- The module content below applies to the current academic year and may change for subsequent years. It is intended as an indication only.
- Every course has its own core and elective modules. Please consult the course content to see which modules are relevant to your chosen course.
Advanced Financial Theory
The Role of Financial Theory and undertaking research in Finance; Capital Markets, Consumption and Investment; The Theory of Choice under Uncertainty and Valuation Theories; Portfolio Theory; Equilibrium Asset Pricing Models I - CAPM and its recent developments; Equilibrium Asset Pricing Models II – tests of the CAPM; ICAPM and CCAPM; Equilibrium Asset Pricing Models III – APT and its testing; Capital Market Efficiency, Market Anomalies and Behavioural Finance; Pricing of State Contingent Claims, the Arbitrage Theorem and Continuous Time Valuation; Derivative Instruments and Option Valuation.
Advanced topics are drawn from: growth theory; business cycle theory: DSGE Modelling; monetary theory and their respective applications
consumer theory; producer theory; decision making under risk and uncertainty; incentives and strategic behaviour; market equilibrium; general equilibrium; welfare economics.
Auditing and Assurance Services
Standards, Materiality, and Risk; Audit Reports; Professional Ethics; Audit Evidences; The Audit Process and Detecting Fraud; Audit Sampling; Other Assurance and Attestation Services; Compliance and Internal Auditing
Behavioural Finance and Economics
The module covers core topics and additional topics that depend on the current nature of the discipline:
- Core Topics: the Efficient market hypothesis; anomalies in financial markets; limits to arbitrage; prospect theory and frame dependence; cognitive heuristics and biases.
- Additional Topics: mental accounting; choice bracketing; myopia and self-control; overconfidence; constructive choice; Bubbles: rational and irrational exuberance; money illusion; regression-to-the-mean and mean-reversion.
Introduction to Valuation; Cost of Capital; Capital Structure; Payout Policy; Company Valuation with leverage; Valuation of multinational companies.
Corporate Governance and the Theory of the Firm; The Board of Directors; The rationale for, and impact of, Best Practice Codes for corporate governance; Investors and corporate governance; Insider ownership and corporate performance; Executive and Board remuneration decisions; The market for corporate control: theory and evidence; Corporate governance and corporate finance: capital structure and investment decisions; International aspects of corporate governance.
Presentation of financial statements; Ethical duties of accountants; Non-financial, environmental and social reporting; Reporting the financial performance of entities (international accounting standards (IAS/IFRS)); Financial statements of groups of entities; Analysis and interpretation of financial statements.
Introduction to Derivative Markets; Forward Contracts; Futures Contracts; Fixed Income Theory; Swaps; Stock Index Arbitrage and Spread Trading; Option Contracts and Stochastic Calculus; Option Pricing Models; Hedging and Risk Management; Corporate Applications.
Linear Regression Model using some Matrix Algebra, Gauss-Markov, Identification, OLS, finite sample properties of the OLS estimator; Hypothesis testing and Confidence intervals; Asymptotic properties of the OLS estimator; Misspecification and dummy variables; GLS, autocorrelation and heteroskedasticity; Endogeneity, Simultaneity, Instrumental Variables (IV) estimation; Maximum Likelihood (ML); Binary Choice Models (Logit/Probit)
Linear Regression Model using Matrix Algebra, Gauss-Markov, Identification, OLS, finite sample properties of the OLS estimator; Hypothesis testing and Confidence intervals; Asymptotic properties of the OLS estimator; Misspecification and dummy variables; GLS, autocorrelation and heteroskedasticity; Endogeneity, Simultaneity, Instrumental Variables (IV) estimation; Generalized Methods of Moments (GMM); Maximum Likelihood (ML)
Time series data, stationarity, ARMA models, Box-Jenkins methodology; Forecasting; Models for non-stationary data, Unit root tests; Cointegration: Single-equation methods, Engle-Granger methodology, Error correction model (ECM); Dynamic regression models, Distributed lag models and Autoregressive distributed lag models; VAR models, Impulse Response Analysis; Cointegration in a System: VECM, Johansen approach; Volatility Models: ARCH, GARCH.
Empirical Topics in Finance
Empirical developments in portfolio selection; Empirical aspects of factor models and asset pricing; Portfolio performance measurement; Event studies; Short sales – price discovery, liquidity and volatility; Option returns and portfolios with options; Skewness and skewness persistence.
Environmental Economics and Finance
The theoretical background to the problem of environmental degradation by dealing with issues of welfare economics; theory of externalities implied by air pollution; Pareto-optimal allocation; natural resources and the international dimension of environmental policy; international environmental agreements; optimal environmental policy.
