Master of Science in Finance and International Business CONTENTS

Master of Science in Finance and International Business CONTENTS 1. PREFACE... 3 2. WHERE TO APPLY... 4 3. MAP OF THE AARHUS SCHOOL OF BUSINESS... 5 4. ADMISSION... 6 5. STRUCTURE AND COURSES OF THE MSC PROGRAMME... 7 6. THE MSC IN FINANCE AND INTERNATIONAL BUSINESS... 10 7. THE PROGRAMME... 12 Organisation of the programme... 15 Career opportunities... 15 Further information... 15 Schematic outline of the programme... 16 8. ADDITIONAL DESCRIPTIONS... 17 Electives... 17 The master thesis... 17 Courses in Business Administration at the Aarhus School of Business... 18 Courses at other Danish institutions... 19 Internship... 20 9. EXAMINATION REGULATIONS... 22 Description of exams and assessment... 23 Exams consisting of one or more subtests... 24 Rules for handling exam regulation violations... 24 10. STUDY ABROAD PERIOD... 26 11. COMPLAINTS... 27 12. IMPORTANT DEADLINES... 28 1

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1. PREFACE The Study Committee for Postgraduate Programmes, Faculty of Business Administration, has set down the present Study Guide for the M.Sc.-programme in Finance and International Business. The formal basis for the programme is the same as for the other Master of Science programmes in Economics and Business Administration at the Aarhus School of Business. The Study Guide contains a list of subjects and exams, examination rules and regulations, etc. As for the contents of the subjects, please see the description in the Course Catalogue on http://www.campusnet.asb.dk Details in connection with the programme for the Master of Science in Finance and International Business are not part of the Study Guide. Here student counsellors senior students who advise applicants and students should be consulted. The Study Committee for Postgraduate Programmes August 2006 3

2. WHERE TO APPLY? Aarhus School of Business Fuglesangs Allé 4 DK-8210 Aarhus V Tel.: +45 8948 6688 Fax: +45 8615 0188 The Central Registry (B4) handles admission, registration for exams, etc. Opening hours: Monday - Friday 10.00-12.00 am 12.30-02.00 pm Student Counselling Service, Faculty of Business Administration (B10) advises on admission, planning of study programme, applications for exemptions, etc. Opening hours: Monday - Friday 10.00-12.00 am (telephone service) 12.30-02.00 pm (personal service) Secretary to the Student Counselling Service (B5) receives exemption applications and complaints about exams directed at the Study Committees. Opening hours: Monday - Friday 10.00-12.00 am 12.30-02.00 pm Student Grants Office (B4) handles applications for the Danish State Education Grant and Loan Scheme (SU) Opening hours: Monday - Friday 10.00-12.00 am 12.30-02.00 pm 4

3. MAP OF THE AARHUS SCHOOL OF BUSINESS 5

4. ADMISSION To apply for admission to the programme you must provide documentation testifying that you have completed, or will complete, a relevant undergraduate degree in for instance economics, commerce or business administration before 1 July. An internationally accredited college or university must have conferred the degree. The application should be as precise as possible in describing your previous educational background including all academic achievements and with all statements documented at the time of the application deadline. Application deadline: 15 March for non-eu citizens 1 July for EU and Nordic citizens Application is made online at www.icn.asb.dk All questions concerning admission should be directed to the international admissions office e-mail: intcounsellor@asb.dk 6

5. STRUCTURE AND COURSES OF THE MSC PROGRAMME Structure The MSc line of specialisation consists of four blocks of courses: A block of prerequisite courses A block of compulsory courses A block of electives A master thesis The weight of each block is 30 ECTS credits. The entire MSc programme thereby comprises a total of 120 ECTS credits. The prescribed study period is two years. The studies must be concluded no later than five years after start. The Study Committee for Graduate Programmes may allow the deadline to be exceeded in very special circumstances. At the moment, Aarhus School of Business offers six Danish-language MSc lines of specialisation together with superstructures to the BSc in Business Informatics (HA(dat.)) and the Business Administration and Business Law (HA(jur.)). Moreover, ASB offers an MSc in Business Administration, Accounting and Auditing (cand.merc.(aud.)) as well as three English-language MSc programmes: Finance and International Business, EU Business and Law, and Business Performance Management. The lines of specialisation below are offered from 1 September 2006: Logistics (Danish) Finance (Danish) Accounting and Control (Danish) Strategy and Management (Danish) Marketing (Danish) International Business (Danish) Business Administration, Accounting and Auditing (Danish) Business Informatics (Danish) Business Administration and Business Law (Danish) Finance and International Business (English) EU Business and Law (English) Business Performance Management (English) Please note that an insufficient number of registrations for an MSc line of specialisation (i.e. less than ten by the deadline for registrations) may imply that the line of specialisation will not be offered. The contents of each line of specialisation can be found in the descriptions of the lines and the schematic outlines made by the various departments. 7

