In this chapter, you will learn how to: Choose a suitable topic for an empirical research project in finance, draft a research proposal, find appropriate sources of literature and data, determine a sensible structure for the dissertation. | Chapter 14 Conducting empirical research or doing a project or dissertation in finance ‘Introductory Econometrics for Finance’ c Chris Brooks 2013 1 Why do an empirical project? • Conducting empirical research is one of the best ways to get to grips with the technical material, and to find out what practical difficulties econometricians encounter when conducting research • Conducting the research gives you the opportunity to solve a puzzle • Doing empirical work is usually less risky than trying to do theory • Your report-writing and time-management skills will improve • A project will provide something to discuss in job interviews • A dissertation may be a route into MPhil or PhD research. ‘Introductory Econometrics for Finance’ c Chris Brooks 2013 2 Where to Get Ideas for a Topic • Suggestions from your supervisor or other faculty • Work experience in the industry • Thinking about your own skills and interests (viz. qualitative versus quantitative research) • Recent editions of academic journals • Newspapers and practitioner magazines ‘Introductory Econometrics for Finance’ c Chris Brooks 2013 3 Examples of Possible Types of Research Project • An empirical piece of work involving quantitative analysis of data • The development of a theory to explain an observed phenomenon • The application of a technique in finance that originates from another discipline • Testing empirically a new model that has only been considered from a theoretical perspective • A critical review of an area of literature • An application of an existing model to new market ‘Introductory Econometrics for Finance’ c Chris Brooks 2013 4 A Good Project Will: • Contain an obvious and explicitly stated source of originality • Have a clear and logical structure • Contain an abstract that summarises the problem and findings • Start with an introduction that puts the problem studied into context and explains why the project is useful or important • Have carefully conducted .
