MSc Accounting and Finance MSc Finance MSc Finance and Business Economics MSc Quantitative Finance

MSc Accounting and Finance MSc Finance MSc Finance and Business Economics MSc Quantitative Finance Semester 1 Title BMAN70141 Derivative Securities ...
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MSc Accounting and Finance MSc Finance MSc Finance and Business Economics MSc Quantitative Finance Semester 1 Title

BMAN70141 Derivative Securities

Credit Rating

15

Level

7

Semester

1

Course Coordinator(s)

Dr Kevin Aretz

Methods of Delivery

Lectures (10 x 2 hours)

Lecture Hours

20

Private Study Hours

130

Total Study Hours

150

Pre-requisites

--

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Group Coursework Assignment (25%) 1.5-hour examination (75%)

Aims This course introduces students to important financial derivatives, such as forwards, futures and (plain-vanilla) options. It equips students with essential techniques useful for valuing financial derivatives and hedging financial risk. The course emphasizes the general principles central to derivatives valuation, including no-arbitrage arguments and risk-neutral valuation methods, together with their implications for the pricing of financial derivatives. It also discusses some more advantage topics, such as valuing derivatives using Monte-Carlo simulations and finite difference methods or calculating a financing institution’s value at risk (VaR). All concepts are discussed from an intuitive (not a rigorous) perspective. Learning Outcomes On completion of this unit successful students have • Be familiar with the most common derivative contracts traded in financial markets; • Have some broad knowledge about how derivative contracts have developed over time, are quoted in the financial press, are traded in financial markets, etc.; • Be able to understand, from an intuitive perspective, how derivative securities are valued, using either replication approaches or risk-neutral valuation approaches; • Be able to understand how derivative securities can be used in financial markets to either increase (speculate) or decrease risk (hedging); • Be able to solve standard exercises involving the calculation of derivative values/prices or the optimal number of derivative contracts used for hedging purposes; • Be able to use Monte-Carlo simulations and the implicit and explicit finite difference method to value more complicated (exotic) derivatives; • Be able to use the simulation or the model-building approach to calculate value-



at-risk; Be able to exercise a capacity for independent and self-managed learning;

Syllabus The emphasis of the course will be on (i) how derivatives are valued, replicated, and arbitraged by investment banks and (ii) how clients are encouraged to use these markets/ products to implement risk management strategies. Reading List The recommended text for the course is: Hull J. C. (2011), Options, Futures, and Other Derivatives. 8th Edition, Prentice-Hall. ISBN 0-27-375907-8. The relevant chapters to read in this text are detailed below. The website linked to the textbook is: http://www.rotman.utoronto.ca/~hull

Title

BMAN70211 Cross Sectional Econometrics

Credit Rating

15

Level

7

Semester

1

Course Coordinator(s)

Dr Viet Dang

Methods of Delivery

Lectures & Laboratories

Lecture Hours

20

Seminar Hours

10

Private Study Hours

120

Total Study Hours

150

Pre-requisites Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Group coursework assignment – 30% 2 hour examination – 70%

Aims The module aims to: - provide students with a systematic knowledge and understanding of the econometric analysis of cross-sectional and panel data. - help students to appreciate the relevance and importance of using appropriate econometric methods in doing empirical research in accounting, finance and business economics. - provide students with training in data management and analysis, and programming using standard statistical and econometric software (i.e., Stata). - help students to develop relevant quantitative research skills and techniques required to conduct empirical research using cross-sectional and panel data in accounting, finance and business economics Learning Outcomes At the end of this course, students should be able to: • understand and use appropriate methods for estimating and testing the classical linear regression model. • understand and use appropriate methods for estimating models using instrumental variables or those with limited dependent variables. • understand and use advanced estimators for static and dynamic panel data models. • appreciate and critically evaluate methods employed by cross-sectional and panel data studies in accounting, finance and business economics. • develop programming skills required to manage and analyse cross-sectional and panel data. • develop quantitative research skills in conducting an empirical research project in accounting, finance and business economics. • develop the ability to participate constructively in group work. Syllabus

Introduction & The Bivariate Linear Regression Model Week 2 The Multiple Regression Model I – Estimation The Multiple Regression Model II – Inference Heteroscedasticity and Autocorrelation Model Selection and Specification Testing Instrumental Variables Estimation Models with Limited Dependent Variables Panel Data Models Dynamic Panel Data Models Reading List The course materials including lecture notes, handouts, readings and workshop/lab materials (e.g., exercises, data sets, and programming codes) will be available on Blackboard. There will also be a discussion forum on Blackboard where students may interact online among themselves and with the course-unit co-ordinator. Recommended core texts: 1. Verbeek, M. (2012), A Guide to Modern Econometrics, 4th Ed., Wiley. 2. Wooldridge, J.M. (2014). Introduction to Econometrics, 1st EMEA Ed, Cengage Learning. More advanced texts: 1. Baltagi, B.H., (2013). Econometric Analysis of Panel Data. 5th Ed, Wiley. 2. Wooldridge, J.M. (2010). Econometric Analysis of Cross Section and Panel Data, 2nd Ed, the MIT Press. Additional reading consisting of relevant journal articles will be provided in due course.

Title Credit Rating Level Semester Course Coordinator(s) Methods of Delivery

BMAN70241 Corporate Financial Reporting 15 7 1 Dr Javed Siddiqui 10 weekly 2- hour sessions incorporating lecture presentations, discussions and other activities. 20

Lecture Hours Seminar Hours Private Study Hours 130 (including group based activities) Total Study Hours 150 Pre-requisites -Co-requisites -Dependent Courses -Assessment Methods 2 Hour Examination (100%) and Relative Aims The aim of the course is to explain and evaluate the application of major theoretical and research approaches to the analysis of issues and problems in the area of financial reporting, auditing, and accountability. Learning Outcomes At the end of this course, students will be able to demonstrate knowledge and understanding at an advanced level of: • Economic motivations associated with accounting choices • Social and political perspectives on the reporting system • The rationale for, institutional development of and effects of accounting regulation • The role of auditing in the financial reporting process It is also expected that students will exercise and develop their skills to be able to: • Engage in independent and self-managed learning • Participate in groups and understand alternative view • Communicate effectively • Undertake a research dissertation in the area of financial reporting Syllabus This course is concerned with the relationship between theories, methods and regulation in the field of external financial reporting, which encompasses both financial accounting and auditing. Reference is made to a variety of theoretical perspectives on accounting problems, ranging from economics to critical theory. The preparation of financial statements is viewed in a broad context including their validation through audit, the supply Reading List Two books are referred to extensively: Deegan, C. and Unerman,J. Financial Accounting Theory, European Edition, 2011. Scott, W. Financial Accounting Theory, 7th Ed, 2014.