The formal study programme is as follows: 1st semester 2nd semester 3rd semester 4 th semester Prerequisite courses: 30 ECTS credits Compulsory courses: 30 ECTS credits Electives: 30 ECTS credits Master thesis 30 ECTS credits The prerequisite courses are taken in the 1st semester. The compulsory courses and possibly an elective are taken in the 2nd semester. The electives are taken in the 3rd semester. The master thesis is written in the 4th semester. The students are free to distribute the electives on the semesters, and the number of ECTS credits in each semester may therefore vary. Studies abroad are best placed in the 3rd semester and may be credited with up to 35 ECTS credits if the level and extent of the studies are satisfactory. Please consult the Student Counselling Service and the International Office. It is possible to obtain ECTS credits through study activities at other Danish or foreign institutions. The condition for obtaining ECTS credits is that the study activities are approved by the Study Committee for Graduate Programmes. Furthermore, ECTS credits may be obtained for project work and internships approved by the Study Committee for Graduate Programmes as part of the study programme. The following page shows a list of prerequisite courses distributed on the various lines of specialisation. 8

Prerequisite courses on the / MSc lines of specialisation / Title Adfærdsvidenskabelig kvantitativ metode Videnskabsteori og kvalitative metoder Adfærdsvidenskabelig metode for jurister Logistics Finance Auditing and Control Strategy Manage ment 9 Marke- Ting Internat. Business Business Informatics Business Law X X X X X X X X X X X X X Advanced Marketing X X Avanceret informationsmodellering X Corporate Finance I X X X Corporate Finance II X X X Computerbaseret analyse og X X Modellering International Business Methods X X International Bus. Strategies I X X X International Bus. Strategies II X X X International selskabsret X Investments and Financial Markets X Law of the Single Market X Logistik og økonomistyring: Design og planlægning X X Organisationsteori og psykologi X X Political and Economic Integration in the EU X Applied Quantitative Methods X Applied Econometric Methods I X X Applied Econometric Methods II X X Videregående formueret X Virksomhedens internationa- lisering (int.) Virksomhedsteori og industriøkonomi X X X X X X MSc- FIB MSc. BPM MSc- EUBUS

6. MSC IN FINANCE AND INTERNATIONAL BUSINESS The program is taught in English. The philosophy behind the MSc in Finance and International Business is to take into account the latest tendencies both on the global market for education and in the global business environment. Furthermore, it is our philosophy to diminish the distance between the latest research and the use of it to solve practical problems. This close connection is a natural element in our study programme, as our research results are published in internationally renowned journals and our researchers are active sparring partners of international enterprises. In the course of the last few years there has been a tendency towards increasing internationalisation or globalisation within trade and industry. Previously, trading internationally was the same as trading on the home market; salesmen were sent abroad to take care of the sales of the company s products. However, when one operates on the international market, this model is no longer particularly useful. The firms have grown bigger and even very distant markets can easily be reached. These changes have made it necessary to establish subsidiary companies to a far larger extent than before. These subsidiary companies are often far away from the parent company, situated in countries with another cultural background and with a relatively autonomous management. Furthermore, a heavy increase in the purchase and sale of enterprises has been seen over the years, also on an international level, and it is a very difficult and complex matter to evaluate and price especially international enterprises. Such conditions require managers with both an international perspective and an ability to evaluate the economic consequences of their decisions with the biggest influence on the success or failure of the enterprise. It is, however, not sufficient to have the formal and professional competence. A talent for and experience in moving in an international environment are also of utmost importance and should be included in the educational background of the individual. This is most advantageously done in an international educational environment where students come from different countries and thus different cultural backgrounds. It is, of course, equally important that members of faculty have an international background. Aarhus School of Business offers an MSc in International Business and Finance. All courses and exams are carried out in English. The programme is organised in such a way that it exposes the students to an international environment at the same time as they acquire a broad knowledge of international business and finance. 10

