramme: Anpassungen und Lehren aus der Finanzmarktkrise. Zeitschrift für das gesamte Kreditwesen 65 20,1042-1044. Tilmes, R., & Jakob, R., 2012, Anlageberatung aus Sicht der Berater eine Herausforderung zwischen Kunde, Kreditinstitut und Finanz - marktaufsicht. Praxis der modernen Anlageberatung, 299-334. Tilmes, R., Jakob, R. & Nickel, H., 2012, Praxis der modernen Anlageberatung. Bank Verlag. Tilmes, R., Jakob, R., Serf, G. & Wolf, T., 2012, Anlageberatung aus Sicht der Berater eine Herausforderung zwischen Kunde, Kredit - institut und Finanzmarktaufsicht. Repeat Jahrbuch Treasury und Private Banking, 479-503. Dissertations Hessdörfer, Markus, Der Einfluss von Enterprise Risk Management auf Management Control Systems Eine empirische Untersuchung Striewe, Nicolai, Essays on Corporate Governance of Real Estate Investment Trusts Miebs, Felix, Essays on Portfolio Optimization Medla, Henrik, Synergies in Mergers and Acquisitions in the Real Estate Industry Stark, Manuel, The Emergence of Developmental States from a New Institutionalist Perspective: A Comparative Analysis of East Asia and Central Asia Poser, Anna, Kooperative Geschäftsmodelle und Netzwerke im Private Banking: Eine explorative Analyse der sozialen Infrastruktur auf der Mikro-, Meso- und Makroebene anhand von Fallstudien aus der genossenschaflichen FinanzGruppe Brauers, Maximilian, Bubble Detection and Crash Prediction in Real Estate Markets: A Complex Systems Approach Lenz, Jana, Essays on Political Economy of Financial Markets Zhao, Lu, Essays on the Price Discovery Process in Asset Markets

EBS Business School 17 Faculty This year the FARE Department appointed Prof Paterlini as chair holder of Financial Econometrics and Asset Management, she will start her new position in 2013. We also welcomed Mrdjan Mladjan as new research fellow and here take the opportunity to introduce our new department members. We posed them four questions: What did induce them to come to the EBS How their research matters Why applied research is of interest Their objectives for the year to come Prof Sandra Paterlini EBS is a leading international university in Germany and as an inter - national scholar it is a natural optimal choice. Moreover, small class size, one-to-one interaction with students, close collaboration with industry and a strong research network make it a perfect place to work on research projects with large impact. Nowadays, managers are faced with the need of taking decisions in complex settings with large uncertainty. Theoretical models allow controlling different factors and try to understand their interactions to develop reliable and accurate decision support systems, which today are crucial for any business. With my research, I can do both: build theoretical models and also simulate possible investment scenarios that allow us to evaluate consequences of investment decisions. Moreover, I can support managers in setting up optimal asset allocation strategies, helping them to understand and better control different risk factors, evaluate the impact of regulations on risk capital requirements and setting up trustable risk management systems. I am interested in applied research as it offers me the possibility to see my research ideas applied in real-world problems and helping to support in taking decisions. One thing is to study asset allocation and risk management problems and propose solutions in theory, but something even more exciting is to see your ideas applied to real-world problems. My objectives for the upcoming year are to strengthen my network in Germany, both with academia and industry in running joint projects and getting students engaged in real-world financial projects. Mrdjan Mladjan I was looking for a department where I could do research at the intersection of finance and economics. FARE hosts colleagues from different sub-fields who can provide valuable advice on subjects you know less off. Also the good location mattered: with central banks and other university centers in the Frankfurt area. Additionally, I was happy to join a business school where teaching is regarded as important; it made sense to come to a place where this is valued. After 2008, trillions of dollars were put at risk to bail out banks. This was done on the assumption that failures damage the real economy; that they can deepen and prolong recessions and turn them into depressions. The role of bank failures in the Great Depression has so far remained unresolved because of the gaps in empirical evidence. With my recent research, I present new evidence that bank failures helped to make the Great Depression great. I do so using a new measure of financial dependence, analyzing output changes by industry and state in a difference-in-difference framework. My interest in applied research is to bring new data and a different analytical framework into debate. I demonstrate that those American industries that were in greater need of short-term external financing performed worse during the Great Depression than those with lower needs. My findings suggest that as much as a third of the decline in manufacturing output during the Great Depression can be attributed to bank failures. I have no doubt that my research is not the final word on the role of bank failures in the Great Depression. How ever, I hope it is a step towards resolving this question. For 2013 I look forward to establishing more research col laboration with colleagues and to contribute with new teaching input.

