Programme Specification and Curriculum Map for MSc Banking & Finance

1. Programme title 2. Awarding institution 3. Teaching institution 4. Programme accredited by 5. Final qualification 6. Academic year 7. Language of study 8. Mode of study

MSc Banking and Finance Middlesex University Middlesex University N/A MSc 2012 - 2013 English 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 applied quantitative 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 demonstrate English language proficiency in addition to the other entry requirements. A minimum 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 be obtained.

10. Aims of the programme

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 and analyse contemporary issues in domestic and international banking, finance and economics; develop students competence in applying advanced quantitative techniques to the practice of banking and finance; provide students with the ability to test and evaluate banking/finance/economic models using a range of research methods, data and techniques of analysis; equip students with the knowledge and skills necessary for them to pursue 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 rigorous independent research; enhance the students capacity to communicate ideas, arguments and research findings effectively in written form

11. Programme outcomes A. Knowledge and understanding On completion of this programme the successful student will have knowledge and understanding of : 1. the application of advanced banking, finance and economic theory to current developments and issues in financial markets; 2. the role, operations and regulation of financial intermediaries (institutions); 3. the structure and workings of domestic and global financial

Teaching/learning methods Students gain knowledge and understanding through a series of lectures, seminars and workshops. Lectures will provide a rigorous examination of advanced banking, finance or economic theory, concepts and principles and where appropriate a critical evaluation of the extant empirical literature. Lectures will place strong emphasis on the application of theories, empirical testing and practical relevance. The lectures will provide a framework to facilitate students individual study and

4.

5.

6.

7. .

markets; key theoretical concepts and practical techniques employed in the management of risks faced by domestic and international banks; fundamental theoretical and practical aspects of equity and bond portfolio creation, valuation and performance; advanced econometric and statistical methods for the estimation, interpretation, and evaluation of results obtained using banking, financial and economic data; key empirical literature in the fields of banking and finance

research. This independent study will require students to understand and evaluate empirical literature, work through case studies and problem sets, source and analyse data. Seminars and workshops will discuss empirical literature, case studies and develop analytical, computational and problem-solving skills. These sessions will require students to present solutions to problems individually or in groups (for example, when analysing a case study). Assessment Method Students knowledge and understanding is assessed by coursework, unseen tests and examination, presentations and through the research and writing undertaken to complete their dissertation. Most assessments are individually based, although some may require group work. Seminars and workshops will provide an opportunity for peer review, learning, formative and self-assessment and for feedback. Teaching/learning methods Students learn cognitive skills through: Interpreting and evaluating theoretical and extant empirical research articles (through lectures, seminars and independent study/research); Private reading of academic

B. Cognitive (thinking) skills On completion of this programme the successful student will be able to: 1. criticise, compare and evaluate competing theories in the fields of banking and finance; 2. critically appraise empirical literature; 3. synthesise theoretical and

practical understanding in problem solving exercises and case studies; 4. present cogent, reflective and, where appropriate creative arguments that demonstrate advanced understanding of banking and finance; 5. critically interpret and evaluate financial information and data; 6. pursue an independent and original line of enquiry in identifying and researching a dissertation topic; effectively organise, structure and produce a dissertation at an advanced level. C. Practical skills On completion of the programme the successful student will be able to: 1. source banking, financial and economic data from a range of different sources including electronic databases and use this to support his/her learning; 2. analyse and interpret banking, financial and economic data at firm, industry and country level; 3. demonstrate problem solving skills; 4. formulate empirically testable banking, financial and economic models; 5. use econometric software to investigate relationships in banking, financial and

articles; Working through problem solving, case study activities and participating 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 are assessed by written coursework, examination and writing a dissertation.

Teaching/learning methods Students learn practical skills through workshops which show from where and how data can be sourced; seminar exercises, which require solving qualitative and numerical problems, analysis of data and working through case studies; completing exercises in econometric model building and analysis in computer lab sessions; workshops which demonstrate how to review and evaluate theoretical and empirical literature; completing coursework assignments, such as conducting an applied econometric study, which requires students to source data, analyse data using

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economic data; interpret and evaluate the results of econometric analysis.

econometric techniques and interpret/evaluate the results. Assessment Method Students practical skills are assessed by Problem solving, case study analysis (in seminars), evaluation of literature and computer exercises (in econometric labs) are part of the programmes formative assessment. Practical skills are assessed in students' coursework, tests, and examinations and in the production of their dissertation.