The MSc in Finance and International Business is a two-year programme consisting of four semesters. An academic year consists of two semesters and each semester is divided into two blocks. Each block consists of 7 weeks of teaching + 1 week of exams (8 weeks in total). In the first semester the necessary foundation will be created both methodologically and professionally in finance and international business. In the second semester focus will be on more advanced topics within the two areas. The third semester is devoted to electives. Electives can be taken either at the ASB or at one of our partner institutions abroad. The fourth semester is devoted to the MSc thesis. 11

7. THE PROGRAMME 1st Semester 1st Block Corporate Finance I This course gives the theoretical background for financial decision making in non-financial corporations. There are two main areas in the course. The first part is concerned with value creation. It is important for the progress and survival of companies that they are able to react in a rational way to the changes in the different markets. It requires the use of appropriate models for evaluating the different strategies. The evaluation of the strategies is done in a NPV context based on market values. The concept of risk is applied extensively as most investments made in non-financial companies are highly risky. Portfolio theory and asset pricing models are important areas. The second part of this first course is devoted to how corporations are financed. The capital structure issue plays an important role in finance. The course covers the problem both from a theoretical as well as a more applied viewpoint. The dividend policy is also covered. International Business Strategies I As the international trade and investment flows continue to grow, still more managers are confronted with the rigors of the international market place. Internationalising the firm poses unique strategic challenges for the manager as business activities involve manoeuvring in multiple business contexts. Thus, the manager in an international firm must learn simultaneously to adapt to changing business conditions as well as spot the opportunities for utilising the potential synergies of operating in different market environments. This course addresses a number of these issues, using a case- and research-based approach. During the course, generic aspects of international business strategy are discussed through literature overviews, and in dialogue, facilitating learning through decision making and problem solving in cases. The focus is on internationalisation, entry mode choices, international marketing and international strategic, resource-based and human resource management. Applied Econometric Methods I The purpose of the course is to introduce the students to the most widely used quantitative methods in financial analysis. Therefore, basic financial econometrics techniques used later in the master s programme are presented and applied. The students will get hands-on experience analysing financial data using the software program Eviews. 1st Semester 2nd Block Corporate Finance II Most standard techniques of investment analysis implicitly assume that the firm will hold the assets acquired initially within the chosen time horizon. These assumptions are modified by means of options theory. The opportunities of modifying projects to changing future market conditions are dealt with in a framework of real options. Financial decisions must be made with the risk implications in mind. The choice of debt structure must be based on an evaluation of interest rate 12

risk. The term structure of interest rates and the implications of issuing debt with different maturities and duration are analysed. The course also deals with financial contracts and instruments including derivatives designed to manage other types of risks including counterparty risk and foreign exchange risk. International Business Strategies II The course is highly related to International Business Strategies I. The focus is on risk management. The strategic decision making is much more complicated when it has to be based upon uncertainty. The importance of foreign direct investments (FDI) and the related strategies is analysed in this course. The overall strategic risk management concept is also included as well as E-business. International Business Methods The condition for doing international business is currently in a flux. The increasingly complex and international business environment necessitates strategic planning based on updated information. The profitability and survival of firms depend on proper handling of the environment and are based on a well-defined and carefully implemented strategy, i.e. the combination of internal and external information. This module provides a toolbox for the analysis of the firm and its environment. 2nd Semester 1st Block International Financial Accounting When working in an international environment, it is of paramount importance that you are able to compare financial reports from different accounting regimes. It can be necessary to transform reporting into a common denominator in simple situations where you consider a new business partner as well as in more complex situations of acquisitions and mergers, consolidations e.g. International Management Control Systems It is expected that the international financial controller will be involved in all stages of managerial decisions, not just in a planning and supporting role but also as an organisational designer and a system and process designer, and an important actor in the change management process in an international environment. He will not only have to measure business performance but also to analyse information and situations that will drive the business of the company. They will be expected to have knowledge of the latest management control and accounting techniques and be able to link them to the overall business understanding of the company. The controller will be expected to be an information-based strategic advisor and a team player. 2nd Semester 2nd Block Advanced Corporate Finance This course is the third in a sequence of three courses in Corporate Finance. In the first two courses the classical Corporate Finance theory, that is, Corporate Finance under symmetric information was covered. In this course the emphasis is moved to Corporate Finance under asymmetric information and agency problems. In the first part of the course the traditional agency theory and asymmetric 13