18 EBS Business School Faculty continued Chairs & Professors Prof Dr Adrian Cloer holds the chair of business taxation and international tax law and joined EBS in 2008. He holds a doctorate in inter national business taxation from European University Viadrina in Frankfurt (Oder). Besides his professorship at EBS, he is a honorary professor at the faculty of law and economics at Viadrina University. Since September 2012 Adrian is visiting professor at the law faculty of the Masaryk University in Brno, Czech Republic. Additionally, Adrian is a regular lecturer at the Federal Chamber of Tax Advisors. Besides Academia, he works as a senior tax advisor and lawyer for an international audit company in Prague, Czech Republic. His academic work is published in national and international tax journals. In his research Adrian Cloer focuses on international and European tax law issues and real-estate-specific issues. His research is mainly driven by the economic consequences for entrepreneurial activities caused by tax regulations. Areas of Professional expertise: X-border taxation European Tax Law Regulated and non-regulated investment vehicles Law of Double Tax Conventions

EBS Business School 19 Prof Niels Dechow, PhD was elected Head of the Finance Accounting and Real Estate Department in July 2012 and joined EBS Business School in 2009. Previously, he has held academic positions at the University of Oxford (UK) and Case Western Reserve University (USA). He holds a PhD from Copenhagen Business School (DK). Prior to his academic career, he worked in Scandinavia as a consultant first with Deloitte & Touche Consulting and then with KPMG Consulting. His academic work is published internationally in journals such as Accounting, Organizations & Society, Management Accounting Research and Journal of Accounting and Organizational Change and in peer-reviewed Handbooks including for example Handbook of Management Accounting Research, Issues in Management Accounting etc. In his research, Niels has explored previously the link between Enterprise Resource Planning Systems (ERP) and Management Control. Currently, he explores the practices of Enterprise Risk Management (ERM), the conceptualization of Performance Management and the premises of Value Based Management in times of Volatility. His approach to management accounting and control is driven by an interest in the behavioural effects and consequences of the ways that tools are implemented and used in practice. In his view a main challenge for management accounting is to moderate the alignment of corporate strategy, finances, organizational structure and human capital. Areas of Professional expertise: Key Performance Measurement & Management Balanced Scorecard Implementation Risk Reporting & Management Activity-Based Costing Budgeting & Control Prof Dr Falko Fecht held the Endowed Chair of Economics of Financial Institutions at EBS Business School until April 2012. He studied economics at the Goethe University Frankfurt from where he holds a doctoral degree. Prior to his academic career he worked as an economist in the economics department and in the research centre of the Deutsche Bundesbank. He was a visiting scholar at the Federal Reserve Banks of New York, Cleveland, and Kansas City, the Dutch National Bank as well as the European Central Bank. Since January 2010 he is also Research Professor for the Deutsche Bundesbank. His work is published in the Journal of Financial Economics, the Journal of the European Economic Association, the Journal of International Economics, the Journal of Money, Credit and Banking and in the Journal of Banking and Finance. Falko served as a referee for the Journal of the European Economic Association, the Review of Finance, the Journal of Financial Intermediation, the Journal of Economic Dynamics and Control, the Journal of Money, Credit, and Banking, as well as the Journal of Banking and Finance. In his research Falko focuses on the theory of financial inter - mediation and the analysis of financial systems and crisis. He studies the efficient design of monetary policy instruments, banking regulation and bail-outs. Furthermore, he investigates the institutional structures of interbank markets and payment systems, their implications for the efficiency and stability of the banking sector and policy measures to mitigate financial contagion. Falko joined the Frankfurt School of Finance and Management in May 2012, where he holds the DZ BANK Endowed Chair of Financial Economics.

