book m1 fe

BOOK MASTER 1 FE – 2013/2014

MSc in AUDIT & MANAGEMENT



COURSE CODES CC

REM ...

N° COURSES / MODULES HOURS EDHEC INCOMING ECTS

ED-M1FE-SUMP-FIN-REM REM 3536

Pre-requisite - International Accounting (for selected students only) 15 X

ED-M1FE-SUMP-FIN-REM REM 3538

Pre-requisite - Maths / stats (for selected students only) 15 X

ED-M1FE-S1-FIN-CC CC 625 Financial Institutions and Markets 9 X X 1,5

ED-M1FE-S1-FIN-CC CC 626 Corporate Finance & Asset Markets 45 X X 6,5

ED-M1FE-S1-FIN-CC CC 2702 Valuation 18 X X 2,5

ED-M1FE-S1-FIN-CC CC 627 Financial Econometrics 18 X X 2,5

ED-M1FE-S1-FIN-CC CC 628 Financial Analysis & Reporting 36 X X 5

ED-M1FE-S1-ACC-CC CC 630 Cost Accounting & Management Control 36 X X 5

ED-M1FE-S1-STRAT-CC CC 629 Strategic Management - Part.1 18 X X 2,5 ED-M1FE-S1-ECO-CC CC 634 International Economics 18 X X 2,5 ED-M1FE-S1-BC-CC CC 1032 Foreign Language 18 X 2 ED-M1FE-S1--E E 2589 GMAT PREPARATION 6 X 0 ED-M1FE-S1-BC-CC CC 162 French course (for visiting students only) 36 X 5

ED-M1FE-S1-CCS-CC CC 87 Socio-cultural France (for visiting students only) 30 X 4

ED-MScFIN-S1-FIN-CC CC 3447 Fixed income analysis (for visiting students only) 30 X 4

SEMESTER 1

ED-M1FE-S2-IT-CC CC 633 Introduction to Excel & VBA programming 18 X X 2

ED-M1FE-S2-MKG-CC CC 2308 Developping Managerial Skills 18 X X 2,5

ED-M1FE-S2-MKG-CC CC 284 Marketing of Financial Services 18 X X 2

ED-M1FE-S2-LAW-CC CC 660 Corporate Law 18 X X 2

ED-M1FE-S2-FIN-CC CC 631 Introduction to Fixed Income 18 X X 2,5

ED-M1FE-S2-FIN-CC CC 632 Analysis of Risk & Performance 18 X X 2,5

ED-M1FE-S2-FIN-CC CC 762

International Corporate Finance & Governance 18 X X 2,5

ED-M1FE-S2-FIN-CC CC 805

Introduction to Options , Futures & Derivatives 18 X X 2,5

ED-M1FE-S2-STRAT-CC CC 304 Strategic Management - Part.2 18 X X 2,5

ED-M1FE-S2-FIN-CC CC 1033 Corporate Social Responsability 18 X X 2,5

ED-M1FE-S2-BC-CC CC 1034 Foreign Language 18 X 2

ED-M1FE-S2-BC-CC CC 302 French course (for visiting students only) 36

X 5

ED-M1FE-S2-BC-CC CC 2368 Researching France (For visiting students only / avec M1) 6 X 7

ED-M1FE-S2-FIN-E E - ELECTIVE 1 18 X X 1,5



ED-M1FE-S2-FIN-E E -

ELECTIVE 4 (For visiting students only + MSc Mgt Control) 18 X X 1,5

ED-M1FE-S2--E E 2589 GMAT PREPARATION 6 X 0

SEMESTER 2



COURSE CODES CC

REM ...

N° COURSES / MODULES HOURS EDHEC INCOMING ECTS

ED-M1FE-S2-FIN-E E 612 M&A Deals with PWC 18 X X 1,5

ED-M1FE-S2-FIN-E E 637 Micro finance 18 X X 1,5

ED-M1FE-S2-FIN-E E 638 Accounting & Taxes for Holding Companies 18 X X 1,5

ED-M1FE-S2-FIN-E E 691 Theory of Financial Crises (1) 18 X X 1,5

ED-M1FE-S2-FIN-E E 662 Interpreting Macro economic Signals (2) 18 X X 1,5

ED-M1FE-S2-FIN-E E 678 Financial Law & Economics (3) 18 X X 1,5

ED-M1FE-S2-FIN-E E 611 Information System & Governance (4) 18 X X 1,5

ED-M1FE-S2-FIN-E E 602 Insurance Industry (with Mazars) 18 X X 1,5

ED-M1FE-S2-FIN-E E 668 CFA Preparation 18 X X 1,5 ELECTIVES

FINANCIAL ECONOMICS MASTER 1 2013/2014

ED-M1FE-S1-FIN-CC: FINANCIAL INSTITUTIONS AND MARKETS (625) NUMBER OF HOURS: 9SEMESTER 1INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: Frank CANOSA

COURSE OBJECTIVESThis is an introductory course that will describe how the financial system operates. It is orientatedto providing an understanding of the principle of financial intermediation and an overview of thedifferent types of institution that participate in the industry. It will assess the diverse nature of therequirements posed by individual and institutional investors. The course will also study the rangeof financial products that are available to investors through financial intermediaries and how theyserve to channel funds to participants in the real economy.