information are used to revisit capital structure, dividend and capital budgeting policies. In the second part the focus is on the role of governance systems under different ownership structures. Finally an extreme case of agency and asymmetric information problems is analysed, namely that of venture capital financing. Open Economy Macroeconomics This course covers the international economic environment of the firm where substantial uncertainties have become part of modern business. Important topics covered are changes in currency and interest rates, barriers to trade and the international business cycle where the uncertainty may be rooted in governmental policies or changes in the economic structures. With focus on the longer perspective, the course also covers the impact of the emergence of new, low wage economies and changes in the international organisational set-up such as the formation of a monetary union. 3rd Semester Electives Corporate Valuation Advanced Marketing Cross Cultural Marketing International Market Expansion (two-semester course) Global Business* Securities and Their Markets* Financial Engineering Corporate Failure and Transformation* Corporate Governance and Financial Markets* The Economics of Human Resources Emerging Economies and Economic Growth The Economic Policies of the EU Cases in Corporate Finance* Transition Economics, External Relations and EU Enlargement Culture and International Business International Business Finance (The courses marked * are all part of the ASB Summer University programme. For more information about this, please see www.asb.dk/summeruniversity). Note that there is no guarantee that all these electives will actually be offered in future semesters. 4th Semester The topic for the final thesis is chosen freely, but must be approved by an academic advisor. We strongly recommend that you stay in Aarhus while doing your thesis work. This facilitates regular contact with your academic advisor in particular and the academic environment in general. 14

ORGANISATION OF THE PROGRAMME The programme exposes the students to an international environment and is organised so that it provides a theoretical framework for advanced academic study of finance and international business to form the basis for the solving of practical problems in the international business community. An important aspect of the programme is the active participation of the students during lectures as well as case analyses and group projects. CAREER OPPORTUNITIES The MSc in Finance and International Business will qualify you for jobs in the areas of: Manager of foreign subsidiaries Expert on mergers and acquisitions Financial manager International controller Corporate restructuring expert International business strategy Business development Treasurer FURTHER INFORMATION If you want further information about the programme, please contact programme coordinator Frank Pedersen (fra@asb.dk), room C108 or programme secretary Berit Jensen (bej@asb.dk), room M329. 15

Schematic outline of MSc in Finance and International Business DEPT 1st SEMESTER ECTS DEPT 2nd SEMESTER ECTS 3rd SEMESTER 4th SEMESTER Prerequisite courses Compulsory courses 1st BLOCK 1st BLOCK BS Corporate Finance I 5 BS International Financial 5 Electives Thesis Accounting MAN International Business 5 MAN International Management 10 Strategies I Control System BS Applied Econometric 5 Methods I 2nd BLOCK 2nd BLOCK BS Corporate Finance II 5 BS Advanced Corporate Finance 10 MAN MAN/ ECON International Business Strategies II International Business Methods 5 ECON Open Economy Macroeconomics 5 5 BS: Department of Business Studies ECON: Department of Economics MAN: Department of Management 16