12. Programme structure (levels, modules, credits and progression requirements) 12. 1 Overall structure of the programme See page 15

12.2 Levels and modules Starting in academic year 2010/11 the University is changing the way it references modules to state the level of study in which these are delivered. This is to comply with the national Framework for Higher

Education Qualifications. This implementation will be a gradual process whilst records are updated. Therefore the old coding is bracketed below. Level 7 COMPULSORY Students must take all of the following: ECS4015* ECS4040* ECS4080* ECS4030 (60 credits) * (30 credits)

OPTIONAL Students must also choose one from the following: ECS4010* ECS4020* ECS4060*

12.3 Non-compensatable modules (note statement in 12.2 regarding FHEQ levels) Module level Module code N/A 13. A curriculum map relating learning outcomes to modules See Curriculum Map attached 14. Information about assessment regulations University 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 careers The MSc is designed to allow students whose career choices lie in the banking 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, hedge fund management, the equity, bond and foreign currency markets, corporate

treasury management, derivatives and risk management. Examples of the type of employment students on our programmes have acquired 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, Derivatives Trader at EDF Trading, Management Trainee for Standard Chartered Bank, Fixed Income Analyst in an investment bank, Assistant Manager in the risk management division of an international bank. 17. Particular support for learning English Language Support, LR Facilities Programme Handbook and Module Handbook Programme Induction Access to Student Counsellors Online learning 18. JACS code (or other relevant coding system) 19. Relevant QAA subject benchmark group(s) L100 N/A

20. Reference points QAA Guidelines for Programme Specifications QAA Qualifications Framework Middlesex University Regulations Middlesex University Learning Framework Programme Design Guidance, 2007 Middlesex University Business School Teaching, Learning and Assessment Strategy Business and Management subject Benchmark Please note programme specifications provide a concise summary of the main features of the programme and the learning outcomes that a typical student might reasonably be expected to achieve if s/he takes full advantage of the learning opportunities that are provided. More

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

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 outcomes
Knowledge and understanding A1 Practical skills C1 Source banking, financial and economic data

The application of advanced banking, finance and economic theory to current developments in financial markets. The role, operations and regulation of financial intermediaries (institutions). The structure and workings of domestic and global financial markets. Key theoretical concepts and practical techniques employed in the management of risks faced by domestic and international banks. Fundamental theoretical and practical aspects of equity and bond portfolio creation, valuation and performance. Advanced econometric and statistical methods for the estimation, interpretation, and evaluation of results obtained using banking, financial and economic data. Key empirical literature in the fields of banking and finance.

A2

C2

from a range of different sources including electronic databases and use this to support his/her learning. Analyse and interpret banking, financial and economic data at firm, industry and country level. Demonstrate problem solving skills. Formulate empirically testable banking, financial and economic models. Use econometric software to investigate relationships in banking, financial and economic data. Interpret and evaluate the results of econometric analysis.

A3 A4

C3 C4

A5

C5

A6

C6

A7

C7

Cognitive skills B1 Criticise, compare and evaluate competing B2 B3

Graduate Skills (N/A) D1 D2 D3

B4

B5 B6

B7

theories in the fields of banking and finance. Critically appraise empirical literature. Synthesise theoretical and practical understanding in problem solving exercises and case studies. Present cogent, reflective and, where appropriate creative arguments that demonstrate advanced understanding of banking and finance. Critically interpret and evaluate financial information and data. Pursue an independent and original line of enquiry in identifying and researching a dissertation topic. Effectively organise, structure and produce a dissertation at an advanced level.

D4

D5 D6

D7

Module Title

Module Code by Level

Programme outcomes A A A A A A A B B B B B B B C C C C C C 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6

Core Modules Banking Theory and Practice Econometric Methods in Economics and Finance Corporate Finance and Portfolio Management Dissertation ECS4015 ECS4040 ECS4080 ECS4030 ECS4010 ECS4020 ECS4060

Optional Modules
Business Economics International Finance and Risk Management International Business and Globalisation

Module Narratives
In this section you will find details of all the modules associated with your programme so that you 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 version available on the My Study area of myUniHub: https://myunihub.mdx.ac.uk/web/home-community/mystudy

