In progress Doctoral Research in Corporate Finance

Reference:
ERIM PhD RSM 2017 FA CF

Abstract

This proposal is broadly defined as empirical research in Corporate Finance. We invite candidates to indicate their preferences for a specific topic in this broader field. In this proposal we provide several directions for a specific topic and we present potential supervisors. In corporate finance, the financial and strategic decisions are studied from a financial economics perspective. Our group is specialized in empirical research in this field. The first topic in this field is financing/capital structure decisions including bank loans, private equity and start-up or venture capital financing. The second, related topic is financial intermediation. A third topic is financial history. The final topic is corporate governance, which includes shareholder rights and activism and managerial compensation issues.

Keywords

Corporate finance, Empirical research, Capital structure, Corporate governance, Private equity, Venture capital, Financial history

Time frame

2017 - 2021

Topic

In the field of financing and capital structure decisions, several topics can be thought of. The broadest question include: Why do firms issue debt or equity? How do firms determine their capital structures? And what are the value effects of capital structure decisions? More specific issues relate to specific instruments, such as convertible bond issues and bank loans. Interesting research questions arise about the conditions under which firms opt for specific instruments and the value implication of these choices. Similarly, the capital requirements by small and start-up firms are fundamentally different from the needs of mature firms - a research area is the private equity, venture capital and crowdfunding industry.  Financial intermediation deals with role of commercial banks and other credit institutions in the interaction with financial markets and corporations. Research questions include the causes and effects of firm-bank relations, bank competition, the advisory roles of banks in mergers and acquisitions, and IPO underwriting. Within the department of finance, supervision capacity in financial history is present. Candidates with a background or interest in (economic or financial) history are encouraged to apply and indicate their preferences. In the 17th-19th centuries, the Dutch capital market in Amsterdam was a global financial centre, of which rich data on international firms and securities is still widely available. In particular, historical analyses of capital structure choice, IPOs, mergers, corporate governance, security pricing and market efficiency provide suitable topics. Finally, in corporate governance, the principal-agent problems in companies are studied. These problems may arise, e.g., between managers and shareholders or between large and minority shareholders. Corporate governance studies, among others the effects of shareholder rights and activism, the effects of institutional ownership, and managerial compensation issues.

The list of potential supervisors includes the following members of the finance group: Abe de Jong (full professor of corporate finance) is active in the fields of capital structure, governance and business history. Peter Roosenboom (full professor of private equity) is specialized in IPOs, crowdfunding, governance and private equity. Please see www.rsm.nl/finance for further information about these researchers and the finance group at RSM.

Supervisory Team

Abe de Jong
Professor of Corporate Finance and Corporate Governance
  • Promotor
Peter Roosenboom
Professor of Entrepreneurial Finance and Private Equity
  • Promotor