Handbook Of The Economics Of Corporate Finance

[Loren Swaggr]

Wesurvey the theory and evidence of behavioral corporate finance, which generally takes one of two approaches. The market timing and catering approach views managerial financing and investment decisions as rational managerial responses to securities mispricing. The managerial biases approach studies the direct effects of managers' biases and nonstandard preferences on their decisions. We review relevant psychology, economic theory and predictions, empirical challenges, empirical evidence, new directions such as behavioral signaling, and open questions.

This survey updates and extends a survey coauthored with Rick Ruback that was published in the Handbook in Corporate Finance: Empirical Corporate Finance, edited by Espen Eckbo, in 2007. We thank him for his many contributions that carried over to this version, and we thank Milt Harris for extensive and helpful comments. Baker gratefully acknowledges financial support from the Division of Research of the Harvard Business School. Malcolm Baker serve as a compensated consultant for Acadian Asset Management, a global equity manager and a director for TAL, a publicly traded lessor of containers and chassis. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

Baker, Malcolm, and Jeffrey Wurgler. "Behavioral Corporate Finance: A Current Survey." In Handbook of the Economics of Finance. Vol. 2, edited by George M. Constantinides, Milton Harris, and Rene M. Stulz. Handbooks in Economics. New York, NY: Elsevier, 2012.

Expertly surveying the realm of corporate finance, this adroitly-crafted Handbook offers a wealth of conceptual analysis and comprehensively outlines recent scholarly research and developments within the field. It not only delves into the theoretical dimensions of corporate finance, but also explores its practical implications, thereby bridging the gap between these distinct strands.

Students focusing in Finance and Business Economics will develop the skills necessary to work at a high level of expertise in various areas of finance, including commercial and investment banking, corporate finance management, asset and wealth management, management consulting, mergers and acquisitions, venture capital and real estate.

The field of finance is changing rapidly, and students taking courses in finance will develop the basic tools and skills to be able to learn and adapt to these changes. The emphasis will be on how to think of creative, practical and efficient solutions to the new financial challenges facing our society.

The Marshall School's top-ranked Finance and Business Economics (FBE) Department consists of faculty members who are leading authorities in microeconomics, macroeconomics, corporate finance, investments, financial institutions, financial markets, and real estate finance. These academic disciplines are important for business planning and consulting, evaluation of capital investments and corporate strategies, and securities investment analysis, advising, and trading.

Professors from FBE and course instructors from the financial industry offer a range of elective courses preparing Marshall graduate students for a variety of careers. Possible finance careers include:

If you have a strong interest in finance but have not identified a particular career path in the field, consider concentrating on General Financial Management. This concentration allows the broadest exposure to finance and the most flexibility in course selection. Possible careers using preparation from this concentration include corporate project analysis and budgeting, business consulting, marketing financial services to corporations, employment in small business or start-up entrepreneurial firms, and general management in financial areas of all business and service industries. The concentration is ideal for students prepared to accept positions in corporations or with consultants to businesses which have a general financial management focus and/or organize work in interdisciplinary teams to solve general business or strategic problems.

A complete copy of the Finance and Business Economics Elective Course Guide for Marshall Graduate Students, including a detailed description of possible careers in Finance and course selection recommendations is available for download below.

Individuals seriously dedicated to investing and investment management may wish to consider applying for the Marshall Student Investment Fund program. For more information about this one-year commitment, visit the Center for Investment Studies website.

Students interested in a more structured approach to studying corporate finance or investments and those who wish to receive formal recognition of their expertise in this area should consider applying for admission to the Graduate Certificate program in Financial Analysis and Valuation.

The Graduate Certificate in Financial Analysis and Valuation program offers students intensive instruction and training to successfully compete in today's competitive global financial markets. The program draws in areas of concentration through courses in financial accounting, financial analysis, valuation, credit analysis, and financial instruments and markets.

This program is available to those exceptional students who have earned a GPA of at least 3.5 for their finance-related fundamentals coursework and are able to complete a structured curriculum of 15 units with a GPA of 3.6 for those units.

Units earned in the process of completing the certificate can be applied to the MBA, MMS, MSBA and some other master's degree programs at USC as long as the certificate is completed before or in the same semester as the master's degree. Successful completion of the Graduate Certificate program is documented on the graduate's USC transcript and acknowledged with a diploma issued by USC.

Students earning a Marshall master's degree are expected to complete their graduate electives within the Marshall School of Business by taking courses that begin with prefixes ACCT, BAEP, BUCO, DSO, FBE, GSBA, MKT, and MOR.

MS, MMS, and Graduate Certificate students: Students in MS, the MMS, and Graduate Certificate programs may not apply non-Marshall courses to their degree unless (a) the courses are included in the published curriculum of the program or (b) permission is granted by the Academic Director of the program prior to taking the course. A request for an exception must be submitted via petition (Marshall General Petition Form) to the student's program office prior to registering for the course.

This chapter discusses how applied researchers in corporate finance can address endogeneity concerns. We begin by reviewing the sources of endogeneity - omitted variables, simultaneity, and measurement error - and their implications for inference. We then discuss in detail a number of econometric techniques aimed at addressing endogeneity problems including: instrumental variables, difference-in-differences estimators, regression discontinuity design, matching methods, panel data methods, and higher order moments estimators. The unifying themes of our discussion are the emphasis on intuition and the applications to corporate finance.

Harvey Poniachek is a Ph.D. financial economist with corporate experience in consulting, banking and financial markets, professor of corporate finance and economics and is an author of books and professional articles. He is currently Assistant Professor of Professional Practice of finance & economics at Rutgers Business School. Previously, he was the Director of Valuation Services at RSM McGladrey, Inc. New York, involved in valuation of financial derivatives, private equity, and intercompany pricing; worked for the U.S. Treasury Department as lead economist in the area of transfer pricing, and was engaged in valuation of intellectual property and tangible assets; was senior manager and economist at E&Y; and VP & Economist at Bank of America, where he gained extensive experience in the banking industry and capital markets, and advised multinational companies and senior management on currency and money market trends, trading strategies, foreign country risk and opportunities.

"The Economic Impact of The Summer Olympics Games on the City of New York: An economic impact study that utilized the Commerce Department Regional Input-Output Tables." Prepared at E&Y for the NYC Sports Commissioner in 1990 and was designed to assist the city in determining the cost-benefit of bidding for the games

Michael S. Weisbach is the Ralph W. Kurtz Chair in Finance, as well as a Research Associate of the National Bureau of Economic Research. He has previously taught at the University of Illinois, the University of Chicago, the University of Rochester, and the University of Arizona. Professor Weisbach is a former editor of The Review of Financial Studies, one of the leading academic journals in finance, and has been an associate editor of five other academic journals. Professor Weisbach has broad-ranging research and teaching interests in finance and economics, with specialties in corporate finance, corporate governance, and private equity. He has 48 publications on these and related topics. His work has been cited over 49,000 times according to Google Scholar, and has been downloaded from SSRN.COM over 91,000 times.

Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade".[1] Its concern is thus the interrelation of financial variables, such as share prices, interest rates and exchange rates, as opposed to those concerning the real economy. It has two main areas of focus:[2] asset pricing and corporate finance; the first being the perspective of providers of capital, i.e. investors, and the second of users of capital.It thus provides the theoretical underpinning for much of finance.

3a8082e126