Finance MSc

  • Programme duration: Full-time: 12 months   Part-time: 24 months
  • Programme start: September 2020
  • Entry requirements: You will need a 2:1 Honours degree or international equivalent in Finance, Accounting and Economics. Exceptional candidates with First Class Honours degrees in other subjects (with a significant component of finance) will be considered.
Finance msc

Module details

Programme Structure

This 12-month programme consists of six compulsory modules and two optional modules followed by a dissertation over the summer period on completion of Semester 2.

Students are required to complete 180 credits to achieve a full MSc.

Compulsory modules

Corporate Finance and Valuation (ECON906)
LevelM
Credit level15
SemesterFirst Semester
Exam:Coursework weighting80:20
Aims

The aim of this module is to examine a range of topics and issues in corporate finance including: capital budgeting; capital structure; dividend policy; raising long-term capital; corporate governance and international corporate finance in order to equip students to be able to undertake independent and advanced investigations in corporate finance.

Learning Outcomes

(LO1) Develop understanding of theoretical and empirical principles in capital budgeting as the basis for conducting a rigorous evaluation of associated scenarios;

(LO2) Critically assess theoretical and empirical developments in capital structure topics and relate their findings to the contemporary business environment;

(LO3) Develop skills to enable the critical evaluation of theoretical and empirical aspects in dividend policy research, and to communicate findings effectively;

(LO4) Develop knowledge regarding the sources of financing for the firm within a constantly changing financial environment;

(LO5) Develop knowledge and understanding in concepts of corporate governance and their relationship with corporate performance;

(LO6) Develop a comprehension of the importance of internationalization/globalization for firms' international transactions and the implications for effective corporate governance.

(S1) Numeracy/computational skills - Problem solving

(S2) Communication (oral, written and visual) - Presentation skills – oral

(S3) Communication (oral, written and visual) - Presentation skills - written

(S4) Communication (oral, written and visual) - Following instructions/protocols/procedures

(S5) Critical thinking and problem solving - Critical analysis

Portfolio Theory (ECON923)
LevelM
Credit level15
SemesterFirst Semester
Exam:Coursework weighting80:20
Aims

To understand and appreciate the basic notions underlying the management and selection of efficient investments for portfolio construction. Special emphasis is given to notions of efficiency and the discussion of selection criteria.

Learning Outcomes

(LO1) Appreciate the pivotal elements of decision making under certainty and uncertainty, risk and risk management, portfolio choice, management and performance evaluation;

(LO2) Develop a systematicunderstanding, knowledge and critical awareness of the nature, concepts andconstruction of portfolios, having regard for the type of  investor;

(LO3) Apply knowledge,understanding and techniques underlying portfolio management strategies includingrisk management strategies in uncertain contexts;

(LO4) Develop  a conceptual and practical understanding ofthe understanding of performance evaluation of portfolios at the forefront ofcurrent practice.

(S1) Adaptability

(S2) Numeracy

(S3) Commercial awareness

(S4) Teamwork

(S5) Organisational skills

(S6) Communication skills

(S7) International awareness

(S8) Lifelong learning skills

(S9) Ethical awareness

(S10) Leadership

Financial Markets, Financial Regulation and Ethics (ECON824)
LevelM
Credit level15
SemesterFirst Semester
Exam:Coursework weighting70:30
Aims

To provide an understanding of the role and nature of regulation in the international financial markets;

To explore the changing nature of regulation, the benefits and challenges, through the lens of the recent global banking crisis;

To identify specific recent regulation that impacts on financial markets internationally as a result of initiatives announced by global bodies such as the G20;

To explain the ethical responsibilities required by the CFA Institute Code of Ethics and the Standards of Professional Conduct and to demonstrate the application of the Code of Standards;

To appraise and evaluate practical regulatory and ethical issues that require knowledge of the regulatory landscape and application of an ethical framework.

Learning Outcomes

(LO1) Explain the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code of Standards in uncertain contexts;

(LO2) Apply, and critically appraise, the six components of the Code of Ethics and the seven Standards of Professional Conduct;

(LO3) Explain and evaluate the ethical responsibilities required by the Code of Standards, including the sub-sections of each Standard;

(LO4) Explain the regulatory structure as it impacts on financial markets internationally;

(LO5) Evaluate the impact of financial crises on the development of regulation;

(LO6) Explain the nature and role of ethics within financial services and apply ethical approaches to practical industry scenarios.