20 EBS Business School Faculty continued Prof Dr Roland Füss held the Chair of Asset Management at EBS Businesses School until July 2012. Prior to joining the EBS Business School in 2008, Roland studied economics at the University of Freiburg from which he also obtained his doctoral degree and «habilitation». He is a Research Associate at the Centre for European Economic Research (ZEW), Mannheim, Germany and currently a member of the editorial board of several academic journals. His academic work is published internationally in economics, finance, and real estate journals such as Journal of Financial Quantitative Analysis, Journal of Money, Credit and Banking, Journal of Real Estate Finance and Economics, Public Choice, and Real Estate Economics. Roland s current research projects are related to the price discovery process of real estate investment trusts (REITs), sources of risk spillovers among REITs, risk decomposition of securitized real estate returns, spatial and temporal diffusion of house price trends, and common factors in commercial real estate. Prof Reint Gropp, PhD held the chair of Financial Economics and Taxation until July 2012. He has a PhD from the University of Wisconsin- Madison. Prior to joining EBS he worked for the IMF and for the ECB (European Central Bank), where he was Deputy Head of Financial Research. He has also held the position of visiting professor at the University of Frankfurt and is currently research fellow at the CFS and a research associate with ZEW. He is the winner of the 2007 Barclays Best Paper Award for the best paper presented to the European Finance Association. His work is published in journals such as the Journal of Financial and Quantitative Analysis, Journal of Money, Credit and Banking, and International Journal of Central Banking. In his research Reint focuses on Financial Economics, Corporate Finance, Money and Banking, Applied Econometrics and Taxation. Reint now holds the Dekabank endowed Chair of Sustainable Banking and Finance at the Goethe University in Frankfurt. His approach to real estate economics and finance is driven by an interest in the pricing mechanisms between private property markets and securitized real estate markets. The research results have important implications for the investment and risk management decisions of real estate investors, mortgage lenders, home suppliers, and policy makers. He is further interested in the drivers of price dynamics at the housing market which are untied from observable fundamentals. Roland moved to the University of St. Gallen, where he is now a Full Professor of Real Estate Finance and a Member of the Board of the Swiss Institute for Banking and Finance s/bf-hsg and of the School of Finance.