Title

BMAN70381 Asset Pricing Theory

Credit Rating

15

Level

7

Semester

1

Course Coordinator(s)

Alex Kostakis

Methods of Delivery

Lectures

Lecture Hours

20

Seminar Hours

--

Private Study Hours

130

Total Study Hours

150

Pre-requisites

--

Co-requisites

--

Assessment Methods and Relative Weightings

2 Hour Examination (90%) Exercises (10%)

Aims •

• •

To gain a good understanding of the main theories of asset pricing. In particular to follow the derivation of the Capital Asset Pricing Model and the Black-Scholes option pricing model. To appreciate the applications of these theories in Corporate Finance. To develop analytical skills for use in Finance.

Learning Outcomes On completion of this unit successful students will: • Understand the main assumptions of the Capital Asset Pricing Model and be able to derive the main steps of the model • Appreciate the most important applications of the model in Corporate Finance • Understand how the model applies in a multi-period world • Appreciate the difference between forward contracts and futures contracts • Understand the pricing of futures contracts Syllabus • • • •

Single period asset pricing Option pricing Multi-period asset pricing Forwards and futures pricing

Reading List Poon and Stapleton, Asset Pricing in Discrete Time: A Complete Market Approach, Oxford UP, 2005 Copeland, Weston and Shastri, Financial Theory and Corporate Policy, 4th International edition, Prentice Hall, 2005 (selected chapters) For a review of some basic mathematical techniques that are used in financial theory see Copeland and Weston, appendix A, D. For a review of the properties of the normal distribution see Stapleton and Poon, ch 3, appendix.

Title

BMAN71111 Essentials of Finance

Credit Rating

15

Level

7

Semester

1

Course Coordinator(s)

Dr Hening Liu

Methods of Delivery

Lectures

Lecture Hours

20

Seminar Hours

4

Private Study Hours

126

Total Study Hours

150

Pre-requisites

From the beginning of the course unit it is assumed that you have a working understanding of basic concepts in economics (e.g., demand and supply, utility functions, indifference curves), introductory financial management (e.g., present values, discount factors, returns), mathematics (natural logarithms, exponentials, differentiation, resolution of simple equations and systems of equations), and statistics (e.g., expectations, variance, correlation, random variables). These are covered in virtually every course in economics and statistics at introductory levels. The first two hours of the course will be used to review these notions, while notes will be posted. You are warmly invited to make sure you understand all of these pre-requisite concepts.

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Two Hour Closed Book, Closed Notes, Unseen Examination (100%)

Aims The aims of this course are to introduce students to the structure of the main theories that are popular in empirical and applied finance, as well as provide an understanding of how asset-pricing models are formally constructed. Learning Outcomes At the end of this course, students should have: • An understanding of the basic theoretical foundations of the mainstream assetpricing models. • A systematic knowledge and understanding of issues at the forefront of research and practice in asset-pricing theories, including associated empirical evidence. • An understanding of the limits of such knowledge and of the effects of this on analyses and interpretation. • Appreciate alternative viewpoints on asset pricing issues. Syllabus The Capital Asset Pricing Model; The Arbitrage Pricing Theory; The Efficient Markets Hypothesis; Theories of Term Structure of Interest Rates; Consumption - CAPM

Reading List • •



Lectures notes made available through the course web site. Elton, E., M., Gruber, S., Brown, and W., Goetzmann, Modern Portfolio Theory and Investment Analysis: International Student Version, John Wiley & Sons; 8th International student edition (5 Mar 2010) ISBN-10: 9780470505847; ISBN-13: 978-0470505847 Cuthbertson, K., and D., Nitzsche, Quantitative Financial Economics: Stocks, Bonds and Foreign Exchange, 2nd Edition, Wiley. ISBN: 0-470-09171-1Paperback, 736 pages, January 2005

Title

BMAN71171 Portfolio Investment

Credit Rating

15

Level

7

Semester

1

Course Coordinator(s)

Dr Chris Godfrey

Methods of Delivery

9×3-hour classes plus 3x1-hour workshops

Lecture Hours

27

Seminar Hours

3

Private Study Hours

120

Total Study Hours

150

Pre-requisites

--

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Group project - 4,000 words plus charts and appendix (40%) 2- Hour Examination (60%)

Aims This module provides an advanced coverage of the principles of investment analysis and wide ranging topics in portfolio management. It aims to bring contemporary practices in the finance industry to the classroom and supplement it with theories and recent practitioner findings in this area. Learning Outcomes On completion of this unit successful students will have achieved the following learning outcomes: 1. Understand how to formulate the investment decision and select assets matching investment objectives, and appreciate the key foundations of portfolio diversification and risk–return optimization. 2. Appreciate how factor models are used in portfolio selection and management, and security selection based on intrinsic valuation, sector analysis, and market timing. 3. Have a broad knowledge of issues related to investing globally and in emerging markets, in particular, currency risk and country risk. 4. Appreciate the key attributes of an equity portfolio: Tracking Error, Passive Strategies, Active Investing, Active vs Passive Management. 5. Hands-on experience with one of the most important examples of practitioners’ software, namely Barra-on-Campus, and use it to create, manage and evaluate equity portfolios throughout the course. 6. Appreciate the ethical framework within which investment professionals must operate and the duty of care owed to their clients Syllabus -

Portfolio Theory Models of Equilibrium in Capital Markets Barra Portfolio Risk Management System Equity valuation & Macro / Industry Analysis Strategic, Tactical and Black-Litterman Asset Allocation Tracking Error, Passive and Active Investment Strategies Portfolio Risk Decomposition and VaR Analysis Alternative Performance Measures and Investment Style Analysis Behavioural Topics in Portfolio Investment and Professional Standards

-

Searching for Diversification: alternative asset classes

Reading List Main Textbooks: Frank K. Reilly, Keith C. Brown (2012), Analysis of investments & management of portfolios, South-Western Gengage Learning, ISBN9780538482486 (pbk.); ISBN0538482486 (pbk.)- Maginn J.L, Tuttle D.L, Pinto J.E, McLeavey D.W, (2007), Managing Investment Portfolios, 3rd Edition, Wiley Publishing. ISBN: 978-0-47008014-6 Supplementary Textbooks: - Bodie Z., A. Kane , A. Marcus (2011), Investments and Portfolio Management, 9th edition, McGraw Hill, (BKM), ISBN-13: 9780071289146; - Elton, J.E., (2011) Modern Portfolio Theory and Investment Analysis, 8th Edition, Wiley, (EGBG), ISBN-13:9780470505847; - Focardi, S., and Fabozzi, F.J. (2004) The Mathematics of Financial Modelling and Investment Management, Wiley, (FF); - Grinold R and R Kahn (1999) Active Portfolio Management: A Quantitative Approach for Producing Superior Returns and Controlling Risk, McGraw-Hill; 2nd edition - Lee W (2000), Theory and Methodology of Tactical Asset Allocation, Frank J Fabozzi Associates, New Hope, Pennsylvania - Various Barra Software texts which will be posted on Blackboard - The CFA Standards of Practice Handbook http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2005.n3.4000

