Capital Market Analysis
The module examines the equity asset class as an example of a long term, generally risky, financial security. Since semester two specialist modules in fixed interest securities and derivatives are available, this module provides only a basic introduction to these other classes of financial instruments.
The module looks at the way performance of an investment in equities is characterised, and how such investments have performed in the past. The processes of equity portfolio construction, management and performance measurement are then examined. The perspective adopted is that of the purchaser, not the issuer, of equity.
The module examines the ethical and practical justifications for the idea that companies should operate in the interests of shareholders and also the counter arguments in favour of a stakeholder perspective.
The module then deals in turn with the major financial decisions made in organisations (capital budgeting, capital structure, dividends, mergers, working capital). Decisions are analysed first in the context of well functioning capital markets. Capital market imperfections and behavioural biases on the part of managers and investors are then considered.
Quantitative Research Methods for Finance and Accounting
This modules will provide you with a good understanding of econometrics tools covering topics such as:
- statistical distribution theory
- multiple regression analysis for cross-sectional data
- time series analysis
- panel data
- qualitative response models with finance related applications
The module covers :
- forward and futures contracts; how they are traded and used for hedging
- stock price modelling
- derivatives; European and American styles
- derivative valuation; Binomial trees, Trinomial trees, Monte-Carlo, Black-Scholes
- stock indices, futures on stock indices; options on futures
- compound options and real options
Fixed Interest Investment
The module covers:
- institutional framework of international and UK bond markets
- bond yield and pricing models
- interest rate determination
- bond market strategies and portfolio decision making
Your dissertation will develop your ability to undertake independent research in the area of finance and investment either in the context of further academic research or consultancy.
Behavioural Economics and Decision Making
The module is split into two parts. The first part focuses upon the methods and models associated with behaviour. These sessions will introduce key concepts in bounded rational behaviour and apply these to specific economics models and financial markets.
The second part of the module concentrates on designing your own experiment and interpreting empirical results. You will analyse studies of bounded rational behaviour, labour markets, asset markets, experimental behavioural finance, social dilemmas, preferences, public goods, reciprocity, bargaining and contests.
The module will be interactive, you will undertake experiments and analyse results.
The module provides you with a knowledge and understanding of key practical applications of finance using standard computer software. Students taking the module are assumed to have prior background knowledge of financial markets and financial econometrics.
It equips you with computational and programming skills, allowing you to analyse financial data, build financial models and solve complex financial problems. The module will also integrate application areas in finance which have already been introduced, or which are being introduced to you concurrently.
- Basic R and/or Python commands
- analysing and visualising financial data
- modelling and forecasting financial time-series
- applications relevant to asset pricing and portfolio analysis
The module will provide an introduction to modern econometric techniques for modelling financial data. It covers relatively advanced econometric techniques such as dynamic panel data modelling, generalised methods of moments, multinomial models, selection models GARCH, risk measurement and continuous time models.
This module examines contemporary developments in the theory and practice of international financial management. It includes analysis of foreign exchange markets and international financial markets, including international banking and the Euromarkets.
Emphasis is placed on discussion of risk management techniques to protect against both currency and political risks. Both long term international investment and financing decisions and short-term exporting decisions form part of the module.
Islamic Banking, Finance and Accounting
The module will cover:
- the underlying concepts, practices and new trends of Islamic banking and finance
- the differences and similarities with the theories and business models of conventional banking and finance
- financial, risk and governance implications of Islamic Law (Shari'ah)
- Islamic insurance (Takaful)
- Islamic financial instruments
- interactions between Islamic accounting standards and IFRS
- development and integration of Islamic windows in conventional financial institutions
The Economics of Strategy and Market Structure
The module uses a game-theoretic approach to analyse strategic firm-behaviour. It intends to cover topics from industrial economics such as competition, market entry, product differentiation, leader-follower, and merger and acquisition.
Venture Capital and Private Equity
The module covers venture capital and private equity provide risk capital to firms at various stages of their life-cycle. This involves selecting investments, structuring deals, valuation of investment opportunities, leveraged buyouts (LBOs), managing portfolio firms, and exit.
The above is a sample of the typical modules that we offer but is not intended to be construed and/or relied upon as a definitive list of the modules that will be available in any given year. Due to the passage of time between commencement of the course and subsequent years of the course, modules may change due to developments in the curriculum and information is provided for indicative purposes only.