Eastern Finance Association Board Meeting Minutes
April 22, 2004
Mystic, Connecticut
Present: Cynthia Campbell, Thom Coe, Arnie Cowan, Claire Crutchley, Doug Emery, Andrew Fields, Mike Gombola, Sylvia Hudgins, David Lange, Charlie Moyer, Robert Schweitzer, Bonnie Van Ness, Mark Walker, and Marilyn Wiley.
Absent: Matthew O’Connor, William Jackson III, Sam Weaver, Andrea Heuson, Betty Simkins, and Steve Ferris [Note that Betty Simkins, Sam Weaver, and Marilyn Wiley are rotating off the board. The new board members are Lucy Ackert and Narayanan Jayaraman]
1. The meeting was called to order by President Doug Emery at 8:30 am.
2. The minutes were approved and accepted unanimously.
3. VP – Programs Mike Gombola presented his report for the 2004 annual meeting (April 22 – 24, 2004; Mystic, CT):
a. The electronic submissions to the conference worked extremely well.
b. Mike recommended that Bonnie Van Ness, the VP – Program for next year, allow only web-based submissions (i.e., do not accept e-mail or paper submissions).
c. Mike followed the tradition of sending a call for papers twice to the EFA membership and once to the FMA membership east of the Mississippi. Mike suggested that Bonnie might want to re-think the process of the call for papers.
d. Mike also suggested that Bonnie should update the participation form.
e. Mike plans to talk with Arnie Cowan and Cynthia Campbell about a symposium issue that includes conference papers related to “Restoring Confidence in the Capital Markets.”
f. There is a new paper award in personal finance sponsored by the CFP. This award should be included in the call for papers or the paper acceptance letters.
g. Marilyn Wiley asked about posting papers on the website. Mike has access, so it is easy to do. Arnie suggested that a sentence be included in the acceptance letter notifying authors that accepted papers will be posted. The program chair can decide how to handle requests by authors that do not want to have their paper posted.
h. Mike noted that multiple submissions are a problem because it is hard to get discussants and it causes scheduling conflicts. After some discussion Doug Emery suggested that an author be allowed to submit only one or two papers. Additional papers could be submitted, but a co-author must agree to present the paper at the conference.
4. VP – Arrangements Thomas Coe presented his report:
a. There are over 192 registrants for the conference, and more are being registered this morning.
b. Late registrants make it difficult to plan catering.
c. There have been requests for laptop projectors, but they are more expensive than overhead projectors. Doug suggested that people bring their own laptop if they want to do a power-point presentation.
d. There are thirteen exhibitors at the conference.
e. The goal was not to lose money at the conference.
f. Golf shirts reduced profits, but they are provided because it is the 40th anniversary of the Association.
5. Treasurer Bob Schweitzer presented his report:
a. The Association is well funded, with an increase in assets of about $20,000 over the previous year. Total assets were $271,039.62 on March 31, 2004.
b. The Association is ceasing to be an uninsured depositor of MBNA America Bank. One CD will mature on August 2, 2004, and the value (approximately $42,840) will be transferred to Wilmington Trust. Funds will be moved out of Wilmington Trust to purchase a CD somewhere else.
c. Bob will prepare the Association’s balance sheet on a quarterly basis.
d. The Association’s tax year is from January 1 through December 31. Bob is working with Dave Upton to complete the tax returns for several prior years. Bob will send Mark Walker the total assets held by the Association as of December 31, 2002, and December 31, 2003, so that Mark can prepare the tax return for 2003.
6. Executive Director Mark Walker presented his report:
a. Mark prepared an income statement for the 12-month period ending March 31, 2004. Mark also prepared a budget for the 12-month period ending March 31, 2005. Doug suggested that the budget and income statement show the total revenues and expenses for the conference rather than consolidate these numbers as a one-line item. Thomas expects the total disbursements for the conference to be about $30,000.
b. Mark recommended that the board consider an asset allocation for the Association’s funds. Mark suggested that some funds could be invested in a stock mutual fund. Bob indicated that the assets are managed by the Trustees, but the board could make a recommendation. David Lange recalled that at one time there was a question as to whether a non-profit could invest in stocks. Charlie Moyer indicated that the FMA has a 50% - 60% allocation to stocks. The allocation began about 10 or 11 years ago.
The goal is to have liquid assets to cover the worst case scenario (e.g., a cancelled meeting), and then invest several thousand dollars per month until the board gets where they want to be. The proposal should include a rebalancing mechanism. Bob Schweitzer will contact Jack Rader regarding the investment policy used by the FMA. He will provide the details at the October meeting.