ECS4010 ECS4015 ECS4020 ECS4030 ECS4040 ECS4060 ECS4080

Business Economics Banking Theory and Practice International Finance and Risk Management Dissertation Econometric Methods in Economics and Finance International Business and Globalisation Corporate Finance and Portfolio Management

Module Code Module Title Credit Module Leader

ECS4010 Business Economics 30 Ioannis Bournakis/Marian Rizov

Aims The general aim of this module is to develop students' knowledge of applying the conceptual framework of economics to the solution of business decision problems. More specifically, this module aims to enable students: to explore the relevant economic reasoning to evaluate the structure, conduct and performance of business organisations to evaluate key issues about market structure and their implications for different business strategies to appreciate and apply the quantitative analytical tools of advanced economics to effectively evaluate the quality of managerial decisions

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 and consumption. Skills At the end of the module students should have developed ability to: 5. Address analytic problems in a structured systematic manner and to think strategically; 6. Identify, synthesise and present subject-relevant literature in a coherent manner; 7. Solve business decision making problems analytically an ability an ability to conduct 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 allocations Learning, Teaching and Assessment Strategies Lectures, case studies, selected readings and seminar discussions will be used to explore the relevant issues covered in the module handbook. Students will work either in teams or individually as appropriate to develop answer to discussion questions, short problems and case studies. Seminars are intended to extend and further develop lecture/reading material, encourage student learning and the further development of communication, quantitative and IT skills. Assessment Scheme Assessment consists of three components:

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 the module's material. 3. An unseen examination of two hours duration to allow students to demonstrate the necessary skills to produce written work and evaluate view points within a time constraint Assessment Weighting In-class presentation: 15% Coursework: 25% Unseen Examination: 60% Exam Duration Examination, 3 hours Learning Materials Core text: Baye, MR, (2010), Managerial Economics and Business Strategy, 7th ed, McGrawHill Thomas, CR, and Maurice, SC, (2008), Managerial Economics, 9th ed, McGraw-Hill Total Notional Learning Hours 300

Module Code Module Title Credit Module Leader

ECS4015 Banking Theory and Practice 30 Chunxia Jiang

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

Learning Outcomes Knowledge On 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. Skills This module will call for the successful student to demonstrate an ability to: 4. Make coherent written presentations on the basis of analysis, evaluation and synthesis 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 Islamic banking 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

Learning, Teaching and Assessment Strategies Lectures, case studies, selected readings and seminar discussions will be used to explore the nature, operations, and regulatory issues of domestic and international banking; and to relate economic theory and analysis of different banking systems. 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 producing acceptable postgraduate-level work is a requirement to pass this module).Seminar exercises and one training session in the use of "Bank Scope" will develop new skills/competencies and allow for reflection and selfevaluation. (Learning outcomes 3 and 5) An unseen examination of two hours duration, with students required to answer any two questions from a choice of five. (Learning outcomes 1, 2 and 4). The coursework will consist of two in-class tests. They will be of 50 minutes duration and involve answering all 20 questions (multiple choice and short answer). The timing will allow reflection and self-evaluation and to learn from the assessment feedback. (Learning outcome 1 and 4) Assessment Weighting Coursework: 40% Unseen Examination: 60% Exam Duration Examination, 2 hours 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, 8th ed, Person-Addison Wesley: Boston (ISBN10: 0321427807) Freixas, X, and Rochet, J-C, (1998), Microeconomics of banking, MIT Press Goodhart, C, and Illing, G, (eds), (2002), Financial Crises, Contagion and the Lender of Last Resort, Oxford

Total Notional Learning Hours 300

Module Code Module Title Level Credit Owning Subject Level Restrictions

ECS4020 International Finance and Risk Management 7 30 Economics

Aims The aim of this module is to develop in students an advanced understanding of the theory and practice of international finance and risk management. Based on recent theoretical and empirical developments, the module rigorously examines the framework in which firms make their financing and risk management decisions with an emphasis on firms operating in an international environment. The module aims to provide students with an understanding of the organisation, workings and instruments of the foreign exchange, bond and offshore financial markets; an understanding of international finance theories and current empirical evidence; an understanding of the financial (interest rate and foreign currency) risks faced by firms and the methods used to identify, measure and manage these risks; an understanding of the applications of financial derivative instruments; and an understanding of the pricing mechanics of financial derivative instruments. Learning Outcomes
Knowledge On 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 the interdependence 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 rate exposure, (c) foreign currency and interest rate hedging by financial and nonfinancial 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 decision making process; 5. apply advanced quantitative techniques to measure foreign exchange and interest rate risks faced by firms and design financial and operational strategies that effectively deal with these financial risks; 6. identify arbitrage opportunities when financial and derivative securities are mispriced and propose ways of exploiting them; 7. demonstrate an advanced understanding of the methods of valuing financial derivatives; 8. compare and contrast the uses of derivative securities in hedging and speculation.
Skills

