Course Manual

Financial Research Methods

EBC4095

Master:
International Business Studies
Finance

School of Business and Economics (SBE)

Maastricht University
Academic Year 2014/2015

All rights reserved. 2014 Maastricht University.

February, 2015
1

Contents
1 Introduction

1.1

Course Overview . . . . . . . . . . . . . . . . . . . . . . . . .

1.2

Computing

. . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.3

Academic Honesty . . . . . . . . . . . . . . . . . . . . . . . .

2 Organisation

2.1

Instructors . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.2

Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.3

Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.4

Classroom Tutorial Meetings . . . . . . . . . . . . . . . . . . . 10

2.5

Computing Classes . . . . . . . . . . . . . . . . . . . . . . . . 19

2.6

Final Research Paper . . . . . . . . . . . . . . . . . . . . . . . 20

3 Examination Requirements

22

3.1

Attendance & Participation . . . . . . . . . . . . . . . . . . . 23

3.2

Research Paper . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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Introduction

1.1

Course Overview

The course Financial Research Methods is intended to provide students with

the necessary tools to understand, assess, and perform research for both
academic and business purposes specifically related to financial applications.
The aim of the course is to prepare students to a level where they can perform
high quality research in finance. The course gives students the skills with
which to to develop a research proposal that has the following three important
qualities: it is well motivated, properly designed, and feasible to implement.
This is particularly relevant for writing the Masters thesis, which all students
of this program are required to do towards the end of their Masters year.
The course structure has three parts, which run in parallel. The first
part of the course covers general research elements; both methodology and
theory are discussed during tutorial meetings. The second part focusses on
quantitative methods with an emphasise on applied quantitative analysis.
In the final part of the course students are required to produce their own
research assignment, which covers all the elements studied during the course.
In the first session, we start by discussing different research methodologies, such as interpretivism and positivism. We also cover core elements
of the research process so that you become aware of the essential elements
that are required when writing a high quality research paper. A decent research paper, for instance, needs a theory and a model as a basis to derive
a testable hypothesis, or hypotheses. Moreover, a researcher has to decide
whether his/her work should be of a quantitative or qualitative nature. If it
is an empirical study would you rather rely on primary or secondary data?
What are the limitations to the research? It is important that the researcher

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is able to put the work into perspective and to understand the drawbacks
and limiting assumptions in the research. In short, there are many aspects
to the research process that need to be addressed to guarantee well executed
research.
We build on students knowledge from the undergraduate course Quantitative Methods. In conducting empirical research we focus on classical
regression analysis, one of the fundamental building blocks for conducting
empirical research. We cover how good regression analysis is conducted,
and in which cases the classical assumptions for OLS regression are violated.
The classes are practical in nature and students learn how to conduct mainstream financial research, and to evaluate regression output. For example, is
a regression always good if it has a R2 that is close to 1? And what other
statistics are there and what do they mean? Students should become confident about the use of OLS, an important tool used in conducting financial
research.
During the course students attend a number of computer sessions, where
they use the Econometric package Eviews. The emphasis of the course is on
students learning to use and apply a number of familiar Econometric techniques. The course book is geared specifically towards students who require
an introduction to Econometrics with a focus on financial applications. Additional literature is used to investigate in greater depth the methodology
behind the chosen research method.
Students shall learn which resources the University offers in the provision
of financial data. Other online data sources are also available for downloading
financial data. Students learn how to conduct their own empirical research,
using a variety of applications to issues in finance. We use financial time series
data, which covers how a series of data changes over time, such as stock prices

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or interest rates. Cross sectional data is also used, which accesses data at a
given point in time, for example the current share price for all companies in
the market index. Finally students are introduced to the use of panel data.
This teaches students the techniques with which to do research on a cross
sectional panel of data, across a period of time. Used together students can
therefore analyse data over space and time.
Throughout the course students acquire theoretical skills and shall actively use these skills on empirical data. The course provides an excellent
basis from which students are able to conduct financial research. The techniques learned and applied are the foundations for writing the final thesis,
which is a required part of the Master program. Students are encouraged
to actively prepare themselves for the final thesis by considering topics and
methods for financial research during the course.
During the tutorials students are expected to discuss and analyse a number of academic research papers. The emphasis is to critically evaluate what
makes the paper a good research paper, and relate this back to the research
methodologies and theory discussed at the beginning of the course. Whilst
also conducting empirical research, the students shall be able to assess the
potential pitfalls and problems associated with conducting research.
Finally, the course concludes with students writing their own piece of
research. This is done in pairs, or at maximum groups of three, assigned
during the first tutorial meeting.

