You are here

Finance

The field of finance covers the economics of claims on resources. For example, money is a claim on goods and services; stocks and bonds and futures contracts are all claims on money or on commodities.

Financial economists study the valuation of these claims, the markets in which they are traded, and their use by individuals, corporations, and the society at large.

At Stanford GSB, finance faculty and doctoral students study a wide spectrum of financial topics, including the pricing and valuation of assets, the behavior of financial markets, and the structure and financial decision-making of firms and financial intermediaries.

Investigation of issues arising in these areas is pursued both through the development of theoretical models and through the empirical testing of those models. The PhD Program is designed to give students a good understanding of the methods used in theoretical modeling and empirical testing.

Preparation and Qualifications

All students are required to have, or to obtain during their first year, mathematical skills at the level of one year of calculus and one course each in linear algebra and matrix theory, theory of probability, and statistical inference.

Students are expected to have adequate programming skills using languages such as Fortran, C, MATLAB, or GAUSS, or to correct any deficiencies before enrolling at Stanford.

The PhD Program in finance involves a great deal of very hard work, and there is keen competition for admission. For both these reasons, the faculty is selective in offering admission. Prospective applicants must have an aptitude for quantitative work and be at ease in handling formal models. A strong background in economics and college-level mathematics is desirable.

It is particularly important to realize that a PhD in finance is not a higher-level MBA, but an advanced, academically oriented degree in financial economics, with a reflective and analytical, rather than operational, viewpoint.

Recent Journal Articles in Finance

Shai Bernstein
Journal of Finance. August

Publication commas

2015, Vol. 70, Issue 4, Pages 1365-1403
Jonathan B. Berk, Jules H. van Binsbergen
Forthcoming: Journal of Financial Economics. March

Publication commas

14, 2015
Shai Bernstein, Arthur Korteweg, Kevin Laws
Journal of Finance (forthcoming).

Publication commas

2015

Recent Insights by Stanford Business

August 11, 2015
Written

Shai Bernstein: Does Face Time with Investors Make a Startup More Successful?

Having investors you can easily interact with can help a business grow.
illustration of an airplane with exit stairs | istock
July 30, 2015
Written

Shai Bernstein: What Really Matters to Early-Stage Investors?

The team behind a business concept can be more important than the idea itself.
Man walking past a slogan at the Google Campus start-up space in the Gangnam district of Seoul | Reuters/Thomas Peter