James C. “Jim” Van Horne, a Pillar of Stanford GSB, Dies at Age 90

When James Van Horne retired from Stanford Graduate School of Business in 2007, his friend and colleague of over three decades, George Parker, gave a speech at his farewell dinner. “I said, ‘Jim was such a presence that when he walked around the GSB campus, he didn’t just look like an important member of the faculty. He looked rather like he might possibly own the school.” Parker, the Dean Witter Distinguished Professor of Finance, Emeritus, remembers the 200-some guests laughing in recognition. “You just stood up straighter when Jim walked toward you.”

It wasn’t that Van Horne was intimidating; rather, he always made you want to be a better person, Parker, MBA ’62, PhD ’67, explains. “He was supportive, engaging, approachable, exceedingly likable, and also modest. He was a tremendous role model. Nobody was such a pillar of the place as Jim.”

Van Horne, the A.P. Giannini Professor of Banking and Finance, Emeritus, died September 1. He was 90.

“Jim leaves behind a legacy filled with knowledge, mentorship, and inspiration. He was a guiding light at the GSB, touching the lives of countless students and faculty during his tenure at the school,” wrote Sarah A. Soule, the Philip H. Knight Professor and Dean at Stanford GSB and Morgridge Professor of Organizational Behavior, in a message to faculty and staff after his passing.

After growing up in South Bend, Indiana, Van Horne earned his BA from DePauw University, then served six years in the Army. Following the military, he worked at a large bank in Chicago and took night classes at Northwestern, finishing his MBA before earning his PhD in 1964. He briefly worked at Michigan State before arriving at Stanford GSB in 1965, hired by Dean Ernest Arbuckle, MBA ’36.

A “Revered” Figure

At the time Van Horne joined the faculty, Stanford GSB had established its reputation as a renowned West Coast business school. In 1969, Arjay Miller left Ford Motor Company to become the school’s new dean. Building on the foundation laid by Arbuckle, Miller focused on turning the GSB into a world-class institution. Van Horne was part of that success.

“Jim played a key leadership role in driving the school to its top spot,” says Bob Joss, MBA ’67, PhD ’70, the Philip H. Knight Professor and Dean, Emeritus, who knew Van Horne for 60 years. “It is hard to overstate Jim’s influence and presence at the GSB.”

From 1970 to 1973, Van Horne was the first faculty director of the MBA program, then served as the associate dean of academic affairs on two occasions throughout the better part of that decade. Appointed with an eye to creating more academic rigor and depth, he focused on recruiting top teaching and research talent, as well as strengthening Miller’s ideal of “balanced excellence.”

Over the course of his Stanford GSB career, Van Horne also headed up the finance group of the business school. “He was critical in building it into one of the leading academic finance groups in the world,” Joss says. He also raised the group’s profile by taking on external roles. He was president of the American Finance Association and of the Western Finance Association, and was deputy assistant secretary of the U.S. Treasury from 1975 to 1976. He also served on several federal and California state commissions and advisory groups, as well as a number of corporate and nonprofit boards.

Junior faculty viewed Van Horne as a mentor. “Almost every time we met in the halls, Jim would stop and say something encouraging. He did that with everyone in the finance group,” says Darrell Duffie, PhD ’84, the Adams Distinguished Professor of Management and Professor of Finance, who joined the GSB faculty after earning his doctorate. “His integrity, composure, and support for his colleagues were inspiring. He was greatly revered by all of his colleagues and students, without exception.”

“He took great pride in and cared deeply about all his colleagues,” says Jeffrey Zwiebel, who joined Stanford GSB in 1991 and holds the inaugural title of the James C. Van Horne Professor of Finance. “Jim was selfless in his actions; he was always motivated by doing what he thought was best for his colleagues and for the school.”

A Legacy of Teaching Excellence

Van Horne’s scholarship was both broad and deep. He examined issues such as capital budgeting, inflation, interest rates, corporate finance, and financial innovation. He authored more than 60 articles, 24 case studies, and five books. “Jim was truly an elder statesman in the field of finance,” says Peter DeMarzo, the John G. McDonald Professor of Finance. “His textbook, Financial Management and Policy, was adopted worldwide and was one of the first to integrate the principles of modern finance with corporate decision making.”

Van Horne’s textbook was first published in 1968 and widely used for 40 years, setting the standard for classroom instruction in his field. “He was the father of modern corporate finance MBA teaching,” says Zwiebel. “There was a revolution in the thinking about corporate finance in the 1950s and 1960s. Jim’s textbook was the first to clearly and accurately convey the new way of thinking about the subject and consequently became the leading textbook for many years. The content, organization, and style of his book has influenced all corporate finance textbooks that have since followed.”

Inspiring the next generation of scholars and leaders was arguably where Van Horne’s legacy was most keenly felt. He once estimated that he had taught about 8,000 students over his career. His signature course was Corporate Finance: Applications, Techniques, and Models, in which he used an adapted version of the Socratic method whose hallmarks were the case method and “cold calling” on students.

“Jim’s classroom teaching was legendary,” says Duffie. “Although his course on corporate finance was not required, virtually all of our MBA students took it because of its quality and the atmosphere for learning that he created.”

Joss took Van Horne’s class as an MBA student in 1966, then was his PhD student. He remembers his impressions of Van Horne from his seat in the classroom. “As a student, you never wanted to let him down or come unprepared. All his students came away with a high regard for financial rigor and discipline.”

“He set the bar high and made you push yourself. We learned to prepare for class, advocate for ourselves, and speak with confidence,” says Carl Berg, MBA ’98, a private investor in New York. “It’s all too easy to fall short of reaching your full potential, but he made you want that for yourself. His goal was really to bring out the best in everyone.”

In recognition of his teaching approach, Van Horne received the inaugural MBA Distinguished Teaching Award in 1982, then again in 1997, a rare achievement. In 1998, he was honored with the Robert T. Davis Award for extraordinary faculty contributions. In 2011, Van Horne’s colleagues, friends, and former students founded the James C. Van Horne Professorship in his name.

Even after he retired, Van Horne still visited campus often. An avid Stanford sports fan, he was also a lifelong student, attending PhD presentations and staying abreast of finance news. “He always wanted to hear about what was going on in the investing world and discuss the markets,” says Berg, who regularly talked to Van Horne over the years — as did many other former students, with whom Van Horne maintained friendships after graduation.

Lest his memory be thought of as overly serious, “he had a great sense of humor. It was partly so effective because it was always kind of a surprise to people,” Parker recalls. “When you least expected it, he could come up with a very clever line about something that would just make everybody laugh.”

Van Horne also loved history, a passion that harkened back to his college days. “He led a discussion group that I attended for many years, where in each meeting, we evaluated three famous people from history, then rated them on their lasting impact,” Joss remembers. “It was great learning and great fun at the same time — which typifies what it was like to be around Jim.”

“I will always cherish the window I had into my dad’s professional life,” says Steve Van Horne, MBA ’96. “Besides his family, his greatest love was teaching and seeing his students succeed. I think my dad would want to be remembered as a caring and thoughtful teacher and mentor, not only to his students, but to his many friends and colleagues at the GSB.”

Van Horne is survived by Mimi, his wife of 65 years; his sons Drew, Stuart, and Steve; and his grandchildren. A Stanford memorial service is planned for early November.