The Department of Applied Finance has a strong research program built on a collaborative multi-disciplinary approach.
We pursue knowledge that puts us at the forefront of our disciplines in Australia and internationally.
Our research is neatly captured by four key areas:
- commodity markets and climate impacts
- human factors in business and finance
- banking and regulation
- corporate finance and governance.
Department of Applied Finance
4 Eastern Road
North Ryde NSW 2109
Office hours: 9am – 5pm (Mon to Fri)
Our major research centres
The centre has a worldwide reputation and high-profile impact in its ability to apply a financial and business case. This helps guide corporate and government decision making and policy on some of the biggest issues facing our world.
Read more about Macquarie University’s Centre for Corporate Sustainability and Environmental Finance.
Our China Research Centre is a world leader in applied business research with a focus on Chinese capital markets. It acts as a platform for collaboration by both local and international experts across academia, industry and government. Its goal is to foster innovative research and educational activities within the Department of Applied Finance’s perspective of business for the benefit of society.
Finance Decision Lab
The Finance Decision Lab receives real time data, simulating stock exchanges around the world, from the leading sources of business intelligence, FactSet and Thomson Reuters, giving access to industry-standard real-time financial data.
Find out more about the Finance Decision Lab [Link to the new Finance decision lab page]
Our research areas
The Department of Applied Finance has an enviable and high-profile research program built on a collaborative multi-disciplinary approach. We aim to extend the boundaries of knowledge in our field, and this progressively innovative approach puts us at the forefront of our disciplines in Australia and internationally.
Our research falls into four key areas.
Commodity markets and climate impacts
Mining and the export of natural resources are vital contributors to the Australian economy that are highly dependent on economic growth expectations and climate change adaptation policies. This research network focuses on econometric models and their application to commodity, energy, weather derivative and carbon emission markets.
This research area aims to describe the complex behaviour and structure of these markets and to quantify financial and economic risks. Research also measures the risks of climate-impacted hazards on the Australian economy and evaluates strategies for mitigation and adaptation to climatic change. Finally, it aims to relate the impact of renewable energy policies on Australian commodity and financial markets.
Human factors in business and finance
Research in this area is cross-disciplinary, drawing on finance, accounting, economics, management, ethics, psychology, financial literacy and linguistics to develop a greater understanding of human behaviour in financial contexts.
Using broad frameworks outside the traditional scope of economics and finance, we examine how humans behave within financial institutions and how individuals make decisions and interpret financial information. Our often-ground-breaking findings:
- inform regulation
- increase the resilience of financial institutions through improved governance and culture
- guide the design of more consumer-centric reports, products and services.
Banking and regulation
This research area provides insights into the performance, governance and strategic interactions of financial institutions, and the costs and benefits of regulating their activities. The Australian banking sector has experienced unprecedented growth and significant changes in the past 20 years, culminating in 2018’s royal commission into market behaviour and compliance, the implications of which are still being played out.
Current research projects investigate Australian bank capital and international bank regulation and governance, focusing on issues such as:
- bank capital and provisioning buffers
- implicit subsidies evident in bond spreads
- the impact of capital requirements on bank funding costs
- determinants and outcomes of bank risk governance in the post-crisis period
- the effects of diversification in banking organisations.
Corporate finance and governance
This research area covers most topical issues in corporate finance and corporate governance, focusing on international and emerging markets. We take an interdisciplinary approach to our research across finance, accounting, economics, and management disciplines. Our research academics have published co-authored papers in many leading academic journals, in partnership with colleagues locally and internationally on various research projects.
Our current research work covers subjects that are diverse, topical – and sometimes controversial. They include investigations into:
- the effects of political connections and promotion
- government intervention
- anti-corruption campaign
- CEO compensation
- bank lending and informal finance
- cash holding and investment efficiency
- ownership structure and family firm succession
- board independence
- mergers and acquisitions
- the effects of government relation on audit quality.
Professor Tom Smith, Head of Department, Applied Finance, is one of the leading finance academics in Australia and has been ranked as the number one finance academic in Australia and New Zealand by both the Journal of Financial Literature and the Pacific Basin Finance Journal. Tom is the leading researcher in environmental finance, asset pricing theory and tests; design of markets – market microstructure, and derivatives.
ARC Discovery Project — Australia’s climate strategy and positioning for the clean tech revolution
Professor Tom Smith, along with Centre for Corporate Sustainability and Environmental Finance Director, Professor Martina Linnenluecke, are undertaking research to analyse and benchmark Australia’s climate change strategy and positioning in terms of its readiness to take advantage of a clean technology revolution, and to analyse what the revolution might look like and how it will evolve.
Scientific evidence points to the increasingly urgent need for action on climate change and investment in cleaner technologies on a large scale. This need for action coincides with emerging policy and technological developments that are already taking place.
The project aims to provide new decision-making frameworks for the timing and extent of investments in new technologies. Analysing Australia’s positioning and the coming clean technology revolution would benefit policy-makers, corporations and investors.
The study has shown that the wealth creation from a transition to a clean tech economy will exceed $20 trillion dollars.
Masters programs and PhDs
Macquarie Business School is investing in developing top researchers and we invite you to join us.
Macquarie’s core pathway to higher degree research study is the international standard two-year research training pathway leading to the Master of Research.
The Master of Research equips students with intensive research preparation before beginning a PhD.
Find out more about our Masters programs and PhDs.
Content owner: Department of Applied Finance Last updated: 15 May 2019 10:03am