Syllabus MSc Banking and Finance.docx

7/27/2019 Syllabus MSc Banking and Finance.docx

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Programme Specification andCurriculum Map for MSc Banking& Finance

1. Programme title MSc Banking and Finance2. Awarding institution Middlesex University3. Teaching institution Middlesex University

4. Programme accredited by N/A5. Final qualification MSc6. Academic year 2012 - 20137. Language of study English8. Mode of study Full Time

9. Criteria for admission to the programme Applicants must have:

a good honours degree from a UK University in the field of finance or banking, economics, accountancy or business studies with an appliedquantitative element, statistics, mathematics, engineering, physics,computing or science, or

the equivalent of the above from a recognised overseas University.Students whose first language is not English will need to demonstrateEnglish language proficiency in addition to the other entry requirements. Aminimum score of 6.5 IELTS or a TOEFL score of 575 for the written test or 230 for the computer test or a recognised equivalent qualification must beobtained.

10. Aims of the programme


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The programme aims to: develop students existing skills by advanced study in the areas of

banking and finance;provide an advanced theoretical framework to understand, interpret andanalyse contemporary issues in domestic and international banking,finance and economics;

develop students competence in applying advanced quantitativetechniques to the practice of banking and finance;provide students with the ability to test and evaluatebanking/finance/economic models using a range of research methods,data and techniques of analysis;equip students with the knowledge and skills necessary for them topursue a career in investment banking, financial markets and corporate finance;

develop students ability to interpret and critically evaluate banking,finance and economic theory and related empirical evidence;

develop students ability to undertake academically rigorousindependent research;

enhance the students capacity to communicate ideas, arguments andresearch findings effectively in written form

11. Programme outcomesA. Knowledge andunderstandingOn completion of this programmethe successful student will haveknowledge and understanding of :

1. the application of advancedbanking, finance and economictheory to currentdevelopments and issues infinancial markets;

2. the role, operations andregulation of financialintermediaries (institutions);

3. the structure and workings of domestic and global financial

Teaching/learning methodsStudents gain knowledge andunderstanding through a series of lectures, seminars and workshops.Lectures will provide a rigorous

examination of advanced banking,finance or economic theory, conceptsand principles and where appropriatea critical evaluation of the extantempirical literature. Lectures will placestrong emphasis on the application of theories, empirical testing andpractical relevance. The lectures will

provide a framework to facilitatestudents individual study and


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markets;4. key theoretical concepts and

practical techniques employedin the management of risks

faced by domestic andinternational banks;5. fundamental theoretical and

practical aspects of equity andbond portfolio creation,valuation and performance;

6. advanced econometric andstatistical methods for theestimation, interpretation, andevaluation of results obtainedusing banking, financial andeconomic data;

7. key empirical literature in thefields of banking and finance

.

research. This independent study willrequire students to understand andevaluate empirical literature, workthrough case studies and problem

sets, source and analyse data.Seminars and workshops will discussempirical literature, case studies anddevelop analytical, computational andproblem-solving skills. These sessionswill require students to presentsolutions to problems individually or ingroups (for example, when analysinga case study).

Assessment MethodStudents knowledge andunderstanding is assessed bycoursework, unseen tests andexamination, presentations andthrough the research and writingundertaken to complete their dissertation. Most assessments areindividually based, although somemay require group work. Seminarsand workshops will provide anopportunity for peer review, learning,formative and self-assessment and for feedback.

B. Cognitive (thinking) skillsOn completion of this programmethe successful student will be ableto:1. criticise, compare and evaluate

competing theories in the fieldsof banking and finance;

2. critically appraise empiricalliterature;

3. synthesise theoretical and

Teaching/learning methodsStudents learn cognitive skillsthrough:

Interpreting and evaluatingtheoretical and extant empiricalresearch articles (throughlectures, seminars andindependent study/research);

Private reading of academic


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practical understanding inproblem solving exercises andcase studies;

4. present cogent, reflective and,

where appropriate creativearguments that demonstrateadvanced understanding of banking and finance;

5. critically interpret and evaluatefinancial information and data;

6. pursue an independent andoriginal line of enquiry inidentifying and researching adissertation topic;

effectively organise, structure andproduce a dissertation at anadvanced level.

articles;Working through problem solving,case study activities andparticipating in class discussions

during seminars and workshops;Executing a suitable piece of research involving planning,structuring, data collection,analysis/evaluation and write up of a dissertation.

Assessment Method

Students cognitive skills areassessed by written coursework,examination and writing a dissertation.

C. Practical skillsOn completion of the programmethe successful student will be ableto:1. source banking, financial and

economic data from a range of different sources includingelectronic databases and usethis to support his/her learning;

2. analyse and interpret banking,financial and economic data at

firm, industry and countrylevel;3. demonstrate problem solving

skills;4. formulate empirically testable

banking, financial andeconomic models;

5. use econometric software toinvestigate relationships inbanking, financial and

Teaching/learning methodsStudents learn practical skills through

workshops which show fromwhere and how data can besourced;seminar exercises, which requiresolving qualitative and numericalproblems, analysis of data andworking through case studies;completing exercises ineconometric model building and

analysis in computer lab sessions;workshops which demonstratehow to review and evaluatetheoretical and empirical literature;completing courseworkassignments, such as conductingan applied econometric study,which requires students to source

data, analyse data using


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economic data;6. interpret and evaluate the

results of econometricanalysis.

econometric techniques andinterpret/evaluate the results.

Assessment Method

Students practical skills are assessedby Problem solving, case studyanalysis (in seminars), evaluation of literature and computer exercises (ineconometric labs) are part of theprogrammes formative assessment.Practical skills are assessed instudents' coursework, tests, andexaminations and in the production of their dissertation.

12. Programme structure (levels, modules, credits and progressionrequirements)

12. 1 Overall structure of the programme

See page 15

12.2 Levels and modulesStarting in academic year 2010/11 the University is changing the way itreferences modules to state the level of study in which these aredelivered. This is to comply with the national Framework for Higher


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Education Qualifications. This implementation will be a gradualprocess whilst records are updated. Therefore the old coding isbracketed below.