PREREQUISITES

None

COURSE CONTENTSESSION I The Financial MarketDefinition of the financial system; the role of financial institutions as intermediaries betweeninvestors and borrowers; the concept of a financial market; the loanable funds theory and interestrates; the role of monetary authorities; the money markets and the capital markets.SESSION IIParticipants in the Financial SystemThe intermediaries: Deposit-taking institutions (DTIs): symbiosis with the real economy and thecreation of liquidity; Non-Deposit Taking Institutions (NDTIs; the different types of investor (naturalpersons, companies, pension funds, private equity/venture capital etc.); borrowers from both thepublic and private sectors; the rating agencies; types of borrowing and issuance; the role ofintermediation: direct lending, bond underwriting, Initial Public Offerings, etc.; the primary andsecondary markets; SESSION III Regulating the Financial SystemRegulation as a natural reactive process; regulation’s twin aims of ensuring systemic health andclient protection; the need for international regulatory coherence; the Bank for InternationalSettlements and the Basel Accords; the Financial Stability Board, the International Monetary Fundand the World Bank; working towards a healthier financial system.

ASSESSMENT METHODSA written examination that will consist of multiple choice questions.

RECOMMENDED READINGFerguson N., The Ascent of Money. London U.K. Penguin Books (2009);Howells P. and Bain K. , Financial Markets and Institutions 5th edition. Essex, U.K. Pearson (2007).


ED-M1FE-S1-FIN-CC: CORPORATE FINANCE & ASSET MARKETS (626) NUMBER OF HOURS: 45SEMESTER 1INTERNATIONAL PROGRAMME - 6.5 ECTSCOURSE COORDINATOR: Pierre MELLA BARRAL

COURSE OBJECTIVESThe objective of this course is to provide a solid grounding in the principles and practice of finance and develop theunderstanding of the tools necessary to make good financial decisions.

COURSE CONTENT

Section 1: Financial Markets and Management.1.Readings: Chapters 1, 2 of Brealey and Myers.

Section 2: Present Value1.Readings: Chapter 3 of Brealey and Myers.

Assignment 1 [Individual work].●

Problems with Solutions 1. ●

Section 3: Project Appraisal and Capital Budgeting1.Readings: Chapters 10, 11 of Brealey and Myers.

Assignment 2: Case Study – United Metal [Group work]. ●

Section 4: Introduction to Risk and Return1.Readings: Chapter 7 of Brealey and Myers.

Section 5: Portfolio Selection1.Readings: Chapter 8 of Brealey and Myers.

Section 6: The Capital Asset Pricing Model1.Readings: Chapter 9 of Brealey and Myers.

Assignment 3: Case Study – Boeing 777 [Group work].●


Section 7: Financing and Capital Structure1.Readings: Chapter 17 of Brealey and Myers.

Assignment 4 [Individual work]. ●

Section 8: Interest Rates and the Valuation of Bonds1.Readings: Chapters 3, 24 of Brealey and Myers.

Assignment 5: [Individual work].●


Section 9: Valuation of Companies and Stocks1.Readings: Chapter 4 of Brealey and Myers.



Section 10: Options and Real Options1.Readings: Chapter 20 of Brealey and Myers.

Assignment 7: Case Study – Penelope’s Phones [Group work].●


Problems with Solutions 5.●

TEACHING & LEARNING METHODSThis course will mix lectures and cases with 4 groups

ASSESSMENT METHODSAssignments: They consist of 5 problem sets and 3 case studies. These assignments enable youto apply the material covered in class to analyze real life situations.

For problem set assignments, you should attempt these assignments by the given deadline.Do not hand-in your work. You will then receive detailed solutions to these problems.

●

For case study assignments, you should attempt these assignments in pre- determinedgroups (see the list of study groups). Do not hand-in your work. A class discussion will thenfollow.

●

Problem Sets with Solutions: There are 5 problem sets provided with detailed solutions. Thepurpose of this optional material is only to help you consolidate your understanding and handlingof the technicalities of the course. Do not hand-in your work. Exam: There is an 1h30 long mid term exam in November, on Parts 1 and 2 of the course, whichdetermines 1/3 of the overall course grade. There is a 3h long exam in December, on parts 1, 2and 3 of the course, which determines 2/3 of the overall course grade. – Material covered: Lecturenotes and problem set assignments (not cases). – The exam is closed book. Bring an acceptedpocket calculator. – Questions are straightforward (no tricks); simple concept and numerical work.– Most questions are easy, about a quarter is a bit more challenging. – The length of the exam:short. Intention: give you plenty of time to think. The course grade will be determinated by the two exams - The mid term exam grade is on amaximum of 100 points. This is then scaled to constitute 1/3 of the course grade. The final examgrade is on a maximum of 100 points. This is then scaled to constitute 2/3 of the course grade.Course grade = (1/3 x Mid term + 2/3 x Final Exam grade)/5

RECOMMENDED READINGThe textbook for the course is Principles of Corporate Finance by Richard Brealey and Steward Myers, Mc Graw-Hill.Compulsory reading:Brealey Myers, Principles of corporate financeRecommended resources:Bodie, Kane and Marcus, Investments, McGraw HillWelch, Corporate Finance, Pearson InternationalDamodaran, Damodaran On Valuation, 2nd Edition, Wiley Publishing, 2006.http://pages.stern.nyu.edu/~adamodar/http://www.exinfm.com/free_spreadsheets.htmlThe economist, The Wall Street Journal, Les Echos, Financial Times


ED-M1FE-S1-FIN-CC: FINANCIAL ECONOMETRICS (627) NUMBER OF HOURS: 18SEMESTER 1INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Michael ARGHYROU

COURSE OBJECTIVES

Introduce students to widely used econometric tools for empirical modelling●

Accustom students with applying these tools to estimation, statistical inference, andforecasting in financial markets.

