General Information
Finance is the study of investment and financing decisions by firms, the portfolio decisions of individual investors, and the implications of those decisions for the pricing of capital assets. Finance includes the study of corporate financial decisions, corporate control, the role and management of financial institutions, new venture financing, mutual funds and other investment vehicles, market microstructure, asset pricing and portfolio choice, international finance, and the behavior of interest rates and foreign exchange rates.
The Finance department at the Foster School has a long and distinguished record of excellence. It is the birthplace of the Capital Asset Pricing Model (CAPM), the Western Finance Association (WFA), and the Journal of Financial and Quantitative Analysis (JFQA). The finance department is the longtime home of the JFQA, widely regarded as one of the four leading journals in Finance. Our faculty serve as editors and associate editors at all four of the top journals in finance – at the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, and the Journal of Financial and Quantitative Analysis – and at other leading finance journals.
The main objective of the finance PhD program is to produce outstanding researchers who can be placed in the world’s top academic finance departments. Our faculty are open to a large variety of research styles and methods. At the same time, we have a strong department identity, which stresses the joint application of equilibrium reasoning and empirical analysis to understanding financial economics. We have a very active seminar and summer visitor program which attracts leading academics to Seattle and provides many opportunities for interaction. Our heavy representation at top journals ensures that PhD students will be exposed to cutting edge research and will have the opportunity to learn first-hand how leading journals evaluate papers submitted for publication.
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 regularly enter into research projects jointly with faculty in addition to the dissertation requirement. Students also obtain valuable teaching experience during their Ph.D. program of studies at the University of Washington.
Admission Requirements
The following courses are required for all finance majors. The number of credits for each course is indicated in parentheses after the course number.
| Course Number | Catalog Title |
| FIN 580 (4) | Corporate Finance I |
| FIN 585 (4) | Empirical Methods in Finance |
| FIN 589 (4) | Advanced Topics in Finance |
| FIN 590 (4) | Asset Pricing I |
| FIN 591 (4) | Corporate Finance II |
| FIN 592 (4) | Asset Pricing II |
Finance majors are also expected to register for and attend the Finance Research Workshop (FIN 599) each quarter of the regular academic year in which they are enrolled in residence.
Research Methods Minor Area Requirements
Finance students are strongly encouraged to take Econometrics as their research methods minor. An Econometrics minor consists of the following courses at a minimum:
Econometrics
| ECON 580 (4) | Applied Econometrics I |
| ECON 581 (4) | Applied Econometrics II |
| ECON 582 (4) | Applied Econometrics III |
Other Minor Area Requirements
In addition to the finance area, all students majoring in finance are required to choose three support areas. Both research methods and microeconomics are required minor areas for finance majors. The third minor area depends upon the student’s interest. However, students are strongly recommended to take macroeconomics their third minor area of study. Other popular minor areas include, accounting, math, statistics, psychology, and computer science.
The microeconomics minor area must include the following three course sequence:
| ECON 500 (4) | Microeconomic Analysis I |
| ECON 501 (4) | Microeconomic Analysis II |
| ECON 508 (4) | Microeconomic Analysis III |
The macroeconomics minor area must include the following three course sequence:
| ECON 502 (4) | Macroeconomic Analysis I |
| ECON 503 (4) | Macroeconomic Analysis II |
| ECON 509 (4) | Macroeconomic Analysis III |
First Year
| Autumn | Winter | Spring | Summer |
| ECON 500 Microeconomic Analysis I | ECON 501 Microeconomic Analysis I | ECON 508 Microeconomic Analysis III | FIN 600 Independent Study |
| FIN 590 Asset Pricing I | FIN 580 Corporate Finance I | FIN 585 Empirical Methods in Finance | Tools Examination |
| ECON 580 Econometrics I | ECON 581 Econometrics II | ECON 582 Econometrics III | 1st year Summer Paper and Presentation |
| FIN 599 Doctoral Seminar | FIN 599 Doctoral Seminar | FIN 599 Doctoral Seminar | FIN 599 Doctoral Seminar |
| Teaching Effectiveness Seminar |
Second Year
| Autumn | Winter | Spring | Summer |
| FIN 591 Corporate Finance II | FIN 592 Asset Pricing II | FIN 589 Advanced Topics in Finance | FIN 600 Independent Study |
| Elective | Elective | Elective | 2nd Year Summer paper and Presentation |
| Elective | Elective | Elective | Area Examination |
| FIN 599 Doctoral Seminar | FIN 599 Doctoral Seminar | FIN 599 Doctoral Seminar |
All finance students are encouraged to take the year-long macroeconomics sequence from the economics department if it fits with their research interests.
First-Year Paper
Students create and present a research paper during their first summer under the guidance of their advisor. The paper may be an original idea or an extension of existing work, recognizing that original ideas are more likely to subsequently become working papers or dissertations, while extensions allow those struggling to find executable ideas a way to build their toolbox in a structured manner. This paper will be due for a last set of comments at the end of August and presented in mid-September.
Basic Tools Exam
The basic tools exam for finance majors is administered near the end of the Summer Quarter at the end of the first year of study. The exam is designed primarily to test the student’s understanding of microeconomic analysis, as covered in the economics core sequence ECON 500, 501, and 508. It is administered by the Economics department. Previous examples of the Tools Examination can be obtained in the School’s Doctoral Program Office.
Major Area Examination
The finance major area exam is administered near the beginning of a student’s second Summer Quarter. The exam tests a student’s understanding and knowledge of the entire field of finance. Previous examples of the Area Examination can be obtained in the School’s Doctoral Program Office.
Summer Research Project
After completing the Major Area Examination, students complete an original research paper under the guidance of a faculty advisor. This project is to be independent research on a topic and issue selected by the student. Students present their work in a workshop setting in Fall Quarter.
General Examination
After successfully completing the previous exams and research papers, the student will propose a dissertation. The proposal should demonstrate through existing work that a student has the capacity to complete a thesis. Members of the Supervisory Committee, a representative of the Graduate School, and any other interested faculty attend the proposal.
Dissertation and Final Examination
After passing the general exam, students complete the proposed research and write the dissertation guided by a reading committee. The reading committee may consist entirely of members of the supervisory committee or may include one or more members not previously on the supervisory committee. The supervisory committee administers the final defense of the dissertation.