EBS Business School 21 Prof Ulrich Hommel, PhD is Professor of Finance in the Department of Finance, Accounting and Real Estate. He heads the Chair of Corporate Finance & Higher Education Finance and is the Director of the Strategic Finance Institute at EBS Business School. He holds a PhD in Economics from the University of Michigan, Ann Arbor, and received his doctoral degree and his habilitation in Business Administration at the WHU, Germany. Before joining EBS in 2000, Ulrich was Assistant Professor of Finance at the WHU from 1994 to 1999. Ulrich Hommel has been Dean of EBS from 2000 to 2002 and has subsequently held the position of Rector from 2003 to 2006. As Rector, he has also been the Managing Director of the EBS ggmbh. Ulrich is an Adjunct Professor of Finance at Corvinus University of Budapest, Faculty of Business Administration. In the past, he has held visiting appointments at Stockholm University School of Business, Stephen M. Ross School of Business (University of Michigan), Krannert School of Management of Purdue University and Bordeaux Business School. Next to his academic work, Ulrich is the Director of Research & Surveys at the European Foundation for Management Development (EFMD) in Brussels. He is also a member of the EFMD Quality Services team managing the EQUIS and EPAS accreditation systems. His work has been published in renowned national and international journals such as Financial Markets and Portfolio Management, Entrepreneurship Theory & Practice, Annals of Operations Research, Venture Capital, Zeitschrift für Betriebswirtschaft (ZfB) and Zeitschrift für betriebswirtschaftliche Forschung (ZfbF). He has also edited a number of books analysing best practices in business financing and management, most recently The Strategic CFO (Springer, 2011). Ulrich s research emphasizes the role of risk in decision-making for business enterprises and higher education institutions (e.g. business schools). His research is based on the basic premise that managing risks properly is the essence of good management. His on-going work focuses in particular on the linkages between, on the one hand, managerial risk taking and, on the other hand, business strategy as well as institutional reputation-building. Areas of Professional expertise: Corporate Risk Management Higher Education Finance & Risk Management Alternative Financing of Non-Financial Firms Prof Rasa Karapandza, PhD Since September 2009 Rasa Karapandza is assistant Professor of Finance. He holds a PhD degree in economics and finance from Graduate School of Economics Barcelona, University Pompeu Fabra. During his PhD studies he has spent one year at University of California at Berkeley and at New York University as a Visiting Scholar. He holds a BSc degree from the department of Mathematics, University of Belgrade. His academic work is published in international journals such as The Journal of Real Estate Economics and Finance and Physica A. He also co-authored a book Optimization of network of schools, published by UNICEF. In his research Rasa has explored the optimal portfolio formation strategies, pricing of mortgage insurance contracts, tests and measures of market efficiency, multi factor models of expected returns and the influence of information disclosure on price formation of assets. His approach to asset pricing is driven by an interest in redefining the concept of market efficiency. The concept of market efficiency is one of the key concepts in finance and economics. It implies that prices are informative. The consequences are far reaching and influence not only finance world, but also most of economic theories and laws regulating financial industry. In his view the main challenge for both, finance theory and industry steams from a rigid, almost religious, binary definition of market efficiency i.e. markets are either efficient or not which is unlike in any other field e.g. light bulbs have 80% efficiency, or when we talk about the efficiency of internal combustion engine we talk also in percentages. The change of the definition of market efficiency could have a far reaching consequence on the regulation of financial industry that currently heavily relies on the premise that markets are 100% efficient. Areas of Professional expertise: Asset Pricing Quantitative Asset Management Valuation Portfolio Performance Measurement Quantitative Analysis of Text Computational Finance Measurement and Management of Risk

22 EBS Business School Faculty continued Prof Dr Ferdinand Mager, CFA Since 2009 Ferdinand Mager holds the endowed Chair of Banking and Finance at EBS Business School. Previously, he was Associate Professor at the Queensland University of Technology in Brisbane/Australia. He received a habilitation, holds a doctorate and has a Master of Art in Chinese from the University of Erlangen-Nürnberg. He has work ex perience in the Banking Industry (Deutsche Bank New York and First National Bank Durban/RSA) and also worked on consulting projects. His academic work is published in international journals such as Journal of Risk of Insurance and Applied Financial Economics or in books such as Micocci, M./Gregoriou, G.N./Masala, G. (eds.): Pension Fund Risk Management. He also publishes in national journals such as Schmalenbach Business Review. In his research, Ferdinand has previously explored the insurance of occupational pension schemes, e.g. what happens to your defined benefits if your employer goes bankrupt. His current research focuses on capital market reactions in a high frequency setting. In other words, it is about how markets process news and how the different markets influence each other con - ditional on new information. Research Fellow Mrdjan Mladjan Since September 2012 Mrdjan Mladjan supports the FARE team with teaching and researching in Financial Economics. Prior to joining the EBS, he spent six years in Barcelona, Spain for his PhD in Economics at the Universitat Pompeu Fabra. During his PhD studies he spent a semester as a visiting scholar at the UCLA Anderson School of Management. His previous education includes MSc studies in Quantitative Finance at the University of Belgrade and a BSc in Economics from the Massachusetts Institute of Technology. Mrdjan's research focuses on the real effects of financial crises, while his doctoral thesis is dedicated to measuring the effects of commercial bank failures during the US Great Depression. His approach to Macro Finance and Banking is driven by an interest in understanding the financial crises in order to be able to prevent them or contain their effects. Areas of Professional expertise: Financial Economics Macroeconomics and Macro Finance Banking Economic History and Economic Growth Areas of Professional expertise: Empirical Capital Market Research Pension Schemes Corporate Finance Applied Portfolio Management