●

Develop the necessary skills to critically interpret the results of econometric analyses.●

LEARNING OUTCOMES After having taken this course participants will be able to:

Have a solid knowledge of the econometrics required to formulate and test appropriatefinancial models.

●

Have a comprehensive understanding of how information from observed financial data couldbe processed.

●

Have a comprehensive understanding of how information from observed financial data couldbe processed.

●

Appreciate the range of more advanced techniques that exist and have the foundations forfurther study of econometrics.

●

PREREQUISITESReview of probability and statistics: Random variables and probability distributions: The c2,Student’s t- and F-distributions; Moments, covariance and correlation; Types of Data: cross-section, time series, panel; Estimators and sampling variability; Properties of estimators;Hypothesis testing; Type I and Type II error; Critical region; Critical values; Size; Power.

COURSE CONTENT Lectures

Lecture 1: Simple and multiple regressions: Specification, estimation and inference (3 hours)●

Content: The Basic econometric model; Ordinary Least Squares (OLS) estimation;Properties and precision of the OLS estimators; Interval estimation: Confidence intervals for

regression parameters; Hypothesis testing; Goodness of fit; Misspecification tests; Themultiple linear regression model; Single hypothesis tests; Joint hypotheses tests; Testingthe overall significance of a model.Main reading reference: Chapters 2, 3 and 4 in Brooks, C., “Introductory Econometrics forFinance”, Cambridge University Press (second edition)

Lecture 2: Switching models: Structural instability, seasonality and non-linearity (3 hours)●

Content: Non-normality of errors; Functional form: RESET misspecification test; Testing forstructural instability: the Chow and Andrews tests; Calendar effects in financial markets;Intercept dummy variables, Interaction (Slope) dummy variables; Non-linear models.Main reading reference: Chapter 9 in Brooks, C., “Introductory Econometrics for Finance”,Cambridge University Press (second edition)

Lecture 3: Panel data models: Specification, estimation and testing (3 hours)●

Content: Panel regression, Pooled OLS, Fixed effects and Random effects models.Specification, estimation and testing.Main reading reference: Chapter 10 in Brooks, C., “Introductory Econometrics for Finance”,Cambridge University Press (second edition)

Lecture 4: Volatility models: Simple/Exponential Moving Averages, (G)ARCH and extensions(3 hours)

●

Content: Moving Average Volatility, EWMA Volatility, Autoregressive ConditionalHeteroscedasticity (ARCH); Testing for ARCH effects; ARCH models; GARCH models;Extensions of the GARCH model: the T-GARCH, E-GARCH and GARCH in mean models;Multivariate GARCH.Main reading reference: Chapter 8 in Brooks, C., “Introductory Econometrics for Finance”,Cambridge University Press (second edition) Workshops

Workshop 1 (3 hours): Exercises on material covered in lectures 1 and 2●

Workshop 2 (3 hours): Exercises on material covered in lectures 3 and 4●

TEACHING & LEARNING METHODSThe course will comprise 4 lectures of 3 hours contact time each. Students are also expected toattend six hours of scheduled workshops. The latter are intended to demonstrate the use of theeconometric techniques for the practical implementation of the theoretical material covered duringthe lectures.

ASSESSMENT METHODSThere will be one piece of group coursework, and a written examination that will be weighted as25% and 75%, respectively. The coursework is highly empirical, and the students will have toapply their theoretical and quantitative skills to investigate a given problem in finance. Thecoursework should demonstrate a sufficient understanding of the issues analyzed during thecourse.

RECOMMENDED READING

Main recommended textbook:●

Brooks, C., “Introductory Econometrics for Finance”, Cambridge University Press (secondedition) Other recommended textbooks:●

Gujarati, D., “Basic Econometrics”, McGraw-Hill.Wooldridge, J. M., “Introductory Econometrics”, Thomson


ED-M1FE-S1-FIN-CC: FINANCIAL ANALYSIS & REPORTING (628) NUMBER OF HOURS: 36SEMESTER 1INTERNATIONAL PROGRAMME - 5 ECTSCOURSE COORDINATOR: F.FARRIAUX & A.GERARD

COURSE OBJECTIVES

To know and analyse the implementation of International Accounting Standards including theBalance Sheet (Assets, Liabilities & Shareholder Equity), the Income Statement and theStatement of Cash Flows;

●

To obtain a perfect knowledge of cash flow calculation and interpretation●

To have an overview of DCF analysis●

To choose the pertinent tools (ratios) depending on business contexts●

COURSE CONTENT

Income statement analysis - exercises1.Balance sheet analysis - exercises2.Cash flow statement analysis – case on cash flow3.Difference between profitability and cash flow generation -exercises4.Case n°1 -5.Case n°2 – Iliad Free6.Case n°3 - Montupet7.Case n°4 - Safran8. IAS’: interpretation for financial analysts Framework, assets, liabilities & shareholder equity,Impairment & Goodwill, peripherical treatmentsCase Examples: Sector examples, pharma,airlines…

9.

