Final Theses
The allocation of Bachelor’s and master’s theses is carried out via the Central Allocation Procedure of the Faculty of Business Administration and Economics, in which the Chair of Banking and Finance also participates. Information on this allocation procedure, as well as the dates and deadlines for the online application phase, can be found here. Before you submit your application for a thesis at our Chair as part of the Central Allocation Procedure, you must specify your preferences for the topic of your thesis. To do so, you may choose 3 topics from the lists on this page or propose a maximum of 3 topics of your own. If you have any questions regarding the topics suggested on this page, please contact Ms Herwald no later than three weeks before the start of the official allocation process. This is essential if you wish to propose your own topic. You should then complete the preference form ( download) in full and submit it, together with the other documents (transcript of marks, examinations registered for the current semester), as part of the central allocation procedure. You must also specify your choice of topic even if you list us as your second or third preference in the allocation process. Once the allocation process has been completed, you will receive an email from us inviting you to the introductory session for the final-year dissertation seminar . At this session, you will receive all the important information regarding your final-year dissertation, including the allocation of supervisors, topic assignment and organisational procedures. We therefore ask you to wait until the introductory session and to refrain from contacting us beforehand. The final-year dissertation seminar is an optional supplementary seminar outside the Bachelor’s and Master’s curricula. It is designed to support you in writing your final thesis, offers plenty of useful advice and resources for completing the thesis, and includes an optional interim presentation of your work to date, approximately 4–6 weeks before the submission deadline. |
Reactive investor behaviour during financial crises – An analysis of behavioural economic patterns in times of crisis Financial crises typically exacerbate irrational reactions among market participants. This study identifies typical biases during such phases (e.g. panic selling, flight to safety, negativity bias) and demonstrates how these manifested themselves in various crises (e.g. the dot-com bubble, the 2008 financial crisis, the COVID-19 crash). The focus is on a comparative analysis of relevant studies. Method: theoretical |
Behavioural Finance and Asset Pricing This thesis examines how insights from behavioural economics can be integrated into classical asset pricing models. The starting point is the assumption underlying traditional asset pricing models that investors act rationally and markets are efficient. This thesis contrasts this paradigm with behaviour-based concepts, such as the noise trader model, the behavioural CAPM or models of bounded rationality. The aim is to analyse, on the basis of the literature, what effects psychological biases (e.g. sentiment, overreaction, limited attention) may have on asset prices and how these can be systematically incorporated into valuation models. The thesis discusses theoretical approaches as well as empirical findings on price deviations and market anomalies. Method: theoretical |
Between market logic and equality: The influence of banking competition on diversity targets on executive boards Drawing on existing literature, this thesis examines whether intense competition in the banking sector correlates with stronger or weaker implementation of diversity targets – specifically, increasing the proportion of women on executive boards. It discusses theoretical arguments such as the trade-off between efficiency pressures and the promotion of innovation through diversity, as well as research findings on human resources policy under competitive pressure. Method: theoretical |
Competition and Gender Diversity in the Banking Sector: An Analysis of Theoretical Perspectives from Organisational and Competition Theory This paper compares various theories (e.g. New Institutional Economics, the Resource-Based View, competition hypotheses) with regard to how they explain the relationship between competition and the appointment of women to leadership positions. The aim is to establish a conceptual understanding based on the current literature. Method: theoretical |
Equity Capitalisation and Entrepreneurial Resilience What does entrepreneurial resilience mean, and why is it becoming increasingly important? Which external risk factors play a role? Is there an optimal capital structure for firms? To what extent can the proportion of equity within the capital structure contribute to a firm’s resilience? Method: theoretical |
Initial public offerings (IPOs) of German companies in the USA For several years now, the number of initial public offerings (IPOs) by German companies in the USA has been rising steadily. Against this backdrop, this paper aims to examine why German companies prefer a listing on the US stock exchange to one on the German stock exchange. Firstly, the IPO process must be described in detail. Subsequently, the two stock market locations (the US and Germany) will be compared. Following this, the factors cited in the literature for the choice of stock market location will be outlined and applied to the two locations. Which factors may be decisive in choosing the US stock market? |