Title

BMAN71181 International Finance

Credit Rating

15

Level

PG

Semester

1

Course Coordinator(s)

Professor Mike Bowe

Methods of Delivery

Lectures & Case study Presentations

Lecture Hours

30 (3 hours per week, over 10 weeks)

Seminar Hours

--

Private Study Hours

120

Total Study Hours

150

Pre-requisites

Students interested in the course who are registered on other MSc programmes are advised to obtain prior approval of the Course Coordinator. Past experience suggests that students taking the module without a solid grounding in relevant economic theory must be prepared to augment their background in the relevant Economic and Finance areas.

Co-requisites

--

Assessment Methods and Relative Weightings

2 hour unseen examination (70%) Individual case study project (30%) - 1,500 words

Aims The major objective of this course is to undertake a detailed analysis of recent developments in a select number of major international financial markets, with a major focus on the operation and information transmission mechanism in the foreign exchange market and consideration of theories underlying the determination of exchange rates. To provide the requisite foundations, the course includes a critical appraisal of the major asset based/structural theories of exchange rate determination and also considers in more recent market microstructure approaches. Particular attention will be given to recent efforts to resolve several puzzles in international finance, namely: the exchange rate determination puzzle; the excess volatility puzzle and the forward premium bias puzzle. In the process we consider the factors underpinning the international transmission of financial crises. The course incorporates both theoretical and applied material. Learning Outcomes On completion of this unit successful students will have achieved the following learning outcomes: • An understanding of the structure and operation of foreign exchange markets, including the nature and pattern of trading activity and the growth of algorithmic and high frequency trading in FOREX. • An understanding of, and ability to, critically evaluate the major existing theories of exchange rate determination and the empirical evidence relating to these theories. • Be able to critically evaluate the existing thinking and evidence relating to three major puzzles in the pattern of exchange rate dynamics: the determination, excess volatility and forward premium bias puzzles. • Be able to critically evaluate the existing thinking regarding the nature and causes of currency crises, and the potential for their transmission internationally

Syllabus Applied and theoretical papers on: • Theories of exchange rate determination • Market microstructure approaches to exchange rate determination • Forecasting and exchange rates • The forward premium puzzle • Theories of currency crisis • Models of speculative activity and the role of liquidity factors in foreign exchange markets • Factors underpinning the international transmission of financial crises Reading List • • •

Some preliminary indicative reading includes: Mancini, L. Ranaldo, A., and J.Wrampelmeyer (2013), “Liquidity in the foreign exchange market: measurement, commonality and risk premiums, Journal of Finance, 68, 5, p.1805-1841. Bekaert, G and Hodrick,R, International Financial Management, Prentice Hall, 2nd edition, 2012 C.Reinhart and K.Rogoff, This Time is Different, 2009, Princeton University Press.

Title

BMAN71291 International Accounting Practice & Regulation

Credit Rating

15

Level

7

Semester

1

Course Coordinator(s)

Dr Anna Samsonova-Taddei

Methods of Delivery

Lectures & Workshops

Lecture Hours

18

Seminar Hours

4

Private Study Hours

128

Total Study Hours

150

Pre-requisites

--

Co-requisites

--

Assessment Methods and Relative Weightings

Group Presentation (30%) 2 Hour Examination (70%)

Aims The purpose of this subject is to increase your understanding of the social, political, economic and cultural factors that may lead to diversity of national accounting systems throughout the world and the problems that this diversity may cause for both companies; users of corporate annual reports and financial markets. This subject will increase your understanding of how the global international financial community has responded to this challenge through the International Accounting Standards Board and International Financial Reporting Standards. The subject will increase your understanding of the spread of international financial reporting standards in Europe; China and America in particular. The subject will also provide the opportunity to increase your understanding of some key international financial accounting and reporting topics. Learning Outcomes On completion of this unit, students are expected to be able to demonstrate: • an understanding of financial accounting and strategic issues in relation to multinational operations; • a knowledge of the comparative differences in the nature and roles of accounting in various national contexts and causes of those differences; • an understanding of the rationales for the recent major developments in an international accounting arena; • a critical understanding of the current research pertinent to the themes covered in the course. Syllabus The unit covers topics such as: • Accounting Diversity • Accounting Harmonisation and Regulation at an International Level • Accounting for International Business Activities - IFRSs • Comparative Accounting • Accounting Issues in Multinationals • Corporate Social Responsibility and Other Contemporary Developments in International Accounting

Reading List Major textbook • Doupnik, T. & Perera, H. (2015) “International Accounting”, 4th Edition, Boston, London: McGraw-Hill Additional textbooks • Alexander, D. & Nobes, C. (2007) “Financial Accounting: An International Introduction”, 3d Edition, Prentice Hall. • Nobes, C. & Parker, R 12th Edition (2011) “Comparative International Accounting”, 12th Edition, Pearson Education Limited

Title

BMAN71441 International Macroeconomics and Global Capital Markets

Credit rating

15

Level

7

Semester

1

Course coordinator(s)

Dr Sungjun Cho

Methods of delivery

Lectures and workshops

Lecture hours

10 x 2.5 hours

Seminar hours

5 hours for Student Presentations

Private study hours

120 hours

Total study hours

150 hours

Pre-requisites

It is assumed that students taking this course unit have studied Macroeconomics up to at least second year undergraduate level

Co-requisites

None

Dependant courses

None

Assessment methods and relative weightings

Group project (40%); examination (60%)

Aims This course unit aims to examine major issues concerning the nature of the international macroeconomic relations between countries. These include: evidence of globalization in capital markets from parity conditions; the national inter-temporal budget constraint and the dynamic sustainability of current account deficits; purchasing power parity and the equilibrium real exchange rate; international portfolio diversification and the home bias puzzle. Learning Outcomes On completion of this unit successful students should: • demonstrate full knowledge and understanding of core economic and financial theories in the context of international macroeconomics and related areas of finance, and critically evaluate the empirical evidences relating to these theories • have learnt how to apply the analytical skills needed in reasoning in international macroeconomics, including the interpretation and evaluation of theoretical arguments and empirical evidence; • comprehend both the power and the limitations of theoretical models in the practical analysis of international economic relations Syllabus Topics to be covered include: the parity condition. The interaction between saving and investment flows and external balance on current account of the balance of payments. The national inter-temporal budget constraint. The USA current account deficit and global imbalances. International portfolio diversification and the Home bias Puzzle. Reading List Suggested pre-course reading includes: • Bekaert, G and Hodrick, R, International Financial Management, Prentice Hall, 2008 • Obstfeld, M. and Rogoff, K. Foundations of International Macroeconomics MIT Press, 1996. • Mark, N. International Macroeconomics and Finance Blackwell, 2001.