Free Cash Flow: difference between free cash flow and net income, FCFF, FCFE,introduction to DCF Valuation (discount rate)Applications

10.

Ratios: Profitability & risk ROE,ROA,ROICCase Analysis: Adidas, Easyjet..11.Final review: some exercises to prepare final exam12.

TEACHING & LEARNING METHODSLectures & Case Study Method with interactive student/team participation, Practical Application

ASSESSMENT METHODS10% starting MCQ

30% Mid-term exam60% Final written exam

RECOMMENDED READINGPrinciples of Corporate Finance Brealey & Myers (McGraw-Hill)Case Studies as assigned and provided+ Lecture notes “LN “plus online material “OLM”Daily reading of the FT Other Reference and Source Materials The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas TALEB, New YorkTimes Best Seller, 2nd EditionVernimmen letter and Vernimmen web site : http://www.vernimmen.com/html/glossary/


ED-M1FE-S1-FIN-REM: PRE-REQUISITE - INTERNATIONAL ACCOUNTING(3536) NUMBER OF HOURS: 15SEMESTER 1INTERNATIONAL PROGRAMME - 0 ECTSCOURSE COORDINATOR: Pascale TADDEI

COURSE OBJECTIVESThe course is designed to give the students the basic knowledge in “International accounting” thatwill allow them to evolve through the following courses they will have as part of their Master’sprogram. At the end of the course, students should understand how accounting information isneeded by various users, the role of standards professional, the accounting equation and theinterrelationship of the financial statements. They should understand “the accounting cycle” andprepare “the financial statements”.

LEARNING OUTCOMESUpon successful completion of this e-learning course, students will be able to:

Define accounting vocabulary●

Identify the different types of business organizations●

Define and use the accounting equation●

Prepare the financial statements●

PREREQUISITESNo prerequisites

COURSE CONTENTThe course has weekly steps, and students are expected to make progresses as follows in thetable below. The Pre and Post tests are available under Homework and Tests è Sample Tests andQuizzes while Study Plan Exercises are available under Study Plan è View all chapters.

Week N° Course content Requirements

#29(16 to 19/July)

Chapters 1, 2 and 3 of thetextbook.

●All Pre and Post testsand al l Study Planexercises.

#30(22 to 26/July)

Chapters 4 and 5 of thetextbook.


#31(29/ July to2/August)



#32(5 to 9/August)



#33( 1 2 t o16/August)



#34( 1 2 t o16/August



TEACHING & LEARNING METHODS This e-learning course includes readings assignments, quizzes and exercises in E-learning to dobefore September 1st.. This is an e-learning course such that students will have to follow the coursethrough the AccountingLab online platform. Students can get in touch with the course coordinatorvia e-mail when particular points are not clear. The course coordinator will make sure students areevolving along the course as scheduled on a regular weekly basis.You could ask your questions by mails at any moment to [email protected]. I will answerat these dates:

July 16 - PM (to 02:00 to 05:00)●

July 19 - PMpm●

July 22nd - PM●

July 26 - PM●

August 26 - PM●

August 29 - PM●

September 2 - PM●

How to Register and Enroll in your Myaccountinglab.com courseIn order to join this course, you will need to:

Register for MyAccountingLab1.Enroll in the course2.

To register, you will need a student access code and a course ID, which is: XL18-P14O-001Z-3VM2 for this course.1) Registering for MyAccountingLab

Go to the MyAccountingLab home page at www.myaccountinglab.com and click the Studentbutton, in the Register section.

1.

Enter your Course ID which is: XL18-P14O-001Z-3VM2 and click Next.2.Choose to register an access code.3.Click the button to proceed to registration.4.Follow the instructions to create your account.5.Click the link to login. You’ll be directed to http://www.myaccountinglab.com, where you canenter the user name and password you just created. Click the login button. The first time youenter the site you’ll be asked to enter your Course ID.

6.

mailto:[email protected]

Be sure to click on the Browser Check link in the upper right of the screen the first time you loginand anytime you use a new computer. You will be alerted to any new software required for yourcourse, such as Flash. You will need administrative rights to install any new software on yourcomputer.

2) Enrolling in the course

After registering, login to MyAccountingLab at www.myaccountinglab.com with your username andpassword. To enroll in the appropriate course, use the Course ID for this course: XL18-P14O-001Z-3VM2

ASSESSMENT METHODSThere will be a single on-campus exam on the 7th of September. You will not be officially gradedby the exercises you do online (on the AccountingLab platform) but they will allow the coursecoordinator to check your progress and let you know how you are progressing through the coursecontents (making sure you are well prepared for the exam).