State Ownership – The State as a Shareholder In recent decades, many governments worldwide have acquired stakes in privately run companies or have taken over such companies, either partially or in full. This bachelor's thesis aims to examine, through a thorough review of the literature, the effects of state ownership or takeover on various aspects of corporate performance (in particular financial performance, efficiency, innovation and governance structures). The thesis concludes with a critical assessment. Method: theoretical, descriptive |
Early Warning Indicators – A Review Banking and financial crises have diverse causes and far-reaching consequences. A range of early warning indicators is designed to send out appropriate warning signals and provide indications of future market changes. This bachelor's thesis aims in particular to answer the following questions: What is the need for the implementation of early warning indicators to protect the banking system and the real economy? Which early warning indicators have been developed in recent years? Do the indicators react early enough, and are they precise and reliable enough? Method: theoretical |
Crowdfunding in the banking sector What synergies (forms of cooperation) exist between crowdfunding and the traditional banking business? Firstly, the theoretical foundations of crowdfunding and the traditional banking business are to be outlined. An overview of the respective markets in Germany is also to be provided. Subsequently, the existing links between the various types of crowdfunding and platforms and the banking sector will be examined. Particular attention will be paid to the cooperation models and various forms of co-financing observed in Germany. These will be presented in detail and critically evaluated. Method: theoretical |
On the ‘Too Big to Fail’ and ‘Too Connected to Fail’ doctrines The ‘Too Big to Fail’ and ‘Too Connected to Fail’ doctrines postulate that large and highly interconnected banks, whose insolvencies could have serious negative repercussions on the entire banking market and the real economy, must be protected from failure. Both doctrines are not without their critics. As part of this bachelor’s thesis, both doctrines will be examined in detail and critically discussed. Furthermore, possible alternatives will be identified. Method: theoretical |
Central Bank Digital Currencies Worldwide – A Comparison of Opportunities and Risks An increasing number of central banks are breaking new ground and developing a digital central bank currency. In the Bahamas, the Sand Dollar was introduced as early as 2020, and the European Central Bank is also working on the digital euro. Depending on the country, different reasons for introduction may be significant. This bachelor's thesis aims to discuss the opportunities and risks presented by a digital central bank currency and how these differ across various countries. Method: theoretical |
Special Purpose Acquisition Companies (SPACs) – Opportunities and Risks ‘Special Purpose Acquisition Companies’ (SPACs) are shell companies created solely for the purpose of acquiring a private company and subsequently listing it on the stock exchange via the SPAC (‘backdoor listing’). Method: theoretical |
Methods of corporate finance: Initial Coin Offering compared with venture capital and crowdinvesting The aim of this thesis is to provide a comprehensive comparison of three selected methods of corporate finance: Initial Coin Offering (ICO), venture capital and crowdinvesting. Firstly, the theoretical foundations of these three forms of financing will be outlined. Within this framework, an overview of each respective market will also be provided. Subsequently, a comprehensive critical comparison (advantages and disadvantages, opportunities and risks) of the three forms of financing will be carried out with reference to the existing literature. Based on this analysis, the paper will conclude by briefly addressing the questions of whether and how ICOs can establish themselves as a form of financing, and how the legal regulation of ICOs should be structured. Method: theoretical |
Banking risks and financial market stability: A comparative analysis of conventional and Islamic banking systems This thesis aims to identify the key differences between Islamic banks and conventional banks. In particular, it will examine the risks within the two systems and their impact on financial market stability. Method: theoretical |
Exotic options: An analysis of non-standardised derivatives Exotic options are financial derivatives that differ from standardised options due to their specific characteristics. This thesis aims to outline the characteristics and structures of selected exotic options, such as barrier options or Asian options. The valuation methods for exotic options will be examined and distinguished from standard models, such as the Black–Scholes model. Furthermore, an analysis will be carried out of the opportunities and risks associated with exotic options, as well as their practical application. Method: theoretical |
