Empirical Corporate Finance II

FIN540 Empirical Corporate Finance II

Autumn 2021

  • Topics

    This course builds on FIN521. You must have passed FIN521 to attend FIN540. In FIN540, the emphasis continues to be on supporting doctoral student preparations for the second-year summer paper, and on discussions of recent research papers. Thus, FIN540 continues to emphasize a deep understanding of the nature and implications of evidence related to corporate financial transactions and investments by (primarily) publicly traded US and European firms for various hypotheses and theories in corporate finance. This includes transactions in the market for corporate control, as well as transactions in which firms raise capital, rebalance capital structure, or file for bankruptcy. As much as possible, the emphasis is on areas where the empirical evidence challenges priors based on economic theory - puzzles or paradoxes. Ultimately, the objective is to help doctoral students find areas of potential dissertation material in the area of corporate finance. The four-day course requires student participation in every class. You will be asked to prepare empirical analyses, read papers, and present in class. Course grading is "Pass/Fail".

  • Learning outcome

    Knowledge - The candidate...

    • is knowledgeable of the important topics on the research frontier of empirical corporate finance
    • can evaluate and critique various methods and approaches to conducting empirical research in this area

     

    Skills - The candidate...

    • can formulate hypotheses, plan and carry out empirical research within empirical corporate finance
    • can carry out research and scholarly research work at a high international standard and be able to publish in international peer reviewed finance journals

    Competence - The candidate...

    • can communicate research within empirical corporate finance, actively participate in debates about the field in national and international scholarly forums, and present his or her own research.

  • Teaching

    The course takes place over four days. Each day covers a mix of lectures and student presentations.

    However, if there is a lock-down due to the pandemic, the course will be offered digitally.

  • Required prerequisites

    Successful completion of FIN521

  • Assessment

    The course grade is based on a portfolio consisting of (1) student’s homeworks and active class participation (approximately 40%) and (2) an individual written term paper and the presentation of this term paper (approximately 60%).

  • Grading Scale

    One grade is given for the entire portfolio. Grading scale: Pass/Fail.

  • Literature

    Selected articles from the following volumes:

    Eckbo, B. Espen (ed.), 2007, Handbook of Corporate Finance: Empirical Corporate Finance, Volume 1, (Elsevier/North-Holland Handbook of Finance Series), ISBN: 978-0-44-4508980.

    Eckbo, B. Espen (ed.), 2008, Handbook of Corporate Finance: Empirical Corporate Finance, Volume 2, (Elsevier/North-Holland Handbook of Finance Series), ISBN: 978-0-44-4530905.

    Constantinides, Geaorge M, Milton Harris and Rene Stulz (eds.), 2013, Handbook of the Economics of Finance, Volume 2A, (North-Holland Handbooks of Economics Series). ISBN: 978-0-44-453594-8.

    Lo, Andrew W. and Robert C. Merton (eds.), Annual Review of Financial Economics, Vol. 1 - 12. (Annual Reviews, Palo Alto, Calif.)

    Foundations and Trends in Finance, Vol. 1-12. (NOW Publishers, Inc.)

Overview

ECTS Credits
4
Teaching language
English
Semester

Spring. Offered spring 2021.

Course responsible

Professor Espen B. Eckbo, Tuck School of Business, Dartmouth College (USA)