(S1) Adaptability

(S2) Problem solving skills

(S3) Commercial awareness

(S4) Ethical awareness

Quantitative Methods for Finance (ECON901)
LevelM
Credit level15
SemesterFirst Semester
Exam:Coursework weighting80:20
Aims

The aim of this module is to provide students with a solid foundation in the statistical and econometric techniques that allow them to conduct independent empirical investigations in economics and finance. The approach centres on the linear multiple regression methods, including their use in estimating and testing the validity of models in economics and finance.

The aims are that students will:

Understand aspects of the theories and principles of econometric analysis in economics and finance;

Be aware of a range of inferential techniques commonly employed in econometrics;

Understand the limitations of such techniques in different circumstances.

Learning Outcomes

(LO1) Discuss, evaluate and apply a range of mathematical and statistical techniques necessary for understanding and using econometrics methodology in finance and economic development;

(LO2) Use a number of statistical and econometric packages in real (simple) applications;

(LO3) Formulate, estimate and test a wide range of linear and non-linear models commonly encountered in financial analysis.

(S1) Problem solving skills

(S2) Numeracy

(S3) IT skills

(S4) Communication skills

(S5) Time management skills

Security Analysis and Valuation (ECON825)
LevelM
Credit level15
SemesterSecond Semester
Exam:Coursework weighting100:0
Aims

Equity shares:

To provide a knowledge and understanding of the nature of equity securities and equity markets and develop techniques to value equities using fundamental analysis;

Bond market:

To provide a knowledge and understanding of fixed-income securities and their markets , yield measures, risk factors, and valuation measures and drivers;

To develop an ability to determine the yields and values of fixed-income securities;

General asset pricing:

Equity and bond pricing to be integrated into a general asset pricing structure.

Learning Outcomes

(LO1) A systematic understanding, knowledge and critical awareness of the nature of equity securities and current professional practice related to equity markets;

(LO2) The application and critical appraisal of fundamental analysis to the valuation of equity securities, including residuals analysis in complex scenarios;

(LO3) A conceptual understanding of the principles underlying the equity markets and equity security valuation, including hybrids at the forefront of current practice;

(LO4) A systematic understanding, knowledge and critical appraisal of professional practice related to fixed income securities, including structured products and embedded options;

(LO5) The application of knowledge and understanding of applied techniques and methods to analyse yields, risks and valuation for fixed income securities in an uncertain context;

(LO6) A conceptual understanding of the principles underlying the yields, risks and valuation of fixed income securities and the application of current valuation techniques.

(S1) Problem solving skills

(S2) Numeracy

(S3) Commercial awareness

(S4) Communication skills

Research Methods and Modelling (ECON815)
LevelM
Credit level15
SemesterSecond Semester
Exam:Coursework weighting80:20
Aims

The aim of this module is to give the student an understanding of econometric and statistical methods for financial and economic time series. Important extensions include: stationary models for time series; testing for nonstationarity; models for nonstationary data; volatility models for financial time series; and models for multivariate data including vector autoregressions, error correction mechanisms and cointegration.

Extensive use will be made of the econometrics package EViews in tutorials to supplement the theory with applications and to provide hands-on experience.

The aims are that the student will:

Understand a range of univariate and multivariate models of financial and economic time series and their applications;

Understand the statistical characteristics of financial data including skewness, kurtosis and volatility;

Understand the motivations, methods and limitations of multivariate modelling for economic and financial time-series;

Be confident in the use of an econometric computer programme (EViews) for a range of methods and applications.

Learning Outcomes

(LO1) Be able to specify and appreciate the main characteristics of a range of time series models;

(LO2) Be able to estimate appropriate models of financial and economic time series for purposes of forecasting and inference;

(LO3) Be able to apply univariate and multivariate model selection and evaluation methods;

(LO4) Be able to accommodate seasonality, causality, unit roots, and long run relationships in economic and financial time series;

(LO5) Be able to analytically investigate the skewness, kurtosis and volatility aspects of models such as ARIMA and ARCH models of economic and financial time series.

(S1) Communication skills

(S2) Planning and organisation skills

(S3) IT skills

(S4) Lifelong learning

Dissertation (ECON912)
LevelM
Credit level60
SemesterSummer (June-September)
Exam:Coursework weighting0:100
Aims

The aim of this module is to enable a student to undertake an independent piece of work that demonstrates a consolidated level of thorough understanding achieved by undertaking theoretical as well as empirical analysis on a particular aspect of interest. The work could be a fundamental ground for the research that is anticipated to be undertaken in due course to be continued by the student.