• •

Sarno, L. and Taylor, M. The Economics of Exchange Rates, Cambridge University Press, 2002. Obstfeld, M. and Taylor, A.M. Global Capital Markets: Integration, Crisis, and Growth Cambridge University Press, 2005.

Title

BMAN71541 Stochastic Calculus for Finance

Credit Rating

15

Level

7

Semester

1

Course Coordinator(s)

Dr Kevin Aretz

Methods of Delivery

The course will be taught via ten lectures; The course instructor will offer office hours on a regular basis. There will also be a Blackboard website. Optional, 1-hour tutorials will take place in weeks 6,8 and 10.

Lecture Hours

20

Seminar Hours

--

Private Study Hours

130

Total Study Hours

150

Pre-requisites

--

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Group Coursework – 50% Unseen Examination(s) - 2 hours – 50%

Aims In this module, students learn about the basic mathematical tools necessary to understand fundamental concepts in quantitative finance. These mathematical tools include: the Markov property, Brownian motion, first passage time, the Ito-Doeblin formula, etc. Using these tools, students learn how to price plain-vanilla European call and put options. T The course also demonstrates that every asset can be valued using risk-neutral pricing techniques. The course aims to introduce the above concepts from a rigorous perspective: Mathematical proofs will almost always be presented. Despite this aim, the course instructor will also spend a great chunk of time on discussing the underlying intuition behind the mathematical tools, in many cases using examples from the realm of finance. The main objective of the course is to introduce a small number of challenging mathematical propositions in such a way that (a) students can understand them, and (b) know why they are relevant for Finance. Learning Outcomes On completion of this unit successful students will have: • Understand the basic mathematical tools necessary to derive fundamental results in Finance, such as, for example, the Black-Scholes (1973) model: o Ito’s Lemma; o Brownian motion; o Change of Measure; o Etc. • •

Independently use the above mathematical tools to value non-standard financial assets, such as exotic (say look-back) options; Simulate values from stochastic processes introduced during the course, and use these to price options via Monte-Carlo techniques.

Syllabus The course takes a general probability theory-view to introduce students to fundamental concepts in finance, such as (Black-Scholes) option pricing, risk-neutral pricing, etc. As a result, the course starts off with an overview of general probability theory. For example, the first sessions deal with infinite probability spaces, filtrations, expectations, conditioning (i.e., sigma-algebras), etc. Having discussed this material, students are ready to learn about Levy processes, in particular, Brownian motion. Topics in this part of the course include: random walks, quadratic variation, the martingale property, first passage time, etc. The course then turns to stochastic calculus, for example, the Ito integral. These sessions will also offer a rigorous proof of the Black-Scholes model. The final important topic of the course is risk-neutral pricing. The course will be delivered via ten lectures. There are three optional tutorials. In the first tutorial, we practice the Ito-Doeblin formula. In the second, we use risk-neutral valuation techniques to derive the Black-Scholes-Merton formula. In the final tutorials, we derive important properties of a multi-asset market.The final lecture will be spent revisiting the material, discussing what topics are particularly relevant for the exam. Half of the fifth lecture will be used to discuss the coursework assignment. Reading List The course will be entirely based on the following textbook: Shreve, Steven (2004): Stochastic Calculus for Finance II: Continuous-time Models. Springer Finance Series, Springer, New York (ISBN: 144192311X). Note that there is a second revised edition from 2010. The second edition covers the same material as the 2004 edition, but apparently some mistakes in the earlier version have been corrected.

Semester 2 Title

BMAN62022 Managerial Economics

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

TBC

Methods of Delivery

A mixture of lectures, seminars and reading of books & journal articles

Lecture Hours

25

Seminar Hours

--

Private Study Hours

125

Total Study Hours

150

Pre-requisites

Knowledge of intermediate microeconomics is essential. As background all students must read Chapters 1 to 7 of the course textbook. Students without economics background are strongly advised to review these chapters prior to the start of the course (and before deciding to embark on the course).

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Essay (30%) 2-hour examination (70%)

Aims To introduce students to the main ideas involved in the economic analysis of managerial decision making in business organisations. The course focuses on the roles of information, incentives and contracting to examine managerial decisions, specifically those relating to ‘organisational architecture’. Learning Outcomes On completion of this unit successful students will be able to make sense of the academic literature on the economics of organisational forms. They will learn how to evaluate the organisational form of a business in terms of the way the business allocates decision rights. They will understand how and why individuals are held accountable for their decisions (i.e. their performance is measured), and rewards and penalties are linked to performance in order to motivate individuals. Syllabus The course examines how managers and other decision makers should structure three key aspects of corporate organization The course examines how managers and other decision makers should structure three key aspects of corporate organization (i) the way decision rights are assigned to individuals and subunits (departments, divisions, subsidiaries) of the firm; (ii) the systems used to evaluate the performance of individuals and business units; (iii) and the methods to motivate and reward performance Principle Reading Brickley, J. A., Smith, C. W. Jr., Zimmerman, J. L. (2009) Managerial Economics & Organisational Architecture, 5th Edition, McGraw-Hill.

All students are expected to read Chapters 1 to 7 of this textbook as background preparation.

Title

BMAN63012 Interest Rate Derivatives

Credit Rating

15

Level

7

Semester

2

Course Instructor(s)

Professor Ser-Huang Poon

Methods of Delivery

10 × 3-hour classes

Lecture Hours

30

Seminar Hours

--

Private Study Hours

120

Total Study Hours

150

Pre-requisites

None (However, knowledge of basic derivatives is assumed, e.g. call, put, Black-Scholes, binomial trees, yield curves etc. and some stochastic calculus)

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

30% project assignment 70% end-of-term written exam.