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 the magnitude 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 various foreign 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 finance theory and where appropriate a critical evaluation of the extant empirical literature (didactic in nature with opportunity for interaction). Lectures will place strong emphasis on the empirical testing and practical relevance and application of finance theories. The lectures will provide a framework to facilitate students individual study. This independent study will require students to understand and evaluate empirical literature and work through case studies of real world scenarios. These exercises will be used to develop critical thinking. A one-hour student-led seminar per week will be held to discuss empirical literature, case studies and develop analytical, computational and problem-solving skills. Seminars will provide an opportunity for peer review, learning, self-assessment and for formative feedback. 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 Social Science Research Network (SSRN).

Assessment Scheme Summative assessment The summative assessment is made up of 2 hour unseen examination (50%), a multiple choice test (25%) and a group presentation and report (25%). The multiple choice test will take place at the end of the first term (week 11 or 12). One quarter of the final grade for this module will be based on a group presentation and written report of 3000 words. This will be a group assessment (3 or 4 students per group) which will require each group to evaluate the Risk Management Strategies of a group of large international companies. Each group will be allocated a different sample of firms. This assignment will be set in the second term. The examination contains 5 structured questions. Candidates are required to attempt any 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, empirical evidence, real-world application of finance principles and concepts, problem solving and case study based. The exam questions will assess the syllabus in much greater breadth and depth and facilitate the examination of the relevance of international finance and risk management theory to practice. Formative assessment Formative assessment and feedback will take place during seminars, where students will be expected to discuss the readings assigned the previous week, present solutions to seminar exercises and case studies. Students will be required to make individual presentations and in 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 available during office hours.

Assessment Weighting Test: 25% Coursework: 25% Unseen Examination: 50% Exam Duration Examination, 2 hours 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, 1st ed, South Western Hull, 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 Financial Management Journal, Applied Corporate Finance, Journal of Business Finance and Accounting, Journal of Multinational Financial Management, Risk, The Treasurer.

Module Code Module Title Level Credit Owning Subject Level Restrictions

ECS4030 Dissertation 7 60 Economics

Aims This module aims to provide students with the opportunity to synthesise the advanced knowledge and skills gained during the programme to enable them to define 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 Outcomes
Knowledge On completion of this module the successful student will be able to: 1. demonstrate an advanced theoretical and/or empirical knowledge of a specific area in 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, interpretation and presentation, self-discipline and time-management and the ability to work autonomously. 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. critique 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

Data sources in finance, banking or economics (e.g., Datastream, Bankscope and Fame) Case studies of research topics in finance, banking or economics

Learning, Teaching and Assessment Strategy

A series of dissertation workshops will present material on a range of generic research related topics (see Syllabus) and postgraduate teaching staff will present subject specific workshops in their areas of research interest. The Learning Resources Centre will present workshops on collecting data from Datastream, Bankscope and Fame. Students will be required to submit a dissertation proposal at the beginning of the second term. This will be used to allocate dissertation supervisors. With guidance from their supervisor students will be required to prepare a detailed review of the literature, proposed methodology and sourcing of data. This will be submitted to supervisors after the year-end examinations. The deadline for submitting the completed dissertation will be the end of September, 12 months after 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 the student'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 students should ensure that their supervisor signs the supervision log form. It is expected that students will have additional meetings, but these do not need to be logged. When students are ready to submit they should get the declaration signed by the supervisor and attach it to the dissertation when they submit it to the Student Office. Failure to comply with this procedure may lead to the submission being refused or to students being required to undertake a viva voce. Formative Assessment: Students will be required to complete a range of exercises and tasks set during the workshops, 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 fail to submit a dissertation proposal will not be allocated a supervisor and therefore will not be permitted 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 student having:

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;

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 Weighting Coursework: 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

Module Title Econometric Modelling in Finance and Economics Credit 30 Module Leader Michela Vecchi Aims The aims of the module are to provide an advanced knowledge of econometric theory and practice as a basis for understanding its usefulness in finance, banking and economics and facilitating the use of econometric techniques in empirical work. The module is problem and data driven, giving students the skills to estimate and interpret econometric models, while having a strong grasp of the underlying theoretical concepts. The module will introduce the student to recent developments in the econometrics of time series and panel data analysis and enable the student to undertake applied econometric work successfully via hands-on training using econometrics computer software (Excel and Stata). The module will be very helpful in writing Master Dissertations (a compulsory part of the MSc Programme at the Business School) and develop interests for further research at MPhil/PhD level by engaging 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 analysis in 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

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 literature employing econometric methods. The lectures will provide a framework to facilitate students' individual study by using a large selection of examples and case studies, next to formal theoretical issues. This will help students to understand and evaluate methods 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 on the application of econometric techniques and therefore develop computational skills and diagnostic testing. Real datasets will be used for all lab exercises. 3. A one-hour student-led seminar for discussion of problems related to lecture materials and exercises. Students will be asked to solve theoretical exercises to complement the computer lab sessions/lectures, to answer questions in relation to the relevant literature and to give brief presentations . Seminars will facilitate development of critical thinking and analytical/problem-solving skills. All three components of the course are necessary for the understanding of theory and practice of econometrics and attendance is compulsory. Lecture notes, journal articles, exercises and data for computer laboratories will be made available on the module Oasis page. Solutions to seminar and computer lab exercises will only 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 catalogue system. The students are advised to learn to use Data Stream (data collection source available 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 an unseen 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.

Formative assessment Formative assessment and feedback will take place during seminars, where students will be expected to present solutions to seminar exercises and discuss and evaluate the econometric 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 when appropriate. Lab sessions will give students the opportunity to apply the econometric models and techniques introduced during lectures to real world data and interpret the results. 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% Exam Duration Examination, 3 hours Learning Materials Main reading: Gujarati, DN, and Porter, DC, (2009). Basic Econometrics, 5th ed, McGraw Hill Wooldridge, JM, (2006), Introductory Econometrics: A Modern Approach. 3rd ed, Thomson South-Western Koop, G, (2005), Analysis of Financial Data, John Wiley & Sons Koop, 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 empiricists companion, Princeton University Press Kennedy, P. (2003), A Guide to Econometrics, 5th ed, Blackwell Publishing Verbeek, M, (2008), A Guide to Modern Econometrics, John Wiley & Sons Total Notional Learning Hours 300

Module Code Module Title Level Credit Owning Subject Level Restrictions

ECS4060 International Business and Globalisation 7 30 Economics

Aims The aims of the module are to provide an appreciation of the economic theory relevant 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 the necessary theoretical knowledge to evaluate and analyse policy issues relating to international business, trade and globalisation; and to develop the ability to undertake 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 its beginnings with Ricardo to the present day; 2. compare and contrast the main competing theories of current debate relating to 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. 7. 8. 9. work effectively in study groups; address analytical problems in a structured manner; coherently justify an argument; conduct a mini research independently on topics presented in this module, synthesise information, analyse and critically evaluate findings in an appropriate format; 10. an ability to make coherent and clear presentation on the basis of the research. Syllabus Globalisation:

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 and Kogut's sequential approach; Kojima's theory; the eclectic paradigm The Economics of MNEs. MNEs are oligopolists; the creation and dissemination of information; price discrimination; transfer pricing The implications of MNEs. Implications for developed and developing countries; conventional macroeconomic and dynamic aspects; technology transfer and spillovers from FDI; sovereignty and related issues Policies on MNEs. Conflict and co-operation between governments and MNEs; national, bilateral and multilateral policies; the welfare implications of policies on MNEs

International Trade

Absolute advantage, comparative advantage, gains from trade, opportunity cost 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/open economies re. Growth rates, development etc. Globalisation vs. Protectionist arguments. Role of GATT and now WTO in liberalisation process and policing agreements. The persistence of bilateral trade agreements. Regionalisation and Regional Trade. Types of RTA: Free Trade Areas, Customs Unions, Common Markets, Economics of Integration, Case Studies of NAFTA and EU's Single Market. Agricultural protection and CAP. Trade and emerging market. Trade and developing countries.