Learning Outcomes

(LO1) Development of skill of presenting theoretical and empirical analysis on a particular aspect of interest in the discipline. Further development of the work for further research may be considered.

(S1) Research skills

(S2) Written communication skills

(S3) Organisational skills

Optional modules

Financial Risk Management (ECON809)
LevelM
Credit level15
SemesterSecond Semester
Exam:Coursework weighting80:20
Aims

This module aims to train students in evaluating, measuring and managing a range of financial risks to which companies are exposed. Particular emphasis is placed on the measurement and management of market risks, cash flow risks, interest rate risks and credit risks. The module also includes a brief discussion of recent issues on risk management (subprime crisis, the role of risk management failures etc.)

Learning Outcomes

(LO1) A critical understanding of the risk management function and the nature of the relationship between risk and firm value;

(LO2) Advanced knowledge of several risk evaluation and measurement techniques including Value at Risk, volatility, correlations/copulas;

(LO3) Demonstrated ability to analyse the factors that lead companies to high levels of interest rate risk, market risk, credit risk and liquidity risk;

(LO4) Good understanding of the current academic literature on risk management with main emphasis on studies analysing risk management failures, eg credit crisis, LTCM failure etc.;

(LO5) Valuable applied research skills in risk management and measurement, eg how to use specific econometric and statistical software such as Eviews, in the analysis of relevant specific problems in risk management, eg calculating and evaluating “Value at Risk” measures.

(S1) Problem solving

(S2) Numeracy

(S3) Critical awareness

(S4) Analytical thinking

(S5) Communication skills

(S6) IT skills

Financial Statement Analysis (ECON810)
LevelM
Credit level15
SemesterSecond Semester
Exam:Coursework weighting80:20
Aims

The aim of this module is to provide students with an understanding of financial statements, and the techniques and skills necessary for the interpretation of financial statements including their use in the valuation process.

Learning Outcomes

(LO1) By the end of the module the students should be able to: Understand the role of financial statements in assessing the performance and position of an entity Understand how ratio based techniques can be used in interpretation of financial statements Explain valuation models which use financial statement information Determine a valuation for a business using financial statement information with appropriate valuation models Prepare financial forecasts derived from financial statement information

Advanced Corporate Finance (ECON811)
LevelM
Credit level15
SemesterSecond Semester
Exam:Coursework weighting80:20
Aims

The aim of this module is to cover the following main areas in corporate finance: short-term corporate financing, bankruptcy/financial distress, corporate restructurings and real options. Particular emphasis will be placed on i. the role of incentives on financing decisions and ii. how financing and investment decisions interact with each other and how those decisions have implications for corporate bankruptcy, takeovers and corporate restructurings.

Learning Outcomes

(LO1) An understanding of current theoretical and empirical developments in corporate finance that enable students to understand and develop theories and policies regarding bankruptcy/ financial distress, mergers and acquisitions, corporate control and governance as well as topics related to agency theory;

(LO2) Familiarity with major empirical studies in the areas stated above;

(LO3) An ability to appreciate and critically evaluate methodologies, results and implications of research studies in the discipline.

(S1) Communication skills

(S2) IT skills

(S3) Numeracy

(S4) Problem solving skills

Financial Engineering (ECON918)
LevelM
Credit level15
SemesterSecond Semester
Exam:Coursework weighting80:20
Aims

To provide an introduction to derivative products, namely futures and options in their many different varieties;

To examine these products from both a speculative and hedging perspective and also consider advanced strategies such as intra and inter commodity spreads for futures as well as sophisticated option strategies used, not exclusively, to trade volatility;

To examine the sensitivities of option strategies to underlying factors, namely an options "Greeks";

To consider the Black-Scholes-Merton and the Binomial approaches to option pricing.

To use Monte-Carlo simulation for the pricing of path dependent exotic options;

To develop skills in use of Excel, VBA, and Matlab.

Learning Outcomes

(LO1) Understand how futures and options are traded and priced;

(LO2) Be able to select the appropriate product to either hedge or speculate against future expected market conditions;

(LO3) Apply pricing strategies in market based situations;

(LO4) Develop trading skills using market data.

(S1) IT skills

(S2) Problem solving skills

(S3) Numeracy