Decentralised Finance – A Comparison with the Traditional Financial System The aim of this paper is to examine the emerging concept of decentralised finance (DeFi) in the context of its potential advantages and disadvantages compared to the conventional financial system. This will involve an analysis of the fundamental principles of DeFi, which is based on blockchain technology and smart contracts to provide financial services without centralised institutions. Furthermore, the paper will examine various applications and protocols within DeFi, such as decentralised exchanges (DEXs), lending platforms, liquidity provision and other financial instruments. The analysis focuses on the potential advantages and disadvantages of DeFi compared to the traditional financial system. It considers aspects such as accessibility, transparency, efficiency, lower transaction costs, financial inclusion, and the ability to offer traditional financial services in a decentralised and global manner. Furthermore, the challenges, risks and limitations of DeFi are examined, including security issues, regulatory uncertainties and potential scalability problems. The aim is thus to provide a comprehensive understanding of the potential and limitations of DeFi in comparison with the established financial system, which may be of particular interest to financial stakeholders, regulatory authorities and innovators. Method: theoretical |
ESG scores: What do the criteria mean for financial institutions? ESG requirements are becoming a fundamental challenge that banks must overcome in an environment characterised by low interest rates, rising external operating and capital costs due to regulation, and massive headwinds from the COVID-19 crisis. Method: theoretical, descriptive |
The role of supervisory boards in banks following the financial crisis: changing governance structures The financial crisis has highlighted shortcomings in the supervision and control of banks. This bachelor's thesis examines the role of supervisory boards in the banking sector since the financial crisis and analyses changes in their remit, composition and responsibilities. The thesis takes into account regulatory reforms as well as the importance of supervisory boards for risk control and strategic decision-making in banks. Method: theoretical |
Remuneration Structures and Risk Behaviour in the Banking Sector Remuneration systems are regarded as a key element of corporate governance in banks and came under heavy criticism following the financial crisis. This thesis analyses the relationship between bonus and incentive schemes, management’s risk behaviour and the stability of banks. The paper discusses economic explanatory models, regulatory interventions and the role of remuneration systems as a steering instrument in banks. |
Ethics and Corporate Governance in the Financial Sector Due to their economic significance, banks bear a special social responsibility. This thesis examines the integration of ethical principles into the corporate governance of financial institutions. Drawing on the literature, it presents approaches to responsible corporate governance, codes of conduct and their influence on decision-making processes in the financial sector. |
Impact Investing and Social Responsibility: New Perspectives for Banks Impact investing combines financial returns with measurable social or environmental impacts and is becoming increasingly relevant for banks too. This thesis contextualises the concept from a financial perspective and examines the extent to which banks act as investors or intermediaries in the field of impact investing. It addresses key characteristics, distinctions from related approaches and challenges for banks. Method: theoretical |
Sustainable Finance: The Role of Banks in the Sustainable Transition This thesis examines how banks support sustainable economic activities within the framework of sustainable finance and thereby contribute to the sustainable transformation. The focus is on fundamental concepts of sustainable finance, relevant regulatory frameworks, and selected instruments and strategies in the banking sector. |
Greenwashing in the Financial Sector: Governance Mechanisms and the Credibility of Sustainable Products As the range of sustainable financial products on offer grows, so too does the risk of greenwashing in the financial sector. This thesis analyses which governance and control mechanisms can help to ensure the credibility of sustainable financial products. It examines regulatory requirements, internal control systems and transparency requirements in the banking sector. Method: theoretical |
Methods for quantifying liquidity in securities markets and their application during financial crises Analysis of various methods for quantifying liquidity in securities markets and their significance during financial crises. Examination of various liquidity metrics, including spread measures, trading volume analyses, liquidity risk measures and other indicators that can quantify market liquidity. This paper evaluates the effectiveness of these methods in predicting and analysing liquidity shortages during financial crises and their impact on market stability. Method: theoretical |
