Data Analysis for Decision Making (MBA 610), Spring 2014
One of the sources of successful management is the ability to find the information needed, to understand it, and to use it effectively. This course teaches how to seek and analyze data for managerial decision making. Topics include decision tree analysis, probability theory and applications, optimization, regression analysis and forecasting with applications in different areas of managerial decisions. Students who did not take a Statistics class as an undergraduate are responsible for attending the Quantitative Methods/Statistics (MBA 506) Foundational Literacy Workshop prior to enrolling in this class.
At the end of this course, you will be able to do the following:
• Formulate a business problem for decision making
• Seek, collect, analyze and interpret data
• Conduct rigorous data analysis to improve decision making
• Use Excel to help you analyze data and present the results of data analysis in a well-organized way.
Advanced Managerial Finance (MBA 691), Fall 2013
We will learn analytical techniques in managerial finance by conducting case studies in various areas of managerial finance: IPO (Initial Public Offering), M&A (Merger and Acquisition), corporate governance, balancing financial goals with social responsibilities, dealing with active investors, estimating cost of capital, capital budgeting, setting and changing capital structure, setting and changing dividend and stock buyback policies, etc.
Economics of China, Spring 2013
This course is designed to enable you to gain deeper insights into the second largest economy in the world—China. China is also the fastest-growing major economy in the world. This course will equip you with knowledge on the following aspects of China: (1) brief history, growth and inequality; (2) rural reforms; (3) State-Owned Enterprise (SOE) reforms; (4) entrepreneurs and labor markets; (5) financial development; (6) exchange rate policy and (7) political economy (if time permits). We will hold three class debates (the topics and schedule are in the second page of the syllabus), and everyone will participate in all the debates. We will conduct five business case studies, and everyone will participate in all the business case studies. We will divide the class into five groups, and each group will lead one business case study.
I would like to recommend an interesting lecture by Prof. Nancy Qian from Yale about the Chinese economy available here. I would like to recommend five excellent papers in Journal of Economic Perspectives here. I would like to recommend a special issue of Oxford Bulletin of Economics and Statistics on Chinese economy at here. For a good survey on China's political economy, please read Xu, Chenggang (2011). The fundamental institutions of China's reforms and development. Journal of Economic Literature 49, 1076–1151. Please also read an excellent paper in Journal of Financial Economics by Allen, Qian and Qian (2005) on the legal and financial systems in China: Law, finance and economic growth in China. In addition to these two excellent and widely-cited papers, we will also read quite a few influential academic papers in detail and conduct business case studies in this class. The papers will be from AER, JPE, QJE and top field journals (there are two very interesting recent papers about China in JPE and QJE: Wei, S., Zhang, X., 2011. The competitive saving motive: Evidence from rising sex ratios and savings rates in China . Journal of Political Economy, 119 ,511-564. Kuhn, P., Shen, K..Gender discrimination in job ads: Evidence from China. forthcoming in Quarterly Journal of Economics.) Here is an intriguing talk by Dr. Wei, Shangjin about his paper in Journal of Political Economy. Here is a nice short lecture about institutional reform in China by a professor at Columbia Business School. Your group presentations and class debates are important components of this class. More information about this course will be available at the Moodle website.
Here is a cool website called "Connected China."
Investment and Portfolio Analysis, Spring 2013
Students in Investment and Portfolio Analysis class: You can download the midterm exam for the same course in 2012 here, and the final exam for the same course in 2012 here. We emphasize practical applications of analytical techniques. Your practice at www.wallstreetsurvivor.com is an important component of the class. More information about this course will be available at the Moodle website.
Econometrics, Spring 2013
Students in Econometrics class: You can download the midterm exam for the same course in 2012 here. The final exam for the same course in 2012 is available here, and the last problem set for the same course in 2012 is available here. We emphasize causal inference techniques such as Instrumental Variable, GMM, Difference in Difference (natural experiments), Propensity Score Matching and Regression Discontinuity. More information about this course will be available at the Moodle website.
