The large research field of Finance has a strong theoretical foundation, a broad empirical basis and is of foremost practical relevance. From a material view it deals with basic problems of individual decisions on risky financial instruments. From a classical and behavioral view, it discusses why financial institutions like banks and insurance companies exist and how they should be optimally managed and regulated, and it analyzes the structure of optimal financial contracts and their values under different market regimes. Under methodological aspects it combines fruitfully advanced mathematical modeling techniques with numerical solution procedures, econometric estimation methods and statistical tests of the results. No other field in economics has confronted its theoretical results with empirical facts as much as Finance. The reason for this strong empirical orientation of Finance is the availability of excellent databases. These market data are often supplemented by data on individual decision making and by data on non-traded financial contracts, all available at the University of Mannheim.
Fields of Research
The research of the Finance Group (Albrecht, Maug, Niessen-Ruenzi, Ruenzi, Terberger, Theissen, von Thadden (Economics),Weber, Demirci) covers all major fields in finance, including Asset Pricing, Banking, Behavioral Finance and Decision Making, Corporate Finance, Corporate Governance, Investment Management, and Insurance and Risk Management. The research results are regularly published in the leading finance journals, such as the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies and faculty present their work at the prime international conference (American Economic Association, American Finance Association, European Finance Association, Western Finance Association).
Asset Pricing deals with theories of fair values of financial instruments and the impact of price, credit and liquidity risk on prices. It contributes to a better understanding of price movements on capital markets.
Behavioral Finance has become increasingly popular in recent years. This field addresses the problems of how individuals behave and how they build their expectations. While traditionally focusing on retail investors, behavioral finance now increasingly also analyzes the behavior of corporate managers and professional investors.
Corporate Finance deals with the optimal structuring of contracts with agents, equity and debt holders of a firm under symmetric and asymmetric information, while Corporate Governance is concerned with rules and regulations governing the firm and its optimal control.
Investment Management examines (optimal) investment strategies of individual investors and institutions as well as the dynamics and problems that arise when investors delegate investment decisions to, e.g., mutual funds or hedge funds.
Risk Management is strongly related with asset pricing, banking and corporate finance. It studies the exposure of financial and non-financial firms to market, credit, liquidity, operational and economic risk.
The following information is required for an application:
- Personal data
- Letter of motivation: Please provide a statement explaining your current goals, career plans and reasons for being interested in the PhD program in Business. Discuss your study plans and your fields of interest. Your statement should be in English and not exceed 700 words.
- Certificates and transcripts of grades: A transcript from each college or university is required. The degree certificate is not sufficient. The transcript should show courses, grades and degrees received, mentioning rank or distinction if applicable. A translation is required for any transcript in a language other than English or German. At this stage of the application process it is not necessary to notarize or apostil the translations. If you are accepted we need notarized translations. An apostil is not necessary. If you have not yet finished your current degree, please attach a preliminary grade report (again in English or German).
- GMAT (or GRE): All applicants must enter or upload test scores on the online application. While GMAT is the preferred test, adequate GRE scores may be handed in alternatively. There is no minimum required score. Ask the GMAT Customer Service to report your test scores using the following program code: VLC-95-89 (or the Educational Testing Service using the program code: 0933).
- Letters of recommendation: Two letters of recommendation are required from faculty who are able to assess your academic ability and potential.
- Writing sample: Please attach a writing sample in English or German, e.g., a paper you have written during your studies.
- Any supplementary information relevant to your application.
In order to make the application process as convenient as possible for you, we offer an online application portal, which is available from November 2015, on.