RECOMMENDED READING TEXTBOOK: Accounting, Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliver,Pearson Education International Edition, 9th edition. This book is provided online through the e-learning platform.2013


ED-M1FE-S1-FIN-REM: PRE-REQUISITE - MATH/STATS (3538) NUMBER OF HOURS: 15SEMESTER 1INTERNATIONAL PROGRAMME - 0 ECTSCOURSE COORDINATOR: Carlos CAMPANI

COURSE OBJECTIVESThe course is designed to give the students the basic knowledge in statistics (and in math) that willallow them to evolve through the following courses they will have as part of their Master’sprogram. The course was built to meet the need for an introductory e-learning course providingstrong mathematical skills to realistic problems faced by Finance practitioners.

LEARNING OUTCOMESAfter having taken this e-learning course participants are expected to understand the conceptsunderlying the following mathematical topics and statistical tools:

Discrete and continuous probability distributions;●

Distributions of sample statistics and confidence intervals construction;●

Hypothesis tests; and●

Linear regression analysis.●

PREREQUISITESBasic mathematics.

COURSE CONTENTThe course has weekly steps, and students are expected to make progresses as follows in thetable below. The Pre and Post tests are available under Homework and Tests è Sample Tests andQuizzes while Study Plan Exercises are available under Study Plan è View all chapters. Week Number Course content Requirements#1( 2 9 / J u l y t o4/August)


● All Pre and Post tests andall Study Plan exercises.

#2(5 to 11/August)



#3(12 to 18/August)



#4(19 to 25/August)



#5 Chapters 11 and 12 of the● All Pre and Post tests and

( 2 6 / A u g u s t t o1st/September) textbook. all Study Plan exercises.

TEACHING & LEARNING METHODS This is an e-learning course such that students will have to follow the course through the MathLab online platform. Students can getin touch with the course coordinator via e-mail when particular points are not clear. The course coordinator will make sure studentsare evolving along the course as scheduled on a regular weekly basis.

How to Register for mathlab and enrol in the courseIn order to join this course, you will need to:

Register for MyMathLab Global1.Enrol in the course2.

To register, you will need a student access code and a course ID, which is XL00-B1OZ-4020-24L4for this course.1) Registering for MyMathLab Global

Go to the MyMathLab Global home page at http://www.mymathlab.com/global and click theStudent button, in the Register section.

1.

Enter your Course ID XL00-B1OZ-4020-24L4 and click Next.2.Choose to register an access code.3.Click the button to proceed to registration.4.Follow the instructions to create your account.5.Click the link to login. You’ll be directed to http://www.mymathlab.com/global, where you canenter the user name and password you just created. Click the login button. The first time youenter the site you’ll be asked to enter your Course ID.

6.

Be sure to click on the Browser Check link in the upper right of the screen the first time you loginand anytime you use a new computer. You will be alerted to any new software required for yourcourse, such as Flash. You will need administrative rights to install any new software on yourcomputer.

2) Enrolling in the course

After registering, log in to MyMathLab Global with your username and password. To enrol in theappropriate course, use the Course ID for this course: XL00-B1OZ-4020-24L4.This is an e-learning course such that students will have to follow the course through the MathLab onlineplatform. Students can get in touch with the course coordinator via e-mail when particular pointsare not clear. The course coordinator will make sure students are evolving along the course asscheduled on a regular weekly basis.

ASSESSMENT METHODSThere will be a single on-campus exam on the 3rd of September. You will not be officially graded bythe exercises you do online (on the MathLab platform) but they will allow the course coordinator tocheck your progress and let you know how you are progressing through the course contents(making sure you are well prepared for the exam).

http://www.mymathlab.com/global

http://www.mymathlab.com/global

RECOMMENDED READING TEXTBOOK: Statistics for Business and Economics by Paul Newbold, William L. Carlson andBetty M. Thorne, 8th edition. This book is provided online through the e-learning platform.Introductory Mathematical Analysis for Business, Economics, and the Life and SocialSciences: International Edition by Ernest F. Haeussler, Richard S. Paul and Richard J. Wood,13th edition. This book provides the introductory foundations of mathematical analysis that studentsneed in Finance. The contents of this book are not covered by this e-learning course, but studentsshould make sure that they are familiar with the topics discussed in this book.


ED-M1FE-S1-FIN-CC: VALUATION (2702) NUMBER OF HOURS: 18SEMESTER 1INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Michael PAYTE

COURSE OBJECTIVES

To understand the range of valuation models and techniques that are available;●

To understand both the commonality and the differences in the elements and approaches ofthese models and techniques;

●

Application of these models and techniques to contemporary market examples;●

LEARNING OUTCOMESAfter having taken this course participants will be able to:• Prepare Discounted Cash Flow (DCF) Analysis• Prepare Comparable, Fundamental and Relative Value Analysis• Analyse and compare the outcomes of the above analytical approaches

PREREQUISITESExpected Background Knowledge:

Comprehensive knowledge of Financial Accounting with an understanding of financialstatements including the Balance Sheet (Assets, Liabilities & Shareholder Equity), the IncomeStatement and the Statement of Cash Flows;

●

Understanding of accruals, non-cash deductions such as depreciation and the materialdifference between Net Income and Cash Flow;

