Finance MSc

Cranfield University

This core module aims to develop a critical understanding of key financial decisions in corporate settings. It explores the implications of the separation between ownership, management, and control; the evaluation of capital structure and dividend policy; and the analysis of short-term asset management practices within the business environment. The module also encourages engagement with complex and sometimes contradictory academic literature in financial management and its relevance to professional practice.

Finance is a highly quantitative subject and this core programme provides the relevant mathematical and statistical training necessary to be able to conduct appropriate empirical studies and apply theoretical financial models in practice.

The aim of the Accounting and Finance module is to introduce a number of traditional and contemporary accounting approaches that will increase the visibility of financial information and support management decision making. It aims to integrate basic financial knowledge in the management of a business organisation.

The aims of this module are to equip you with the skills, techniques and knowledge to:

• Assess the role of Banking in the wider economy.
• Develop knowledge and skills of pricing financial products and services and evaluate how pricing decisions can be influenced by the changing competitive landscape.
• Examine the changing landscape of the payment ecosystem which are usually the gateway for innovations and appreciate the innovations relating and conditions for success.
• Grasp nuances of the dynamic lending environment, especially in a digital age, and evaluate how customers perception about lending is evolving.
• Examine the personal and private banking landscape in the digital age, the challenges that have been encountered, and the effects on banks and the ways customers interact with their banks.

To introduce the concepts and techniques of Microeconomics (e.g. market analysis, price theory, rationality) and Macroeconomics (e.g. inflation, exchange rates and interest rates) in a way which provides a core foundation for later applied financial analysis in a range of other core and elective courses on the MSc in Finance and Management and MSc in Investment Management.

In the Context of the Financial markets, it is imperative that you become aware of the fundamental principles and concepts pertaining to Economic Theory per se. Studying economics not only provides knowledge for making decisions but also offers a tool with which to approach questions such as the desirability of a particular financial investment opportunity, the benefits and costs of alternative careers, or the likely impacts of public policies.

A good understanding of techniques of valuation of firms as well as the different securities issued by firms is vital for managers and financial analysts. This understanding has a bearing on both financing decisions (issue of equity or debt) and investment decisions (identifying securities for inclusion in a portfolio, acquisitions, buy-backs, divestitures etc.). In addition, building sound financial models is critical for understanding and communicating valuations. This course provides the framework for valuing equity and firms as well as financial modelling to aid decision making.

The module is primarily designed to provide you with an understanding of what is required to undertake successful academic studies and to conduct research in business contexts considering that todays’ managers:

• are paid to make decisions
• are expected to make ‘informed’ decisions (i.e. based on evidence)
• are evaluated on the basis of the outcomes from their decisions

Therefore, understanding the process of producing evidence will ensure you have the core skills to inform management decisions.

This module is one of key modules for the programme as it deals with foundations of investment and portfolio theory. The module aims to develop an understanding portfolio construction, portfolio management and portfolio evaluation. The module will focus on imparting knowledge of the investment process, portfolio theory, efficient market hypotheses, asset pricing models, analysis and management of common stock portfolio, portfolio evaluation and basic understanding of equity options and futures and their application in management of portfolios. The module’s aim is to help you acquire knowledge of investment and portfolio management. The module introduces some of the principal ideas and concepts underpinning the theory and practice of investment. By the end of the module you will be able to understand the main issues involved in investment management and develop skills to construct equity portfolios and manage their risk.

Financial derivatives are now commonly used in many financial and non-financial companies and play an important role in financial risk management processes. A good understanding of the principles underlying derivative securities will enable students to appreciate the benefits and dangers associated with their use.

This module examines the pricing and usage of derivative securities (forwards, futures, options, and swaps) in financial markets. It covers the conceptual and analytical aspects of derivatives as well as the practical applications of derivative securities in the areas of investments, portfolio insurance and risk management. Thus, valuation models as well as hedging strategies will be examined.

The course begins in Part I with an overview of the international financial markets, the major financial institution participants and product types. You will understand the roles, motivations and behaviours of market players including the importance of risk-taking. The role of regulation will be highlighted and examined in Part II. This will include the aims and structures of regulation. In Part III, you will examine, using a seminal textbook on business ethics the role and limitations of ethics in financial markets, ethical decision-making frameworks, and evaluate real world cases of lapses in culture and impact upon society and the markets. The challenge of identifying and promoting ethical behaviour will be acknowledged.