Level 7COMPULSORY OPTIONAL

Students must take allof the following:

ECS4015*ECS4040*ECS4080*ECS4030 (60 credits)* (30 credits)

Students must also choose one from thefollowing:

ECS4010*ECS4020*ECS4060*

12.3 Non-com pens atable m od ules (note s ta tement in 12.2 regarding FHEQ levels) Modu le leve l Modu le cod e N/A

13. A curriculum map relating learning outcomes to modules

See Curriculum Map attached

14. Information about assessment regulationsUniversity and School Assessment Regulation apply to this programme.There are no exemptions to the regulations.

15. Placement opportunities, requirements and support (if applicable)N/A

16. Future careersThe MSc is designed to allow students whose career choices lie in thebanking and financial services sector to develop their analytical skills,acquire a body of knowledge, and be exposed to the frontiers of the subject.Potential careers span a wide range, including investment banking,corporate banking, financial regulation, investment management, hedgefund management, the equity, bond and foreign currency markets, corporate


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treasury management, derivatives and risk management.Examples of the type of employment students on our programmes haveacquired are Risk Analyst for a Greek Bank, Trainee Actuary, Analyst for Citibank in Hong Kong, Bond Analyst in a Greek Bank, Investment Analyst

at Credit Suisse, Credit Risk Analyst at Lehman Brothers, DerivativesTrader at EDF Trading, Management Trainee for Standard Chartered Bank,Fixed Income Analyst in an investment bank, Assistant Manager in the riskmanagement division of an international bank.

17. Particular support for learningEnglish Language Support, LR FacilitiesProgramme Handbook and Module Handbook

Programme InductionAccess to Student CounsellorsOnline learning

18. JACS code (or other relevant codingsystem)

L100

19. Relevant QAA subject benchmarkgroup(s)

N/A

20. Reference pointsQAA Guidelines for Programme SpecificationsQAA Qualifications FrameworkMiddlesex University RegulationsMiddlesex University Learning Framework Programme DesignGuidance, 2007

Middlesex University Business School Teaching, Learning and Assessment StrategyBusiness and Management subject Benchmark

Please note programme specifications provide a concise summary of the main features of the programme and the learning outcomes that atypical student might reasonably be expected to achieve if s/he takesfull advantage of the learning opportunities that are provided. More


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detailed information about the programme can be found in the studentprogramme handbook and the University Regulations.


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Curriculum map for MSc Banking & Finance

This section shows the highest level at which programme outcomes are to be achieved by all graduates,and maps programme learning outcomes against the modules in which they are assessed.

Programme learning outcomesKnowledge and understanding Practical skills

A1The application of advanced banking, financeand economic theory to current developmentsin financial markets.

C1 Source banking, financial and economic datafrom a range of different sources includingelectronic databases and use this to supporthis/her learning.

A2The role, operations and regulation of financialintermediaries (institutions).

C2 Analyse and interpret banking, financial andeconomic data at firm, industry and countrylevel.

A3 The structure and workings of domestic andglobal financial markets.

C3Demonstrate problem solving skills.

A4 Key theoretical concepts and practicaltechniques employed in the management of risks faced by domestic and international banks.

C4Formulate empirically testable banking, financialand economic models.

A5 Fundamental theoretical and practical aspectsof equity and bond portfolio creation, valuationand performance.

C5 Use econometric software to investigaterelationships in banking, financial and economicdata.

A6 Advanced econometric and statistical methodsfor the estimation, interpretation, and evaluationof results obtained using banking, financial andeconomic data.

C6Interpret and evaluate the results of econometric analysis.

A7 Key empirical literature in the fields of bankingand finance.

C7


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Cognitive skills Graduate Skills (N/A)B1 Criticise, compare and evaluate competing

theories in the fields of banking and finance.D1

B2 Critically appraise empirical literature. D2B3 Synthesise theoretical and practical

understanding in problem solving exercises andcase studies.

D3

B4 Present cogent, reflective and, whereappropriate creative arguments that

demonstrate advanced understanding of banking and finance.

D4

B5 Critically interpret and evaluate financialinformation and data.

D5

B6 Pursue an independent and original line of enquiry in identifying and researching adissertation topic.

D6

B7 Effectively organise, structure and produce adissertation at an advanced level.

D7


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Module Title ModuleCodeby Level

Programme outcomes

A1

A2

A3

A4

A5

A6

A7

B1

B2

B3

B4

B5

B6

B7

C1

C2

C3

C4

C5

C6

Core Modules

Banking Theory and Practice ECS4015

Econometric Methods in Economics andFinance ECS4040

Corporate Finance and PortfolioManagement ECS4080

Dissertation ECS4030

Optional ModulesBusiness Economics ECS4010

International Finance and RiskManagement ECS4020

International Business and Globalisation ECS4060


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Module Narratives

In this section you will find details of all the modules associated with your programme so thatyou can see what is involved in your programme and make any choices over option modules(if applicable).

The narratives are correct at the time of this handbook went to print, but details change over time (especially reading lists) and therefore you should always refer to the latest versionavailable on the My Study area of myUniHub:https://myunihub.mdx.ac.uk/web/home-community/mystudy

ECS4010 Business EconomicsECS4015 Banking Theory and PracticeECS4020 International Finance and Risk ManagementECS4030 DissertationECS4040 Econometric Methods in Economics and FinanceECS4060 International Business and GlobalisationECS4080 Corporate Finance and Portfolio Management

Module Code ECS4010Module Title Business EconomicsCredit 30Module Leader Ioannis Bournakis/Marian Rizov

Aims The general aim of this module is to develop students' knowledge of applying theconceptual framework of economics to the solution of business decision problems.More specifically, this module aims to enable students: to explore the relevanteconomic reasoning to evaluate the structure, conduct and performance of businessorganisations to evaluate key issues about market structure and their implications for different business strategies to appreciate and apply the quantitative analytical toolsof advanced economics to effectively evaluate the quality of managerial decisions
https://myunihub.mdx.ac.uk/web/home-community/mystudyhttps://myunihub.mdx.ac.uk/web/home-community/mystudyhttps://myunihub.mdx.ac.uk/web/home-community/mystudy


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Learning Outcomes

Knowledge On completion of this module the successful student will be able to:

1. Demonstrate the ability to explain and critically evaluate the relevant theories

of the Business Economics and apply these to actual business examples;2. Apply key concepts and analytical tools of economics to the analysis and

solution of business decision problems;3. Analyse and critically evaluate the business behaviour and the broader

environment in which that behaviour occur;4. Evaluate and apply an array of economic concepts, models and analytical

techniques to understand the day-to-day processes of production andconsumption.