●

Discounted Cash Flows●

Financial Ratio Analysis●

COURSE CONTENT1) Introduction of Valuation Analysis, Discounting Techniques:Discounted Cash Flows: Present Value of Dividends, Operating Free Cash Flow, Free Cash Flowto EquityCase Analysis: Apple: From the world’s most valuable company to Apple’s Luster Dims (analysisto continue throughout course) - Reference & Source Materials: Brealey & Myers Chapters 2 & 3Present ValueFinancial Accounting Ratio Analysis 2) Valuation Analysis: Comparable, Fundamental & Relative Value AnalysisHBS Case: Corporate Valuation and Market Multiples by Timothy A. Luehrman - Reference & SourceMaterials:Brealey & Myers Chapters 4 & 6 Valuing Common Stocks & Investment Decisions 3) NOPAT: Net Operating Profit after Taxes

ROIC-Return on Invested CapitalCase Analysis: Consumer Goods Companies - Reference & Source Materials: Brealey & Myers Part IV:Financing Decisions and Market Efficiency 4) Ratios: P/E, P/Cash Flow, P/Sales, ROA, ROECase Study: Stanford Business School Valuation Techniques for Entrepreneurial Companies -Reference & Source Materials:Brealey & Myers Part V: Dividends 5) Investor Require & Expected Returns, Estimating Growth and Discount RatesHBS Case: AN INTRODUCTION TO CASH FLOW VALUATION METHODS, Ruback - Reference &Source Materials: Brealey & Myers Part V: Capital Structure 6) Analysis and comparison of Valuation TechniquesCase Analysis: High Tech & Growth Companies, recent IPOs - Reference & Source Materials: Brealey& Myers Chapter 19 & 27 Valuation and Managing Risk To be announced Final Exam

TEACHING & LEARNING METHODSLectures & Case Study Method with interactive student/team participation, Practical Application

ASSESSMENT METHODS100% Final written exam

RECOMMENDED READINGPrinciples of Corporate Finance, Brealey & Myers (McGraw-Hill)Case Studies as assigned and provided+ Lecture notes “LN “plus online material “OLM”Daily reading of the FTOther Reference and Source Materials:Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, AswathDamodaran (Wiley Finance)Investments, Bodie, Kane, Marcus (McGraw-Hill)CFA Investment Series: Equity Asset Valuation, Stowe, Robinson, Pinto,McLeavey (CFA Institute)Security Analysis, Graham & Dodd


ED-M1FE-S1-STRAT-CC: STRATEGIC MANAGEMENT - PART.1 (629) NUMBER OF HOURS: 18SEMESTER 1INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Charles LUMBERS

COURSE OBJECTIVESPart 1 of the Strategic Management course introduces fundamental concepts and models ofbusiness analysis. Both the internal and external contexts of firm dynamics are examined. Withrespect to the internal context, the basic notions associated with the creation of value for one’scustomers and the technical and organisation constraints on business activities will be presented.The external world of the business will be examined from the point of view of both macroscopicfactors and the industry-specific constraints of a given firm’s activities and options. These twocontexts meet directly at the business (as opposed to the corporate) level and this course willconclude with an examination of the issues of industry evolution and strategy change at that level.

LEARNING OUTCOMESAfter having taken this course participants will be able to:

Define clearly the basic terms and concepts of modern business strategy●

Apply those concepts to the analysis of business cases●

Begin to acquire a business-strategy mindset●

PREREQUISITES None.

COURSE CONTENTSession 1 - Lecture 1: Introduction and Basic Notions: economic value; productivity; break-evenanalysis; efficiency “versus” effectiveness ; basic notions of strategy and strategic management,structure of the course; strategy as a subject of study, and as a job.Seeking and measuring value. Readings: Robert M. GRANT, .Contemporary Strategic Analysis(8th Edition) Chichester, UK: John Wiley & Sons, 2013. [Hereafter Grant (2013)], Chapters 1 and2.

Session 2- Lecture 2: Environmental forces and the competitive dynamic. Readings: Grant(2013), Chapters 3 and 4.Session 3-Tutorial 1: Case Study: text and assignment to be announced laterSession of concept confirmation and catch-up as necessary.Session 4-Lecture 3:Resources and capabilities; organisation as structure and as implementationdynamic. Readings: Grant (2013), Chapters 5 and 6.

Session 5-Lecture 4: Sources and dimensions of competitive advantage; industry evolution andstrategic change. Readings: Grant (2013), Chapters 7 and 8.Session 6-Tutorial 2: Case Study: text and assignment to be announced later.

Session of concept confirmation and catch-up as necessary.

TEACHING & LEARNING METHODSLectures, group discussions, case studies (attendance at tutorials is compulsory and will bechecked).

ASSESSMENT METHODS30% Case studies (bonus or “malus” possible depending on class performance, especially duringtutorials)70% Final Examination

RECOMMENDED READINGFor both Parts I &II of Strategic Management: Robert M. GRANT, .Contemporary StrategicAnalysis (8th Edition) Chichester, UK: John Wiley &Sons, 2013.


