PhD Programs in Corporate Finance

How to Earn a PhD Degree in Corporate Finance

While there are not usually Doctor of Philosophy (PhD) programs available specifically in corporate finance, students can pursue a PhD in Finance that often emphasizes areas in the field, like corporate finance, asset pricing, financial institutions, and more. These degree programs typically take at least 4 years of study, may require between 15 and 18 courses, and may have additional requirements, such as a research or teaching practicum, exams, and/or research papers besides the dissertation. Students usually complete their required coursework in areas like finance and economics in the first 2 years of the program before conducting research for their dissertation, and some of these common courses required for these degree programs are discussed in more detail below.

Microeconomics

Students typically take at least two courses (an introduction level and a more advanced level) in microeconomic theory or analysis. The introductory courses examine topics in modern economic theory, such as consumer and producer theory, general equilibrium, nonlinear programming, and choice theory. The second, advanced course may begin to examine topics in strategic behavior in markets and various incentives. Students in these courses may discuss game theory, market design, competitive strategies, and decision making with uncertainty.

Econometrics

PhD in Finance programs also usually require multiple courses in econometrics that may advance in subject material. Some programs may include a course in the fundamentals of econometrics and then have one or more courses that discuss the methods of econometrics in greater detail. In general, these courses train students in the statistical methods of economics and include topics in probability, statistics, and analysis, and students in these courses may gain hands-on experience with software programs used in the field. Specific topics may include hypothesis testing, time series, simulation techniques, linear regression, estimators, and more.

Corporate Finance

Students generally take a course that examines the modern theory of corporate finance and may include topics in financial institutions. These courses could explore current research in the field and discuss how various financial interactions and theories affect the decision-making process in corporate finance. Students might also learn the methodologies and technical tools used to analyze various topics in the field. Specific topics students in these courses may discuss include capital structure, product market corporate finance interactions, security design, corporate control, agency conflicts, and more.

Empirical Asset Pricing

Doctoral students in asset pricing courses receive an overview of current research and literature in the field. These courses may focus on econometric methods, financial economic theory, and analyzing financial market data, as well as how to analyze and evaluate pricing models. Other specific topics for these courses may include goodness-of-fit tests, asset pricing dynamics, uncertainty, asset market imperfections, and investor behavior. These courses may require students to write various research papers.

Empirical Corporate Finance

Students in empirical corporate finance courses learn about the current empirical research and methods in the field, including panel data models and program evaluation. Other topics up for discussion in these courses may include investment policy, financing decisions, financial contracting, duration models, structural estimation, and matching techniques. Students typically need to have prior coursework in econometrics for these courses and may be required to complete presentations and/or other exercises.

Admittance Requirements for Doctoral Programs in Corporate Finance

Due to the hard work required in PhD in Finance degree programs, admission to these programs may be selective and require students to meet a specific standard of academic excellence. Applicants to these programs generally need to have a strong background in mathematics and economics and/or prior coursework in areas like calculus, linear algebra, probability, and statistics. If students do not have prior coursework in these areas, they may need to correct deficiencies prior to enrollment or during the first year of the program. Other requirements for these degree programs may include having programming skills in languages like MATLAB, C, or Fortran, and/or having adequate scores for the GRE or GMAT. Applications for these PhD programs generally require students to include their transcripts, letters of recommendation, and/or a personal statement.

Students interested in studying corporate finance at the doctoral level can earn a PhD in Finance and take courses in corporate finance and other related areas. These programs typically require a dissertation and can be completed in about 4 years.