Empirical Methods in Finance

This course is an introduction to some of the main empirical methods used in financial economics.

Course Objectives

The course focuses on the some of the most widely used linear asset pricing models, such as the CAPM and the 4-factor model of Fama and French (1993) and Carhart (1997). The use of instrumental variables and their applications to corporate finance will also be discussed

Course Content

  1. Simple regressions and the Capital Asset Pricing Model
  2. Multivariate regressions. Application: Multifactor asset pricing models
  3. Instrumental variable regressions. Application: Performance of family firms.