Financial Management
Corporate Diversification
Is corporate diversification (operating as a conglomerate in several different business lines) consistent with
shareholder wealth maximization? Or what types of problems can arise?
FIN 751
Research Paper
This project will require you to research a topic in corporate finance. I provide you with some suggestions of topics later in this document, but you are free to choose another topic (it needs to be approved by me).
The purpose of the research assignment is twofold. First, it is to introduce the student to the wide selection of electronic research facilities available from the library. The second objective is for the student to gain an in-depth knowledge of a topic related to the course that is not covered thoroughly by the lecture or the textbook.
Important Dates
Week 2: Your topic and a brief outline
Week 7: Research paper is due
Research Paper Structure
a. Introduction to the topic you chose, definitions, and why the topic is important in corporate finance / financial management.
b. A review of some of the literature related to your topic. This should include a review of both theories (theories predict how individuals will behave) and empirical studies (empirical analysis uses data to test if the prediction of the theory are supported).
· For example, let’s say you choose to write about dividends. There is the agency theory, signaling theory, and others. You should discuss these theories, and then also discuss some papers that attempted to “test” if the data supports these theories.
c. Your assessment of the literature, including your opinions after reading the existing arguments.
· For example, do you feel the literature is missing something? Which theories do you tend to agree with the most? Have you had any firsthand experiences or opinions on the topic? Do you have any predictions that were not covered in the literature you read?
d. Brief concluding remarks.
e. References (here is a link for APA formatting:
https://owl.english.purdue.edu/owl/resource/560/1/
The content of the report matters much more than the length. As a very general guideline, the paper should be around 10 pages including references. If you turn in 4 pages, you did too little. If you turn in 20 pages, you did too much.
Rubric
The research project is worth 20% of your total course grade. The project will be worth 100 points, which are broken down as follows.
5 points: On time submission of the outline and the final project.
10 points: Exposition: including the structure of the paper, grammar, punctuation, clarity, references, etc.
65 points: Literature Review: your writing on the existing theories and empirical papers related to your topic.
20 points: Original thought: your interpretation of the existing literature, your ideas and opinions, the reasoning that led to your ideas, your hypotheses, etc.
· Note: I am looking for critical thinking, connecting concepts to formulate new ideas, etc.
Research Paper Potential Topic List
(Remember, you can choose a different topic, but I need to approve it).
Note: The bullet points within each topic are just for your guidance. You can choose your own path within these topics.
Corporate Social Responsibility (CSR)
· Do CSR activities aid in shareholder wealth maximization? What are arguments for and against firm’s participating in CSR activities?
Shareholder Activism
· Do shareholder activists alleviate the agency problem? Or do they promote short-term fixes too problems and distract from long-term value creation.
Corporate Diversification
· Is corporate diversification (operating as a conglomerate in several different business lines) consistent with shareholder wealth maximization? Or what types of problems can arise?
Illegal Insider Trading
· Are there any potential benefits to allowing insider trading?
Dividends and / or Repurchases
· I already gave you enough hints in an earlier section.
Executive Compensation
· Is CEO pay too excessive?
Corporate Tax Reform
Resources
You can use any reputable sources. Some recommendations:
·
https://www.google.com/
a. Google key words related to your topic for access to many free materials and sift through them, refining your search terms along the way. For example, if you start with “illegal insider trading”, but your interest shifts to potential benefits of insider trading, google “are there any benefits of insider trading?”
·
https://scholar.google.com/
a. For academic journal articles, use this google scholar link. Then you can access the articles, if available, through the STU Library website.
Newpapers, Magazines, Academic Journals
Wall Street Journal
Economist
Business Week
Fortune
Journal of Finance
Journal of Small Business Finance
Journal of Case Management
Journal of Financial Planning
Journal of Portfolio Management
Journal of Accounting, Auditing, and Finance
Journal of Business
Journal of Accounting Research
Journal of Political Economy
Journal of Financial Services Research
Journal of Financial Economics
Journal of Banking and Finance
Journal of Financial and Quantitative Analysis
The Financial Review
Review of Business and Economics Research
Akron Business and Economic Review
International Review of Economics & Business
National Tax Journal
Financial Executive
The Review of Economics and Statistics
California Management Review Corporate Cash Flow
The American Economic Review
The European Economic Review
International Economic Review
Financial Management
Global Finance
Management Decision