Spotify Music Sentiment and Stock Returns This paper examines whether and to what extent aggregated sentiment derived from music preferences – measured using Spotify streaming data and song sentiment analysis – correlates with developments in the financial markets. Building on the behavioural finance literature on sentiment indicators, the paper discusses whether musical moods can serve as a proxy for collective investor sentiment. The focus is on the theoretical underpinnings and a review of existing empirical studies that tentatively link musical sentiment to market movements. The aim is to provide a critical assessment of this novel form of sentiment analysis and its relevance to capital markets. Method: theoretical |
Financial Literacy and Behavioural Economics – The Influence of Financial Literacy on Irrational Investor Behaviour This thesis examines the role of financial literacy in the context of behavioural economic biases in individual investment decisions. Building on behavioural finance theory, the study examines the extent to which a lack of financial literacy contributes to the emergence of irrational behavioural patterns – such as overconfidence, the disposition effect or mental accounting. Empirical studies analysing the relationship between financial literacy, decision-making quality and long-term investment success are evaluated. The aim is to provide a systematic overview of whether and how financial literacy leads to more rational investment decisions and can thus act as a countermeasure to typical behavioural errors. Method: theoretical |
ESG Scores and Risk Behaviour in the Banking Sector What effect do ESG scores have on the risk behaviour of banks? How do they influence the value of these banks? These are the central questions addressed in this thesis. In particular, the two lines of argument – the ‘stakeholder view’ and the ‘overinvestment view’ – should be examined. Method: theoretical |
Comparison of measures for determining credit risk in banks: Value at Risk versus Expected Shortfall Value at Risk (VaR) is established as the standard risk measure, but it also has its weaknesses. Not least for this reason, the European Banking Authority (EBA) proposed as early as 2013 that VaR be replaced by Expected Shortfall (ES) for measuring banks’ credit risk. This master's thesis aims to compare both metrics theoretically and descriptively. Method: theoretical, descriptive
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Lending terms and credit risk mitigation on crowdlending platforms Crowdlending offers a means of raising capital, particularly for those who, for various reasons, are unable to obtain a loan from banks Method: theoretical |
Measuring systemic risk in the banking market – A critical analysis In the event of a bank’s insolvency, the so-called domino effect can trigger a wave of insolvencies among other banks, leading to the collapse of the banking system. In the wake of the global financial crisis of 2007, various models and indicators have been developed with the aim of identifying systemic risk early enough and quantifying it as accurately as possible. These models and indicators will first be presented in this master's thesis and then subjected to a comparative and descriptive analysis. Method: theoretical, descriptive
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New indicators in banking regulation and their impact on banks’ lending As a consequence of the global financial market crisis of 2007, further capital and liquidity requirements are to apply to banks in future. In particular, three new ratios have been introduced: the leverage ratio (LR), the liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR). These new ratios will first be presented in detail within the context of banking regulation. Subsequently, the study will examine what impact compliance with these ratios might have on banks’ lending. Method: theoretical, descriptive |
The Modigliani–Miller theorem versus behavioural science explanatory approaches The theorems formulated by Modigliani and Miller in 1958 concerning the relationships between capital structure, cost of capital and a firm’s market value show that capital structure is irrelevant to a firm’s market value and that, consequently, there cannot be an optimal capital structure. In this master's thesis, the Modigliani–Miller theorem will first be presented in detail. Subsequently, behavioural explanations for the (non-)existence of an optimal capital structure will be examined and critically compared with the Modigliani–Miller theorem. Method: theoretical
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Competition and Stability in Banking Markets The relationship between welfare-enhancing competition in the banking market and the necessary financial stability of banks has not yet been fully explored. Furthermore, previous research has yielded contradictory results. As part of this master's thesis, the aim is first to trace in detail the possible positive and negative interactions between competition in the banking market and the stability of the banking market. Subsequently, possible measures of competition and stability for the banking market will be presented and compared with one another. Finally, these measures will be compared with one another in a descriptive analysis. Method: theoretical, descriptive |