In terms of statistical packages, we will mainly use Stata and Microsoft Excel in this course. However, please feel free to choose the software you will use for your term project.
Stock & Watson: Introduction to Econometrics (3rd Edition)
1. Laeven, L., Levine, R., 2008. Complex ownership structures and corporate valuations. Review of Financial Studies 21, 579-604. (We will replicate all results in the paper in a lab session.)
2.Acemoglu, D., Johnson, S., Robinson, J. A., Yared, P., 2008. Income and Democracy. American Economic Review 98, 808-42. (Focuses: Instrumental variable and fixed effects models) (We will replicate all results in the paper in a lab session.)
3. Bennedsen, M., Nielsen, K. M., Pérez-González, M. F., Wolfenzon, D.. 2007. Inside the family firm: the role of families in succession decisions and performance. Quarterly Journal of Economics 122, 647-91. (Focus: Instrumental variable)
-------------I would like to recommend an interesting article in Wall Street Journal about Instrumental Variable Approach: Is an economist qualified to solve puzzle of autism?
5. Klapper, L., Laeven, L., Rajan, R. 2006. Entry regulation as a barrier to entrepreneurship. Journal of Financial Economics 82,591-629. (Focus: interaction terms)
6.Shu, L., 2010. On the International Effects of Inflation Targeting.Review of Economics and Statistics 92, 195-199. (Focus: propensity score matching) (We will replicate all results in the paper in a lab session.)
1. Roberts, M. R., Whited, T. M., 2011. Endogeneity in empirical corporate finance. Handbook of the Economics of Finance.
2.Li, K., Prabhala, N. 2007. Self-selection models in corporate finance. Handbook of Empirical Finance.
3. Rafferty, M., O'Connor, M. L.. Corporate governance and innovation. Journal of Financial and Quantitative Analysis, Forthcoming.(Focus: GMM)
4. Black, B., Kim, W., 2012. The effect of board structure on board value: a multiple identification strategies approach using Korean data. Journal of Financial Economics 104, 203-226. (Focus: Difference in Difference, Regression Discontinuity)
5. Campa, J. M., Kedia, S. 2002. Explaining the diversification discount. Journal of Finance 57, 1731-1762. (Focus: Heckman 2-step technique)
6. Pérez-González, M. F. 2006. Inherited control and firm performance. American Economic Review 96, 1559-1588. (Focus: event study technique) (We may replicate the results in this paper in class, if time permits)
7. Rajan, R.G., Zingales, L., 1998. Financial dependence and growth. American Economic Review 88, 559–586.(Focus: interaction terms)
8. Butler, A., Fauver, L., Mortal, S. 2009. Corruption, political connections, and municipal finance. Review of Financial Studies 22, 2873-2905. (Focus: interaction terms with 2SLS; "forbidden" regression)
9. Cunat, V., Gine, M., Guadalupe, M., 2012. The vote is cast: the effect of corporate governance on shareholder value. Journal of Finance 67, 1943-1977. (Focus: regression discontinuity)
10. Flannery, J. M., Hankins, K.W., 2012. Estimating dynamic panel models in corporate finance. Journal of Corporate Finance, forthcoming.
11. Wintoki, M. B., Linck, J. S., Netter, J. M. , 2012, Endogeneity and the dynamics of internal corporate governance. Journal of Financial Economics 105, 581-606.
12. Giroud, X., Mueller, H. M., Stomper, A., Westerkamp, A., 2011. Snow and Leverage. Review of Financial Studies 26, 680-710. (Focus: Instrumental Variable)
13. Larcker, David,Rusticus,Tijomme,2010. On the use of instrumental variables in accounting research.Journal of Accounting and Economics 49,186–205. (Focus: Instrumental Variable)
14. Hong, H. , Kacperczyk, M. 2010. Competition and bias. Quarterly Journal of Economics 125, 1683-1725. (Focus: Natural experiment; Difference in difference)
Web Tutorials and Other Resources on Programming
All these programs (Stata, R, C++, Python, and SAS) are available at every computer in the 24-hour computer lab at IH 11. For R and Python, you can also search for free copies through Google. We will hold many lab sessions at IH11. Please feel free to choose the software you will use for your term project.