ED-M1FE-S1-ACC-CC: COST ACCOUNTING & MANAGEMENT CONTROL (630) NUMBER OF HOURS: 36SEMESTER 1INTERNATIONAL PROGRAMME - 5 ECTSCOURSE COORDINATOR: Arnt VERRIEST

COURSE OBJECTIVESThis course examines the principles and techniques of accounting for the planning and control ofbusiness organizations. Students will gain fundamental insights in the importance of cost andmanagement accounting information for both controlling purposes and for decision-making withinbusiness environments. During the lectures, we discuss relevant theory and practical illustrations.Tutorials (organized bi-weekly) will deal with exercises and in-depth case studies.


Provide a framework for the available techniques used to get an organization under control●

Compute costs and make decisions based on cost information●

Understand the methods used for costing products and services, e.g. job costing, processcosting, and standard costing

●

Understand the costing of jointly produced products●

Understand the importance and limitations of activity based costing●

Prepare budgets and analyse budgetary variances●

Gain insight into how cost information affects strategic decision-making●

Prepare a balanced scorecard and monitor non-financial performance●

The role and importance of transfer pricing●

Design appropriate control and performance measurement systems●

COURSE CONTENTStructure of the Course and Course SetupThere will be 8 plenary lectures (3h per lecture). In addition, students have 4 tutorial sessions(=instruction lectures) in smaller-size groups (3h per tutorial). (1) The lectures aim at improving the student’s knowledge and insight in management and costaccounting. The lecturers will provide course material presentations as well as discussions ofpractical examples. The handbook by Bhimani et al. (BHDR, see above for details) serves as aguidebook for these lectures. We heavily recommend students to purchase this book. Without it,students will not be able to prepare properly for the exams. (2) During the tutorials, the exercises mentioned in the last part of the syllabus will be treated.

There will be a strong emphasis on assignments in bold. These exercises should provide a goodand representative preparation for the written exam. This helps students to understand theexercises thoroughly, to be better able to follow the tutorials and to be well prepared for the writtenexam. (3) Tutorial preparations made by student groups count for 15% of the grade. Students shouldorganize themselves in groups of 4 to 6 people. Before the start of tutorials 2, 3 and 4, everygroup needs to hand in exercise preparations. The three preparations count for 15% of the grade.Failing to hand in these preparations will result in a grade of zero for this part of the course. (4) Around mid-October (in tutorial 3), a group assignment - case study will be madeavailable via Blackboard. This case assignment is part of the exam material and contributes for15% of a student’s total grade. Students should register in groups of minimum 4 to maximum 6people. This email should have the title ‘case registration’ and should ONLY contain the tablebelow completed with the names of all group members. (Complete the table in this file and copy-paste it in your email.) (5) Course ScheduleFor exact lectures and tutorials time and locations: see course slides and Blackboard! Lecture 1: Sep-16Lecture 2: Sep-17Tutorial 1: Sep-23 and Sep-24Lecture 3: Sep-25Lecture 4: Sep-30Tutorial 2: Oct-1 and Oct-2Lecture 5: Oct-14Lecture 6: Oct-15Tutorial 3: Oct-16 ; Oct-17 and Oct-18Lecture 7: Oct-21Lecture 8: Oct-22Tutorial 4: Nov-4 and Nov-5

TEACHING & LEARNING METHODSCourse Materials1. Handbook: A. Bhimani, C. Horngren, S. Datar, G. Rajan (BHDR), Management and CostAccounting, 5th edition, 2012, Pearson (ISBN: 978-0-273-75745-0) – MANDATORY!2. Slides3. Exercises and case studies in addition to the ones posted in the book (available via Blackboard)4. Class notes made by students themselves Course Blackboard site

ASSESSMENT METHODS

Tutorial preparations: 15%1.Assignment: 15%2.Final Exam: 70%3.

ExamsThe final exam is a closed book exam with multiple choice questions, exercise questions and openquestions (essay questions).


ED-M1FE-S1-ECO-CC: INTERNATIONAL ECONOMICS (634) NUMBER OF HOURS: 18SEMESTER 1INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Giuseppe BERTOLA

COURSE OBJECTIVESAiming to provide a basic but solid conceptual framework for understanding the mechanisms atwork in international macroeconomics and finance, the course reviews key definitions andeconomic mechanisms relevant to balance of payments dynamics, foreign exchange rates, andthe role of shocks and of monetary and fiscal policies in shaping the dynamics of market prices,asset values, and activity levels in open economies. Specific real-life examples are used toillustrate general principles and theoretical mechanisms, with particular attention to globalimbalances, to the sources and remedies of economic and financial crises and fluctuations, and tothe European economic and monetary integration experience.

LEARNING OUTCOMESAfter taking this course, students will:

know where to find and how to read key exchange rate, output, inflation, and balance ofpayments information for various countries;

●

understand what motivates different countries’ choices of exchange rate and macroeconomicpolicy regimes;

●

Interpret, in terms of the underlying behavioural relationships, market reactions to shocks andto policy moves.

●

PREREQUISITESStudents should be familiar with arbitrage-free pricing relationships; with the economic concepts ofdemand, supply, and equilibrium; with economic models of consumption, investment, andaggregate demand in closed economies.

