Finance Department

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.