FINANCE

General Information
The subject of finance is concerned with the manner in which individuals and firms allocate resources among competing uncertain alternatives over time. Finance deals specifically with portfolio decisions of individual investors, with investment and financing decisions by firms, and with the implications of such behavior for the pricing of capital assets in the market place. Recommended course work in the area of finance covers the basic tools, theory, and empirical evidence necessary to give students a solid foundation upon which to generate and disseminate new knowledge throughout their careers. Students are encouraged to enter into research projects, either individually or jointly with faculty or fellow students in addition to the dissertation requirement. Students also obtain valuable teaching experience during their Ph.D. program of studies at the University of Washington.

Our faculty’s interests in finance include theoretical, institutional and empirical analyses of (1) corporate finance topics such as capital budgeting, project valuation, capital structure, dividend policy and the cost of capital, (2) mergers and acquisitions, (3) corporate control, (4) the management of financial institutions, (5) new venture financing, (6) mutual funds and related investment vehicles, (7) international finance, (8) tests of asset pricing models, (9) options and futures markets, (10) market micro-structure, and (11) the behavior of interest rates and foreign exchange rates.

Admission Requirements
Applicants must have completed an undergraduate degree at an accredited university and should have a reasonable training in mathematics and economics. An admission committee of faculty members reviews all completed applications. While the committee considers all relevant factors in its recommendations, important factors include past academic performance and GMAT scores. The GRE exam can be substituted for the GMAT but the GMAT is strongly preferred. In some cases we may request a personal interview.

Recommended Preparation Prior to Entry
Students entering the Ph.D. program as finance majors should be comfortable with the important concepts of calculus, linear algebra, and microeconomics before they arrive on campus. It is strongly recommended that all new finance majors carefully review this material during the Summer before entering the program.

Finance Area Faculty Coordinator
Prof. Alan Hess, Finance Area Faculty Coordinator, would be glad to answer your questions. Contact him by phone (206-543-4579) or by email (hess@uw.edu).

The Finance Area Faculty Coordinator advises new students until they establish a Supervisory Committee by the end of the Spring quarter of their first year (the committee consists of a major area advisor and a faculty representative from each supporting area). The supervisory committee assists the student in choosing appropriate courses, approves the course of studies, and monitors the student’s progress.

Department Web Site
Course Requirements for Finance Major
A Typical Course Schedule
Course Requirements for Finance Minor
Other Requirements
Finance Faculty