📖Program Curriculum
Course modules
Compulsory modules
All the modules in the following list need to be taken as part of this course.
Corporate Finance
Module Leader
Professor Yacine Belghitar
Aim
This core module provides a foundation in the essentials of corporate financial management. The course focuses on three principal aspects of corporate finance: the investment decision; the cost of capital; and the financing and payout decisions. Based on recent theoretical and empirical developments, the course explores the framework in which corporations make their financial and investment decisions.
Syllabus
The Objective Function for Corporations
Corporate Governance
Making Investment Decisions with the NPV Rule
Valuing Bonds and Common Stocks
Introduction to Risk and Return
Portfolio Theory and the CAPM
How Corporations Issue Securities
Capital Structure
Payout Policy
Intended learning outcomes
On successful completion of this module a student should be able to:
Evaluate the impact of the separation of corporate ownership, management and control.
Appreciate and incorporate risk in project appraisal and investment.
Estimate and evaluate the capital structure and dividend policy of the company.
Understand and appreciate the complexity and contradictions of the current academic literature in financial management and its implications for professional practice.
Statistical Analysis in Finance
Module Leader
Dr Nemanja Radic
Aim
Finance is a highly quantitative subject and this core programme provides the relevant mathematical and statistical training necessary to be able to conduct appropriate empirical studies and apply theoretical financial models in practice.
Syllabus
The module will cover probability theory, sampling and estimation, hypothesis testing, regression analysis, and panel analysis.
Intended learning outcomes
On successful completion of this module a student should be able to:
Critically evaluate probability distributions and their properties.
Assess various population parameters and their point and interval estimates.
Formulate null and alternate hypotheses, and to conduct a test of hypothesis about a population mean as well as a population proportion.
Critically assess and apply a variety of statistical techniques for data analysis (i.e., OLS, logistic regression and regression with panel data).
Examine and asses financial theory and related empirical work covered in other subjects within the programme.
Accounting
Module Leader
Dr Matthias Nnadi
Aim
The key objective for this course is that students develop a clear understanding of the basics of accounting. By the end of the course, students would be able to interpret accounting information with confidence and use it to make decisions and be able to communicate accounting numbers to others.
Syllabus
The course is split approximately 50/50 between Financial Accounting and Management Accounting.
Financial Accounting covers the preparation and presentation of accounts by firms for outside parties such as shareholders or creditors. Such preparation is governed by certain fundamental principles and various rules.
The first part of the lectures will cover accounting principles and provide understanding on how the key financial statements (income statement, balance sheet, cash flow statement) are prepared.
The module also covers the interpretation of financial statements. This involves learning financial ratio analysis and interpreting the information contained in a full set of annual accounts.
The last sessions are devoted to Management Accounting and cover internal accounting by managers for planning and control. Students will cover the nature and classification of costs, break-even analysis, allocation of overheads; preparing and using budgets, variance analysis.
Intended learning outcomes
On successful completion of this module a student should be able to:
Demonstrate understanding of the fundamental principles of financial accounting and prepare key financial statements from basic information.
Critically analyse and interpret company accounts.
Evaluate the different types of costs and conduct break even analysis.
Critically discuss the different ways in which overheads can be allocated.
Prepare budgets and interpret variances from budget.
Economics for Financial Markets
Module Leader
Professor Constantinos Alexiou
Aim
To introduce the concepts and techniques of Microeconomics (e.g. market analysis, price theory, rationality) and Macroeconomics (e.g. inflation, exchange rates and interest rates) in a way which provides a core foundation for later applied financial analysis in a range of other core and elective courses on the in Finance and Management and in Investment Management.
In the Context of the Financial markets, it is imperative that students be aware of the fundamental principles and concepts pertaining to Economic Theory per se. Studying economics not only does it provide knowledge for making decisions but it also offers a tool with which to approach questions such as the desirability of a particular financial investment opportunity, the benefits and costs of alternative careers, or the likely impacts of public policies.
Syllabus
The initial few sessions are spent on discussion of the concept of equilibrium as it applies to the micro and macro structures of a broad range of financial markets. In the next four sessions, an understanding of choice theory and rational economic decision making as it applies to the levels and structure of prices of assets in a broad range of financial markets is developed. Finally, remaining sessions are devoted to discussion of the concepts and ideas in macroeconomics which have a direct relevance to financial markets. Particularly, discussion is centered on understanding of monetary economics and the institutional context to which it applies. Discussion of structure of money and capital markets rounds up this module.
Intended learning outcomes
On successful completion of this module a student should be able to:
Assess the concept of equilibrium as it applies to the micro and macro structures of a broad range of financial markets.
Discuss and justify the rationale of choice theory and rational economic decision making as it applies to the levels and structure of prices of assets in a broad range of financial markets.