Banking stress tests by the European Banking Authority (EBA) – presentation and critical assessment Since 2009, the European Banking Authority (EBA) has been conducting regular ‘stress tests’. As part of these stress tests, a crisis scenario is simulated and an assessment is then made of the extent to which European banks can withstand this scenario – in other words, whether they still have sufficient core capital, amongst other things, even in a crisis scenario. The aim of this master's thesis is, firstly, to examine the rationale behind stress tests and to outline the development of these tests over time. Secondly, the results of all stress tests will be compared and their impact, particularly on the banks’ capital and liquidity positions, will be analysed. Method: theoretical, descriptive
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On the analogy between financial and real options The degree of flexibility involved in carrying out real investment projects is given little or no consideration in standard investment calculation methods. The real options approach, which has been the subject of intensive debate in the literature, aims to close this gap by applying the theoretical tools of option pricing – used for the valuation of financial instruments – to the valuation of investments in real assets. This bachelor's thesis aims to present a comparative, theoretical and descriptive analysis of the financial options and real options approaches. In doing so, it will highlight key similarities and differences, as well as identify the advantages and limitations of the real options approach Method: theoretical, descriptive |
Social Trading – An Economic-Psychological Analysis The term ‘social trading’ describes a form of securities investment in which individual users of a trading platform can view, discuss and replicate the investment strategies and portfolios of other users. Investors no longer follow the advice of a bank adviser or fund manager, but often rely on recommendations from the ‘community’. This master's thesis aims to examine the economic-psychological aspects of social trading. Firstly, the concept of social trading and its practical implementation will be presented in detail. Subsequently, the opportunities and risks of social trading – particularly with regard to swarm intelligence and herd behaviour – will be analysed from the perspective of the individual user and evaluated using the risk-return profile of a securities investment. Method: theoretical, descriptive
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The consideration of environmental and climate risks in banks’ credit risk management This paper aims to provide an overview of current developments in the quantification of environmental and climate risks within banks. How do banks seek to assess their loan portfolios for the climate risks they contain? Firstly, the paper will focus in particular on the fundamentals of credit risk management in banks, as well as the potential channels through which environmental and climate risks may affect the credit risk portfolio. Current regulatory developments will also be briefly outlined. Subsequently, various current methods for the quantitative measurement of environmental and climate risks in loan portfolios will be described in detail and critically evaluated. Method: theoretical; descriptive |
Disintermediation in the banking sector’s lending business, using the examples of ‘crowdlending’ and ‘BNPL’ Firstly, the causes and drivers of digitalisation in the banking sector will be outlined in general terms. In doing so, a link will also be established to those FinTechs that offer digital solutions for lending in the retail sector. This is followed by a comprehensive examination of dis Method: theoretical
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Behavioural Finance and Asset Pricing The link between behavioural finance and asset pricing is an interesting field of research that challenges traditional assumptions about financial markets and makes them more realistic. This study focuses on how psychological factors and behavioural patterns of investors influence the pricing of assets. It examines deviations from the efficient market hypothesis by analysing behaviours such as overconfidence, herd behaviour, loss aversion and other psychological tendencies. In doing so, it explores both individual decision-making processes and collective effects on markets. This thesis aims to explore the implications of this approach for asset pricing models and portfolio theory. By integrating behaviour-based elements into traditional financial models, new insights are gained that can better explain asset pricing. Furthermore, the implications of these findings for investment strategies and risk management are assessed. This study contributes to a deeper understanding of the complex links between human behaviour and financial markets and explores their impact on asset valuation. Method: theoretical |
