Cluster members
Cluster director

This cluster is a community of internationally leading scholars, where a vibrant research environment and reciprocal support facilitate the investigation of challenging questions on the functioning of firms and markets.

InsTED network blog

The InsTED network aims to enhance understanding of the role of institutions, both domestic and international, in the process of economic development. Click here to visit the InsTED network blog.

Firms, Markets and Value

The "Firms, Markets and Value" cluster is a vibrant research community composed of academic researchers working across the Departments of Accounting, Economics and Finance. Members research over a broad spectrum of issues in relation to the functioning of markets, firm governance, corporate behaviour and valuation.

The FMV cluster is a research group with a commitment to be an internationally recognised centre for excellence over five broad themes, over which members of the cluster have developed leading expertise and an outstanding track record.


Corporate Governance & Responsibility

  • Boards of directors and top executive team
  • Institutional investors and shareholder activism
  • Executive compensation and insider trading
  • Auditing and the role of auditors in ensuring the quality of corporate information
  • Corporate social responsibility and governance of stakeholders
  • Conflict of interest between different stakeholders

Firm Policies & Decisions

  • M&A, buyouts and IPOs
  • Capital structure
  • Cash holding & pay-out policies
  • Investment efficiency
  • Corporate lobbying
  • R&D and innovation policies

Reporting & Disclosure

  • Role of corporate (financial and non-financial) reporting for shareholders, investors and stakeholders
  • Accounting standards
  • Financial reporting quality and earnings management
  • Pension accounting
  • Voluntary disclosure (non-GAAP reporting, non-financial information, etc.)
  • Textual analysis and impression management

Financial Institutions & Intermediation

  • Banking and credit ratings
  • Hedge and mutual funds
  • Financing decisions (venture capital, crowd funding, business angels, etc.)
  • The financial crisis
  • The role of financial analysts in the market

Markets, Pricing & Valuation

  • Theory and empirics of asset pricing
  • Drivers of stock price movements
  • Cost of capital
  • Trading and financial instruments
  • Ambiguity, risk management and bankruptcy predictions
  • Macroeconomics and macro-finance
  • Auctions
  • Firm valuation and value relevance of financial information.

Cluster events

Corporate Governance Research Day 
Publication Workshop
  • 5 April 2018 - “Deconstructing a paper: the research process, paper output and the journey beyond” Prof Jan Bebbington Further details

Cost of Capital Workshop
XII Workshop on Empirical Research in Financial Accounting
SWUFE-UOE Joint Research Workshop
Macro & Financial Intermediation Workshop
  • 1st Edition: 31 May - 1 June 2016, Exeter (UK)
Corporate Finance Conference

Run jointly with Universities of Bristol, Manchester, and Lancaster

  • 2016 Edition: 8-9 September 2016, Lancaster (UK)
  • 2017 Edition: 6-7 July 2017, Exeter UK
Cluster Research Workshop
Invited Seminars and Distinguished Lectures
  • Eli Amir scheduled on May 22
  • “Capital Accumulation and the Dynamic Gains from Trade” Michael Sposi
  • “Diffusion of Networks” Kalyan Chatterjee

Impact & engagement

Corporate Governance Inquiry

Please read the written evidence submitted by prof Giovanna Michelon, in collaboration with Ruth Sealey.

Cost of Capital and Asset Pricing in the UK

Alan Gregory and Rajesh Tharyan are the principal investigators of an ESRC funded project, the twin aims of which are: first, to facilitate the creation and maintenance of high quality, survivorship bias free, standardised and regularly updated set of specific financial data for free use by academics, researchers and also potentially by regulatory bodies such as the Completion and Markets Authority(CMA), formerly the Competition Commission,  Office of Fair Trading (OFT), OFWAT, OFCOM and other regulators and second, to provide a more satisfactory model of the cost of capital and asset pricing in the UK.

The project maintains a repository at that provides access to a set of risk factors for the UK market. These risk factors are analogous to the Fama-French Size, Value and Momentum factors for the US. In addition to the risk factors, the repository also provides a number of benchmark portfolios that are used commonly in applications such as tests of asset pricing models, event studies etc. 

