Simon J. Pak, Ph.D.

Associate Professor of Finance

Management

Expertise

    • International trade price analysis and transfer pricing
    • Financial risk management
    • Financial modeling and evaluation

Education

    • Ph.D. - University of California, Berkeley, Economics, 1980
    • M.A. - George Washington University, Economics, 1976
    • M.S. - University of North Carolina, Chapel Hill, Physics, 1972 
    • B.S. - Seoul National University, Physics, 1970     

Courses

    • BUSAD 526 – Current Issues in Corporate Finance
    • FIN 504 – Problems in Finance
    • FIN 508 – Analysis of Financial Markets
    • FIN 531 – Financial Management

Research Interests

    • Abnormal pricing analysis in U.S. in merchandise trade database
    • Impact of U.S. merchandise trade data release on the stock market
    • Real options

Citations

Publications

"Thailand Capital Flight through Trade with the US During Times of Political and Economic Instability." Review of Pacific Basin Financial Markets and Policies, Vol 11, No. 3, September, 2008, pp 363-387. (with Chunhachinda, P. and de Boyrie, M.E.)

"Price Risk and Bid/Ask Spreads of Currency Options," Derivatives Use, Trading and
Regulation
, forthcoming (with de Boyrie, M.E. and Kim, Yong O.)

“Estimating the magnitude of capital flight due to abnormal pricing in international trade: TheRussia-USA case,” Accounting Forum, 29, 2005, pp 249-270. (with de Boyrie, M.E. and Zdanowicz, J. S.)

“The Impact of Switzerland’s Money Laundering Law on Capital Flows through Abnormal
Pricing in International Trade,” Applied Financial Economics, Vol. 15, No. 4, February
2005, pp 217-230 (with de Boyrie, M.E. and John S. Zdanowicz, J.S.)

“Money Laundering and Income Tax Evasion: The Determination of Optimal Audits and
Inspections to Detect Abnormal Prices in International Trade,” Journal of Financial
Crime
, Vol. 12, No. 2, 2004. (with de Boyrie, M.E. and Zdanowicz, J. S.)

“Are High Stock Market Prices Justified?” Journal of Investing, Vol. 13, No. 4, Winter 2004, pp 67-73 (with Maria E. de Boyrie and William W. Welch)

“Evaluation of Black-Scholes and GARCH Models Using Currency Call Options Data,”
Review of Quantitative Finance and Accounting, Vol. 23, No. 4, Dec 2004, pp 299-312
(with T. Harikumar and Maria E. de Boyrie)

“Detecting Abnormal Pricing in International Trade: The Greece – USA Case,” Interfaces
33(2), March-April 2003, pp. 54-64 (with Zanakis, S. H. and Zdanowicz, S. J)

“Brazil’s Political and Economic Policies, 1995 to 1999: The Impact on Capital Flight,”
Proceedings of the International Conference on Innovations in Business Practices: The
Roles of Globalization, Regional Integration, and Technology
, June 15-18, 2000, Rio De
Janeiro, Brazil. Global Business and Technology Association, and received the best paper
award (with John Zdanowicz and Theodore Young)

“Brazil-United States Trade: Capital Flight Through Abnormal Pricing”, The International
Trade Journal Issue XIII, No.4, Winter 1999 (with John Zdanowicz and Michael
Sullivan)

“Capital Flight from Greece to the United States through Abnormal Pricing in International
Trade,” The 5th International Conference Proceedings of the Decision Sciences Institute,
Athens, Greece July 4-7, 1999 (with John Zdanowicz)

"Capital Flight from India to the United States Through Abnormal Pricing in International
Trade: An Update," Finance India Vol X, No. 4, December 1996, pp 881-899, the journal
of the Indian Institute of Finance, with John Zdanowicz and William Welch.

"Capital Flight from India to the United States Through Abnormal Pricing in International
Trade," Finance India Vol IX, No. 3, September 1995, pp 609-628, the journal of the
Indian Institute of Finance, with John Zdanowicz and William Welch. Also included in
the Global Structure of Financial Markets, 1997

"U.S. Savings Bonds - A New Look at An Old Standby," Personal Financial Planning,
September/October 1995, 7(6), pp. 28-35, (with William Welch)

"The Detection of Capital Flight Through International Trade Between China and the United States," Financial Study, No. 9, 1994, monthly journal of The People's Bank of China, September 1994, pp 77-80,42 (with Fuling Lu and John Zdanowicz)

"A Statistical Analysis of the U.S. Merchandise Trade Data Base And Its Uses in Transfer
Pricing Compliance and Enforcement," Tax Management: Transfer Pricing Report,
Vol.3, No.1, May 1994 (with John Zdanowicz)

"A Comparative Analysis of the Growth Performance of the World's Largest Banks," Journal of International Financial Markets, Institutions & Money, 1994, v4 (2), 101-113 (withJerry Haar and Krishnan Dandapani)