Appraise the monetary institutional context as this is reflected by money and capital markets.
Examine the use of relevant geometric and quantitative models to explain and analyse monetary and financial phenomena.
Assess and effectively discuss real world problems that relate to global financial markets.
International Financial Markets and Ethics
Module Leader
Dr Nemanja Radic
Aim
Part I of this module aims to provide an overview of the nature and operation of international financial markets and their traded instruments. Students are introduced to the organisation of the international financial system, the markets for foreign exchanges, stocks, bonds, commodities and derivatives, and the risks and opportunities offered in these markets and systems.
The role of regulation and ethics will be highlighted and examined in Part II. This will include the aims and structures of regulation and will also provide topical focus on the role and limitations of ethics in financial markets, ethical decision-making frameworks, and cases of lapses in culture and impact upon society and the markets.
Syllabus
The organisation of the international financial system.
International banking and Eurocurrency market.
International foreign exchange markets.
International debt markets.
International equity markets.
International commodity markets and futures.
Current issues and research topics in context of: 1) ethics and regulation/or risk taking, 2) regulation and corporate governance, and 3) the role of governance within an ESG Framework.
Intended learning outcomes
On successful completion of this module a student should be able to:
Critically analyse the organisation of the international financial system.
Describe the organisation, structure, and instruments of international financial and commodity markets.
Evaluate roles of the markets in domestic and global economy and discuss the risks and opportunities related to the international financial markets.
Assess and justify the potential for ethical behaviour and improved conduct to fill the void where law and regulations fail to succeed.
Identify and evaluate the role that corporate governance can play in determining the access to or cost of capital for firms and their performance.
Investing for Environmental and Social Impact
Module Leader
Dr Walter Gontarek
Dr Nemanja Radic
Aim
This module focuses on environmental, social and governance (ESG) criteria into financial decisions. It provides students with insight into how impact investors seek to generate environmental and social impacts in addition to financial returns.
Module targets students seeking careers in financial services who want to better understand the interaction of capital markets and policy issues.
The class will draw upon principles of finance, public policy and investment management to evaluate specific cases and investment tools in areas such as environmental markets and climate change, public finance and sustainable development. Students will be exposed to both traditional and alternative risk management approaches and investment theory frameworks, as well as a range of case studies on the role and impact of institutional investors, banks, financial supervisory authorities and governments in aligning financial markets with ESG goals.
Syllabus
Environmental, social and governance (ESG) and finance in practice.
Climate finance and Impact investing.
Traditional vs. Alternative Investments in Environmental Finance (Stocks and Impact Funds; Green Bonds).
Investment Stewardship (Board of directors and its committees; Shareholder stewardship and engagement; Shareholder protection and agency issues).
Sustainable and responsible investments (SRI).
Responsible business and firm value.
Intended learning outcomes
On successful completion of this module a student should be able to:
Define and describe environmental trends and judge the potential risks and opportunities they present to financial markets, with a particular emphasis on climate risks.
Discuss the challenges arising from climate change for sustainable investing.
Assess how green initiatives could be financed, introduce green finance instruments and their evolving regulatory framework.
Evaluate how sustainability issues affect investment decisions made by institutional investors, corporate lenders, insurance companies, asset management funds, hedge funds, venture capitalists and retail investors, as well as business decisions made by corporate managers.
Assess corporate sustainability risks and opportunities from a financial perspective and plan how to manage/mitigate those risks.
Valuation and Financial Modelling
Module Leader
Dr Vineet Agarwal
Aim
A good understanding of techniques of valuation of firms as well as the different securities issued by firms is vital for managers and financial analysts. This understanding has a bearing on both financing decisions (issue of equity or debt) and investment decisions (identifying securities for inclusion in a portfolio, acquisitions, buy-backs, divestitures etc.). In addition, building sound financial models is critical for understanding and communicating valuations. This course provides the framework for valuing equity and firms as well as financial modelling to aid decision making.
Syllabus
Different valuation approaches: discounted cash flow, relative valuation, and residual income valuation framework.
Estimating the cost of capital using models like CAPM.
Estimating earnings, cash flows, growth and terminal value.
Issues in forecasting cashflows.
Building a robust financial model
Intended learning outcomes
On successful completion of this module a student should be able to:
Discuss the principles of corporate valuation.
Estimate discount rates.
Assess and compare a range of valuation methods.
Assess and test assumptions and limitations of valuation models.
Build valuation models and scenarios using Excel.
Applied Research Methods in Finance
Module Leader
Dr Vineet Agarwal
Aim
This module is designed to provide participants with the required skills for structuring their research projects including conceptualising research questions and writing literature reviews. It uses the positivist approach to finance and introduces the need for and validity of empirical models. The module also imparts a greater understanding of the empirical methods in finance and develops important skills in the assessment, analysis and interpretation of published financial research.
