Course content

This course provides an empirical treatment of selected topics in corporate finance and financial intermediation. The topics discussed in class include capital structure, corporate investment under financing frictions, the bank lending channel of monetary policy and financial fragility.

The course focuses on the empirical methods that can be used to test theories of corporate finance and financial intermediation. These methods include linear regressions, event studies, panel data methods, instrumental variables and difference-in-differences approaches among the others.

The goal of the course is to provide students with a toolbox and working knowledge of empirical methods for use in corporate finance research.

Learning outcome

Learning outcome

Knowledge

You learn

• the main empirical research questions in corporate finance and banking
• how researchers design empirical methodologies to study these main issues, including the formulation of econometric models and the interpretation of results

Skills

You should

• be familiar with classical empirical corporate finance and banking topics and papers
• understand research methodologies used in different areas of empirical research in corporate finance and financial intermediation
• be able to design an empirical strategy to test a research question in this field
• be able to replicate part of the analyses of an empirical corporate finance or banking paper

General skills

You should

• be able to formulate a relevant and testable research question
• be able to select and apply suitable econometric models to your own research (such as your master thesis) in the area of corporate finance and empirical banking

Learning methods and activities

2 hours of lectures every week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term.

Compulsory assignments

• Compulsory activity

Recommended previous knowledge

Compulsory courses in Master of Science in Financial Economics

Required previous knowledge

None

Course materials

Announced at the beginning of the term.