8. ADDITIONAL DESCRIPTIONS ELECTIVES A block of electives at a total of 30 ECTS credits forms part of the MSc programme. The students can choose the electives freely among electives offered for the MSc line of specialisation in question. Besides the above-mentioned courses, courses from other Danish and foreign institutions may be chosen as electives on the condition that the courses are approved by the Study Committee for Graduate Programmes. Please see the sections Courses at other Danish institutions, Study abroad period and Internship. For further information about the electives please consult the guide: How to design your 3rd semester at http://www.asb.dk/studinfo/study/studiemuligheder/designcv.aspx Registration for electives must take place no later than 7 December for the spring semester 1 June for the autumn semester Registrations for electives may be cancelled by handing in a Form for change of electives, which may be obtained at the Central Registry in room B4. Cancellation of electives already assessed is not possible. MASTER THESIS As a compulsory part of the MSc exam, a major written dissertation called the master thesis must be prepared. The master thesis must be prepared within the subject area of the student s chosen line of specialisation. The aim of the thesis is to give the student an opportunity within a limited subject area to demonstrate his/her independent skills within the areas of problem formulation, analysis, application of methods, critical judgement and submission of conclusions. The thesis must contain an abstract of 1-2 pages in English, which will form part of the general assessment of the thesis. The thesis is concluded with an oral exam (defence) based on the thesis. In principle, the student decides when in the course of the study programme he/she wants to hand in the thesis. 17

When the student wants to start the preparation of the thesis, he/she must contact the department responsible for the student s line of specialisation and ask for appointment/approval of a supervisor who teaches or does research within the subject area of the particular MSc line of specialisation. In case the subject for the thesis comprises more than one subject area, it is possible to have two supervisors. The supervisor must approve the subject for the thesis and act as a kind of consultant for the student during the preparation of the thesis. The supervisor is also in charge of the oral exam on the basis of the thesis. Two students may write a comprehensive thesis together. Registration for assessment of the thesis must take place at the same time as the thesis is handed in to the Central Registry. The Central Registry announces the time and place for the oral defence. The oral exam (defence) takes place at the Aarhus School of Business unless the Study Committee for Graduate Programmes has approved another venue. Two printed copies of the thesis must be handed in to the Central Registry together with a copy of the thesis as a PDF file on a floppy disk or CD-ROM. In case of more than one supervisor, three printed copies must be handed in. The Central Registry will send a copy of the thesis to the supervisor and the external examiner and the PDF file to the Library. The thesis will only be available at the Library. If the student declares that the thesis contains confidential information, however, it will not be made available to the public. Please consult the website of the ASB Library for further information about electronic filing: http://www.asb.dk/lib.aspx. Single-course students are not eligible to write a master thesis. COURSES IN BUSINESS ADMINISTRATION AT THE AARHUS SCHOOL OF BUSINESS The Study Committee for Graduate Programmes is responsible for the preparation of up-to-date descriptions of the courses which the departments intend to offer each semester. These course descriptions are published in the Course Catalogue at http://www.campusnet.asb.dk. The course descriptions contain a description of the aim of the course, the teaching form and the assessment form. In some cases, however, these descriptions will not be complete when the course descriptions are published. Information about major changes in the course descriptions will be given on CampusNet. It is the student s own responsibility to keep informed about changes in the course descriptions. 18

Normally, the departments will take the initiative to offer new courses, but students are free to suggest new courses or changes to already existing courses. Such suggestions for new courses should be sent to the relevant department or to the Study Committee for Graduate Programmes. Please note that suggestions should be forwarded in due time before a decision is made about the final number of courses offered. COURSES AT OTHER DANISH INSTITUTIONS As mentioned before, study activities at other educational institutions in Denmark as well as abroad are possible as part of the electives block in the study programme. This requires that the study activities can be approved by the Study Committee for Graduate Programmes. In some cases, however, such activities may be added to the study programme as compulsory courses. When estimating whether the study activities can be approved, it is important that the academic level of the study activities corresponds to the level of the MSc programme. For university courses, this means that only part-two courses can be approved. In special circumstances, where the study activities do not directly lie within the scope of business administration, another study activity level may be approved. For approval of such study activities, please send an application to the Study Committee for Graduate Programmes. Always enclose a detailed course description, curriculum and, if possible, a time schedule. Please note that the ordinary deadline for changes of the study programme does not apply in connection with the inclusion of study activities from other institutions. It is the student s own responsibility to ensure that the course included is assessed. After the assessment, the student must contact the Central Registry to have the course included in the study programme. Information about studies/courses at other institutions may be obtained from the Danish/foreign institution. To a certain extent, the Student Counselling Service at the Aarhus School of Business will be able to inform the student about the possibility of approval of such study activities. 19

