MSc Accounting and Finance detailed module information

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1 MSc Accounting and Finance detailed module information Example timetable Please note that information regarding modules is subject to change. TERM 1 TERM 2 TERM 3 INDUCTION WEEK EXAM PERIOD Week 1 EXAM PERIOD Weeks 1-3 ISSUES IN ACCOUNTING (I) ISSUES IN ACCOUNTING (II) DISSERTATION ASSET PRICING FINANCIAL REPORTING AND STATEMENT ANALYSIS FOUNDATIONS OF CORPORATE FINANCE ELECTIVE RESEARCH METHODS IN ACCOUNTING ELECTIVE CORE MODULES Term 1 Issues in Accounting I & II Gain an understanding of the major issues and controversies in accounting and examine a number of current topics in financial reporting. Global financial reporting; management accounting and control; ethics, auditing and the accounting profession; accountability, sustainability and governance

2 Assessment consists of a three-hour examination in Term 3 (April/May) equivalent to 70% of the final mark, an assignment worth 20% and a group presentation worth 10%. Asset Pricing Gain an introduction to financial markets and techniques for valuation of risky assets. The skills acquired will be used in other modules and are essential for a financial economist. Financial markets and instruments; choice under uncertainty and risk measurement; state preference theory; meanvariance portfolio theory; equilibrium in capital markets; testing CAPM and APT; CAPM variants; APT and Consumption CAPM; efficient capital markets; introduction to derivatives; portfolio performance evaluation. Assessment consists of a series of online tests during Term 1 worth 20% of the final mark and a two-hour examination in Term 2 (January) equivalent to 80%. Foundations of Corporate Finance Undertake in-depth analysis of the key determinants of the investment and financing decisions of the firm. Capital budgeting; capital structure; dividend policy; mergers and takeovers. Assessment consists of a module test in Week 11 of Term 1 worth 20% of the final mark, and a two-hour examination in the first week of Term 2 (January) equivalent to 80%. Research Methods in Accounting Combine accounting theory and qualitative and quantitative techniques of analysis to gain the knowledge and skills required to design and complete an independent empirical project in accounting. Introduction to data, Basic analysis of data in Excel, Probability, Introduction to STATA (or other statistical software), The distribution of data, How to develop and test hypotheses, Analysis of variance, Correlation and regression: techniques and diagnostics, Index numbers, Time series, Qualitative methods, Analysis of qualititative data (including introduction to SPSS), Experimental techniques: design and interpretation Assessment consists of 50% coursework and 50% unseen examination CORE MODULES Term 2 Financial Reporting and Financial Statement Analysis Consider a framework for evaluating the financial performance of a company, forecasting its future performance and estimating its fundamental value. Consider the relative usefulness of cash flow and profit data for assessing financial performance and the use of ratio analysis for evaluating past performance and forecasting future financial performance. Financial statements and their use in financial analysis; financial reporting and IFRS; reformulation of financial statements; ratio analysis and forecasting financial performance; cash flow and accounting valuation models; valuation theory in practice; financial statement analysis; market efficiency and earnings management; issues and developments in financial reporting and statement analysis; corporate governance and management communication, financial statement quality and the cost of capital. Assessment consists of an individual project worth 80% of the final mark and a group presentation worth 20%.

3 ELECTIVE MODULES TERM 2 Students are required to choose TWO elective modules from the modules listed below, one of which must be an Accounting elective module. This is an indicative list only; further information and confirmation of the available electives will be provided at the end of Term 1. Accounting Information and Markets Develop your understanding of how reported accounting numbers affect firm value. Learn how firms disclosure choices may be perceived by market participants and how this affects the values assigned to them. Introduction to accounting-based valuation models; share price anticipation of earnings; corporate disclosure policy and share price anticipation of earnings; voluntary disclosure theoretical incentives and empirical evidence; earnings conservatism; Ohlson s 1995 unbiased accounting model; dividends in equity valuation; where accounting fails: R&D and equity valuation; earnings management theory and evidence Assessment consists of an examination in Term 3 (April/May) equivalent to 80% of the final mark and coursework worth 20%. Corporate Governance Develop your understanding of the theory and practice of corporate governance and its role in the strategic management of the modern corporation. Introduction to agency theory; the regulatory environment; the role of boards; the role of providers of capital; institutional investors and stewardship; the role of the audit; executive compensation; corporate governance failure; risk management; the market for corporate control; international developments in corporate governance; corporate social responsibility Assessment consists of a two-hour examination in Term 3 (April/May) equivalent to 80% of the final mark and coursework worth 20%. Management Accounting & Control Perform in-dpeth analysis of several key issues relating to the control of managerial performance. Examine topics of contemporary interest in the field of management accounting and control. Purpose/techniques of management accounting; The role of management accounting in addressing the problem of management control; Motivation, monetary incentives and management accounting and control; Accounting performance measures, responsibility accounting and the controllability principle; Explaining the design of management accounting and control systems; Activity based cost management; Target costing and customer profitability analysis. Assessment consists of an examination worth 80% and individual coursework worth 20%. FINANCE/BEHAVIOURAL SCIENCE MODULES Advanced Corporate Finance Explore the basic issues in mergers and acquisitions (M&As) and undertake in-depth analysis of the key determinants of M&A activities of firms around the world. Consider the wider issues of agency problems and corporate governance that are associated with M&A activities. Value creation in takeovers; abnormal returns; merger waves; private equity; merger arbitrage; takeover defenses; costs and benefits of concentrated ownership; modeling the takeover process.