Learning, Teaching and Assessment Strategy

One two-hour lecture per week will introduce new material, explain theoretical concepts and guide students through the literature. A one-hour seminar will allow students to discuss the lecture topics and debate the key issues that arise. Assessment Scheme 2 hour unseen examination (40%). This form of assessment will demonstrate students' overall knowledge of the subject and develop their ability to produce good quality written work under a time constraint. Students are required to answer three questions 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. Students will be given the opportunity to demonstrate their understanding of the key issues relating to trade and globalization through undertaking one detailed essay assignment. This will require the successful student to display knowledge and understanding of the practical implications of these issues, and then coherently justify potential future policies in these areas. A presentation in the seminar will enhance presentation and communication skills and provide an opportunity for obtaining formative feedback from their peers and staff. Assessment Weighting Coursework: 60% Unseen Examination: 40% Exam Duration Examination, 2 hours 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 European Perspective, 2nd ed, Longman Dicken, P, (2003), The Global Shift: Transforming the World Economy, 4th ed, Chapman, P Supplementary texts: Dunning, J, (1993), Multinational Enterprises and the Global Economy, AddisonWesley 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

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, Oxford University 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).

Module Code Module Title Level Credit Owning Subject Level Restrictions

ECS4080 Corporate Finance and Portfolio Management 7 30 Economics

Aims The module aims to provide students with knowledge on functions of financial markets and financial intermediaries; knowledge of the theory and empirical applications of investment and portfolio management; ability to analyse the riskreturn relationship in different asset pricing models; ability to evaluate the efficient market hypothesis and its implication for investment and portfolio management; skills to use statistical techniques to value different types of securities: bonds, stocks and derivatives. The module also aims to provide students with knowledge on the behaviour and decision-making of corporations regarding their capital budgeting and financing; knowledge of the fundamental theories of corporate financial management; and practical insight into the factors that affect company and security values. The module will provide students with skills needed for valuation of quoted and unquoted companies, and develop the ability of students to analyse broader financial issues and to apply finance theories to practical issues in international corporate finance setting.

Learning Outcomes Knowledge On completion of this module the successful student will be able to: 1. 2. 3. 4. 5. 6. 7. 8. determine the required return on an asset using different equilibrium models; apply the principle of diversification to reduce portfolio risk; construct an efficient portfolio; make investment decisions based on different circumstances such as risk preferences and economic climate; examine factors affecting the value of bonds, stocks and options; determine the present values of the assets and liabilities of the firm; understand two important investment rules and know how to use these rules in capital budgeting decision-making; 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 the certainty equivalent at a risk-free rate; 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;

9.

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 an investment topic or case; 13. communicate clearly in writing an understanding of theory and its application to practical issues; 14. evaluate corporate investment and financing decisions; 15. research, analyse and present findings; Syllabus

An introduction to financial markets - functions, participants, operations and recent 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

Learning, Teaching and Assessment Strategy Three hours of contacts per week for lectures and seminars. Lectures aim to introduce new material and impart knowledge. Extensive student reading is required to deepen understanding of the material introduced in the lectures. Learning is reinforced through a series of seminars which will include presentations and discussions of cases and analysis of problems prepared by groups of students in their study time. Any contribution or opinion given by each group and/or individual

will receive peer feedback immediately and the tutor will make a conclusion on each question raised. In the seminar session, students will be asked to bring completed work in the form of answered questions, undertaken problems or completed short essays. These will then be discussed among fellow students as a group and commented 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-term tests/presentation/continuous assessment in seminars (seminar participation requirements and assessment criteria listed in the module handbook). In the seminar sessions learning outcomes 1 and 5 will be tested. The tests will comprise problem solving and short concept/ theories application questions to assess progression in learning with reference to the specified learning outcomes (2, 3, 4, 6) and provide timely feedback. The unseen examination paper will include a mixture of essay and problem based questions and will assess the ability to identify, explain, and apply key concepts and theories. Students will have to formulate answers and solve problem under a time constraint; learning outcomes tested 2, 3, 4, 5, 6. Assessment Weighting Coursework: 40% Examination: 60% Exam Duration Examination, 2 hours 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, McGrawHill 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

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, Princeton University Press

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