EBS Business School 23 Research Fellow Jan Mutl joined the EBS Business School in 2010 and supports the FARE Department with teaching and researching in Real Estate Economics. He has previously held academic positions at the Institute for Advanced Studies in Vienna, Austria and Goethe University Frankfurt, as well as visiting positions at the SUNY Albany, USA and Université d Orleans in France. His academic work has been published in international journals such as the Econometrics Journal and Economic Letters. In his research he has developed new statistical methodologies using spatial panel data and applied these in various fields such as real estate, regional or international economics. Jan strives to challenge the conventional wisdom by applying sound empirical methodology that is linked to economic theory to problems that are of practical relevance. Areas of Professional expertise: Statistical and econometric methods Real estate and regional economics International macroeconomics and finance Prof Sandra Paterlini, PhD In early summer 2012, Sandra Paterlini was appointed to the professorship of Financial Econometrics and Asset Management at the Department of Finance Accounting and Real Estate. She holds a PhD degree from the University of Bergamo, Italy, and a MSc Financial Mathematics from the University of Warwick, England. Furthermore, Sandra has a Laurea in Economics with specialization in Finance and Insurance (cum laude) from the Faculty of Economics, University of Modena, Italy. Before joining EBS, Sandra was assistant professor at the University of Modena and Reggio E., Italy. She was visiting professor at the School of Mathematics, University of Minnesota (2008-2012), and spent research periods at the Ludwig-Maximilians-University Munich (Chair of Financial Econometrics), and at the University of Aarhus. Her academic work is published in journals such as Journal of Banking and Finance, Quantitative Finance, Journal of Financial Research, Annals of Operations Research, Computational Management Science, Computational Statistics & Data Analysis, Methodology and Computing in Applied Probability, Economics & Complexity. Sandra s research interests are portfolio selection and optimization, index tracking, endowment management, risk management and financial econometrics. She is Co-Chair of the working group Optimization Heuristics in Estimation and Modelling of ERCIM (European Consortium for Informatics and Mathematics), and Vice- Chair of IEEE Task Force on Portfolio Optimization. Her approach to research is driven by the development of quantitative tools to support decisions in investment and risk management and improving the quality of risk management approaches and regulatory framework. Areas of Professional expertise: Asset Management and Portfolio Optimization Risk Management Financial Econometrics Optimization Heuristics

