Research in Corporate Finance

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. 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, Mergers & Acquisitions, Private equity, Venture capital, FinTech

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. 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: Peter Roosenboom (full professor of corporate finance) is specialized in IPOs, crowdfunding, governance and private equity; Abe de Jong (full professor of corporate finance) is specialized in capital structure choice, dividend policy, risk management, corporate investment and divestment policies, and corporate governance; and Thomas Lambert (assistant professor in corporate finance) specialized in the political economy of finance and FinTech. Please see www.rsm.nl/finance for further information about these researchers and the finance group at RSM.

Approach

The research methods depend on the topic chosen.

Required Profile

The candidate must have a demonstrated interest in corporate finance and have knowledge of and demonstrated experience with both quantitative and qualitative research methods, including strong skills in econometrics.

Expected output

The ultimate aim for the PhD candidate is to publish at least three articles. For all articles, we target top finance and banking journals, such as the top finance journals (Journal of Finance, Journal of Financial Economics, and Review of Financial Studies) as well as high-end specialty journals (e.g., Journal of Corporate Finance, Journal of Financial Intermediation, and Journal of Banking and Finance). Before submitting to journals, drafts should be presented in seminars and workshops, posted on the ERIM website and SSRN, and presented at major finance conferences (e.g., AFA, WFA and EFA).

Cooperation

In this project we are open to all cooperation with groups at RSM, Erasmus and universities world-wide. All potential supervisors have extensive international networks.

Scientific relevance

The scientific contribution depends on the topic chosen.

Literature references

At Erasmus we subscribe to all major financial data bases, including ThomsonOneBanker (WorldScope, Datastream, SDC) and WRDS (Compustat, CRSP).