"The Ethics of International Trade: Use of Deviation from Average World Price to Indicate
Possible Wrongdoing," Business Ethics Quarterly, January 1994, with Peter Curwen,
John Zdanowicz, and Karen Paul

"Mortgage Paydown Options: Fixed-rate vs. Adjustable-rate Mortgages," Real Estate
Finance
, (Winter 1993) (with John Zdanowicz and William Welch)

"Marketing of IRA as Multiple-Use Products," Journal of Retail Banking, (Winter 1991-
1992) (with John Zdanowicz and William Welch)

"Expected Change in The Firm's Marginal Tax Rate And The Refinancing of Discounted
Debt," Midwestern Journal of Business and Economics, Winter 1990 (with Duhala and
Dandapani)

"A Suggested Procedure to Peg the Currency of Underdeveloped Economies," Proceedings of the Annual Conference of Business Management in Latin America, September, 1985 (with Arun J. Prakash)

"The Effects of Promotional Pricing on Dynamic Adjustment in the Markets for MMMFs
and MMDAs," Proceedings of Conference on Bank Structure and Competition, April
23-24, 1984, Federal Reserve Bank of Chicago, November 1984 (with H. Baer and G.
Garcia)

"The Choice of Optimal Basket in Nominal Exchange Rate Peg," The Korean Economic
Review
, December 1985. Also in International Convention of Korean Economists:
Papers
(IV), August 20-21, 1984, The Korean Economic Association. (With Yong On
Kim)

The Effects of Quantity Controls of Monetary Policy in Post-war Japan: A Model of
Business Sector Behavior under Credit Rationing
, Doctoral Thesis at University of
California, Berkeley, 1980. (Advisor James L. Pierce)

"Some Clues in the Case of Missing Money," American Economic Review, May 1979 (withG. Garcia)

"The Ratio of Currency to Demand Deposits in the United States," Journal of Finance, June 1979 (with G. Garcia)

"Developing Country Application of Photovoltaic Cells," Proceedings of Second ERDA
Semi-Annual Solar Photovoltaic Conversion Program Review
, January 20-23, 1976,
ERDA Document No. CONF-760-131, Energy Research and Development
Administration (with Charles Weiss)

"Charge Transfer States of Molecular Crystals in Contact with a Metal," Journal of Chemical Physics, No. 12, December 1972 (with Sang-il Choi)

Book Chapters

“Capital Flight and Tax Avoidance Through Abnormal Pricing in International Trade – the
issue and solutions,” Closing the Floodgates - Collecting tax to pay for development,
Commissioned by The Norwegian Ministry of Foreign Affairs. Tax Justice Network
International Secretariat Ltd, London, UK 2007

"Capital Flight from India to the United States Through Abnormal Pricing in International
Trade: An Update," Global Structure of Financial Markets - An Overview, edited by
Ghosh, Dilip and Edgar Ortiz, Routledge, London 1997 (with John Zdanowicz and William Welch) Also published in Finance India Vol X, No. 4, December 1996, pp 881-
899

"Multifactor Pricing Model with Macroeconomic Variables," Advances in Investment
Analysis and Portfolio Management
Vol 1, JAI Press Inc. 1991 (with C.D. Cho)

Conference Presentation and Participation research
 
Note:  The first and the last conferences in Oslo, Norway resulted in a “Final Report from the Task Force on the Development Impact of Illicit Financial  Flows."  My area of contribution was in trade mis-pricing as a channel for illicit financial flows for money laundering, tax evasion, capital flight and import duty fraud.
 
The Norwegian Ministry of Foreign Affairs, The Third Meeting of the Task Force on the Development Impact of Illicit Financial Flows, Oct 21-22- Norway, Oslo, Norway. Invited participant on “Examining the illicit financial flows from developing countries”

World Bank, Research Workshop on “Examining the illicit financial flows from developing countries” October 23, 2008, Oslo, Norway. Invited discussant on “a study on mis-pricing of trade between Jamaica and Norway” by Steinar Strøm (University of Torino)

United Nations Department of Economic and Social Affairs, Invited expert participant at the Ad Hoc Expert Group Meeting on Transfer Pricing - A Discussion of the practical issues for developing countries, August 27-28, 2008, Amsterdam, The Netherlands. Organized by the United Nations Department of Economic and Social Affairs, the Financing for Department Office. Cosponsored by International Bureau of Fiscal Documentation (IBFD)

The 2008 International Trade and Finance Association's eighteenth International Conference, May 21-24, 2008, Lisbon, Portugal. Cosponsored by Universidade Nova de Lisboa. Paper presented de Boyrie, “The Effect of Trade Misinvoicing on African Capital Flight.” (with Maria de Boyrie and Karen Duhala)

The Norwegian Ministry of Foreign Affairs, The Second Meeting of the Task Force on the Development Impact of Illicit Financial Flows, 1-2 April 2008, Oslo, Norway. Invited speaker on “Trade Mis-Pricing as a Channel for Illicit Financial Flows”