Name

Jason Kotter

School

University of Michigan

Degree Program

Third year PhD student in Finance

Previous Degrees

Master of Science in Economics from University of Michigan, 2011; Bachelor of Science in Economics from Brigham Young University, 2007

Research Interests

Corporate finance; executive compensation; human capital

Advisor

Amy Ditmar

Advisor’s Research Focus

Empirical corporate finance

Hobbies

Reading, backpacking, ice climbing

Graduate School – Application Process

How did you select your graduate school and program?

I chose to attend the University of Michigan for my PhD in finance because it was the best school that accepted me out of the 15 top finance programs in the United States. In addition, the location of my school in Ann Arbor seemed to be very family-friendly. It was important to me to live in a place that was conducive to family life because I am married with 2 children. I wanted to raise my family in a smaller city with outdoor opportunities.

What did you do to prepare yourself for graduate school?

To prepare myself for graduate school, I made sure to take coursework that would later be applicable to either finance or economics. For example, I took many mathematics classes, such as multivariable calculus, statistical analysis and differential equations. These types of classes are important because how well you do is an indication of whether you will be able to handle the types of classes you will take in a graduate program.

I also prepared for graduate school by conducting research after I completed my undergraduate degree. Specifically, I took on a research position with the Board of Governors, which gave me a couple of years to dive into the world of data. I even got to co-author a couple of papers. I think that experience gave me a sense of what life would be like as an academic economist. It also showed the schools that I applied to that I had an understanding of what the research process was like and that I knew what I would be getting into.

Did your application requirements include standardized test scores?

Yes, I was required to take the GRE. I looked through a couple of test prep textbooks in order to get an idea about the structure of the test, but I didn’t focus a lot of effort on preparing for the test. In my estimation, most people who have a mathematical background will not find the GRE to be a particular obstacle.

What kind of information did you include in your personal statement?

In my personal statement, I included information about what kind of research I wanted to conduct at the graduate level. I also discussed why I felt I would personally fit in with the school culture at the University of Michigan.

How did you choose faculty to approach for letters of recommendation?

When it came to asking for letters of recommendation, I chose to ask faculty who I had already developed a good relationship with during my undergraduate career. Even in my second or third year of my bachelors degree, I anticipated that I would be applying to graduate school. I knew I would need faculty recommendations for the future, so I made sure that my professors knew me and could speak to my specific strengths, rather than just write a general form letter.

What types of questions were asked in your admissions interview?

The questions that I was asked in my admissions interviews varied according to the school. I went through several interviews while deciding which school to attend for my graduate education, and each took a slightly different approach. Some schools asked very specific mathematical questions, so it felt like a pop quiz as to how mathematically prepared I was for graduate school. Other schools asked more general questions about my research interests and my future endeavors. And at other schools, the interview process was more of an invitation to join them. Those were the least stressful because I was able to get a feel for the people in my program.

Do you have any other tips for a student who is considering applying to graduate school in finance?

My biggest tip would be to try to get some research exposure before you make a decision to apply to grad school. A lot of people start a finance degree, excel at the coursework and then decide that they don’t like to conduct research. It is hard to know how you will do in a PhD program if you don’t have an in-depth research experience as an undergraduate, so you have to seek that out on your own. That way you can make sure that you want to spend the rest of your career in research before you waste time and money.

Graduate School – The Program

How long is your program and how is the curriculum distributed?

Like most doctorate of finance programs, my program at University of Michigan takes 5 to 6 years. The first 2 years of the program are devoted to coursework in economics and foundational finance. After your first year, you have to write a summer paper, which is your first chance to conduct your own research. After your second year, you take comprehensive exams, which test you on all of the finance courses that you have taken up to that point. Following your exam, you write a second year summer research paper.

Assuming you pass the exams and your second year summer paper, you advance to PhD candidacy. If you don’t pass, then you are removed from the program. But assuming that you do, your third and fourth years are devoted to choosing a dissertation topic and writing it. Ideally, you finish your dissertation at the beginning of your fifth year and then you spend the second half of your fifth year on the job market.

Can you describe the process of researching for and writing your dissertation?

I anticipate that my dissertation process will be somewhat similar to my thesis process. That is because my thesis was done in a similar style to my vision for my dissertation. I plan to use original research and data to answer a question that I choose. My dissertation will be like 3 separate masters theses put together, in the sense that my dissertation will have 3 chapters. Each chapter will be equivalent to a paper that is worthy of publication in a corporate finance journal.

What role does your advisor play in your education?

My advisor’s role in my education is to be a resource to guide me through my doctorate program. She is there to answer any questions that arise during the course of my research. We typically meet with her once every couple of weeks to discuss the progress of my research and where I plan to take my ideas in the future. She also provides direction for extracurricular opportunities to advance my career. For instance, she informs me about various conferences or seminars that I should attend or grant opportunities that I might pursue.

Does your doctoral program require comprehensive exams prior to graduation?

Yes, at the University of Michigan, we are required to pass comprehensive exams at the end of our second year in order to be eligible for PhD candidacy. Those exams cover all of the financial and economic information that our coursework covered during the first 2 years of our doctoral program.

How does a doctoral program differ from graduate study at the masters level?

The biggest difference between studying at the masters and doctorate level is in the structure of the classes that we take. A lot more background reading is required to prepare for classes at the PhD level, and classes are more self-directed than masters-level course work. In a PhD program, seminar courses are very small classes with only about 6 students. Typically, the professor is not in front of the class lecturing, but guiding the discussion that the students carry out.

Graduate School – Paying for It

How are you funding your education?

Every student who is admitted to the PhD in finance program at the University of Michigan is offered full funding for the first 4 years. Funding covers tuition as well as a stipend. During the fifth year, tuition is still covered, but the stipend is much lower than in the other years since it is assumed that you will be actively seeking a job.

Graduate School – Living Life

What are the time commitments for a PhD in finance?

The first 2 years of my program were very time-intensive. I would estimate that I spent 70 to 80 hours a week on course work, homework and reading for the courses. That time commitment only increases as you prepare for the comprehensive exams. At the beginning of my third year, I found that the time commitment required is closer to that of a full-time job. If I work Monday to Friday, 9:00 a.m. to 5:00 p.m., I have sufficient time to take care of my school responsibilities.

How has graduate school affected your family life?

The first few years of graduate school affected my family life because I was not able to be home as much as I would have liked. Initially, I had to be certain that my wife supported my goals because I was less able to help with things around the house. At this point, in my third year, school is much like a normal job, so we are more balanced now.

Graduate School – After Graduation

Where do you see yourself in 5 years?

In 5 years, I want to be working in academia as a professor. Ideally, I want to get a tenure-track teaching position at a top finance school, such as the University of Chicago, Duke or Stanford.

Graduate School - Advice

What insights can you offer a student who is interested in pursuing a PhD in finance?

I would say that it is very important to make sure you take the time to get the mathematical background necessary before you apply. This background will make your coursework experience a lot easier and it will qualify you to get into a good finance program. At the end of the day, a better program will result in a better job.

I would also recommend that all people pursuing a finance PhD try to immerse themselves in a research experience as quickly as possible. Coursework is important because it builds a knowledge base, but your research skills will ultimately get you a job. It is easy to lose sight of the long-term importance of research when you are in the midst of your course work, but the sooner you can shift from a course work mindset to a research mindset, the better.