1.2

Computing

All faculty, staff and students of the University are governed by the Acceptable Usage Policy for the use of computers, printers and library facilities.

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1.3

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Academic Honesty

Students who enrol at Maastricht University commit themselves and their

peers to a high standard of honour and integrity. Failure to comply with
this commitment can result in disciplinary action, up to and where necessary
expulsion from the University.

Organisation

2.1

Instructors

This block book has been compiled by Dr. Rachel A. J. Pownall who is the
course coordinator. If you have any comments, questions or suggestions concerning the course, please address them to Dr. Pownall preferably by e-mail.
If questions are of general interest I shall provide feedback through the course
website on Eleum and the course tutors. The course tutors are Rogier Quaedvlieg and Alessandro Pollastri. Emails: r.quaedvlieg@maastrichtuniversity.nl
and a.pollastri@maastrichtuniversity.nl.
If you want to contact me in person please respect my office hours for
this course, or arrange a meeting via the department secretaries. Their email
address is: Life-sbe@maastrichtuniversity.nl

Course Office Hours: Wednesdays from 16.30 - 17.30

Room: B1.05b (Finance Department)

The course website can be found on Eleum. It contains announcements,

additional information, information on tutors, last-minute schedule changes
and answers to frequently asked questions. Please make sure that you check

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this site regularly.

2.2

Literature

During the course we closely follow the textbook by Chris Brooks, Introductory Econometrics for Finance, 3rd Edition, Cambridge University Press.
ISBN: 978-1-107-66145-5. Students are advised to buy a copy of the book for
the course. A number of additional academic articles are required reading for
the course and shall be available on EleUM, posted throughout the duration
of the course.

2.3

Schedule

The course consists of an opening lecture, tutor group meetings, computer

lab sessions and a research project. During the course there are two meetings
per week. During the opening session a general overview of the course shall
be given and how the course fits within the overall schedule of the Master programme. During the second week there is a lecture devoted to data resources
available to students at the University. There are a number of different data
sources available which shall be explained in detail. Students shall be able to
download their own data for the assignments and for their research projects.
In so doing this also prepares students for the empirical part of their final
thesis as the other data resources can be born in mind for a later stage.
Below, in Table 1 we provide a general overview of the course on a week
by week basis:

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Table 1: Course Timetable

WEEK 1
05-FEB-15

OPENING & RESEARCH PHILOSOPHY

Block Opening

Opening Lecture (13:30-15:30 C-1.03)

Overview of course, objectives and course structure

WEEK 2
09-FEB-15

DATA & INTRODUCTION TO EVIEWS

Classroom Tutorial 1

Research Philosophy
Methodology for financial research

12-FEB-15

Computing Lab Session 1

Running Regressions
Introduction to Eviews
Calculating returns
Basic functions
Statistical Inference & Testing Outperformance

WEEK 3
23-FEB-15

FUNDAMENTALS FOR FINANCIAL RESEARCH

Classroom Tutorial 2

Discuss Computing Class Results 1

Statistical Inference
Classical linear regression
Reading distributions tables
26-FEB-15

Lecture

Data Collection (13:30-15:30 C-1.03)

WEEK 4
02-MAR-15

CONDUCTING EMPIRICAL FINANCIAL RESEARCH

Computing Lab Session 2

Downloading Data
Risk and Return
Capital Asset Pricing Model

05-MAR-15

Classroom Tutorial 3

Discuss Computing Class Results 2

Theoretical framework for financial research
Writing a literature review
Defining hypotheses

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WEEK 5
09-MAR-15

Period 4 Academic Year 2014/15

EXTENDING OUR RESEARCH METHODS TOOLKIT

Computing Lab Session 3

Further Issues in Regression Analysis

Stationarity
Multivariate Regression
Robust Standard Errors

12-MAR-15

Classroom Tutorial 4

Discuss Computing Class Results 3

Breakdowns in the assumptions for OLS
Autocorrelation
Multicollinearity
Heteroskedasticity
Omitted Variable Bias
Correct Functional Form