Aims This course provides students with the foundations of interest rate concepts, yield curve and models for the purpose of pricing interest rate derivatives. It covers both single- and multi-period interest rate instruments and term structure models that are based on spot and forward rate. A number of well-known models (e.g. LMM, Vasicek, Hull-White and Black-Karasinski) will be studied. The course also covers counterparty credit risk and how such risk may impact on the pricing and risk management of interest rate derivatives. Learning Outcomes On completion of this unit successful students will have achieved the following learning outcomes: • Appreciate the differences between the various types of interest rates, and the theories driving the shapes of the term structure and interest rate models. • Have a broad knowledge of the simpler single period and more complex multiperiod interest rate contracts. • Understand the different approaches to modeling interest rates, their different assumptions and the principle of valuation by no arbitrage. • Have a detailed knowledge of the key spot rate models, the fundamentals of forward rate models and the Libor market model as the most important special case. • Gain an appreciation of the nature of credit risk and how such risk affect the price and risk management procedures of interest rate derivatives. Syllabus The unit will cover such topics as • Interest rates and bond prices, yield curve, single period interest rate instruments, forwards, futures, FRAs, convexity adjustment, multiperiod interest rate instruments, plain vanilla swap, non-standard swap, valuation. • Interest rate derivatives, parity relationship, forward vs. periodic risk neutral measures, Black model for caplet, futures option, swaption and bond option. • Interest rate models, equilibrium vs. term structure models, spot vs. forward rate

models, forward vs. futures and convexity adjustment. • Spot rate models, Hull-White single factor model, Black-Karasinki, two-factor extensions, the constraints of spot rate models, model calibration and choosing calibrating instruments. • Forward rate model; numeraire and changing measure. The Libor Market Model, the drift of forward rate. • Counterparty credit risk, ISDA agreement, credit exposure, credit limit • Expected exposure and effective expected positive exposure, credit value and debt value adjustments, wrong way risk, Basel II SACCR, Basel III CVA VaR, Dodd Frank, EMIR and mandatory clearing. Reading List The unit will use journal articles and handouts. Some texts you may need to consult (and for which direct reading will be suggested in class) are, • Poon S-H., R.C. Stapleton and M. Subrahmanyam (2016) The Pricing and Hedging of Interest Rate Derivatives: Theory and Practice. Manuscript. Manchester Business School. See http://phps.portals.mbs.ac.uk/SerHuangPoon/Teaching/InterestRateDerivatives/t abid/1239/Default.aspx • Hull (2012) Options, Futures and other Derivatives, Prentice Hall. • Gregory Jon K., 2009, “Counterparty Risk: The New Challenge for Global Financial Markets, John Wiley and Sons. Other reference text: • Brigo Damiano and Fabio Mercurio (2006) Interest rate models: Theory and practice, Springer. • Cairns, Andrew (2004) Interest rate models: an introduction, Princeton University Press..

Title

BMAN70162 Current Issues in Empirical Finance

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Professor Marie Dutordoir and Professor Norman Strong

Methods of Delivery

Lectures (10 x 3 hours)

Lecture Hours

30

Private Study Hours

120

Total Study Hours

150

Pre-requisites

None

Dependant Courses

None

Assessment Methods and Relative Weightings

Group project (30%); 1.5 hour examination (70%)

Aims The course helps students to understand the contributions, methodology, and empirical results of academic finance papers. Each lecture examines a different methodological approach in current finance research, e.g., event study analysis, qualitative research, self-selection problems, etc. The course material consists of a set of recent papers from top finance journals, covering a wide range of topics (e.g., mergers and acquisitions, securities issues, investment banking). The course also gives students the opportunity to conduct their own empirical analysis, through groupwork focusing on a corporate finance related question. As such, the course gives students valuable skills for writing their MSc dissertations. For the longer term, the course enhances students’ employability by teaching them how to interpret research findings, use important financial databases, and handle data-related problems, and by making them aware of recent advances and findings in finance research. Learning Outcomes On completing this unit successful students have • a knowledge and understanding of research techniques in finance and financial econometrics • a knowledge and understanding of selected empirical issues in finance • a critical awareness of research issues, methodologies, and methods in finance • skills in collecting and analyzing empirical data and interpreting empirical results an enhanced ability to participate constructively in groups Syllabus We cover the following eight topics 1. Event studies 2. Endogeneity and instrumental variable estimation 3. Difference-in-differences estimation and regression discontinuity design 4. Panel data methods 5. Proxy variables 6. Predictive models 7. Finance and interdisciplinary research 8. Qualitative research methods

Reading List Reading consists of carefully selected journal articles from top finance journals. The articles will be available to students via Blackboard. Two examples are, Bennedsen, M., Nielsen, K., Perez-Gonzalez, F., Wolfenzon, D., 2007. Inside the family firm: The role of families in succession decisions and performance. Quarterly Journal of Economics 122, 647–691. Malmendier, U., Tate, G., 2008. Who makes acquisitions? CEO overconfidence and the market’s reaction. Journal of Financial Economics 89, 20–43.

Title

BMAN70192 Real Options in Corporate Finance

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Professor Dean Paxson

Methods of Delivery

Each session will generally involve lectures and applications to an appropriate industry or enterprise. Students must be familiar with Excel. There will be tutorials in connection with cases/reports. Relevant practical cases will be distributed in class.

Lecture Hours

20

Seminar Hours

Group projects, Tutorials, Case Questions

Private Study Hours

130

Total Study Hours

150

Pre-requisites

In order to take this unit, you MUST have completed BMAN70141 Derivative Securities. Students who have not taken this unit must provide their Programme Administrator with evidence of having studied derivatives at undergraduate level in order to be enrolled onto Real Options in Corporate Finance

Assessment Methods and Relative Weightings

90 Minute Examination (60%) Coursework (40%)

Aims The course is for students interested in evaluating strategy and value in property, environment, power, resources, R&D, sports, new ventures, shipping, telcos, banking and consulting. These businesses will be studied in terms of the real options that practitioners have identified. The “expected outcome” is that students will understand the basics of real options, and the practical applications to business opportunities. Each session will generally involve lectures and application to an appropriate industry or enterprise. There will be tutorials in connection with your case/report. Relevant practical cases are in Real Option Value. Learning Outcomes On completion of this unit successful students will have achieved the following learning outcomes: • an advanced knowledge and understanding of theoretical real option models • a knowledge and understanding of research skills in real option applications • skills in collecting and analysing empirical data and in interpreting empirical results • (for voluntary reports) the ability to participate constructively in groups Syllabus • • • • • •

Basic Real Options, Position Strategies. American Growth Options, Subsidies Scale/Replacement Options Switching Opportunities Sequential Investment Options Debt Strategies



Option Games & Strategies

Reading List Brach, M.A., 2003. Real Options in Practice, Wiley Finance, Hoboken: ISBN 0 471 26308 7. Dixit, A. and R. Pindyck, 1994. Investments under Uncertainty, Princeton University Press Princeton: ISBN 0 691 03410 9. Howell, S., A. Stark, D. Newton, D. Paxson, M. Cavus, J. Pereira and K. Patel, 2001. Real Options: Evaluating Corporate Investment Opportunities in a Dynamic World, Financial Times Prentice Hall, London: ISBN 0 273 65302 4. Patel, K., D. Paxson and T.F. Sing, 2005. Practical Uses of Real Property Options, RICS Research Papers, London. Paxson, D., 2003. Real R&D Options, Butterworth-Heinemann, Oxford. ISBN 0750653329. Paxson, D., 2017. Real Option Value, manuscript.