Syllabus
Formulating research questions.
Critically reviewing the literature.
Asset pricing tests using cross-sectional and time-series regressions.
Time-series analysis (stationarity, unit roots, and cointegration).
Generalised Method of Moments.
Event study method.
Intended learning outcomes
On successful completion of this module a student should be able to:
Conceptualise and formulate research questions.
Identify, compile, and critically evaluate relevant literature.
Select and assess a range of methodologies employed in empirical finance.
Assess the limitations of empirical methodologies and draw robust conclusions from empirical studies.
Design and conduct empirical research.
Investment and Portfolio Management
Module Leader
Professor Sunil Poshakwale
Aim
This module is one of the key modules for the programme as it deals with foundations of investment and portfolio theory. The module aims to develop an understanding of portfolio construction, portfolio management and portfolio evaluation. The module will focus on imparting knowledge of the investment process, portfolio theory, efficient market hypotheses, asset pricing models, analysis and management of common stock portfolio, portfolio evaluation and basic understanding of equity options and futures and their application in management of portfolios.
The module’s aim is to help students acquire knowledge of investment and portfolio management. The module introduces some of the principal ideas and concepts underpinning the theory and practice of investment. By the end of the module students will be able to understand the main issues involved in investment management and develop skills to construct equity portfolios and manage their risk.
Syllabus
This module will provide opportunities for students for developing and/or enhancing the following transferrable skills:
Introduction to investments and asset allocation decisions.
The Efficient capital markets.
Portfolio theory.
Portfolio optimisation through case study.
The Capital Asset Pricing Model and other Multi Factor Models.
Portfolio Formation using real data.
Management of Equity portfolio.
Equity Derivatives and Portfolio Management.
Evaluation of Portfolio Performance.
Intended learning outcomes
On successful completion of this module a student should be able to:
Discuss and question relevant ideas and theory of investment and portfolio management and practical considerations.
Assess and evaluate the Efficient Market Hypothesis (EMH) and main asset pricing models.
Evaluate various equity management styles and strategies.
Discuss and examine options and futures and evaluate how to use them in managing portfolios risk.
Compare, select and justify various portfolio performance evaluation tools.
Derivatives and Financial Risk Management
Module Leader
Dr Peter Yallup
Aim
Financial derivatives are now commonly used in many financial and non-financial companies and play an important role in financial risk management processes. A good understanding of the principles underlying derivative securities will enable students to appreciate the benefits and dangers associated with their use.
This module examines the pricing and usage of derivative securities (forwards, futures, options, and swaps) in financial markets. It covers the conceptual and analytical aspects of derivatives as well as the practical applications of derivative securities in the areas of investments, portfolio insurance and risk management. Thus, valuation models as well as hedging strategies will be examined.
Syllabus
Futures Markets
Mechanics of futures markets.
Pricing of futures contracts.
Hedging strategies using futures.
Options Markets
Mechanics of options markets.
Pricing of option contracts.
Hedging and trading strategies using options.
Exotic options.
Value-at-Risk (VaR).
FRAs and Swaps.
Credit Risk and Credit Derivatives.
Intended learning outcomes
On successful completion of this module a student should be able to:
Assess and examine the principles underlying derivative securities, the valuation of these securities and their use for risk management purposes.
Critically discuss the mechanics of different types of derivative securities such as forwards, futures, swaps and options and the ability to price these derivatives.
Demonstrate knowledge and understanding of specific derivative instruments for managing interest rate risk, currency risk and credit risk.
Evaluate the use of alternative derivative products as risk management tools and understand the dangers and risks arising from the use of derivative products.
Elective modules
A selection of modules from the following list need to be taken as part of this course
Private Equity
Module Leader
Dr Wasim Ahmad
Aim
Private equity differs from public equity, which is generally the focus in corporate finance. Private equity has become a major source of capital for innovation, growth and corporate restructuring. To succeed as a PE professional, one needs to embrace and tackle various challenges relating to the financing of the company, its operations and the entrepreneurial and uncertain nature of business venturing. The module will cover the nature of and rationale for PE investing, the spectrum of PE activities and the potential conflicts among stakeholders. Another focus will be on value creation programmes to generate PE fund returns.
Syllabus
The PEQ cycle, from fund raising to investing and exiting.
Strategies to create firm value in private equity: due diligence, operational concept, exit strategies.
Measures to align interests among stakeholders in PE.
Consider the ethical implications of the PE model.
Intended learning outcomes
Upon successful completion of this module, a student will be able to:
Discuss the idiosyncrasies of PE investments from the perspective of investors in this asset class.
Assess and contrast the various types of PE investment: venture capital, buyouts, restructuring, etc.
Propose and justify practical measures through which private equity firms can enhance the value of their portfolio companies.
