Department of Finance

PhD in Finance - Program Overview

Finance PhD Students with Faculty

Program Overview

The Finance Ph.D. program prepares students for careers at leading academic institutions and research organizations. It trains students to conduct rigorous research at the level required for publication in the top finance and economics journals. The program also provides the skills to be a successful university-level teacher.

Students begin their journey by taking foundational courses in financial economics that develop the tools for carrying out dissertation research. Throughout the program, multiple weekly seminars expose students to cutting-edge research and provide opportunities for students to present their own research. With the close mentorship of faculty, students are expected to quickly advance their own research agenda, often in collaboration with faculty and other students. The program intends to create an environment that encourages the highest ideals of academic integrity and scholarship.

Prerequisites

Students typically enter the program with a strong mathematics background that includes multivariate calculus and calculus-based courses in probability and statistics. Some knowledge of linear algebra, ordinary differential equations, and basic programming skills are also expected.

Prior to an admitted student’s first semester, the student may take a 12-hour Ph.D. “math camp” offered by the Department of Economics to reinforce math concepts. It is highly desirable for students to have a background in economics, particularly microeconomics. An undergraduate degree in finance is not required.

University of Illinois Campus

Academic Timeline

Below is the typical academic timeline for PhD candidates. Required finance coursework and the comprehensive exam is typically completed in your first year. All coursework is completed by the end of the second year. You are expected to complete their dissertation by the end of their fifth year.

Year One
  • Complete course work during Fall and Spring semesters
  • Begin working on research with area faculty
  • Take Finance comprehensive exam

The following are courses required for the Finance Ph.D. To remain in good standing, students must have at least a 3.0 average in these courses and not receive a grade less than B- in any course.

Finance Courses

  • Finance 592 Empirical Analysis in Finance
  • Finance 591 Theory of Finance
  • Finance 594 Seminar in Corporate Finance
  • Finance 593 Seminar in Investments
  • Finance 595 Empirical Corporate Finance

Typically, students will take the required finance courses during their first year. These students will take their comprehensive exam at the end of that year. This is a two-part exam: one part covers topics in corporate finance and the other part covers topics in investments/asset pricing.

Students may also be required to take the following economics courses, particularly if they enter the Ph.D. program without having previously taken courses in microeconomics and econometrics

Economics Courses

  • Finance 592 Empirical Analysis in Finance
  • Finance 591 Theory of Finance
  • Finance 594 Seminar in Corporate Finance
  • Finance 593 Seminar in Investments
  • Finance 595 Empirical Corporate Finance

Students with a suitable background may waive the economics courses. Entering students should seek a waiver from the Ph.D. program coordinator. Students are not required to take any comprehensive exam in economics.

Year Two
  • Continue working on research with area faculty through the year
  • If necessary, take additional courses during Fall and/or Spring semesters
  • Write and present second-year paper by end of Spring semester

Students are expected to complete an original research paper during their second academic year. The student must submit a written draft of the paper by the end of the Spring semester. Typically, students will present the paper at an internal seminar in the Fall or Spring semester of their second year. The paper may be coauthored with a faculty member or another student.

The second-year paper will be evaluated by incorporating input from a survey of faculty members who attended the student’s seminar presentation. To receive a passing grade, a second-year paper must be of sufficient quality, and the student must handle questions well during the seminar. Students completing the second-year paper requirement will be allowed to continue to the dissertation stage of the doctoral program.

Year Three to Five
  • Develop dissertation research proposal
  • Work on dissertation research
  • Defend dissertation
  • Enter academic job market
  • Develop dissertation research proposal

At this stage of the process, the student will be fully devoted to writing a dissertation. During the dissertation stage, students are encouraged to consult with a wide variety of faculty members and other students. Presenting work-in-progress during internal seminars is an excellent way to receive feedback and improve the quality of research.

By the end of a student’s third academic year, the student should have identified a dissertation advisor. Also, besides the second-year paper, a student should have completed another research paper or, at the least, have an advanced idea for another paper. The student should also demonstrate progress toward developing a dissertation proposal.

During the fourth and fifth academic years, the student must pass the dissertation proposal defense and finish work on their dissertation research.