Skills At the end of the module students should have developed ability to:

5. Address analytic problems in a structured systematic manner and to thinkstrategically;

6. Identify, synthesise and present subject-relevant literature in a coherentmanner;

7. Solve business decision making problems analytically an ability an ability toconduct theory-based applied research in areas covered by this module;

8. Identify strategies to manage risk and uncertainty;9. Demonstrate the ability to work both individually and in a small team;10. Critically evaluate information from different sources.

Syllabus The fundamentals of economics for business decision making Theory of

consumer behaviour The traditional neoclassical theory of the firm revisited Transaction costs and

the organisation of the firm Principal-agent problems and the economics of incentive mechanisms Market structure and optimal supply decisions Game-theoretical approaches to strategic business decision problems Economics of information, time and uncertainty Economics of regulation Diversification and search strategies Market power, social welfare and government policies to improve resource

allocationsLearning, Teaching and Assessment Strategies Lectures, case studies, selected readings and seminar discussions will be used toexplore the relevant issues covered in the module handbook. Students will workeither in teams or individually as appropriate to develop answer to discussionquestions, short problems and case studies. Seminars are intended to extend andfurther develop lecture/reading material, encourage student learning and the further development of communication, quantitative and IT skills.

Assessment Scheme

Assessment consists of three components:


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1. An in-class test of 60 minutes duration, involving answering all 25 questions(multiple choice and short answer).

2. A 2000-word essay on a given title to assess understanding of a range of themodule's material.

3. An unseen examination of two hours duration to allow students to

demonstrate the necessary skills to produce written work and evaluate viewpoints within a time constraint

Assessment Weighting In-class presentation: 15% Coursework: 25% Unseen Examination: 60%

Exam DurationExamination, 3 hours

Learning Materials Core text: Baye, MR, (2010), Managerial Economics and Business Strategy, 7th ed, McGraw-Hill Thomas, CR, and Maurice, SC, (2008), Managerial Economics, 9th ed, McGraw-Hill

Total Notional Learning Hours 300


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Module Code ECS4015Module Title Banking Theory and PracticeCredit 30Module Leader Chunxia Jiang

Aims This module aims to advance students understanding of modern financial systemsand institutions, utilising economic theory and empirical evidence. A wide range of different topics is covered. The programme initially explores the complexity andintegrated nature of international banking systems and regulation. The moduleemphasises on the relationship between financial systems and economicperformance, particularly the mechanisms by which the former may help to improveresource allocation and economic growth and stabilize banking systems. It alsoexamines the causes of weaknesses in financial systems, including the roots of financial crises. Information-related problems and the way these are addressed bydifferent types of financial institutions and systems will be central to the analysis. Theinvestigation of emerging issues and contemporary trends in domestic andinternational banking will also be an important part of the programme. It aims atdeveloping students' ability to apply economic/finance tools and techniques in avariety of decision-making contexts for banking.

Learning Outcomes KnowledgeOn completion of this module, the successful student will be able to:

1. Demonstrate a critical understanding of key economic/banking concepts,theories and issues in practice;

2. analyse/evaluate emerging issues in banking practice;3. Use new and/or improved skills/competencies requisite for the analysis of

banking.

SkillsThis module will call for the successful student to demonstrate an ability to:

4. Make coherent written presentations on the basis of analysis, evaluation andsynthesis of information;

5. Learn independently by reflection, self study and preparation for seminar exercises.

Syllabus Comparative banking systems and issues - US and UK banking systems,

German and Japanese banking systems, emerging markets and Islamicbanking systems

Competition and risk in banking International/global and Euro-Banking and Markets Banking fragility & financial crises - history, issues, theory and regulation Theory and current international bank regulation

Contemporary and emerging issues in banking


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Learning, Teaching and Assessment Strategies Lectures, case studies, selected readings and seminar discussions will be used toexplore the nature, operations, and regulatory issues of domestic and internationalbanking; and to relate economic theory and analysis of different bankingsystems. Student seminars will investigate and explore contemporary and emerging

issues in banking. One seminar session will be for training in the use of BankScope.

Assessment Scheme Assessment consists of three assignments:

Formative assessment (zero weighting in assessment scheme, but producingacceptable postgraduate-level work is a requirement to pass thismodule).Seminar exercises and one training session in the use of "BankScope" will develop new skills/competencies and allow for reflection and self-evaluation. (Learning outcomes 3 and 5)

An unseen examination of two hours duration, with students required toanswer any two questions from a choice of five. (Learning outcomes 1, 2 and4).

The coursework will consist of two in-class tests. They will be of 50 minutesduration and involve answering all 20 questions (multiple choice and shortanswer). The timing will allow reflection and self-evaluation and to learn fromthe assessment feedback. (Learning outcome 1 and 4)

Assessment Weighting Coursework: 40% Unseen Examination: 60%


Learning Materials Core text: The module does not follow a single textbook, but draws on a range of sources, including textbooks. For large parts of the module the following textbook is useful:

Casu , B, Girardone , C, and Molyneux , P, (2006), Introduction to Banking, Prentice-Hall.