A key objective of the project is to provide insights for the extensive regulatory use of asset pricing models in the UK, both in terms of market inquiries and in the setting of utility prices by regulators. Research carried out as a part of the project has attracted interest from a number of regulators and the project team have been invited to present at the CMA and at other regulators including OFCOM. Research outputs from the project have also been cited in several influential Competition Commission/CMA market inquiries. It is anticipated that this paper will be cited in several ongoing market investigations.

The project is enabling the advancement of empirical research in the asset pricing area in a UK context, particularly in relation to the estimation of cost of capital. Also, in addition to serving as a valuable resource for academic research, the project is generating significant impact by informing regulatory policy.

Better Business for all

Better Business for All is a UK Government Initiative. It is an extension of a project that Kevin McMeeking started with local councils.  This project was 'Safer Workplaces Better Business' (which in essence was similar to the 'Safer Foods' initiative that you see ubiquitously (i.e relevant institutions (e.g. restaurants) are graded from 0 to 5 on the health and safety of their food service). The Safer Workplaces project sought to extend this to other areas of risk.

We created initially a document (hard copy) which was then transformed into an electronic version with the opportunity to interact with local councillors. The object was that relevant entities might undertake the risk management measures needed to meet relevant legislation and then signal their quality / brand name reputation in some way.

Other activities

  • Gregory , A., Shan, H. and Tharyan R. In search of Beta  - presented at the 2016 Competition and Markets Authority, London.
  • Garcia-Ares, P.A. Analytical Solutions to Multi-period Credit Portfolio Management: A Macroeconomic Approach at Moody’s Analytics
  • Neira J.: Cross-Country Differences in Productivity, paper presented at the InterAmerican Development Bank (Washington D.C.)
  • Sonika, R.: E.On Energy advisory project
  • Tharyan, R. and Bi, X.: Collective Holding, Monitoring and Acquisition Performance – Evidence from China.

Cluster-funded research projects

Principal investigator(s)



Das, Kaustav Kalyan Chatterjee, (Pennsylvania State University) Competition in R&D activities, its sequential nature and optimal criteria for funding
Garcia-Ares, Pedro Angel Fernando Zapatero (USC) Substitution effects and lottery demand
Igarashi, Yoske   Credit risk analysis with creditor's option to extend maturities
Kalogirou, Fani Paul Andre (HEC Lausanne) Voluntary adoption of IFRS by UK unlisted firms and investment decisions at the firm- and group- level
Kiosse, Vicky Jo Horton & Evisa Mitrou (Exeter) Why do firms retain their defined benefit plans? Evidence from the UK
Livne, Gilad   UK voting reform on executive compensation
Livne, Gilad & Tsipouridou, Maria Jo Horton (Exeter) New auditor reform
McMeeking, Kevin Beverley Hawkins (Exeter), Chiara DeMartini (Pavia) Risk management, valuation and governance    
Michelon, Giovanna Pietro Bonetti (Padova) Real effects of environmental disclosure
Neira, Julian & Singhania, Rish   European productivity and firm dynamics
Paananen, Mari & Tarsalewska, Monika Jo Horton (Exeter) The implication of social networks on capital allocation
Tarsalewska, Monika J. Chircop (Lancaster) Annual report length and MA efficiency

Visiting scholars

Visiting professors

Kalyan Chatterjee, (Pennsylvania State University)
Fernando Zapatero (University of Southern California)

Visiting researchers

Dr Claudia Arena (University of Naples Federico II, Italy)
Dr Maria del Mar Miras (University of Seville, Spain)
Dr Giulia Redigolo (University of Padova, Italy)

PhD students

Jieun Chung (Concordia University, Canada)
Nicolas Garcia Torea (University of Vigo, Spain)

The foundation of the FMV cluster is the portfolio of innovative world-class research conducted by a respected international faculty. The cluster is offering Ph.D. supervision in any of the research themes, which will allow applicants to work alongside some of outstanding scholars in the field, while being exposed to an interdisciplinary and collaborative research environment. We also work and continue to expand our collaborations with other academic institutions, industry, practitioners and regulators by providing research and consulting, and organising conferences and seminars.