24 EBS Business School Faculty continued Prof Dr Nico B. Rottke FRICS CRE Since 2008, Nico B. Rottke holds the Aareal Endowed Chair Real Estate Investment & Finance. He is the Founder and Managing Director of the Real Estate Management Institute at EBS Business School, which was established in 2006. He joined EBS Business School in 1996 to gain a Diplom-Betriebswirt (equivalent to a BSc and MBA education in the US). At the UCF University of Central Florida, Orlando, USA, he holds a position as an adjunct professor of global real estate capital markets. In 2009 Nico completed his postdoctoral qualification for a full professorship at European Business School. He holds a Doctorate from European Business School since 2004. At the Frankfurt-based Institute of the German Real Estate Industry (iddiw), he serves as president. His academic work is published internationally in journals such as Journal of Real Estate Finance and Economics. This year his handbook Real Estate Capital Markets was published in Chinese language. Nico holds several memberships in editorial boards and co-editorships, e.g. Journal of Sustainable Real Estate (associate editor and referee), Journal of Real Estate Portfolio Management (editorial board and referee) and Real Estate Issues (editorial board member and referee). Nico s approach to the study field of real estate is driven by an interest in this multidisciplinary industry and his focus on real estate investment, financing and valuation, complemented by the fields of law, tax and economics. Areas of Professional expertise: Real Estate Finance (Private Equity, Capital Markets) Real Estate Investment (Investment Vehicles, Risk Management) Real Estate Sustainability Higher Education Finance and Human Resource Management Prof Dr Rolf Tilmes Since 2007, Rolf Tilmes holds the endowed Chair of Private Finance & Wealth Management and is the Executive Director of the PFI Private Finance Institute. He holds a Doctorate form EBS Business School, a MBA-degree from J. L. Kellogg Graduate School of Management and a Master degree from EBS Business School. Rolf is a Certified Financial Planner professional and was awarded the Honorary Certified Foundation and Estate Planner certification. From 1992 to 2000, he worked with focus on finance at Booz & Company. As a member of the board, he left Booz & Company to join Insurance-City Versiche - rungsmakler AG as Chief Financial Officer. He returned to EBS on a full-time basis in 2007, became managing director of EBS Executive Education until 2012, led the FARE Department as Head of Department from 2008 to 2012 and was elected Dean of EBS Business School in 2009. He was re-elected for a five year term in 2012. Since 2010, he is also Vice President of EBS University. More than 65 contributions have been published in leading industry journals, in books or in edited volumes, as well as pedagogical and teaching publications. The latest is a book on client advice and the regulatory regime in Germany. In his research, Rolf has explored previously various aspects of private wealth management from fundamental questions con - cerning business models of banks, insurance companies and other financial service providers, to special topics such as financial and estate planning or interdisciplinary subject areas such as financial Illiteracy or demographic effects in banking. His approach to private finance and wealth management is driven by an interest in the customer perspective instead of focusing on products. In his view a main challenge for the banking industry in regaining lost trust is a better and more profound understanding of client needs and drivers for decision making. Banking operations are a black box and not important to the customer who only looks for solutions to personal needs and problems. Areas of Professional expertise: Private Finance and Wealth Management Financial and Estate Planning Banking strategies in terms of market entry and approach, pricing and service bundles Higher Education Management

EBS Business School 25 Affiliated Faculty Prof Dr Dr Ann-Kristin Achleitner Chair in Entrepreneurial Finance, supported by KfW Bankengruppe/Scientific Director of the Center for Entre preneurial and Financial Studies (CEFS), Technische Universität München (TUM) Prof Randy Anderson, PhD Adjunct Professor Prof Dr Dres hc Adolf G. Coenenberg Honorary Professor for Accounting and Management Prof Ben Craig, PhD Adjunct Professor Prof Dr Renate Dendorfer-Ditges Honorary Prof of Dispute Resolution, Scientific Coordination at the Center for Corporate Skills and Dispute Competence Prof Dr Andreas R. Dombret Honorary Professor of Finance and Banking Prof Dr Wolfgang Gerke Honorary Professor of Finance and Banking Prof Dr Andre Güttler Heisenberg Scholar and Research Fellow Prof Dr Karl Hamberger Honorary Professor of taxation law Prof Dr Michael Massmann Adjunct Professor Prof Dr Peter Schaubach CFP, CFEP Honorary Professor, Director of the PFI Private Finance Institute, Executive Director of the CFFO Competence Center for Family Office Prof Dr Dirk Schiereck Research Fellow of Real Estate Banking Prof Dr Peter Wollmert Honorary Professor Prof Dr Joachim Zietz Adjunct Professor of Real Estate Econometrics