Recommended texts:Heffernan, S, (2005), Modern Banking, Wiley Mishkin, F, (2007), The Economics of Money, Banking and Financial Markets, 8 th ed,Person-Addison Wesley: Boston (ISBN10: 0321427807)Freixas, X, and Rochet, J-C, (1998), Microeconomics of banking, MIT PressGoodhart, C, and Illing, G, (eds), (2002), Financial Crises, Contagion and the Lender of Last Resort, Oxford

Total Notional Learning Hours 300
http://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=Barbara+Casu&Download=1&SearchTerm=Barbara+Casuhttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=Barbara+Casu&Download=1&SearchTerm=Barbara+Casuhttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=+Claudia+Girardone&Download=1&SearchTerm=+Claudia+Girardonehttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=+Claudia+Girardone&Download=1&SearchTerm=+Claudia+Girardonehttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=+Claudia+Girardone&Download=1&SearchTerm=+Claudia+Girardonehttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=+Philip+Molyneux&Download=1&SearchTerm=+Philip+Molyneuxhttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=+Philip+Molyneux&Download=1&SearchTerm=+Philip+Molyneuxhttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=+Philip+Molyneux&Download=1&SearchTerm=+Philip+Molyneuxhttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=+Philip+Molyneux&Download=1&SearchTerm=+Philip+Molyneuxhttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=+Claudia+Girardone&Download=1&SearchTerm=+Claudia+Girardonehttp://www.pearsoned.co.uk/Bookshop/Results.asp?iCurPage=1&Type=1&Author=Barbara+Casu&Download=1&SearchTerm=Barbara+Casu


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Module Code ECS4020

Module Title International Finance and RiskManagement Level 7

Credit 30 Owning Subject Economics LevelRestrictions

AimsThe aim of this module is to develop in students an advanced understanding of thetheory and practice of international finance and risk management. Based on recenttheoretical and empirical developments, the module rigorously examines theframework in which firms make their financing and risk management decisions with

an emphasis on firms operating in an international environment. The module aims toprovide students with an understanding of the organisation, workings andinstruments of the foreign exchange, bond and offshore financial markets; anunderstanding of international finance theories and current empirical evidence; anunderstanding of the financial (interest rate and foreign currency) risks faced by firmsand the methods used to identify, measure and manage these risks; anunderstanding of the applications of financial derivative instruments; and anunderstanding of the pricing mechanics of financial derivative instruments.

Learning Outcomes

KnowledgeOn completion of this module, the successful student will be able to:1. apply relevant theories and quantitative techniques to analyse the behaviour

of foreign exchange and interest rate spot and forward rates, and theinterdependence of financial markets;

2. understand fixed income security valuation; 3. understand the theory and empirical evidence relating to (a) the international

parity conditions, (b) the measurements of foreign currency and interest rateexposure, (c) foreign currency and interest rate hedging by financial and non-financial firms, (d) the use of foreign currency debt by non-financial firms;

4. analyse the implications of the international finance and risk management

theory on the firm's risk measurement, management and financial decisionmaking process;

5. apply advanced quantitative techniques to measure foreign exchange andinterest rate risks faced by firms and design financial and operationalstrategies that effectively deal with these financial risks;

6. identify arbitrage opportunities when financial and derivative securities aremispriced and propose ways of exploiting them;

7. demonstrate an advanced understanding of the methods of valuing financialderivatives;

8. compare and contrast the uses of derivative securities in hedging andspeculation.

Skills


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This module will call for the successful student to:9. assess the relevance of international finance and risk management theory to

corporate practice; 10. critically evaluate financial risk measurement and risk management

techniques; 11. critically evaluate the empirical literature in some of the key areas of international finance and risk measurement and management;

12. utilise the advanced techniques of financial risk measurement to quantify themagnitude of a firm s interest rate and foreign currency risk;

13. formulate/design financial risk management solutions in a real world context; 14. structure financing solutions for Multinational firms; 15. use advanced financial models to value derivative instruments; 16. solve advanced problems in the area of risk measurement, derivative use and

valuation.

Syllabus

Microstructure of foreign exchange and interest rate markets and variousforeign exchange, money market and fixed income instruments

International parity conditions. Theory and extant empirical evidence Techniques for identification, measurement and management of foreign

exchange and interest rate risk Financial and operational hedging strategies The economic determinants of foreign currency and interest rate hedging:

Theory and extant empirical evidence The value effects of hedging: Theory and extant empirical evidence The use of foreign currency debt: Theory and extant empirical evidence International financing and international financial markets The Eurocurrency and Eurobond markets The uses and valuation of forward, futures, swaps and options

Learning, Teaching and Assessment Strategy

One two-hour lecture per week will provide a rigorous examination of advanced financetheory and where appropriate a critical evaluation of the extant empirical literature (didacticin nature with opportunity for interaction). Lectures will place strong emphasis on theempirical testing and practical relevance and application of finance theories. The lectureswill provide a framework to facilitate students individual study. This independent study willrequire students to understand and evaluate empirical literature and work through casestudies of real world scenarios. These exercises will be used to develop critical thinking. Aone-hour student-led seminar per week will be held to discuss empirical literature, casestudies and develop analytical, computational and problem-solving skills. Seminars willprovide an opportunity for peer review, learning, self-assessment and for formativefeedback.

Academic journal readings and notes will be made available in printed form during lectures

and will also be available in electronic form. Working papers will be accessible via the SocialScience Research Network (SSRN).


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Assessment Scheme Summative assessment The summative assessment is made up of 2 hour unseen examination (50%), a multiplechoice test (25%) and a group presentation and report (25%). The multiple choice test willtake place at the end of the first term (week 11 or 12). One quarter of the final grade for thismodule will be based on a group presentation and written report of 3000 words. This will bea group assessment (3 or 4 students per group) which will require each group toevaluate the Risk Management Strategies of a group of large international companies. Eachgroup will be allocated a different sample of firms. This assignment will be set in the secondterm. The examination contains 5 structured questions. Candidates are required to attemptany 2 in two hours. The test examines problem solving skills and understanding of theory,concepts and principles. The exam questions are a combination of theory, empiricalevidence, real-world application of finance principles and concepts, problem solving andcase study based. The exam questions will assess the syllabus in much greater breadth anddepth and facilitate the examination of the relevance of international finance and riskmanagement theory to practice.

