Theo Vermaelen

image trainer

Theo Vermaelen is the UBS Chaired professor of Investment Banking at INSEAD, where he teaches in MBA, PhD and Executive Programs. He has published numerous articles, books and case studies on share buybacks and is generally known as “Mr. Buyback” in the academic profession. He also applies his knowledge in consulting activities as well as asset management. In particular he launched several buyback funds and designed model portfolios for individual investors.

Theo Vermaelen is a graduate from the Department of Applied Economics at the Catholic University of Leuven (Commercial Engineer) and obtained an MBA and PhD in Finance from the Graduate School of Business, University of Chicago.

Theo Vermaelen started his career at the University of British Columbia, Canada in 1979 and joined the finance faculty of the Catholic University of Leuven, Belgium, in 1982. From 1987 on he has been on the faculty at INSEAD. He has also been a visiting professor at the London Business School, UCLA and is a regular visitor at the Graduate School of Business, University of Chicago.

He has published numerous articles on share buybacks, dividend policy, capital structure, death spiral convertibles, initial public offerings and mergers & acquisitions in leading academic journals, including:

  • Journal of Finance
  • Journal of Financial Economics
  • The Review of Financial Studies
  • Journal of Banking and Finance 

and is co-author of the multi-award-winning paper Contingent Capital: The Case for Coercs.

He is also a consultant to various corporations and government agencies and Program Advisor to Amsterdam Institute of Finance.

Theo Vermaelen applied the results of his research on share buybacks by launching, in cooperation with KBC, in 1998 the first mutual fund exploiting the buyback anomaly - the KBC Equity Buyback Fund America. He is also a member of the Board of Directors of Brendan Technologies, a California-based biotech firm.

At INSEAD he is program director of the Corporate Financial Strategies in Global Markets Program, and co-director of the Global Investment Workshop and the Macquarie Masters in Finance (Investment banking) program. He has directed various programs for banks such as Mees Pierson, BBL, JP Morgan, and Deutsche Bank.

His current research focuses on making the link between corporate finance and asset management. Specifically his research aims to show how corporations time the market when they make capital structure decisions and how investors can exploit these anomalies.