Charu Raheja, who joined the faculty at the Wake Forest University Schools of Business in 2007, teaches courses in corporate finance, financial management and corporate and asset evaluation. Her research has examined how the size and composition of corporate boards affects board monitoring and CEO succession planning. She has also conducted research into the changes in the board structure as a firm moves in its life cycle and when firms underperform. She also studies organizational structure, management promotions, and founder firms.
Raheja earned her doctorate for New York University and taught at Vanderbilt University before coming to Wake Forest. In September 2008, she teamed with Professor Bruce Resnick to answer a series of questions to help explain to the Wake Forest community why the credit crunch was driving the proposed $700 billion financial services bailout plan.
To the question: Is (the bailout) really necessary, they said: “Some economists do not believe anything needs to be done. They believe that the operation of markets got us into this mess and their natural operation will correct the problems. Perhaps they are correct. Personally, we favor some form of a bailout plan. A plan that allows the banks to clean up their balance sheets and restores the incentive to lend is necessary. However, one concern is that these bailed out banks will just find new ways to get themselves into trouble.”
Her work has also examined how the size and composition of corporate boards affects board monitoring and CEO succession planning, as well as changes in the board structure as a firm moves in its life cycle and when firms under-perform. She has also studied underperforming firms and the changes in corporate governance following underperformance. Her current work focuses on the CEO influence on directors, the role of founders in corporations, and CEO succession planning.
Her paper, "The Interaction of Insiders and Outsiders in Monitoring: A Theory of Corporate Boards," was the recipient of the 2005 William F. Sharpe Award for Scholarship in Financial Research, best paper award in the Journal of Financial and Quantitative Analysis. In the past year, she has presented her work at the Western Finance Association meeting, The University of Iowa, Claremont McKenna College, The Federal Bank of Boston, and Michigan State University, among others. She also discussed mutual fund corporate governance in a conference organized by the Investment Company Institute.
Ph D, New York University (Doctor of Philosophy) - 2002
BS, University of Florida (Finance) - 1994
Sources: Wake Forest University Schools of Business Faculty Profile and www.charuraheja.com.