For Stata programmers:
1. 11 video tutorials on Stata for your empirical term paper.
2. A nice Stata tutorial prepared by Prof. German Rodriguez (Princeton University) at here.
3. Another nice Stata tutorial prepared by UCLA at here. Especially useful is this webpage.
4. Prof. Cameron's website here at UC Davis, which is a very comprehensive source of information on Stata.
5. Nice Stata programming advice from Prof. Peterson (Northwestern University) at here.
6. Prof. Miller's website here at UC Davis about Regression Discontinuity.
7. Prof. King's website here at Harvard University. It is a very useful website.
For R programmers:
1. 10 good tutorials about R.
2. A nice video about Fama-French 3-factor model in R.
3. A nice tutorial about R.
4. A great website about using R for causal inference in social science. This website was developed by Prof. Sekhon at UC Berkeley.
5. propensity matching package in R.
For C++ programmers:
Please check out the the excellent website developed by Prof. Ronald Gallan (Duke University) on computational economics and econometrics at here
For Python programmers:
Here is a very good document titled "SAS Programming Skills" from Kellogg School of Management at Northwestern University.
Please check out the excellent video tutorials at the following websites:
---15-minute tutorial: click here
---1-hour tutorial: click here
---2-day tutorial: click here for day 1, part 1; click here for day 1, part 2; click here for day 1, part 3; click here for day 2
For SAS programmers:
Please check out the excellent blog here for Copula
To conduct propensity score matching, please see: Software for implementing matching methods and propensity scores
Data Sources (These are good data sources for your term paper)
How to use Stata command "wbopendata" to extract data from World Bank? Please see:
*Sample Stata Program to extract annual GDP growth rate from: World Bank
*If you use Stata12, please use the following code:
ssc install wbopendata
*If your Stata version is lower than Stata 12, please use the following code:
ssc install wbopendata
*Sample Stata Program to extract monthly CPI data (since 1913) from: Federal Reserve Data
ssc install freduse
Some cool papers that may inspire your ideas for your term paper: You can click the titles to download the papers:1. Henderson, J. V., Storeygard, A., Weil, D. N.Measuring Economic Growth from Outer Space. American Economic Review, forthcoming.
2. Holmes, T. J, 1998. The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders . Journal of Political Economy 106, 667-705.
3. Chetty, R., Friedman, J, N., Hilger, N., Saez, E., Schanzenbach, D. W., Yagan, D., 2011. How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project STAR. Quarterly Journal of Economics 126, 1593-1660.
4. Mobius, M. M., Rosenblat, T. S., 2006. Why Beauty Matters? American Economic Review 96, 222-235.
5. Bertrand, M., Mullainathan, S., 2004.. Are Emily and Greg more employable than Lakisha and Jamal? a field experiment on labor market discrimination? American Economic Review 94, 991-1013.
6. Grinblatt, M., Keloharju, M., Linnainmaa, J. 2011. IQ, Trading Behavior, and Performance. Journal of Financial Economics 104, 339-362.
7. Grinblatt, M., Keloharju, M., Linnainmaa, J. 2011, IQ and Stock Market Participation. Journal of Finance 66, 2119-2164.
8.Mayew, W. J., Venkatachalam, M. 2012.The Power of Voice: Managerial Affective States and Future Firm Performance. Journal of Finance 67, 1-44.
9. Hobson, J. L., Mayew, W. J., Venkatachalam, M. 2012.Analyzing Speech to Detect Financial Misreporting. Journal of Accounting Research 50, 349-392.
A Great Course on Matrix Algebra (Linear Algebra):
Here is a very useful series of online lectures on linear algebra offered by MIT Professor Strang at this website.