Frankfurt School's Finance Department is a leading centre for finance research in Germany.
The emphasis in research and teaching is in the areas of Banking, Corporate Finance, Risk Management, Financial Regulation, and Asset Management. Members of the finance department regularly publish in leading finance journals, including the Journal of Finance, the Review of Financial Studies, and the Journal of Financial Economics, and they frequently present their research at leading international finance conferences.
The department is very internationally oriented, with many of its faculty members having worked at leading international business schools around the world. Members of the department teach in Frankfurt School’s Bachelor, Master, and Doctoral Programmes. A strong network and connections with the financial industry and central banks guarantee significant contributions to topical issues in finance.
In the following, we present selected publications by the faculty in our Finance Department, that have been published in prestigious journals in the past three years or have been accepted for publication.
Mönch, E., Soofi-Siavash, S., 2022. What Moves Treasury Yields?, Journal of Financial Economics. (forthcoming)
Chabi-Yo, F., Dim, C., Vilkov, G., 2022. Generalized Bounds on the Conditional Expected Excess Return on Individual Stocks, Management Science. (forthcoming)
Berg, T., Reisinger, M., Streitz, D., 2021. Spillover Effects in Empirical Corporate Finance, Journal of Financial Economics Vol. 142, S. 1109-1127.
Berg, T., Saunders, A., Schäfer, L., Steffen, S., 2021. Brexit and the Contraction of Syndicated Lending, Journal of Financial Economics Vol. 141(1), S. 66-82.
Fabisik, K., Fahlenbrach, R., Stulz, R., Taillard, J., 2021. Why are firms with more managerial ownership worth less?, Journal of Financial Economics Vol. 140(3), S. 699-725.
Ilhan, E., Sautner, Z., Vilkov, G., 2021. Carbon Tail Risk, Review of Financial Studies Vol. 34, S. 1540-1571.
Acharya, V., Borchert, L., Jager, M., Steffen, S., 2021. Kicking the Can Down the Road: Government Interventions in the European Banking Sector, Review of Financial Studies Vol. 34(9), S. 4090-4131.
Dow, J., Han, J., Sangiorgi, F., 2021. Hysteresis in Price Efficiency and the Economics of Slow-Moving Capital, Review of Financial Studies Vol. 34(6), pp. 2857-2909.
Cremers, M., Pareek, A., Sautner, Z., 2021. Short-Term Institutions, Analyst Recommendations, and Mispricing: The Role of Higher-Order Beliefs, Journal of Accounting Research Vol. 59(3), pp. 911-958.
Berg, T., Burg, V., Gombovic, A., Puri, M., 2020. On the Rise of FinTechs: Credit Scoring using Digital Footprints, Review of Financial Studies Vol. 33(7), S. 2845–2897
Haliassos, M., Jansson, T., Karabulut, Y., 2020. Financial Literacy Externalities, Review of Financial Studies Vol 33(2), S. 950–989
Cremers, M., Pareek, A., Sautner, Z., 2020. Short-Term Investors, Long-Term Investments, and Firm Value: Evidence from Index Inclusions, Management Science. Vol 66(10), S. 4359-4919
Krueger, P., Sautner, Z., Starks, L., 2020. The Importance of Climate Risks for Institutional Investors, Review of Financial Studies Vol 33(3). S. 1067–1111
Acharya, V., Imbierowicz, B., Teichmann, D., Steffen, S., 2020. Does the Lack of Financial Stability Impair the Transmission of Monetary Policy?, Journal of Financial Economics Vol. 138(2), S. 342-365
Breugem, M., Buss, A., 2019. Institutional Investors and Information Acquisition: Implications for Asset Prices and Informational Efficiency, Review of Financial Studies Vol. 32(6), pp. 2260-2301.
Buss, A., Dumas, B., 2019. The Dynamic Properties of Financial-Market Equilibrium with Trading Fees, Journal of Finance Vol. 74(2), pp. 795-844.
Grosse-Rueschkamp, B., Steffen, S., Streitz, D., 2019. A Capital Structure Channel of Monetary Policy, Journal of Financial Economics Vol. 133(2), S. 357-378.
Berg, T., 2018. Got Rejected? Real Effects of Not Getting a Loan, Review of Financial Studies Vol. 31(12), S. 4912-4957.