Formative assessment Formative assessment and feedback will take place during seminars, where students will beexpected to discuss the readings assigned the previous week, present solutions to seminar exercises and case studies. Students will be required to make individual presentations andin some instances as part of a group. Feedback will be provided in seminars in the form of suggested solutions as and when appropriate. One-to one consultations are availableduring office hours.

Assessment WeightingTest: 25% Coursework: 25% Unseen Examination: 50%


Learning Materials

Recommended Textbooks

Buckley, Adrian, (2004), Multinational Finance , 5th ed, Prentice Hall Shapiro, Alan C, (2003), Multinational Financial Management , 7th ed, John Wiley Levich, Richard, (2001), International Financial Markets: Prices and Policies , 2nd ed,McGraw-Hill Sercu, Piert, and Raman, Uppal, (1995), International Financial Markets and the Firm , 1sted, South WesternHull, JC, (2008), Options, Futures and Other Derivatives , 7th ed, Prentice Hall

Recommended Academic Journals

Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Review of Financial Studies, Journal of Banking and Finance, European FinancialManagement Journal, Applied Corporate Finance, Journal of Business Finance and

Accounting, Journal of Multinational Financial Management, Risk, The Treasurer.


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Module Code ECS4030 Module Title Dissertation Level 7 Credit 60

Owning Subject Economics Level Restrictions

AimsThis module aims to provide students with the opportunity to synthesise theadvanced knowledge and skills gained during the programme to enable them todefine and execute a piece of fairly original research in finance, banking or economics within given time, resource and report-length constraints (15,000 words).

Learning OutcomesKnowledgeOn completion of this module the successful student will be able to:

1. demonstrate an advanced theoretical and/or empirical knowledge of a specific areain finance, banking or economics;

2. exercise appropriate judgement in the selection of relevant literature;3. critically evaluate theoretical and/or empirical literature ; 4. to formulate, organise and carry out independent research work;5. know where to search for relevant theoretical/empirical literature in banking, finance

and economics;

6. know where to source relevant data to facilitate empirical analysis;7. have further developed the skills of inquiry, research design, data collection and

information retrieval, bibliographic search, measurement and analysis, interpretationand presentation, self-discipline and time-management and the ability to workautonomously.

Skills This module will call for the successful student to:

8. write a research proposal;9. write an academic dissertation on a chosen topic;10. c ritique a piece of academic work;

11. plan, organise and demonstrate time management;12. source and prepare data for analysis (e.g., be able to use databases such as

Datastream, Bankscope or Fame);13. apply a range of research methods and techniques using appropriate computer

software (qualitative or quantitative).

Syllabus

The structure of a Masters dissertation in finance, banking or economics Identifying a research topic Research tools available on the internet (e.g. Social Science Research Network) Writing a dissertation (research) proposal Conducting and writing a critical literature review Doing an applied econometrics project


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Data sources in finance, banking or economics (e.g., Datastream, Bankscope andFame)

Case studies of research topics in finance, banking or economics


A series of dissertation workshops will present material on a range of generic researchrelated topics (see Syllabus) and postgraduate teaching staff will present subject specificworkshops in their areas of research interest. The Learning Resources Centre will presentworkshops on collecting data from Datastream, Bankscope and Fame. Students will berequired to submit a dissertation proposal at the beginning of the second term. This will beused to allocate dissertation supervisors. With guidance from their supervisor students willbe required to prepare a detailed review of the literature, proposed methodology andsourcing of data. This will be submitted to supervisors after the year-end examinations. Thedeadline for submitting the completed dissertation will be the end of September, 12 monthsafter the start of the programme.

Students should have at least 3 logged and prearranged meetings with their supervisors.The first meeting is to discuss their submitted proposal. A second meeting is to discuss thestudent's progress, for which students are expected to have submitted written work for discussion. The third meeting is to discuss their rough final draft. At each meeting studentsshould ensure that their supervisor signs the supervision log form. It is expected thatstudents will have additional meetings, but these do not need to be logged. When studentsare ready to submit they should get the declaration signed by the supervisor and attach it tothe dissertation when they submit it to the Student Office.

Failure to comply with this procedure may lead to the submission being refused or tostudents being required to undertake a viva voce.

Formative Assessment:Students will be required to complete a range of exercises and tasks set during theworkshops, which may include the critical review of academic journal articles, retrieving of data from various databases and preparation of data for empirical analysis.

Students will submit a compulsory (non-assessed) dissertation proposal. Students who failto submit a dissertation proposal will not be allocated a supervisor and therefore will not bepermitted to proceed to the dissertation stage of the programme.

Summative Assessment:The submission of a dissertation of approximately 15,000 words (100%).

In the assessment of the dissertation assessors will be looking for evidence of the studenthaving:

clearly stated the aims and objectives; demonstrated an advanced theoretical and/or empirical knowledge of a specific area

in finance, banking or economics; demonstrated the ability to critically evaluate theoretical and/or empirical literature; provided a clear description of the research method(s) adopted and the reasons and

the justification for the choice of method(s); provided a clear description of sources of data and method of collection; demonstrated a justification for the appropriateness of data collected and data

analysis and awareness of the limitations imposed by, and opportunities offered by,the chosen project design;


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clearly analysed the research findings and their implications; demonstrated, where appropriate, the ability to use econometric/statistical

techniques; appropriately structured and presented the dissertation; a succinct and coherent presentation of material; appropriately acknowledged and cited all external sources throughout the

dissertation.