Title

BMAN70232 Advanced Management Accounting

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Prof Sue Llewellyn and Dr Chunlei Yang

Methods of Delivery

Lectures

Lecture Hours

30 hours [10 X 2 seminar sessions plus 10x1 Student presentations]

Seminar Hours

--

Private Study Hours

120

Total Study Hours

150

Pre-requisites

--

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Final Closed Book Examination (80%) Class Project (1,000 words maximum) 20%

Aims The aims of the course unit are to provide students with an advanced-level analysis of the theory and practice of management accounting, focusing particularly on the change in management accounting from a mechanistic to a post-mechanistic form. Learning Outcomes On completion of this unit successful students will be able to: • Reflect on the nature of management accounting from a mechanistic to a post mechanistic form • Demonstrate an advanced knowledge of the theory and practice of mechanistic form of management accounting, including costing, budgeting and decisionmaking. • Demonstrate an advanced knowledge of the theory and practice of postmechanistic form of management accounting, including strategic management accounting, cost management and management accounting and governance in new organisations. • Use rational and interpretive/critical perspectives in understanding/explaining management accounting practices in different organisational contexts, especially through specific case studies. • Demonstrate the knowledge of specific areas of the subject, including performance measurement models, management control and ideology, and the processes of diffusion of new practices. • Work in groups to examine complex issues of designing management accounting systems. • Develop presentational skills for convincing managers about how management accounting could be better understood/used in contemporary organisations. Syllabus The course examines the approaches of, and perspectives on, management accounting with a special emphasis on its key practices. The course provides a critical review and analysis of these practices with a view to understanding how they link with contemporary changes in organisations and society, how they can be used to the strategic advantage of the firm, and their impact on individual and group behaviour.

Reading List Danture Wickramasinghe & Chandana Alawattage (2007) Management Accounting Change: Approaches and Perspectives, Routledge: London/New York.

Title

BMAN70432 Mergers and Acquisitions: Economic and Financial Aspects

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Dr Paul Simpson

Methods of Delivery

Lecture/Seminar

Lecture Hours

20 (2 hours per week over 10 weeks)

Seminar Hours

--

Private Study Hours

130

Total Study Hours

150

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Exam (2 hours) 100%

Aims The module aims to provide students with a conceptual framework that will help in the understanding of mergers and acquisitions. The perspective it adopts draws from a number of traditions but is primarily concerned with the economic and financial analysis of M&A, at both a domestic and increasingly at an international level. Using these, the course investigates how the basic principles arising from an extensive theoretical tradition can give meaning to a raft of empirical findings about the phenomenon. Although its main emphasis is on the conceptual and empirical perspectives, it seeks to provide an introduction to the practical aspects of company amalgamation. This is achieved from both a private, corporate perspective as well as from a public policy angle. Learning Outcomes On completion of this unit successful students will have an understanding of: • the various motivations for M&A • the forms they may take • the constraints on activity • the success of mergers and their determinants • policy issues surrounding M&A. Syllabus Historical Overview; Domestic vs. Cross-Border Mergers; Timing of Merger Waves; Alternative perspectives on motivation; Antitrust and Regulation; Takeover defences; The Market for Corporate Control; Issues around M&A. Reading List S. Sudarsanam (2010) Creating Value from Mergers and Acquisitions. Prentice-Hall. 2nd Ed. J. F. Weston et al (2002) Takeovers, Restructuring and Corporate Governance. Fourth Edition Prentice-Hall M.A. Hitt et al (2001) Mergers and Acquisitions. Oxford University Press S. Sudarsanam (1995) The Essence of Mergers and Acquisitions. Prentice-Hall.

Title

BMAN71122 Time Series Econometrics

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Dr Tolga Cenesizoglu

Methods of Delivery

The course unit will comprise of a series of 3-hour lectures. These lectures cover both theory and practice.

Lecture Hours

30

Seminar Hours

--

Private Study Hours

120

Total Study Hours

150

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Unseen Examination - 3 hours – 100%

Aims The aims of this course are to introduce students to important econometric techniques that are used in empirical finance and to facilitate an awareness in students of how these techniques can be used and applied. Learning Outcomes On completion of this unit successful students will have: • A systematic knowledge and understanding of issues at the forefront of research and practice in finance. • A knowledge and understanding of basic research skills in finance • A knowledge and understanding of advanced techniques and skills in finance and financial econometrics Syllabus Univariate Time Series modelling and forecasting Multivariate Time Series ModellingAnalysis Modelling Volatility and Correlation Error Correction Models and Cointegration Nonlinear Time Series Models Additional advanced methods Reading List Main text: Brooks, C. (2008) Introductory Econometrics for Finance, 2nd edition, Cambridge University Press, Cambridge. It is strongly advised that you purchase this text. In addition to this recommended text you should undertake supplementary reading of appropriate econometric texts where necessary to support your learning. In particular you may find the following texts useful: Enders, W. (2003) Applied Econometric Time Series, 2nd ed., Wiley, New York. Hamilton, J.D. (1994) Times Series Analysis, Princeton, Chichester. Tsay, Ruey. S. (2005) Analysis of Financial Time Series, Wiley, New York.