Cryptocurrencies and their investor base – An explanatory approach to observable market phenomena Analysing behavioural patterns in cryptocurrencies is of great importance for better understanding the complex and volatile behaviour of digital currency markets. This research focuses on examining the psychological and behavioural aspects of investors that influence the price behaviour of cryptocurrencies. It analyses the dynamics of supply and demand, taking into account factors such as market sentiment, investor psychology, FOMO (Fear of Missing Out), FUD (Fear, Uncertainty, Doubt), as well as herd behaviour and speculative trading. In doing so, it examines both individual and collective behavioural patterns of investors and traders in crypto markets. The study aims to investigate the impact of behavioural patterns on price movements and the volatility of cryptocurrencies. It analyses the psychological factors that influence price fluctuations, as well as investors’ reactions to news, regulatory events and market sentiment. Furthermore, the study explores the role of platforms, social media and information sources in influencing the behaviour of crypto investors. The aim is to gain insights into the behavioural patterns that shape the price movements of cryptocurrencies, in order to better understand potential trends and risks and, on that basis, enable well-informed investment decisions. This thesis aims to contribute to a deeper understanding of the psychology and behavioural patterns of participants in cryptocurrency markets. Method: theoretical
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Effects of financial news on investor decisions The study of the effects of financial news on investor decisions focuses on how information and news from various sources influence investors’ decision-making processes. This thesis analyses the impact of news about financial markets, companies, macroeconomic indicators and other relevant factors on investor behaviour. It also examines how different types of financial news – be it traditional media coverage, social media, corporate announcements or analyst recommendations – influence investors’ perceptions, risk appetite and trading decisions. The study also considers temporal aspects, such as the immediate and long-term effects of news on the markets and investor behaviour. The aim of this paper is to analyse investors’ reactions to different types of financial news. This involves examining price movements, trading volumes, volatility and other market indicators in the context of news releases. Furthermore, the psychological and behavioural aspects of investors are analysed to understand how emotions, perceptions of risk and trust in the information influence investment decisions. The focus is on gaining a deeper understanding of how investors process information and, on this basis, providing insights that help them make informed decisions in a dynamic news environment. This research contributes to a better understanding of the interactions between financial news and investor behaviour and to the development of potential trading strategies based on these insights. Method: theoretical or empirical |
Attention-based investing – the impact of Google search volume on stock markets This paper examines the relationship between share trading and search volume on the Google search engine, thereby shedding light on how people’s interest and attention – as reflected in Google search queries – influence trading volume, price movements and share volatility. The analysis involves investigating correlations between investors’ search behaviour and subsequent trading activity. This includes a detailed examination of how changes in search volume, as an indicator of investor interest, might anticipate or influence potential price movements. By linking search data with actual trading data and price movements, the aim is to identify patterns and correlations. The objective of this paper is to gain insights into the potential impact of search behaviour on share trading. Method: empirical
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GameStop Frenzy – An Analysis of Short Squeezes The growing importance of retail investors and their influence on capital markets is undisputed. This thesis analyses the phenomenon of a short squeeze using the remarkable events surrounding GameStop shares as a case study, and explores the background, course and implications of the GameStop case in the context of a short squeeze. It examines the dynamics between the various players in the financial markets, in particular the role of retail investors and the online community, which was mobilised via platforms such as Reddit – and specifically the ‘WallStreetBets’ subreddit – to invest specifically in GameStop shares. The analysis also addresses the reactions of traditional institutional investors, hedge funds and regulatory authorities to this unforeseen event. It takes into account the effects on the share price, market liquidity and market dynamics, as well as the regulatory and ethical aspects of the events. The aim of this thesis is to examine the GameStop case as a unique example of the convergence of online community activism and financial market volatility. This thesis aims to provide insights that may help to better anticipate similar events in the future and shed further light on the interaction between social media and financial markets. Method: theoretical or empirical |