Finance (Economics)

Doctoral-level courses cover theoretical models and their empirical application to problems related to corporate financing and investment decisions, security analysis, portfolio management, and financial institutions and capital markets. A required sequence of four courses is specifically designed for and limited to doctoral students. The unifying theme of this course work is an understanding of the process of asset valuation in a competitive securities market. Knowledge of calculus is assumed. In addition, students customarily employ the computer in their courses in security analysis and portfolio management. Research emphasizes application of theoretical models so that students enhance their understanding of the models as well as their knowledge of the fields to which models can be meaningfully applied.

Unique Features

• Faculty on Editorial Boards for top academic journals
• Quantitative research receives special emphasis in program of study
• Doctoral fellowships available
• Small program with low student-faculty ratio
• Placements at prestigious universities as in UCLA, Carnegie Mellon, University of Michigan, London Business School

Student Profile (what we look for in an applicant):

• Strong analytical background
• MBA is helpful, but not required; graduate degree a plus.
• Work experience not required, although applicants typically have some experience in finance, consulting, or a technical field such as engineering.

General Managerial Skill Requirement

Students must take (or receive a waiver based on equivalent master's level courses) MGMT 610 (Financial Management I), MGMT 641 (Options and Futures), and MGMT 600 (Financial Accounting) plus any one of the following four core courses: 

• MGMT 620 Marketing Management
• MGMT 650 Strategic Management
• MGMT 660 Operations Management
• OBHR 681 Behavior in Organizations 

Research Methods Requirement

Competence in Research Writing

Students must complete a research paper in at least one of the two doctoral seminars in finance offered in their first year in the program. In addition, students are expected to be working on research projects (individually or in collaboration with faculty) during the summer between the first and second year in the program. At the beginning of the summer term, each first year student must submit a one-page research plan for the summer to the Ph.D. student advisor. At the end of the summer term, each student's progress in research writing will be evaluated by the Ph.D. student advisor along with the finance faculty.

Research-Methods Topics 

Each finance student must complete research-methods topics in (a) Applied Statistics, and (b) Advanced Statistics/Econometrics. To complete the research-methods topic in Applied Statistics, students must take at least 6 credit hours from Category 1 or 2 in the Applied Statistics topic, as listed in the revised Ph.D. Program in Management. To complete the research-methods topic in Advanced Statistics or Econometrics, a student is required to take 8 credit hours in the Advanced Statistics/Econometrics topic. The Advanced Statistics/Econometrics topic has as a pre-requisite the Applied Statistics researchmethods topic and courses taken to satisfy that topic cannot be used to satisfy the requirements of the Advanced Statistics/Econometrics topic. 

A student may petition to complete a research-methods topic other than Applied Statistics or Advanced Statistics/Econometrics. Such a change in curriculum will require approval of the Ph.D. student Advisor & the finance Area Coordinator in conjunction with the finance faculty. 

Concentration (Major) Area Requirement

Each student must take a series of four doctoral seminars in finance. If a student performs poorly in any of these seminars or performs poorly on the preliminary examination, he/she may be required to re-take one or more of the doctoral seminars. In addition, each student is required to take MGMT 690, Topics in Finance, each semester that he/she is in the program. 

Related (Minor) Requirement

Finance students are required to complete a minor in Economics. To do so, each student must take ECON 606 (Micro I - Consumer and Producer theory; Markets), ECON 607 (Advanced consumer and producer theory) and ECON 615 (Mathematics for Economists). In addition, each student must take two other economics courses from the following set: 

• Econ 608 - Macro I - Dynamic Programming
• Econ 609 - Micro III - General Equilibrium and Social Welfare
• Econ 610 - Game Theory
• Econ 611 - Macro II - Intro. to General Equil. Macro Models
• Econ 612 - Macro III - Intro. to Selected Topics in Macroeconomics
• Econ 614 - Information and Uncertainty

Other Ph.D. courses may be substituted to fulfill this requirement at the discretion of the faculty. 

There is a minimum grade-point average requirement of 3.2 for the finance courses, as well as a minimum grade-point average requirement of 3.2 to fulfill the research-methods requirement for the management doctoral program in the finance area. In attempting to attain this minimum grade-point average, a student may retake any two courses once. If the grade achieved by retaking the course is higher than the initial grade, the second grade will be substituted for the first in computing the student's grade point average for the purpose of satisfying the grade requirement. If a student does not achieve the minimum 3.2 grade-point average, the student will be dropped from the program. Additionally, a student must retake any class for which they received a grade of C+ or below, even if they otherwise meet the 3.2 requirement. 

Plan of Study 

Students are required to submit a formal plan of study to the Graduate School by the end of the Spring Semester of their second year in the program, and prior to taking the preliminary examination. 

Preliminary Examination 

Students are required to pass the preliminary examination in finance held in May on completion of the second year in the program. If a student fails the exam, the student must retake the exam in January and if the student fails again, he or she will be dropped from the program. 

Doctoral Dissertation Proposal/Dissertation Committee Requirement

Within twelve months after passing the preliminary examination, each student must formally present and defend a dissertation research proposal to his/her dissertation committee. To be accepted, the proposal must represent substantial progress towards completion of a doctoral thesis along with a statement of further work to be performed. Once accepted by the committee, the proposal is considered a "contract" that will guide the student towards completion of the dissertation. A student may be dropped from the program if there is a significant delay in achieving an acceptable proposal. 

Defense of Dissertation 

Each student is required to make a public defense of his/her dissertation. The required procedures for holding a dissertation defense are listed in the revised Ph.D. Program in Management. 

• Please complete your application online by visiting the Purdue University Graduate School Site for Electronic Applications.
• The required application fee of $60 (U.S. dollars) for domestic applicants (including permanent residents) and $75 (U.S. dollars) for international applicants may be paid online using either Visa or MasterCard.
• One official transcript from each college or university attended with degree certification.
• Official score report of required admission test(s).
• Resumé or CV, submit online with your application.
• Statement of purpose or essay, submit online with your application.
• Two academic or professional letters of recommendation.
• TOEFL