Assessment WeightingCoursework: 100%

Learning Materials

Recommended Texts

Brooks, C, (2002), Introductory Econometrics for Finance , Cambridge University Press Bryman, A, Research Methods and Organisation Studies , latest edition, Unwin Hyman Chalmers, A, What is this Thing Called Science? , latest edition, Open University Press Creswell, J, Research Design: Qualitative and Quantitative Approaches , latest edition,London: Sage Publications Gill, J, and Johnson, P, Research Methods for Managers , latest edition, Paul Chapman Hospers, J, An Introduction to Philosophical Analysis , latest edition, Routledge Hussey J, and Hussey, R, Business Research A Practical Guide for Undergraduate and Postgraduate Students , latest edition, Macmillan Business Intriligator, M, Bodkin, R, and Hsiao, C, (1996), Econometric Models, Techniques and

Applications, Prentice Hall Jankowicz, AD, Business Research Projects , latest edidtion, Thomson Business Press:London

Yin, RK, Case Study Research: Design and Methods , latest edition, Sage: Thousands Oaks

Module Code ECS4040


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Module Title Econometric Modelling in Finance and EconomicsCredit 30Module Leader Michela Vecchi

Aims The aims of the module are to provide an advanced knowledge of econometrictheory and practice as a basis for understanding its usefulness in finance, bankingand economics and facilitating the use of econometric techniques in empirical work.The module is problem and data driven, giving students the skills to estimate andinterpret econometric models, while having a strong grasp of the underlyingtheoretical concepts. The module will introduce the student to recent developmentsin the econometrics of time series and panel data analysis and enable the student toundertake applied econometric work successfully via hands-on training usingeconometrics computer software (Excel and Stata). The module will be very helpfulin writing Master Dissertations (a compulsory part of the MSc Programme at the

Business School) and develop interests for further research at MPhil/PhD level byengaging students in empirical research studies.

Learning Outcomes Knowledge On completion of this module the successful student will be able to:

1. Demonstrate an understanding of the econometric tools for cross section,time series and panel data analysis analysis;

2. Compare and contrast a range of econometric models and assess their usefulness;

3. Evaluate the use and limitations of particular methods of econometric analysisin current finance, banking and economics literature;

4. Carry out an independent empirical analysis.

Skills This module will call for the successful student to demonstrate an ability to:

5. Formulate hypotheses for a given economic theory or problem;6. Use various econometric estimation techniques for data analysis;7. Make judgements on what is the most appropriate method of econometric

analysis for a given type of data;8. Critically evaluate the econometric methods employed in recent empirical

literature in the fields of finance, banking and economics;9. Critically interpret the results of students own econometric analysis;10. Evaluate the econometric findings in applied finance/economic research;11. Use a modern econometric software programme (Excel, PcGive and Stata);12. Undertake an applied econometric study.

Syllabus Introduction to Economics Data and Econometrics The classical linear regression model assumptions and Ordinary Least

Squares (OLS) estimation Simple and Multiple Regression Analysis

Hypotheses testing Dummy variables, test of structural change


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Violation of the assumptions of the classical regression model (CLRM) Time Series analysis and Co integration Forecasting and Granger Causality Panel data analysis Instrumental variable estimation and simultaneous equation models Limited dependent variable models (Logistic Regression Analysis)

Learning, Teaching and Assessment Strategies Each week students are required to attend:

1. A one and half-hour lecture. The lecture aims to provide a rigorous examination of advanced econometric theory and a critical evaluation of empirical literatureemploying econometric methods. The lectures will provide a framework to facilitatestudents' individual study by using a large selection of examples and case studies,next to formal theoretical issues. This will help students to understand and evaluatemethods of econometric investigation.

2. A one and half hour computer laboratory for application of econometric techniques

using data and econometric software. Computer labs will place strong emphasis onthe application of econometric techniques and therefore develop computational skillsand diagnostic testing. Real datasets will be used for all lab exercises.

3. A one-hour student-led seminar for discussion of problems related to lecturematerials and exercises. Students will be asked to solve theoretical exercises tocomplement the computer lab sessions/lectures, to answer questions in relation tothe relevant literature and to give brief presentations . Seminars will facilitatedevelopment of critical thinking and analytical/problem-solving skills.

All three components of the course are necessary for the understanding of theory andpractice of econometrics and attendance is compulsory.

Lecture notes, journal articles, exercises and data for computer laboratories will be madeavailable on the module Oasis page. Solutions to seminar and computer lab exercises willonly be discussed during seminar and lab sessions. Instructions on how to use PcGive,Excel and Stata econometric software will be given during lab sessions.

Additional on-line references will be made available through the library cataloguesystem. The students are advised to learn to use Data Stream (data collection sourceavailable in four computers on the first floor of the Sheppard Library)and Athens login for data collection and assessing online resources including journals and economic data.Problems in this regard can be discussed to Library Help Desk.

Working papers will be accessible via the Social Science Network (SSRN).

Assessment Scheme Summative assessment The summative assessment is made up of three pieces of independent work (50%) and anunseen examination (50%). The three pieces of independent work will comprise

1. One in-class test, submission date in week 7 (worth 15%). 2. A problem solving econometric exercise (data driven), submission date in week 15

(worth 15%). 3. Application of time series/panel data analysis, submission date in week 18 (worth

20%). There will be a three hour unseen examination worth 50% of the final grade at the end of the

second term. The examination will assess the whole syllabus.


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Formative assessment Formative assessment and feedback will take place during seminars, where students will beexpected to present solutions to seminar exercises and discuss and evaluate theeconometric issues contained in empirical journal articles assigned during the course.Students will be required to make individual presentations based on economic and financial

journal articles. In some instances students will be allowed to work in teams.

Feedback will be provided in seminars in the form of suggested solutions as and whenappropriate. Lab sessions will give students the opportunity to apply the econometricmodels and techniques introduced during lectures to real world data and interpret theresults. Tutors will be on-hand during labs sessions to provide assistance and feedback.One-to-one consultations with lecturers are available during office hours.