WEEK 6
16-MAR-15

APPLIED FINANCIAL RESEARCH

Computing Lab Session 4

Writing a Program
Applied Course Review
Class output to be printed and handed in at the end of the class
Dummy Variables

19-MAR-15

Classroom Tutorial 5

Discuss Computing Class Results 4

Cutting Edge Financial Research
Group Presentations of Current Research Papers

WEEK 7
23-MAR-15

APPLIED FINANCIAL RESEARCH

Meetings with Tutors

Half hour Individual Group meeting with tutor on final research project

26-MAR-15

Work on own paper

EXAM WEEK

ASSESSMENT

03-APR-15

Hand in on EleUM

DEADLINE FOR FINAL RESEARCH PAPER Midnight!

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Classroom Tutorial Meetings

There are five PBL tutorial meetings throughout the course. In the first
week, we deal with research methods in general. In the following four tutorials the material from the course book is covered along with a number of
supplementary articles. The tutorial meetings enable the theory and methods of financial research to be discussed. Sequential to each tutorial meeting
is a computing session where the material from Brooks is applied to a number of research topics in finance, allowing students to develop their applied
skills, to put the theory into practice. These computing classes are a valuable
addition to the teaching of the course material. This is further outlined in
section 2.5 on the computing classes.
During the classroom tutorials the aim is for students to critically review
and evaluate research that has been conducted by others, using the concepts
discussed during the tutorial on research philosophy, and the econometric
fundamentals from the course book. Discussing research articles highlights
how the quantitative techniques that you acquire during the course are applied in practice.
In this course the primary aim is to learn and understand about research
methods. The goal is to present the research project. This implies that you
should discuss issues such as, for example, defining the problem statement?
How are the hypotheses derived? How do the authors get to their results?
Why are they using (or not using) a particular statistical technique? Why
and how is a sample selected and what is the corresponding relevant population? etc. In short, you are asked to show that you understand the intuition
and the motivation of the research. The approach by Whetten (1989) provides a good point of reference in providing the pointers when presenting and
discussing research papers.
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It is also important to focus on the quality of the research and the choice
of the econometric techniques used. In your analysis incorporate for instance:
Why you think that the respective articles are good or bad, where would you
expect the research to be published? How would you improve the articles,
etc.? Furthermore, also try to contrast research with other articles and how
they add to the encompassing literature. To what extent is it better in
terms of, for example, further use and application of the results, contribution,
techniques, etc.? For further guidelines on critical aspects of research paper,
please refer to the book of Brooks (2002), Chapter 1, Section 6.
Additional articles must be obtained by students themselves. This is to
ensure that students know how, and where, to find research papers themselves.
During the tutorial meetings learning objectives and goals are formulated.
The EViews output shall be discussed. The tutor may ask individuals at
random to present their results. Remember that it is important to the functioning of the course that all individuals are well prepared for the meetings.
Remember to bring a copy of the EViews output from the computing class
preceding the tutorial meeting and be able to access your workfile. Students
should be prepared to use EViews during the tutorial meetings to discuss
their work as and when is required. At the end of each tutorial meeting
students are required to hand in the question with an asterisk (*)
to their tutor. This forms part of the participation grade for the meetings.
Please refer to the examination requirements, in section 3 for further details.
The outline for the tutorial meetings is given below. All students are
expected to prepare and be able to discuss the following points for each of
the five tutorial sessions. The course material is subject to changes.

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Tutorial 1: Research Philosophy

Research methods can differ along several dimensions. We can categorise
research, for instance, by referring to it as exploratory, descriptive or causal;
research can be of a qualitative or quantitative nature. It also differs depending on the standpoint of the researcher: Is he part of the phenomenon
that he is attempting to analyse? or does (s)he take an external position? in
which case it is certainly easier to provide value-free research.

1. Discuss the steps involved in preparing a well-grounded research project

or dissertation.
2. According to Whetten (1989), a solid theoretical contribution comprises
of four elements. Discuss each of these elements within the structure
of a research proposal.
3. Discuss the roles of deduction, induction and reduction in research
philosophy.
4. Krauss (2005) introduces students to the epistemological differences
between quantitative and qualitative research paradigms. It is an introduction to research methodologies, and how meaning making actually occurs through looking at qualitative data analysis. Discuss in this
context qualitative and quantitative research.
5. Discuss positivistic, realistic, and interpretivistic research, naturalism
and constructivism.
6. What type of methodology is generally used for financial research and
why?*

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Reading
Brooks (Chapter 14), Friedman (1966), Krauss (2005) and Whetten
(1989).
Ryan, Scapens and Theobald (Chapter 1).