Thomas asked about having a student investment club manage the fund. The general consensus is to use one or more broad-based index funds.
c. Mark is continuing to work with Evelyn on the Archive Project. Bob Edmister and Larry Wall already have submitted their files. VP of Programs Mike Gombola, Co-VP’s of Arrangements, Thomas Coe and Matthew O’Conner, Treasurer Bob Schweitzer, and the Financial Review editors, Cynthia Campbell and Arnie Cowan, will submit their files during the coming year (by the October 2004 meeting).
d. The digitization project is moving forward. The cost is $13,200 including scanning.
e. The general consensus is that the 5% surcharge on credit cards is not an issue at this time. Approximately 50% of the pre-registrants used credit cards (vs. check payment).
7. Paul Hoffman and Darren Green of Blackwell Publishing joined the meeting at 9:30 am.
a. Paul indicated that the institutional renewal rate was 97%. EFA membership increased by approximately 7% over 2002. There has been a quadrupling in readership. These results have positive consequences for the journal’s impact factor and citation rate.
b. Paul discussed PDF off-prints. Doug indicated that authors also like extra copies of the journal. One hard copy often goes into a display case. Andy Fields suggested that Blackwell send a combination of the PDF file and 2 hard copies of the Financial Review issue that contains the article to each author. Arnie suggested that the acceptance letter include a page to gather address information on co-authors.
c. Paul indicated that their goal is to increase the journal’s impact factor and re-apply to ISI in 2006.
d. The board discussed having members renew their membership at a common time (e.g., during the fall). They will discuss this issue with Christine Nelson.
8. The Financial Review Editors, Arnie Cowan and Cynthia Campbell, presented their report.
a. Articles published in the Financial Review are listed in the Journal of Economic Literature (JEL).
b. The editors have received 120 submissions since July 1, 2003.
c. Non-members sign up with Blackwell first, and then mail a receipt to Arnie and Cynthia.
d. The submission and review process is handled electronically.
9. Bonnie Van Ness, VP-Programs for the 2005 meeting, indicated that the Call for Papers was distributed as part of the packets.
10. Sylvia Hudgins, the VP-Arrangements for the 2005 meeting, asked Mark to send the hotel contract.
11. Doug Emery presented the report on the 2006 meeting:
a. Bob and Doug will finish negotiating the contract for the Sheraton (Society Hill) in Philadelphia, PA.
b. The hotel is within walking distance of the historic district.
c. John Finnerty will serve as VP – programs for the 2006 meeting.
d. Doug asked the board to think about suggestions for individuals willing to serve as VP – arrangements for the 2006 meeting.
12. Andy Fields presented the report on the 2007 meeting:
a. Andy is considering the Royal Sonesta Hotel in New Orleans.
b. Andy suggested that meeting dates and locations be added to the website.
13. Doug reported on the activities of the nominating committee for Bob Edmister.
a. Bob Edmister is the chair of the nominating committee, and Doug serves on the
committee. There are also two at-large members.
b. Motion. Marilyn Wiley nominated Andrea Heusen and David Lange. Charlie seconded the motion. The motion passed unanimously.
14. Doug Emery discussed the proposal to review the EFA’s By-Laws:
a. Doug suggested several changes including:
- eliminate the VP – Membership position (which currently does not exist),
- clarify the Treasurer’s role (he is a representative of the Board of Trustees),
- have six officers (president, VP program, VP arrangements, president elect, executive director, and editor). Consider two other officers: the incoming VP program and incoming VP arrangements.
- change the number of directors. Currently there are 8 officers and 8 directors (the directors are elected 3, 3, 2). Consider electing two directors per year for a three-year term.
- specify that the Treasurer is responsible for negotiating the hotel contracts with oversight by the Executive Director.
b. A discussion ensued, and Charlie Moyer suggested:
- elect the VP – Program, with the understanding that the individual subsequently would run unopposed as the president.
- The board discussed whether more aggressive changes could be made.
- Doug will send the proposed changes to the directors and the trustees prior to the October 2004 board meeting.
15. Other business. Claire Crutchley suggested that an award be given for the best PhD paper.
a. Motion. Claire made a motion that 1) the board waive the registration fee for doctoral students that present a paper, and 2) a $1,000 award be given to the best PhD student paper. Charlie seconded the motion. The motion passed unanimously.
b. Motion. Andrew moved that the board give funding for five paper awards next year. Marilyn seconded the motion. The motion passed unanimously.
Prepared by: MMW
Date: September 9, 2004
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