Corporate financial decisions comprise the decision on how to invest the cash of the firm as well as the decision on how to raise financial funds from investors. These decisions are complex because financial markets are imperfect, and asymmetric information causes conflicts of interest between investors and the firm. Furthermore, investors as well as managers do not always behave rationally.
The research at the Chair of Finance focuses on developing a better understanding of how corporate financial decisions are made. Our teaching provides our students with the essential understanding of financial theory and how financial models can be applied in practice. In research as well as in teaching the Chair aims at combining theory with practical orientation.
- Prof. Dr. Ulrich Pape
We offer the following courses:
"Finance matters" relates to the relevance of financing decisions for the value of a firm. The company’s economic success, measured by the firm value, is not only driven by the firm’s business operations, but can also be increased by financial decisions. Motivated by the fact that corporate financial decisions affect the firm value, the Chair of Finance examines several qualitative and quantitative research questions at the intersection of corporate finance and related business fields such as entrepreneurship and strategy.
Driven by empirical dedication, the Chair’s current research takes on the challenges of national and international capital markets and focusses on value-based management and financial strategy, financial decisions in early stage venture capital investments, equity valuation in financial technology transactions, and the impact of mergers and acquisitions on the value of the firm.
Value creation through M&A
Mergers and Acquisitions are considered to be one of the most important investment decisions in a company’s life cycle. Despite the large sums spent on M&A and the vast number of studies analyzing their economic impact, the role of individual decision makers is still not well understood. In this research field we examine the impact of a company's Top Management Team on the entire takeover process from deal initiation to its completion.
Politics and Finance Research
Political aspects are becoming more relevant in finance research. One political phenomenon that is on the rise in western democracies is populism – a term widely used in politics and the media. Many studies have looked at political causes and effects of populism in the short-term. Yet the long-term financial impacts of this political phenomenon remain an understudied topic. We therefore aim at looking into its long-term effects and examine whether populism or varieties of it are priced in capital markets.