Research Method and

Methodology in Finance and Accounting.

Tutorial 2: Fundamentals for Financial Research
The majority of financial research is based on empirical data. There is
an enormous amount of data available, however, there are also many issues with collecting data for empirical financial research. For example mismeasurement and missing values. During the tutorial meeting we shall discuss some of these issues. Furthermore we discuss the workhorse of applied
financial research; the use of ordinary least squares (OLS) for running regression models. The aim of the tutorial is to ensure students have a good
working knowledge of basic Statistical Inference and Classical Regression
beyond that taught in earlier quantitative research courses.
1. Discuss data sources for qualitative and quantitative financial research.
Do you know what is available at the UM? via the Library? Online?
2. What is classical regression and how is it helpful in financial research
methods?
3. Using an example of your choice discuss the five classical assumptions
in the classical regression model.*
4. When are the estimators used in OLS BLUE ?
5. Discuss the issue of Causality and Spurious Regression.
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6. Recall how you would conduct some basic statistical inference and a
difference in means tests?
7. What is the difference between a Type I and a Type II error?
8. Discuss the EViews output and questions from the first computing
class*.

Reading
Brooks Chapter 1, 3 & 7.1. (Prior knowledge: Brooks Chapter 2).
Granger (2004), Krueger (2001), Zellner (2007), Hausman (2001), Drakopoulus
and Torrance (1994).
Tutorial 3: Theoretical framework for financial research
Once a research problem has been identified and justified, then the next
step is to analyse the problem by formulating a hypothesis. Hypotheses are
constructed based on abstract theory. The research method chosen depends
upon the philosophy upon which the stream of current research on the topic
is built. The process which dominates much of mainstream finance is the
positivist quantitative approach.
The notion of the model as an abstraction of reality is a more meaningful
concept within the finance discipline than the notion of theory. Financial
research requires a clearly defined hypothesis and model from which to test;
often with empirical data. In order to produce good research it is important
to set out clearly your theory and entails the development of theoretical
models which are then tested by confronting hypotheses derived from these
models with empirical data.

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Theory development within finance is based upon neo-classical thinking.

There are a number of core terms, which are taken as non-conjectural. The
three propositions which form the basis of, at least, the initial phase of model
development within the general framework are as follows:
I. Economic agents (investors and decision makers) are, at the individual
level, formally rational
II. Financial markets are perfectly competitive
III. Information is freely available.
Other frameworks for theory development can be followed. However, the
approach here provides us with the general perspective from which most
mainstream finance has been built upon. From which modifications can be
acknowledged.
1. Discuss each of these three propositions above in the context of developments in the literature in financial research.
2. Which steps should be followed in forming a model and outline for your
research? Use as an example the CAPM: *
How would you set up a research paper to test the CAPM?
What assumptions does the CAPM require?
Is there a joint hypothesis problem (Roll critique) and would this
influence your results?
Is OLS appropriate for testing the CAPM? i.e. How can you be
sure that your estimate for Beta (coefficient in the regression) is
BLUE?
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In what ways could you extend the methodology to the CAPM?

How would you test how good your multiple regression model is?
3. Discuss the EViews output and questions from the second computing
class*.
Reading
Ryan, Scapens and Theobald (Chapter 3).

Research Method and

Methodology in Finance and Accounting.

Brooks (Chapter 4) and Jagannathan and McGrattan (1995).
Tutorial 4: Running Good Regressions
The vast majority of research in applied financial used simple parametric
approaches such as OLS regression. However, when the assumptions underlying the OLS approach break-down then problems arise. For example when
the relationship between the variable is not linear, when the regressors are
correlated with the error term, when the error term is heteroskedastic or
autocorrelated, or when the variables are mis-measured (See Krueger, 2001).
How we deal with these issues is the subject of todays tutorial.
1. Discuss the consequences of autocorrelation?
2. How do we test for autocorrelation?
3. What type of model could you use to overcome any limitations from
autocorrelation, so that you use the autocorrelation to your advantage?
4. Discuss correlation, causality and multicollinearity.