Title

BMAN71132 Financial Statement Analysis

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Professor Edward Lee & Dr Colin Zeng

Methods of Delivery

Lectures

Lecture Hours

20

Seminar Hours

--

Private Study Hours

130

Total Study Hours

150

Co-requisites

--

Assessment Methods and Relative Weightings

Group Project (25%) 2 Hour Examination (75%)

Aims The aim of the course is to understand the role which publicly available accounting information play in security analysis. The course is divided into two parts: • Part 1 (weeks 1–5) aims to increase students’ knowledge of the theory and practice of financial statement analysis and to place it in its broad business, accounting and financial context. • Part 2 (weeks 6–10) focuses on valuation and emphasises the recent developments in academia and practice. It also introduces research evidence on cross-sectional stock return regularities relating to accounting numbers. Learning Outcomes On completion of this unit, successful students should be able to: • Understand the principles and terminologies of financial reporting such as accrual accounting, recognition and matching concepts, income measurement and asset valuation principles, cash flow and ratio analysis; • Understand the properties of accounting measures of economic profitability, the impact that accounting policy choice can have on these measures, and whether cash flow-based measures of economic profitability provide credible alternatives; • Understand fundamental concepts in finance such as equity valuation, informational efficiencies and the relation between risk and return. Syllabus • •

Part 1 (weeks 1–5): Business Strategy Analysis; Accounting Analysis; Financial Analysis; Forecasting; Predictive Ability of Narratives; Part 2 (weeks 6–10): Comparables and Discounted Cash Flow Valuation; Residual Income Valuation; Abnormal Earnings Growth Valuation; Equity Return and Fundamental Risk; Accounting Information and Market Efficiency.

Reading List Suggested reading: 1. Palepu, K.G, Healy, P.M and Peek, E., 2010. Business Analysis and Valuation, IFRS Edition, 2nd Edition, South-Western. 2. Penman, S.H., 2010. Financial Statement Analysis and Security Valuation, 4th Edition, McGraw Hill. Academic papers: All papers referenced in lectures are downloadable electronically through the University of Manchester electronic library system.

Title

BMAN71152 Corporate Finance

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Dr Roberto Mura

Methods of Delivery

Lectures

Lecture Hours

10 x 3-hour sessions

Seminar Hours

--

Private Study Hours

120

Total Study Hours

150

Pre-requisites

None. Please be aware that this course unit is an advanced course in corporate finance. Familiarity with statistics and econometrics will also be useful.

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Examination (100%)

Aims The course unit focuses on the core issues of corporate finance: corporate financial policy, corporate governance, and corporate investment decisions. The aim of the first part is to provide an understanding (from both a theoretical and empirical standpoint) of the central decision problems in corporate finance: capital raising and capital structure. The course unit then moves on to consider the increasingly important area of corporate governance, ownership and control, and the relationship between corporate governance and firm performance. Finally, it examines the corporate dividend policy and the literature exploring the determinants of corporate investment decisions, providing an overview of both the theoretical background underlining investment decisions in incomplete capital markets and the empirical problems of this subject. Learning Outcomes On completion of this unit successful students should: • have an understanding of the different sources of finance available to firms • Be familiar with the process of equity issuance, valuation of an IPO firm and the anomalies related IPOs • have an understanding of a variety of theoretical models of capital structure and dividend decisions • have knowledge of the issues involved in testing capital-structure theories and the international empirical evidence on capital structure • be aware of corporate governance, corporate control and managerial incentive issues in an international context and have appropriate knowledge of the international empirical evidence • be familiar with the issues relating to financing and investment decisions and have a sound knowledge of the existing body of international empirical evidence • be able to interpret and discuss case studies in corporate finance Syllabus Sources of finance; Debt and equity, Stock market listing as a source of finance. Capital Structure, Corporate Governance, The Dividend Decision, Corporate Investment Decisions.

Reading List The core readings for this module are constituted by academic papers. A detailed list will be provided at the end of each lecture. There is one suggested book which is Berk J. and P. DeMarzo (2010), Corporate Finance (global edition), 2nd editions (the 1st edition is fine as well). Some of the suggested readings will also come from Copeland T.E., J.F. Weston and K. Shastri (2005), Financial Theory and Corporate Policy, 4th ed., Pearson Addison Wesley.

Title

BMAN71572 Credit Risk Management

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Dr Olga Kolokolova

Methods of Delivery

10 x 2-hour lectures

Lecture Hours

20

Seminar Hours

--

Private Study Hours

130

Total Study Hours

150

Pre-requisites

Students taking this module must have a solid foundation in Mathematical Statistics

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Written Examination 2 hours - 80% Project - 20%

Aims This course unit provides students with a solid background in credit risk modeling methods and the empirical framework for their application. Topics are presented in relation to the regulatory framework of Basel II and III, as well as in the light of the current financial crises 2007-11. The most recent research being conducted in the area is presented and discussed while at the same time a pragmatic approach is also provided with reference to industry approaches and financial engineering applications. This course provides a good overview of topics that students may want to pursue for their dissertation. Learning Outcomes On completion of this unit successful students will have achieved the following learning outcomes: • Understand the importance of credit risk management in the regulatory environment)and its significance in maintaining regulatory and economic capital. • Understand the principles underlying the development of internal and external credit rating and scoring systems • Understand the theory and mathematics behind standard industry practises and products in defining and measuring default probability (PD) and loss given default (LGD). • Understand how individual credit risks add up to the portfolio level and over time. • Understand how and why credit derivatives are created and how they are used in credit risk management. Syllabus • Capital Adequacy and the Basel II Regulatory Framework • Credit Rating and Scoring Methods • Structural Models for Credit Risk (with the emphasis on the Merton’s model and its industrial application within the KMV framework)

• • • •

Intensity Models for Credit Risk Modelling default dependencies The Distribution of Loan Portfolio Value (Merton / Vasicek) Industry used Credit Risk Management products o Credit Metrics (Transition Matrix, J. P. Morgan) o Credit Portfolio View (Logit, McKinsey)

Reading List Main Texts • Measuring and Managing Credit Risk by Arnaud de Servigny and Oliver Renault (S&R), McGraw-Hill, 2004. ISBN 0-07-141755-9 • Credit Risk Modeling by David Lando, Princeton, 2004, ISBN: 978-0-691-08929-4 • Risk Management and Financial Institutions by John C. Hull, third edition, 2012, ISBN 9781118269039 Supplementary Texts • Credit Risk Modeling using Excel and VBA by Loffler and Posch ISBN: 978-0-47003157-5 • An Introduction to Credit Risk Modeling by Christian Bluhm, Ludger Overbeck and Christoph Wagner, Chapman and Hall/CRC, 2003, ISBN 1-58488-326-X • Value at Risk and Bank Capital Management by Francesco Saita, Academic Press, 2007, ISBN 0-12-369466-3 • Credit Risk Measurement by Anthony Saunders and Linda Allen, Wiley, 2002, ISBN 0471-21910-X • Credit Risk: Pricing Measurement and Management by Darrell Daffie and Kenneth J. Singleton, Princeton University Press, 2003, ISBN 0-691-09046-7 • The Analytics of Risk Model Validation by George Christodoulakis and Stephen Satchell (eds.), Elsevier, 2008, ISBN 978-0-7506-8158-2 Basic Econometric Texts • Introductory Econometrics by Jeffrey M. Wooldridge, 2009, 4th edition, ISBN-13:9780-324-58548-3

Title

BMAN72702 Business Economics

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Professor Susanne Espenlaub

Methods of Delivery

The course unit will comprise of a series of 2-hour lectures. These lectures cover both theory and practice.