Fecht, F., Hackethal, A., Karabulut, Y., 2018. Is proprietary trading detrimental to retail investors?, Journal of Finance Vol. 73(3), S. 1323-1361.
Ghysels, E., Horan, C., Mönch, E., 2018. Forecasting through the Rearview Mirror: Data Revisions and Bond Return Predictability, Review of Financial Studies Vol. 31(2), S. 678-714.
Schäfer, L., Beck, T., Ioannidou, V., 2018. Foreigners vs. Natives: Bank Lending Technologies and Loan Pricing, Management Science Vol. 64(8), S. 3469-3970.
Jochem, T., Ladika, T., Sautner, Z., 2018. The Retention Effects of Unvested Equity: Evidence from Accelerated Option Vesting, Review of Financial Studies Vol. 31(11), S. 4142-4186.
Malamud, S., Vilkov, G., 2018. Non-Myopic Betas, Journal of Financial Economics Vol. 129(2), S. 357-381.
Frankfurt School’s Finance Research Seminars provide a forum for researchers of all disciplines to present and discuss their research.
In these exceptional times, the seminar will take place online. The seminars will be organized by zoom. In case of interest, you may subscribe via e-mail in order to get invitations for our research seminar and other events.
The members of our Finance Department cluster their expertise in two different research centres.
Each centre has its own clearly defined area of specialisation and conducts an ongoing expert exchange with representatives of experts from other universities, the financial community and journalists. In their projects, the researchers study current issues in the economy and provide well-founded approaches for the resolution of these issues.
In general, corporate governance is about problems that arise between a principal and an agent. Imagine you have just set up company and you – as a principal – have hired a CEO – as an agent – to run your business. The CEO may take actions that are beneficial for him, but not for you. The costs associated with such actions are called agency costs.
1. How do banks and non-banks compare?
2. Why is asset risk so important?
3. What are some implications of your research?
4. How could this research be taken further?
1. What is an option?
2. Why do options have a bad reputation?
3. What is implied volatility?
4. What can implied volatility tell us?
5. What is implied correlation and how is it useful?
6. How are you using implied volatility in your research?
What is the Global Trends in Renewable Energy Report and how is it related to Frankfurt School?
Burning fossil fuels like coal, oil or natural gas moves cars, produces electricity or heat. Unfortunately, it also generates carbon dioxide emissions, and drives climate change.
The European Union has decided to strongly reduce emissions. Obviously this should be done at the lowest costs to the firms and the people.
That is where the Emissions Trading comes into play.
How does the lending behaviour differ between foreign and domestic banks in developing markets and which are the implications for credit markets. In our newest FS Insights video Prof. Dr. Larissa Schäfer from our Finance Department speaks about her latest publication.
Was Sie immer schon einmal wissen wollten: Wie ist die deutsche Altersvorsorge aufgebaut und was sind die Garantiekosten wirklich wert? Wie unterscheiden sich kapitalgarantierte Sparpläne von Aktiensparplänen und was hat der Niedrigzins mit der Rentenlücke zu tun - hier finden Sie alle Antworten!
Michael H. Grote on market making, arbitrage and other high frequency trading strategies.
“Prices should signal scarcity or abundance and ultimately they should drive human action – none of this takes milliseconds”
What is shareholder activism and why is it important?
The tasks of an asset manager can be compared to the work a chef does when assembling a multiple course menu for his guests.
The chef will purchase the necessary ingredients at a food market – the asset manager procures security papers from the capital market. He needs to consider and incorporate his client’s willingness to take risks – the chef on the other hand needs to cater to his guest’s tastes. Too little salt is just as detrimental as too much of it.
Prof. Dr. Zacharias Sautner on his latest investment paper. What are the incentives of short-term investors and how “short” is short-term?
Prof. Dr. Hellmich (Karl Friedrich Hagenmüller Professor of Management Practice in Financial Risk Management) on Brexit and its meaning for the European Union.
Companies increasingly use M&A as the fastest way to grab market opportunities or to restructure their businesses. Prof. Dr. Michael Grote summarizes the concept in around 90 seconds. He is Professor of Corporate Finance at Frankfurt School and focuses on corporate finance and capital markets, in particular Mergers and Acquisitions and private equity.