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5. What is heteroskedasticity and how can we detect it in financial time

series?
6. Which criteria should be satisfied, and which methodology followed, in
your choice for a final acceptable model? (Think also about functional
form, choice of variables, parameter stability, non-normality).*
7. Hand in and discuss the results from the third computing session.*
Reading
Brooks (Chapter 5), Granger (2004), DiNardo and Tobias (2001), Hansen
(2001).
Tutorial 5: Cutting Edge Finance Research
During the tutorial meeting each group shall present a current research paper
from the finance literature. The focus is on how good research is conducted.
When presenting the research bare in mind the following points.
1. What question are the authors trying to answer?
2. Is the research well motivated and the objective clear?
3. Do they formulate a hypothesis to answer the question?
4. How do they text their conjecture/hypothesis/research question?
5. Are the tests significant/robust to the model specification?
Reading
A choice of articles for discussion and presentation will be made available on Eleum during the course.

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2.5

Period 4 Academic Year 2014/15

Computing Classes

Starting in the second week we have four computing classes, which take
place in the University Library Computing rooms. There is one computer
session per week. Students are introduced to the statistical software Eviews
which can be accessed during the classes. This gives students a hands on
chance to learn some useful econometric tools for the analysis of financial
data sets and statistical inference. The sessions are backed up by the tutorial
group meetings which alternate between the computing sessions. Providing a
focus on both theory and practise for financial research. The software is also
available via the UB anywhere link. www.maastrichtuniversity.nl/anywhere.
At the beginning of each computing class the tutor shall introduce the
topic and explain what is required during the class. Students shall be given a
task to prepare, which needs to be completed during the class. It is expected
that students work independently, each at an individual computer. The tutor shall be able to assist students in the classroom. In some cases students
shall need to download data beforehand, which will be used in class. When
this is the case this shall be discussed in detail during the tutorial meeting
proceeding the computing class. At the end of the session students are required to hand in a copy of their output for the class. For each class an
individual grade is given to each student. This comprises 32% of
the final grade. It is therefore important that students read the relevant
chapter of the course book (and any other additional material required) in
preparation for the class.
The content and the order of the course closely follows the book of Brooks
(2014), which is the compulsory literature for this course. We strongly recommend, that you also consider additional literature, especially when preparing
for teaching your fellow students. Wooldridge (2000) is particularly useful.
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Final Research Paper

As a final task, you are expected to carry out your own small-scale research
project and to write a short empirical paper. This has several purposes.
Firstly, students are expected to show that they are able to implement the
concepts of research methodology to a real-life project. Secondly, this gives
students the opportunity to prove that they have understood the quantitative techniques that have been taught and can apply the tools to real data.
Thirdly, the use of EViews will become easier once applied to a chosen empirical investigation. Finally, students have the opportunity to show that they
can write in a scientific manner and are able to write in an understandable,
condensed and sophisticated manner. These are all attributes which are useful in preparing you for writing your final thesis at the end of the Master
program.

While working on your paper, there are no tutorial meetings scheduled. You
are expected to work on the paper mainly by yourselves within your subgroup. If you get stuck or need to back-up your progress, please send your
tutor an email and/or we can arrange an appointment. In any case I strongly
recommend that you consult at least once with the respective supervisor of
your topic, to make sure that your research is going in the right direction.
In addition, you can refer to Wooldridge (2002), Chapter 19 for guidelines in
writing your paper.
Towards the end of the course we will distribute the topics for your empirical project. In case the number of groups are not more or less evenly
distributed across the subjects, we reserve the right to assign you to topics.
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Independent of your topic, we expect you to include an introduction, a decent

literature review, methodology, analysis, and a conclusion in your paper. It is
important to focus on the research methodology, and the philosophy behind
the research method in order to obtain a sufficient grade.

The grade for the research paper depends on the following five, equally
weighted elements:
- Justification of your research methodology
- Reviewing the relevant literature
- Formulation of a research hypothesis and a testable framework
- Empirical Analysis
- Interpretation of results and discussion

The deadline of your max. 12 page (without graphs and tables) paper
is midnight on Friday April 3rd, 2015! As usual, you are expected to write
in Times New Roman font, 12 pt, 1.5 line spacing.