INTERNSHIP If you are Danish-speaking, you can find available internships via www.projektzone.dk If you are an international degree student, you can find available internships through our Career Service: (http://www.asb.dk/studinfo/erhvervskontakten.aspx). Below you can find the general guidelines for doing an internship. There are two lengths of internship. They will be described in table 1. An internship consists of three elements: 1. The stay in the company 2. A short report about the internship 3. A theoretical paper Grading Stay: The satisfactory stay in the company must be approved by the company. Short report: The report must be submitted together with the theoretical paper and approved by the internal advisor. Theoretical paper: The paper is graded according to the grading rules at the Aarhus School of Business. Guidelines will be provided. Table 1: Internships 10 ECTS 15 ECTS Length of the stay Min 400 hours ~ 2 months Min 800 hours ~ 4 months Length of report of the stay Maximum 2 pages Maximum 2 pages Length of the theoretical paper Between 15 20 pages Between 20 25 pages Prerequisites The student must have attended all the exams in the prerequisite courses and the compulsory courses. This means that the internship can take its beginning no sooner than after the first two semesters of study. Preliminary approval of the internship You must have a written agreement of employment signed by you and the company/department in question. The agreement must contain a description of your tasks and the time and place of your internship, along with the number of working hours and the name of the company employee acting as your contact person. The description of your tasks must be as accurate as possible in order to decide the professional relevance and level of the internship. The internship must ideally resemble that of a real educational situation with guidance and it must take place according to a plan prepared by the student in co-operation with the company in question. The plan and the agreement of employment are subject to preliminary approval by the advisor from ASB and in this connection an additional plan describing the form and course of the 20

guidance must be prepared. The preliminary approval only concerns the intentions of the plan and the agreement and is only temporary. Signing up for the exam When the preliminary agreement has been signed by the student and the advisor, the agreement becomes part of the students MSc programme and the student is then obliged to sign up for the internship module through CampusNet/Registrar s Office Online. And remember - if you are planning to do an internship you are yourself responsible for seeking all the relevant information. Check out our Career Service for more information on internships. 21

9. EXAMINATION REGULATIONS In a normal study programme, the exams will be placed as follows: 1st semester: Prerequisite courses 30 ECTS credits 2nd semester: Compulsory courses 30 ECTS credits 3rd semester: Electives 30 ECTS credits 4th semester: Master thesis 30 ECTS credits Total 120 ECTS credits Exams take place twice a year at the end of each semester for all the courses and other study activities for which the student has registered. For some courses, the teaching is concluded in the middle of a semester (e.g. October/April). The ordinary exams in these courses are therefore also held in the middle of the semester. In these cases, the Administration aims to hold the first reexamination in the next ordinary exam period (summer or winter exam, respectively). However, for courses removed from the ordinary range of courses, assessment is only possible in the two ordinary exam periods (summer and winter, respectively) following immediately after the last ordinary exam in the course. It is the students own responsibility to keep informed about the time and place of exams and re-exams. The student s performance can only be assessed vis-à-vis the courses and other study activities for which he/she has been registered. Registration for teaching and exams in the 1st and 2nd semesters takes place automatically, whereas the student must register for teaching and exams in the electives in the 3rd semester. The student must have followed a course in full before an assessment can take place. If, for instance, a course starts in the spring semester of 2006 and runs for one semester, the student cannot register for assessment until the summer exam 2006. Registration for exams apart from the automatic registration after the 1st and 2nd semesters must be made no later than 1 March or 1 October, respectively, in the semester in which the assessment is wanted. This applies to the electives as well as to re-examination in the exams of the 1st and 2nd semesters if a re-exam is needed. The deadline for registration must be observed. Exemption for later registration cannot be expected. Although the registration for exams is binding, it is possible to cancel the registration as late as one week before the exam in question. It is a condition for participation in the written tests that the papers attached to the test have been assessed. In case of illness etc. which prevents the student from participating in or completing an exam or seminar, and provided that the student applies for it, the Study Committee for Graduate Programmes may permit cancellation of an exam. Any application claiming illness must be accompanied by a medical certificate, signed by a doctor, which covers the day or period in question and is issued by the doctor on the same day as the exam/test was supposed to have taken place. 22