26 EBS Business School Faculty continued Research Assistants Annemarie Conrath Chair of Business Taxation & International Tax Law Alexander Deubner Aareal Endowed Chair of Real Estate Investment & Finance Tobias Dippold Aareal Endowed Chair of Real Estate Investment & Finance Julian Eibel Aareal Endowed Chair of Real Estate Investment & Finance Thorsten Glück Union Investment Chair of Asset Management Markus Grabellus Chair of Banking and Finance Philip Grüber Financial Econometrics and Asset Management Tobias Hagemann Chair of Business Taxation & International Tax Law Benjamin Hartl Private Finance & Wealth Management

EBS Business School 27 Markus Heßdörfer Chair of Management, Accouning and Control Sebastian Krautz Aareal Endowed Chair of Real Estate Investment & Finance Daniel Langraf Aareal Endowed Chair of Real Estate Investment & Finance Jana Lenz Union Investment Chair of Asset Management Christopher Oertel Aareal Endowed Chair of Real Estate Investment & Finance Tobias Prokesch Endowed Chair of Corporate Finance and Higher Education Finance Philip Radner Aareal Endowed Chair of Real Estate Investment & Finance Dominik Rehse Aareal Endowed Chair of Real Estate Investment & Finance Philip Rindler Union Investment Chair of Asset Management Daniel Ruf Union Investment Chair of Asset Management James Versmissen Aareal Endowed Chair of Real Estate Investment & Finance Alexander Schmid Endowed Chair of Corporate Finance and Higher Education Finance Matthäus Tekathen Chair of Management, Accounting and Control Nina Vogel Chair of Business Taxation & International Tax Law Michael Volquarts Aareal Endowed Chair of Real Estate Investment & Finance Patrick Weber Chair of Banking and Finance Lu Zhao Chair of Banking and Finance Chang Zhang Union Investment Chair of Asset Management

28 EBS Business School Sponsors and Partners Once again, many thanks to all sponsors and partners of the FARE Department whose support enables us building our pathways to progress. Aareal Bank AG alstria office REIT-AG Bank of America Merrill Lynch Bayer AG CFA CORESTATE Capital AG Deka Bank Deutsche Bank AG Deutsche Börse Deutsche Reihenhaus AG D-FINE DTZ Deutschland Holding GmbH DWS Investments GmbH DZ-Bank ECE Projektmanagement GmbH & Co. KG Equity Gate

Ernst & Young GmbH Mfi management für immobilien AG Feri AG Morgan Stanley Bank International Ltd. Freshfields Bruckhaus Deininger LLP Nassauische Sparkasse Generali Deutschland Immoblien GmbH Noerr LLP Goldman, Sachs & Co. OHG Nomura Bank (Deutschland) GmbH Hoesch & Partner GmbH PricewaterhouseCoopers AG HSBC Trinkaus & Burkhardt AG REAG GmbH I.C.M. InvestmentBank AG Robert Bosch GmbH ING-DiBa AG RREEF Spezial Invest GmbH IVG Institutional Funds GmbH Rothshild JP Morgan Chase Bank, N.A. SK Vermögensverwaltung GmbH Kepler Capital Markets Sparkasse Saarbrücken KfW Bankengruppe The Royal Bank of Scotland plc Kofler Energies AG Thomson Group KPMG AG Wirtschaftsprüfungsgesellschaft True Sale International GmbH McKinsey & Company, Inc. Union Invest

EBS Universität für Wirtschaft und Recht Gustav-Stresemann-Ring 3 65189 Wiesbaden Germany Phone +49 611 7102 00 Fax +49 611 7102 1999 info@ebs.edu www.ebs.edu Department of Finance, Accounting & Real Estate Gustav-Stresemann-Ring 3 65189 Wiesbaden Germany Phone +49 611 7102 1285 fare@ebs.edu www.ebs.edu/fare EBS Business School Rheingaustraße 1 65375 Oestrich-Winkel www.ebs.edu/business-school EBS Law School Gustav-Stresemann-Ring 3 65189 Wiesbaden www.ebs.edu/law-school www.ebs.edu May 2013 EBS Universität für Wirtschaft und Recht