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Examination Requirements

The evaluation of students performance in this course is made up from the

three components of the course. Participation during classroom tutorials,
computing class assignments and the final research paper. Each component
carries roughly one third of the overall course grade. The exact weighting is
given below: the grade from your individual participation during the 5 classroom tutorial meetings (each meeting accounts for 7%), the 4 assignments
during the computing sessions (each assignments carries an 8% allocation),
and the final research paper (33%). The weighting therefore follows the simple rule:
Final grade out of 10
+ 0.35 Classroom Tutorial Participation
+0.32 Computing Lab Assignments
+0.33 Final Paper Group Grade

The emphasis is on your individual scores to encourage all students to

understand and cover the material over the duration of the course. Therefore
2/3 of the final grade is obtained during the tutorial and computing class
participation and assignments. These are graded on an individual basis.
The final third is assessed as a group grade, and requires the group to act
in a coherent manner together. The tutors shall grade all aspects of your
participation during the course, so it is important to attend and be active
during all meetings. In order to pass this course two requirements must be
fulfilled

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1. Each of the separate grades mentioned above have to be a minimum of

a 5.0.
2. To pass the course, the final grade has to be a 5.5 or above. Where
scores below 5.5 shall not be rounded up.
In case you fail either of your individual partial performance grades you will
have to follow the entire course again. This also implies that even if you
passed your final paper, but failed one or several of the other requirements,
you will have to complete and pass all parts in a second attempt of the course
again.

In case you fail only the final paper, you will have the possibility to register for a re-sit in the corresponding re-sit period. You will be asked to
complete another final research paper. This will be of a similar form and
scope as the original task. Paper topics will be assigned to you by one the
course coordinator beforehand, such that you will have a comparable period
to work on the paper as students had in the first attempt. Note however
that opposed to the original paper project, you will be working individually
on your re-sit paper.

3.1

Attendance & Participation

Generally, you are expected to be present at all group meetings and lectures
throughout the first five weeks of the block. If you do miss a tutorial meeting
or one of the computing sessions you will get a zero grade for the participation and the assignment. In exceptional circumstances please discuss your
situation with your tutors. Not actively participating in the tutorial meetings
shall also result in a zero grade.
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Research Paper

Note that you will have approximately two weeks to work on your own final
project. This is sufficient time to complete the task. Hence, please make sure
that you strictly stick to the deadlines that will be announced in the course
of the block.

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References
[1] Brooks, Chris (2014) Introductory Econometrics for Finance Cambridge University Press, 3rd Edition.
[2] Drakopoulos, Stavros. A., and Thomas S. Torrance (1994) Causality
and Determinism in Economics Scottish Journal of Political Economy,
Vol 41(2) pp. 176-193.
[3] DiNardo, John and Justin L. Tobias (2001) Nonparametric Density and
Regression Estimation. Journal of Economic Perspectives. Vol. 15(4),
pp. 11-28.
[4] Engle, Robert (2001) GARCH 101: The Use of ARCH/GARCH Models
in Applied Econometrics. Journal of Economic Perspectives. Vol. 15(4),
pp. 157-168.
[5] Engle, Robert (2004) Risk and Volatility: Econometric Models and
Financial Practice. The American Economic Review. Vol. 94(3) pp.
405-531.
[6] Friedman, Milton (1966) The Methodology of Positive Economics
in Essays in Positive Economics. University of Chicago Press. pp. 3-16,
30-43.
[7] Granger, Clive W. (2004) Time Series Analysis, Cointegration, and
Applications. The American Economic Review. Vol. 94(3) pp. 421425.
[8] Hansen, Bruce E. (2001) The New Econometrics of Structural Change:
Dating Breaks in U.S. Labor Productivity. Journal of Economic Perspectives. Vol. 15(4), pp. 117-128.
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[9] Hausman, Jerry (2001) Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left. Journal of
Economic Perspectives. Vol. 15(4), pp. 57-67.
[10] Horowitz Joel L., and N. E. Savin (2001) Binary Response Models:
Logits, Probits and Semiparametrics. Journal of Economic Perspectives. Vol. 15(4) pp. 43-56.
[11] Jagannathan, Ravi and Ellen R. McGrattan (1995) The CAPM debate.
Federal Reserve Bank of Minneapolis Quarterly Review. Vol 19(4) pp.
2-17.
[12] Krauss, Steven E. (2005) Research Paradigms and Meaning Making:
A Primer. The Qualitative Report, Vol 10(4) pp. 758-770.
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