Design a due diligence programme to critically assess the risks involved in a particular proposed PE transaction.
Mergers, Acquisitions and Restructuring
Module Leader
Professor Yacine Belghitar
Professor Andrea Moro
Aim
The module focuses on transactions significantly affecting the corporation’s assets, liabilities and/or equity claims and stresses the economic motives for undertaking them. Transactions are examined from the perspective of the corporation (e.g., firm managers), from the perspective of capital markets (e.g., investors, stockholders, creditors) as well as from the perspective of the society. The module integrates various technical skills learned earlier in the programme such as accounting, corporate finance and strategy.
Syllabus
Theoretical rationale of mergers, acquisitions, and restructuring.
The range of restructuring choices.
Strategies for takeover, merger, corporate turnaround, and corporate renewal.
Corporate insolvency and reorganisation – insolvency and bankruptcy regimes in the UK, US, Continental Europe and other countries.
The role of competition and shareholder protection regulation in the mergers, acquisition and restructuring.
Financing strategies and tools.
Intended learning outcomes
On successful completion of this module a student should be able to:
Assess the financial, strategic and political causes and motivations driving mergers, acquisitions and restructuring transactions.
Evaluate the regulations on competition and shareholders’ protection and their impact on mergers and acquisitions.
Assess the financial consequences of restructuring for various stakeholders such as different types of lenders, shareholders, the board of directors and managers and how they generate conflicts of interests among them.
Justify and apply alternative valuation techniques to assess a deal.
Examine and assess the strategic and managerial implications of methods of payment and the criteria for successful restructuring and re-organization of firms in bankruptcy/ administration.
Fixed Interest Securities and Credit Risk Modelling
Module Leader
Dr Vineet Agarwal
Aim
The global bond market exceeds $100 trillion which is more than the world’s stock markets. The market has become increasingly quantitative due to the proliferation of new products. Combined with increased volatility of financial prices and exposure to new sources of risk, there are now greater risks and opportunities for fixed income portfolio management.
This module provides the participants with a solid grounding in the mechanics of fixed income markets and introduces them to bond portfolio management techniques.
Syllabus
The module will cover:
Pricing of fixed and floating rate bonds.
Measuring bond price volatility.
Yield curves and bond pricing.
Analysing callable and convertible bonds.
Analysing mortgage-backed securities.
Properties of interest rate derivatives and their use in altering portfolio characteristics.
Credit risk analysis.
Bond portfolio management
Intended learning outcomes
On successful completion of this module a student should be able to:
Assess the risks of investing in fixed interest securities.
Examine and assess the role of yield curves in bond pricing.
Assess the impact of embedded options on risk-return profile of bonds.
Evaluate credit risk models and their application in fixed interest investing.
Discuss and evaluate the bond portfolio management techniques using combination of bonds and interest rate derivatives.
FinTech, Start-Ups and Small Business Finance
Module Leader
Professor Andrea Moro
Aim
This module focuses on financing issues faced small business ventures, entrepreneurial firms as well as by very innovative and technological based start-ups. It explores the issues from the perspective of the entrepreneur, the investors and the providers of debt finance.
The module aims to provide students with awareness and understanding of the risk incurred by investing in an entrepreneurial firm (entrepreneurs, providers of equity and providers of debt) as well as to explain how technology is revolutionising the financial strategy start-ups can pursue.
Thus, it implies:
a thorough examination and evaluation of traditional alternative financing strategies that small/entrepreneurial ventures can pursue by exploring both the traditional financial tools (bootstrap finance, business angels, venture capital, as well as bank finance) and the relatively new ones such as crowdfunding;
the exploration of blockchain technology as a tool to finance high tech start-ups and the application of blockchain technology to smart contracts.
Syllabus
Overview of the entrepreneurial venture and its peculiarities;
Identification and valuation entrepreneurial opportunities and related risk;
Exploration of equity funding (entrepreneur’s finance, bootstrap finance, business angels, venture capital, etc.);
Exploration of debt finance (trade credit, short term finance, factoring, long term finance, leasing);
Examination of evolution of financial needs with growth and exit strategies;
Examination of innovative form of finance (tokens);
Smart contracts: structure and use.
Intended learning outcomes
On successful completion of this module a student should be able to:
Discuss and contrast the peculiarities of entrepreneurial ventures and how they affect entrepreneurs’, investors’ and banks’ decision about financing entrepreneurial ventures;
Value and relate to the critical role that traditional financing tools play in new venture creation (in terms of start-up survival and firm’s growth) as well as the risk and advantages of the use of blockchain technology;
Formulate a deal structure for an entrepreneurial venture;
Evaluate the benefits and risks of the use of smart contracts in finance;
Select and assess different investment harvesting alternatives.
Investing in Emerging Markets and Alternative Investments