Lecture Hours

20

Seminar Hours

--

Private Study Hours

130

Total Study Hours

150

Pre-requisites

--

Co-requisites

--

Dependant Courses

--

Assessment Methods and Relative Weightings

Unseen Examination - 2 hours – 100%

Aims The module aims to familiarise students with important models for understanding the different strategies chosen by firms with differing degrees of market power and shows how such firms adapt to different market environments. The module blends theory with real-world applications and derives the implications of different models for firm strategy and competition policy Learning Outcomes On completion of this unit successful students will have: • Knowledge and understanding: Demonstrate an insight and understanding of supply and demand, the theory of the firm, game theory and uncertainty and asymmetric information and how these issues relate to markets that firms (and governments) find themselves operating in and strategies they might pursue. • Intellectual skills: Understand how companies from and in different countries are managing human resources in an international environment, focusing on cross-country variation in human resource management policies and practices and managing international human resource management no matter whether they are domestic or multinational. Understand what type of analysis is available and needed to identify, analyse and explain potential determinants of cross-country variation in management policies and practices. • Practical skills: To use existing analytical frameworks and theories to identify relevant solutions to strategic problems firms may face in a business context. • Transferrable skills and personal qualities: See the importance of strategic issues relating to firms operating in markets with different structures. Syllabus The material will be delivered primarily through lectures supplemented by practical lectures and case study sessions which will pick and develop particular topics and questions in more detail. The course teaches students the policies and strategies firms (and governments) might consider using depending on the degree of market power they have and the structure of the markets they operate in. The course will give students an understanding of different models of competition and how these models inform strategies firms may

adopt. It will also explore the implications for competition policy. Part 1 will provide an overview of markets and strategies while part 2 will focus on models of competition and market power. Part 3 will cover information asymmetry and how firms can use price and advertising to signal when there is asymmetry between the information firms and consumers have about different products and services. Part 4 will introduce students to networks. Reading List The lecture notes will be available on Blackboard. Detailed reading (both required and supplementary) will be provided with the slides that accompany each lecture. An example of the type of textbook that will form the basis of the material taught in the course is: Belleflamme, P. and M. Peitz, 2010, Industrial Organization: Markets and Strategies, Cambridge University Press.

Title

BMAN72912 Corporate Governance in an Accounting Context

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Dr Javed Siddiqui and Dr Sofia Yasmin

Methods of Delivery

Lectures/Seminars

Lecture Hours

20

Seminar Hours Private Study Hours

130

Total Study Hours

150

Assessment Methods and Relative Weightings

2-hour examination 100%

Aims The aim of this module is to explain and evaluate major theoretical and research approaches to the analysis of issues in corporate governance and accountability. This course will give the students an international perspective on some of the most fundamentally important issues facing global business and society today and develop an advanced theoretical and practical understanding of the fast-changing fields of governance and accountability. Learning Outcomes By the end of the course unit, successful students will be able to: set the problematisation of governance in its legal, political and institutional context; Understand the key roles of the board of directors, institutional investors, and other corporate governance mechanisms outline key global developments in corporate governance regulations understand international convergence and differences in governance and why they persist; Syllabus This course is concerned with the relationship between theories, methods and regulation in the area of corporate governance. The importance of corporate governance became more exposed at the beginning of the twenty-first century as a series of corporate meltdowns from managerial fraud, misconduct, and negligence led to significant loss of shareholder wealth. This course provides students with advanced understanding of how a company is directed and controlled and, in particular, with the role of the management and the need to ensure that there is an effective framework for accountability of directors to owners. Also, the course provides a discussion regarding recent developments in the corporate governance regulatory agenda. Reading List • • •

Solomon, J. Corporate Governance and Accountability, Wiley, 4th ed, 2013. Mallin, C. Corporate Governance, Oxford University Press, 3rd ed, 2009. Monks, R. and Minow, N. Corporate Governance, Wiley, 5th ed, 2011.

Title

BMAN73182 Accounting and Society

Credit Rating

15

Level

7

Semester

2

Course Coordinator(s)

Professor Ken McPhail

Methods of Delivery

Lecture/Seminar

Lecture Hours

20

Seminar Hours Private Study Hours

130

Total Study Hours

150

Pre-requisites

--

Assessment Methods and Relative Weightings

Group Project 40% 2- hour examination 60%

Aims The module aims: • to introduce students to accounting as a social as opposed to a necessarily organisational or market phenomenon by (i) showing how accounting practice is connected to some of our most important contemporary social and ethical challenges (ii) explaining different theoretical perspectives for understanding accounting as a social practice (iii) exploring how accounting practice is being adapted to address issues of social justice. • to cover seminal work in the interdisciplinary accounting literature that provides different frameworks for thinking about the way accounting functions in society. • to familiarize students with key notions within that literature, such as accountability. • to develop students capacity for innovation and creative thinking in relation to developing new forms of accounting activity. Learning Outcomes Knowledge and understanding: Demonstrate an insight into the academic and managerial fields of interdisciplinary and critical accounting research, including the main analytical frameworks, and key concepts. Intellectual skills: Understand how the practice of accounting is connected to some of our most contemporary social and ethical challenges. Understand a number of different ways of thinking about the role of accounting in society. Understand whether and how accounting has and can play a role in social change. Understand the structures and function of professional accounting practice Practical skills: To use existing analytical frameworks and theories to identify the role of accounting in contemporary social problems and develop practically relevant solutions to those problems. Transferrable skills and personal qualities: Bring innovation and creativity to the development of accounting practice. Syllabus This course provides students with the opportunity to explore the role of accounting in society. The course will be split into three discrete sections. Section one will explore how accounting is related to key contemporary and historical social issues. Section two will develop ways to think about accounting in society. This section will draw heavily on seminal accounting research that has developed frameworks for thinking about the function of accounting in society. The final section will explore the relationship

between accounting and contemporary societal change. The course will provide students with some of the key skills to enable them to understand important areas in the future evolution of accountings role in society. Reading List This course will draw significantly on published research with top international journals available through the libraries database of e-journals. Students will be required to read the articles and chapters, and or watch media clips before each session. Lecture notes and power point slides will be available on the Blackboard prior to each session. An example of an anchor text could be: Chapman, C. S., Cooper, D. J., & Miller, P. (Eds.). (2009). Accounting, organizations, and institutions: essays in honour of Anthony Hopwood. Oxford University Press.

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