Assessment Weighting Coursework: 50% Examination: 50%


Learning Materials Main reading:Gujarati, DN, and Porter, DC, (2009). Basic Econometrics, 5 th ed, McGraw Hill Wooldridge, JM, (2006), Introductory Econometrics: A Modern Approach. 3rd ed,Thomson South-WesternKoop, G, (2005), Analysis of Financial Data, John Wiley & SonsKoop, G, (2008), Introduction to Econometrics, John Wiley & Sons

Other useful references:Hill, RC, Griffiths, WE, and Lim, GC, (2008), Principles of Econometrics, John Wiley & Sons

Angrist, J,and Pischke, J, (2009), Nearly Harmless Econometrics: An empiricistscompanion, Princeton University PressKennedy, P. (2003), A Guide to Econometrics, 5 th ed, Blackwell Publishing Verbeek, M, (2008), A Guide to Modern Econometrics, John Wiley & SonsTotal Notional Learning Hours 300


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Module Code ECS4060 Module Title International Business and Globalisation Level 7 Credit 30

Owning Subject Economics Level Restrictions

AimsThe aims of the module are to provide an appreciation of the economic theoryrelevant to both trade, international business, multinational enterprises (MNEs),foreign direct investment (FDI) and globalisation; to introduce the student to all major strands of the debate about new trade theories, MNEs, and FDI; to acquire thenecessary theoretical knowledge to evaluate and analyse policy issues relating to

international business, trade and globalisation; and to develop the ability toundertake research in this area.

Learning Outcomes

Knowledge

On completion of this module the successful student will be able to:

1. provide a critical outline of the development of trade theory from itsbeginnings with Ricardo to the present day;

2. compare and contrast the main competing theories of current debate relatingto trade, international business, MNEs, FDI and globalization;

3. evaluate the respective strengths and weaknesses of such theories;4. evaluate national policies and international business environment affecting

MNEs' behaviour;5. critically analyse their applications in practice.

Skills

This module will call for the successful student to demonstrate an ability to:

6. work effectively in study groups;7. address analytical problems in a structured manner;8. coherently justify an argument;9. conduct a mini research independently on topics presented in this module,

synthesise information, analyse and critically evaluate findings in anappropriate format;

10. an ability to make coherent and clear presentation on the basis of theresearch.

Syllabus

Globalisation:


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Background and Development Is nation-state dead? The arguments (Ohmae, Hirst and Thomson) on the

issue The theories of globalisation. Government and MNEs. Growth and sustainable

development. Growth and income distributions. North-South. And the trend of

Globalisation.

International Business: MNEs and FDI

An introduction to MNEs. Basic concepts, the nature, size and scope of MNEs, flows of foreign direct investment (FDI)

Theories of MNEs and FDI. Trade and arbitrage theories; the contribution of Hymer; the search for the unique advantage of MNEs (Vernon, Albar,Knickerbocker); internationalisation theory; the Scandinavian School andKogut's sequential approach; Kojima's theory; the eclectic paradigm

The Economics of MNEs. MNEs are oligopolists; the creation anddissemination of information; price discrimination; transfer pricing

The implications of MNEs. Implications for developed and developingcountries; conventional macroeconomic and dynamic aspects; technologytransfer and spillovers from FDI; sovereignty and related issues

Policies on MNEs. Conflict and co-operation between governments andMNEs; national, bilateral and multilateral policies; the welfare implications of policies on MNEs

International Trade

Absolute advantage, comparative advantage, gains from trade, opportunitycost theory. Factor intensity, factor abundance, Heckscher-Ohlin Theorem,Factor-Price Equalisation Theorem, Trade and the distribution of income,Leontief Paradox.

Balance of payments, exchange rates, the exchange rate and the balance of payments, purchasing-power parity. Protectionist instruments, tariffs,subsidies, quotas etc. Rate of effective protection, Arguments for protection,

cheap foreign labour, infant-industries etc. Strategic trade and industrial policies. Advantages of free trade/openeconomies re. Growth rates, development etc. Globalisation vs. Protectionistarguments. Role of GATT and now WTO in liberalisation process and policingagreements. The persistence of bilateral trade agreements.

Regionalisation and Regional Trade. Types of RTA: Free Trade Areas,Customs Unions, Common Markets, Economics of Integration, Case Studiesof NAFTA and EU's Single Market. Agricultural protection and CAP. Tradeand emerging market. Trade and developing countries.



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One two-hour lecture per week will introduce new material, explain theoreticalconcepts and guide students through the literature. A one-hour seminar will allowstudents to discuss the lecture topics and debate the key issues that arise.

Assessment Scheme

2 hour unseen examination (40%). This form of assessment will demonstratestudents' overall knowledge of the subject and develop their ability to produce goodquality written work under a time constraint. Students are required to answer threequestions out of six.

Two pieces of coursework (60% in total, 30 % each); one piece for each semester.The coursework will assist the development of research and writing skills. Studentswill be given the opportunity to demonstrate their understanding of the key issuesrelating to trade and globalization through undertaking one detailed essayassignment. This will require the successful student to display knowledge andunderstanding of the practical implications of these issues, and then coherently

justify potential future policies in these areas. A presentation in the seminar willenhance presentation and communication skills and provide an opportunity for obtaining formative feedback from their peers and staff.

Assessment WeightingCoursework: 60% Unseen Examination: 40%


Learning Materials

Core text:

Krugman, PR, and Obstfeld, M, (2003), International Economics: Theory and Policy ,6th ed, Pearson Education

Piggot, J, and Cook, M, (2001), International Business Economics: A EuropeanPerspective , 2nd ed, Longman

Dicken, P, (2003), The Global Shift: Transforming the World Economy , 4thed, Chapman, P

Supplementary texts:

Dunning, J, (1993), Multinational Enterprises and the Global Economy , Addison-Wesley

Pitelis, C, and Sugden, R, (2000), The Nature of the Transnational Firm , 2nd ed,Routledge

Hood, N, and Young, S, (1979), The Economics of Multinational Enterprise ,Longman


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Caves, RE, (1996), Multinational Enterprises and Economic Analysis , 2nd ed,Cambridge University Press

Salvatore, D, (2001), International Economics , John Wiley & Sons

Borkakoti, J, (1998), International Trade: Causes and on sequences , Macmillan

McDonald, F, and Dearden, S, (1999), European Economic Integration , 3rd ed,Longman

Artis, MJ, and Lee, N, (1997), Economics of the European Union , 2nd ed, OxfordUniversity Press

Krugman, P, (1999), Popular Internationalism , MIT Press

Hirst, P, and Thomson, G, (1996), Globalization in Question , Polity Press

Useful On-line Sources

Econlit, ABI-Inform, Full text (Proquest), Economist CDROM, Lexis-Nexis Executive,Datastream (economics), Global Market Information Database ('consumer lifestyle'for key country indicators).


