Introduction

This course is the first part of the NAKE Finance and Banking course, taught by me, Jaap Bos. The second part will be taught by Steven Ongena (information on that second part is available at www.nake.nl).

Introduction

The objective of this course is to read and understand scientific papers in empirical banking. To accomplish this objective, emphasis will be placed on illustrating basic research methodologies used in banking and learning the application of these methodologies to selected topics. The research methods that will be specifically discussed in the class are inter-temporal (event study) and cross-sectional research methods. The topics that will be covered are listed under the Literature heading.

It is evident that any empirical research should be based on theoretical foundations. All students are therefore expected to have an active interest in banking theory.  There will be opportunities offered during the course to explore selected theoretical models upon which empirical applications are based.

Course organization

The course is organized in Block Two (October/November 2011). There will be 3 2-hour lectures and one 4-hour lecture. Students are expected to read the required literature of each lecture in advance. This will help in better understanding of materials covered in the class and in useful participation in class discussions.

Course schedule

Check the Calendar section. And subscribe to the calendar, if you want to be automatically notified of any changes.

Exam

The remaining 50% of the final grade consists of a paper. In the paper, you are expected to compare and summarize the methodology used and results obtained (both statistical significance and economic relevancy) in two related articles in the empirical banking literature. You will select two articles that raise the same question, but differ significantly with respect to the methodology used to answer that question. The choice of the two articles is subject to approval by me. The resulting review will consist of between 5 and 10 pages of text.  Additional summarizing tables and figures are encouraged.  Email pdf to j.bos@maastrichtuniversity.nl before January 6, 2012: 12:00 noon CET. Late penalty, 2% discount per 24 hours.

Dec 28, 2011