4 Assessment consists of coursework worth 40% of the final mark and a 1 ½ hour examination in Term 3 (April/May) equivalent to 60%. Behavioural Finance Psychologists working in the area of behavioural decision-making have produced much evidence against the adequacy of neoclassical economics. Behavioural finance comprises financial analysis which relaxes some of these assumptions. It is a paradigm where financial markets are studied using models that are less narrow than those based on von Neumann-Morgenstern expected utility theory and arbitrage assumptions. Market Efficiency; Prospect theory; Loss aversion; the impact of Knightian uncertainty; limits to arbitrage; overconfidence in financial markets; herding and asset bubbles; paradoxes and anomalies; the disposition effect; investor sentiments. Assessment consists of a two-hour examination in Term 3 (April/May) equivalent to 70% of the final mark and coursework worth 30% Derivative Securities Explore the rich variety of derivative contracts that exist, the ways in which they may be used and the models that can be used to determine their prices. Although the module covers both theory and application, it does not require a particularly high level of mathematics. Much of the development for options pricing is based on binomial trees. The module has relevance both for potential users of derivatives and for those who need to understand risk management using derivatives. Arbitrage and futures prices; bounds on option prices; binomial models for options; Black/Scholes model for options and its applications; hedging with futures and options; stock-index options and portfolio insurance; interest-rate futures and swaps; warrants and convertibles; exotic options. Assessment consists of a module test worth 20% of the final mark and a two-hour examination in Term 3 (April/May) equivalent to 80%. Financial Risk Management Examine financial risk management and the techniques to assess financial risks according to the regulatory framework, having the management of risk exposure in view. Learn the quantitative methods of risk measurement and risk management. How to identify financial risks; coherent risk measures; models for uncertainty; numerical tools Monte Carlo simulation; approximations and factor reduction; Bayesian uncertainty parameter risk; The regulatory framework of financial risk management. Assessment consists of a module test during Term 2 worth 20% of the final mark and a two-hour examination in Term 3 (April/May) equivalent to 80%. Financial Software and its Development Gain realistic, hands-on experience of the kind of software development you might use if employed in a development team for an investment bank or investment management company. Focussing on tools and techniques most likely to be used in the front office, where risk and return characteristics are analysed and investment decisions made. The development, testing and operation of working software in small teams and following practices similar to those found in the workplace.

5 Assessment consists of a 1,500 word essay worth 30%, a presentation worth 20% and a programming assignment worth 50%. Fixed Income and Credit Risk Explore the tools for the assessment and management of fixed income and credit risk. Bonds and Money-Market Instruments; Bond Prices and Yields; term structure of interest rates; Martingale pricing; continuous-time stochastic processes; affine term structure models; credit risk management; structural and intensitybased credit risk modelling; credit derivatives. Assessment consists of a module test and a group project each worth worth 10% of the finak mark, and a a two-hour examination in Term 3 (April/May) worth 80%. International Financial Markets Consider of the theory and evidence relating to international financial markets, and in particular the foreign exchange market. Efficiency of the Foreign Exchange (Forex) Market; Purchasing Power Parity and the Real Exchange Rate; Exchange Rate Determination; Forecasting Exchange Rates; Exchange Rate Models and Economic Value; Official Intervention in the Forex Market; The Microstructure of the Forex Market; Active Management of Forex Portfolios. Assessment consists of a module test during Term 2 worth 20%. Of the final mark and a two-hour examination in Term 3 (April/May) equivalent to 80%. International Financial Management Explore corporate financial decision-making within the context of the increasing globalisation of business, exchangerate volatility, and the internationalisation of financial markets. Extend your understanding of the theory of corporate financial management, covered in the Foundations of Corporate Finance core module, to an international setting. Forward Exchange Rates; Forward Contracts for International Financial Management; Currency Futures: Markets and Uses; Swap Markets; Currency Options; Exchange Rate Risk; International Corporate Investment. Assessment consists of a group project during Term 2 worth 20% of the final mark, and an examination in Term 3 (April/May) equivalent to 80%. Investment Management Consider the theoretical and practical treatment of modern portfolio theory and portfolio management, mainly from an equity market perspective. Review of financial instruments and financial markets; international diversification; passive asset allocation; performance measurement; equities; active portfolio management; bonds; forwards and futures; options. Assessment consists of a group project worth 25% of the final mark and a two-hour examination in Term 3 (April/May) worth 75%. Judgement and Decision Making Gain an introduction to the psychology of human judgement and decision making. This field provides the foundation for understanding the decision-making processes involved in financial markets. Explore how the insights from this work can help you understand the origins of rational and irrationality in financial decision makers and financial markets; help improve your own financial decision-making, judgements and predictions; and provide a broader understanding of decision-making throughout the finance industry, including strategic and managerial decisionmaking.

6 The nature of rationality; theoretical perspective on human judgement; the psychology of value and utility; decision making under certainty; decision making under risk; judgement; confidence and expertise; decision making in markets, groups and society. Assessment will be by means of a 3,000 word essay worth 80% of the final mark and a group seminar presentation for the remaining 20%.