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Module Code ECS4080

Module Title Corporate Finance and PortfolioManagement Level 7

Credit 30 Owning Subject Economics LevelRestrictions

AimsThe module aims to provide students with knowledge on functions of financialmarkets and financial intermediaries; knowledge of the theory and empiricalapplications of investment and portfolio management; ability to analyse the risk-return relationship in different asset pricing models; ability to evaluate the efficient

market hypothesis and its implication for investment and portfolio management; skillsto use statistical techniques to value different types of securities: bonds, stocks andderivatives. The module also aims to provide students with knowledge on thebehaviour and decision-making of corporations regarding their capital budgeting andfinancing; knowledge of the fundamental theories of corporate financialmanagement; and practical insight into the factors that affect company and securityvalues. The module will provide students with skills needed for valuation of quotedand unquoted companies, and develop the ability of students to analyse broader financial issues and to apply finance theories to practical issues in internationalcorporate finance setting.

Learning Outcomes

Knowledge

On completion of this module the successful student will be able to:

1. determine the required return on an asset using different equilibrium models;2. apply the principle of diversification to reduce portfolio risk;3. construct an efficient portfolio;4. make investment decisions based on different circumstances such as risk

preferences and economic climate;5. examine factors affecting the value of bonds, stocks and options;6. determine the present values of the assets and liabilities of the firm;7. understand two important investment rules and know how to use these rules

in capital budgeting decision-making;8. estimate the cost of capital with the CAPM and use it to discount expected

future cash flows at a risk-adjusted rate and know when to discount thecertainty equivalent at a risk-free rate;

9. understand the effect of leverage on the firm's value, cost of debt, cost of equity, and the overall cost of capital under MM's propositions;


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10. discuss and analyse the issues surrounding the dividend controversy;11. discuss all aspects of mergers and acquisitions, including tactics, gains and

losses, and social benefits.

Skills

This module will call for the successful student to demonstrate an ability to:

12. compose a short presentation in a suitable professional style on aninvestment topic or case;

13. communicate clearly in writing an understanding of theory and its applicationto practical issues;

14. evaluate corporate investment and financing decisions;15. research, analyse and present findings;

Syllabus

An introduction to financial markets - functions, participants, operations andrecent trends

Elements of investment -Markets and financial instruments; trading of securities; mutual funds and other investment companies

Interest rate theories - Fisher Hypothesis and the term structure theories Portfolio theory - the mean-variance portfolio theory, risk and return, optimal

risky portfolio Equilibrium in capital markets - The Capital Asset Pricing Model and the

Arbitrage Pricing Model Market Efficiency Hypothesis and its empirical evidence Common stocks analysis and valuation Fixed income securities: analysis, valuation and management Options: analysis and valuation Active portfolio management Investment appraisal for domestic and international corporations Valuing companies

Financial structures and company values Dividend policy and company value The impact of financial structures and dividend policy on the value of the firm Mergers, acquisitions and corporate control


Three hours of contacts per week for lectures and seminars. Lectures aim tointroduce new material and impart knowledge. Extensive student reading is requiredto deepen understanding of the material introduced in the lectures. Learning isreinforced through a series of seminars which will include presentations and

discussions of cases and analysis of problems prepared by groups of students intheir study time. Any contribution or opinion given by each group and/or individual


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will receive peer feedback immediately and the tutor will make a conclusion on eachquestion raised. In the seminar session, students will be asked to bring completedwork in the form of answered questions, undertaken problems or completed shortessays. These will then be discussed among fellow students as a group andcommented by the tutor. Major issues relating to the topic as well as current affairs

that fit in with the topic will be explored. This will reinforce the lecture programme,student reading and develop communication skills.

Assessment Scheme

Assessment takes the form of an unseen end-semester examination, mid-termtests/presentation/continuous assessment in seminars (seminar participationrequirements and assessment criteria listed in the module handbook). In the seminar sessions learning outcomes 1 and 5 will be tested. The tests will comprise problemsolving and short concept/ theories application questions to assess progression inlearning with reference to the specified learning outcomes (2, 3, 4, 6) and providetimely feedback. The unseen examination paper will include a mixture of essay andproblem based questions and will assess the ability to identify, explain, and applykey concepts and theories. Students will have to formulate answers and solveproblem under a time constraint; learning outcomes tested 2, 3, 4, 5, 6.

Assessment WeightingCoursework: 40% Examination: 60%


Learning Materials

Core texts:

Bodie, Z, Kane, A, and Marcus, AJ, (2008), Investments , 7th ed, McGraw-Hill

Elton, E, Gruber, M, and Brown, S, (2007), Modern Portfolio Theory and Investment Analysis , 7th ed, Wiley

Ross, S, Westerfield, R, and Jaffe, J, (2005), Corporate Finance , 7th ed, McGraw-

Hill

Tirole, J, (2006), The Theory of Corporate Finance , Princeton University Press

Recommended and alternative texts:

Jones,CP, (2007), Investment, Analysis and Management , 10th ed, Wiley

Pillbeam, K, (1998), Finance and Financial Markets , MacMillan

Brealey, R, Myers, S, and Allen, F, (2005), Corporate Finance , 8th ed, McGraw-Hill


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Copeland, TE, and Weston, JF, and Shastri, K, (2005), Financial Theory and Corporate Policy , 4th ed, Addison Wesley

Amaro de Matos, J, (2001), Theoretical Foundations of Corporate Finance , PrincetonUniversity Press

Research papers as advised in lectures and lecture notes. More references can befound in the module handbook.

Syllabus MSc Banking and Finance.docx

Documents

Transcript of Syllabus MSc Banking and Finance.docx