Financial Planning and Control
Understanding Cost Behaviour; Short term Budgeting; Resource Allocation and Capacity Costs; Activity Based Costing Systems and Activity Based Management; Financial Measures of Performance, International Dimensions; Balanced Scorecard; Incentive Measures and Performance.
Financial Risk Management
Hedging Strategies with Futures; Applied Topics in Futures Markets; Trading Strategies using Option Contracts; Option Greeks and Volatility Smiles; Value at Risk; Corporate Liabilities as Options; Credit Risks; Estimating Volatility and Correlation; Advanced Topics on Volatility Modelling and Option Pricing.
Financial Modelling and Business Forecasting
The statistical properties of univariate time series models and their application in Finance; Models of nonstationary time series; Cointegration and error-correction model; Cointegration in multivariate systems; Modelling volatility; Future topics on ARCH; Forecasting in financial econometrics.
Financial Statement Analysis
Revision of financial statements; Basics of analysis; Liquidity of short-term assets; related debt-paying ability; Long-term debt-paying ability; Profitability; Decision-making and statement of cash flows for investors; Extended analysis: pecific industries; Voluntary disclosures; Accruals and earnings management.
Growth and Finance
Dynamic optimization techniques; Endogenous Growth Theory; Introduction to general equilibrium models asset pricing; Linking market price of capital to growth; Human capital, growth and asset pricing.
Models of exchange rate determination; Currency Crises; Intertemporal approach to the current ccount; Globalisation; Ricardian Trade Theory; Hecksher-Ohlin Trade Theory; New Trade Theory; International Labour Migration.
Economics of exchange rates; Purchasing power parity; Models of exchange rates; Foreign exchange market efficiency.
International Financial Asset Management
Portfolio allocations under certainty and uncertainty; International portfolio diversification issues; Asset pricing; Puzzles in international finance - e.g. home bias puzzle, exchange rates puzzle, equity premium puzzle.
Financial Markets and Trading Industry (including financial markets; traders; trading instruments; market regulations); The Structure of Trading (market structure and order executions; Orders and order properties; Order driven markets); Trading Systems (Floor vs. Automated Trading systems, Internalisation, preferencing, and crossing); The suppliers of Liquiduity and Market Liquidity (Dealers; Bid/Ask spreads; Arbitrage); Empirical Issues on Market Microstructure (Contemporary empirical issues).
Mergers and Acquisitions
Overview of M&As; Takeover tactics and takeover defence; Leveraged transactions and corporate restructuring; Target valuation; Empirical tests of M&A performance; Value creation through M&As; Cross-border acquistions and risk.
Central Bank Independence; Background to Monetary Policy; Credibility and Time-Inconsistency in Monetary Policy; International Monetary Policy Co-ordination; The Demand for and supply of Money; The Monetary Transmission Mechanism; Monetary Policy in Practice; Exchange Rates and External Arrangements.
Money and Banking
Monetary policy transmission (Traditional channels of transmission of monetary policy, The credit channel, The balance sheet channel, The bank lending channel); The financial system and the corporate sector (Capital market imperfections and investment decisions, The Q model approach, The Euler equation approach, The error correction specification approach and other approaches, Capital market imperfections and inventory accumulation decisions, The reduced form approach, The linear quadratic model approach, Capital market imperfections and other aspects of firm behaviour); The financial system and the personal sector: capital market imperfections and consumption
Selecting and Managing Equity Portfolios; Asset Allocation; Portfolio Performance Evaluation; Fixed Income Securities: Analysis and valuation; Managing fixed income securities; Derivative Securities and Portfolio Risk Management.
Theoretical and practical issues in taxation and public expenditure; second-best problems regarding taxation and public expenditure, and their applications; political economy aspects of public economics, including the effects of government policy on, e.g., economic performance, distribution and welfare; the normative theory of government policy, e.g., evaluation of tax systems on the basis of efficiency, redistribution, and correction of market imperfections.
Overview of Financial Markets and Instruments; Investment Banking and Investment Companies; Common Stocks: Technical analysis, Fundamental analysis and relative valuation investment strategies; Accounting Information and Stock Prices; Earnings Estimation and Forecasts; Analysts’ Forecasts and Security Returns.
Technology, Innovation and Economic Growth
Economic Growth Facts; Sources of Growth: Physical Capital; Human Capital; Ideas; Inequality, Political Economy, and Growth; Technical Change and Inequality; Research and Development, Innovation, and Growth; Intellectual Property and Innovation; Finance, Innovation, and Growth; International Technology Transfer; Institutions and Growth; Policies for Innovation and Growth.