Program

The primary goal of the Finance Ph.D. Program is to teach students how to do quality research. Therefore, students are encouraged to start working on research projects and to participate in seminars, where original research is discussed, as soon as possible. Some of our students have written Second-Year Papers, which were subsequently revised and published in the Journal of Financial Economics. While it is unusual to have such early research efforts result in publication, many Second-Year Papers lead to dissertations. In addition, doctoral students have collaborated with faculty, and with other students, to write published research articles. This research activity is one of the most important aspects of the Finance field in the doctoral program.

The First Year: Foundation

The first year is designed to give students solid training in microeconomics, macroeconomics, and econometrics. In addition to the Ph.D. courses on these subjects, students typically take a Ph.D. course on capital markets empirical analysis, as well as M.B.A. courses in finance and organization theory. The first year culminates with the Economics Core Exam given in June. A research-oriented First-Year Paper is due by October 15 of the second year.

Fall Quarter	AEC 511 Advanced Price Theory I FIN 505 Th. of Finance
Winter Quarter	AEC 512 Advanced Price Theory II FIN 402 Capital Budgeting and Corporate Objectives FIN 532 Adv. Topics in Cap. Mkts.
Spring Quarter	AEC 513 Game Theory STR 403 Economic Theory of Organizations FIN 411 Investments FIN 413 Corporate Finance

 

Fall Semester	Spring Semester
ECO 483/484 (2 hrs. each) Intro Math Stats/Econometrics MTH 265H (4 hrs.) Real Analysis	ECO 485 (4 hrs.) Econometrics

The Second Year: Depth

The second year is designed to deepen students knowledge of finance and the chosen minor area, and to prepare them for the Finance Qualifying Exam. The requirement is satisfied by successfully completing course work with a grade of B or better (FIN 505, 511, 532, 533, 534) and passing an examination on the Second-Year Paper by the end of the fall quarter of the third year. The paper should be an original contribution to the finance literature. Prior to the exam, the Second-Year Paper, must be signed off by two finance faculty members and turned in to the Ph.D. office by September 15. The course preparation for the Finance field stresses the basic principles of corporate finance and capital markets. Additional information is gained by attendance at the Finance Seminars, which is required.

Fall Quarter	FIN 511* Advanced Financial Economics Minor or Distribution Requirement Course
Winter Quarter	FIN 430 Financial Intermediation ACC 510 Theory of the Firm and the Nature of Accounting FIN 533 Special Topics in Finance APS 531 Applied Econometrics
Spring Quarter	FIN 423 Corporate Financial Policy and Control FIN 534 Advanced Topics in Corporate Finance

 

Fall Semester	Spring Semester
ECO 475 (4 hrs.) Macroeconomics I APS 523 (ECO 517 - 5hrs.) Advanced Econometrics	ECO 476 (4 hrs.) Macroeconomics II APS 524 (ECO 518 - 5 hrs.) Topics in Econometrics

* Two quarter length course - 3hrs.

# Offered in alternate years, take in first or second year.

Admission to Candidacy

Upon completing the above requirements, students become Ph.D. Candidates by receiving a recommendation from the Finance Area Coordinator.

Although students will take some additional courses in the fourth year, the primary focus is on the doctoral dissertation. Several aspects of the research environment of the Simon School are noteworthy. First, the relatively small size of the doctoral program allows students to have frequent access to a large number of faculty for discussions of research problems. Second, the Seminars and Workshops (AEC 510 and FIN 501) give students a chance to see current research projects from other major universities, as well as providing a forum for presenting their own research. Third, the Journal of Financial Economics is edited at the Simon School, along with a board of associate editors which includes prominent faculty members from many other universities. The journal receives some of the best papers written in finance, so it provides a direct link with the research being done at other institutions. This knowledge about current research is a valuable source of information for students who are seeking to define or solve research problems. Among the research topics that are currently being studied by faculty members and students are:

• Financing Decisions When Managers are Risk Adverse
• Theoretical Examinations of the Direct Equity Sales
• An Empirical Investigation of the Economic Nature of the Fama-French Factors
• Information from Capital Markets to Firms During Corporate Takeovers
• Stock Return Predictability and Conditional Asset Pricing Models
• Monetary Policy and Asset Returns
• Cross-Sectional Variation in Post-Earnings Announcement-Drift
• Quote Revisions in Related Assets
• On the Predictability of Stock Returns: Theory and Evidence

The Finance Minor

The Finance minor is fulfilled by satisfactory performance in three of the Ph.D.-level courses listed under Second Year. Accounting majors who minor in Finance must take FIN 505 and 534 and two of the Ph.D.-level courses listed under Second Year.