COURSE CONTENT1) Issues and methods

National Income Accounting●

Current account, savings and investment●

Balance of Payments accounting●

2) Exchange rates and interest ratesQuotes, appreciation, depreciation●

The foreign exchange market: contracts and volumes, vehicle currencies●

Arbitrage-free rates, covered and uncovered interest parities●

News and exchange rate reactions; carry trade; devaluations●

3) Money, prices, exchange rates…

Money market equilibrium●

Short run: Exchange rate overshooting, monetary policy●

Long run: Purchasing power parity; inflation, depreciation, and interest rates●

4)…and output growth and fluctuationsReal and nominal appreciation/depreciation●

Nominal exchange rates in the long run●

Exchange rates, incomes, and aggregate demand●

5) Macroeconomic fluctuations and policiesAggregate demand and short-run equilibrium●

Fiscal and monetary policies; flexible exchange rates; credibility●

Managed exchange rates; imbalances and crises●

6) Presentation and discussion of group case studies.

TEACHING & LEARNING METHODSEach lecture is organized around a few key issues and questions. Theoretical definitions andmechanisms are illustrated with examples that students are encouraged to discuss interactivelywith the instructor. Before and after the lectures, the students should develop and test theirunderstanding working on the additional material available on the course’s Blackboard pages.

ASSESSMENT METHODSGroup home preparation of 5 s l ides (sent at least 24 hours in advance [email protected] ) and class exposition (10 minutes during the last meeting) of anassigned topic, relevant to the material discussed in class: 20%Each student will be randomly assigned to a small group and a topic (an issue to be analyzed for aspecific country). This portion of the assessment is the same for all members of the group, whoshould prepare the slides together but do not all need to talk during the presentation. Evaluationrewards study (the ability to apply material learned in class to a specific case) and professionalbehaviour (respect of the time and length limits)

Interaction, including questions made and answered in class, participation in the Blackboarddiscussion forums, and comments on other teams’ reports: 10%

Final exam (90’, without any document) with exercises and questions based on the materialpresented during the lectures: 70%

RECOMMENDED READING

Presentation slides will be handed out. Cases and exercises will be available on Blackboard.●

The material is covered by standard textbooks, such as various editions of Krugman andObstfeld (and Melitz from 9th edition), International Economics: Theory and Policy, Pearson;only “Part 3: Exchange rates and Open Economy Macroeconomics.”

●


ED-M1FE-S1-CCS-CC: SOCIAL-CULTURAL FRANCE (FOR VISITING STUDENTSONLY) (87) NUMBER OF HOURS: 30SEMESTER 1INTERNATIONAL PROGRAMME - 4 ECTSCOURSE COORDINATOR: Anne WITTE

COURSE OBJECTIVES

To introduce international students to the socio-cultural complexity of the environments inwhich French business takes place

●

To gain historical perspective on French industrial, retail, service and high tech businesses●

To discover links between educational and political ideals and the orientation of Frenchconsumer and strategic behaviours

●


Recognize and speak knowledgeably about contemporary France - its famous politicians, itssocial structure and its business dynamics

●

Speak, write and conduct research on the corporate sector in France●

Name, describe and analyze the top companies and firms of French contemporary business●

Understand the historical events that explain contemporary French business law, nichemarkets, and sectors of excellence including luxury, military equipment, retail and food

●

COURSE CONTENTPart I: A general introduction to France – stereotypes, language, values and contemporary socialtrendsPart 2: An overview of recent French history and geopolitical affairsPart 3: French intellectual movements with special emphasis on sociology and post-modernistsocial philosophy (Excerpts from art, literature, philosophy and music –esthetic trends and values– based on Bourdieu, de Beauvoir, Foucault)Part 4: French organizational, legal and management styles

TEACHING & LEARNING METHODSLectures, student study cohorts, Socratic dialogue, reading.

ASSESSMENT METHODSProject 30%

Participation 20%Final Exam 50%

RECOMMENDED READINGBOURDIEU, P. (1986b) Distinction. Cambridge: Polity Press.

FOUCAULT, M. (1970) The Order of Things, London: Tavistock

FUKUYAMA, F. (1995) Trust: the Social Virtues and the Creation of Prosperity, New York, FreePress. See particularly chapter 11 on French companies, trust in the private sector and the historybehind large state owned corporatios in France.

Hancke, B. (2001) “Revisiting the French Model: Coordination and Restructuring in FrenchIndustry,” in P.A. Hall and D. Soskice (eds.) Varieties of Capitalism, Oxford, Oxford UniversityPress.

LANDES, David « French Entrepreneurship and Industrial Growth in The Nineteeth Century »Journal of Economic History 9 (1949): 45-61.

MERMET, Gérard, (2009) Francoscopie, Paris: Larousse.


ED-M1FE-FIN: GMAT PREPARATION (2589) NUMBER OF HOURS: 12COURSE COORDINATOR: Vadim YEFREMOV

COURSE OBJECTIVES

To familiarize the students with the different sections of the GMAT examination (IntegratedReasoning and the Analytical Writing Assessment, Quantitative section: problem solving anddata sufficiency and Verbal Section: reading comprehension; sentence correction; criticalreasoning).

●

To practice key test taking strategies to ensure the requisite GMAT score attainment●

To work through typical GMAT questions in the various sections●

LEARNING OUTCOMES

To be familiar with all sections of the GMAT and be able to answer typical GMAT questions ineach section

●

To have acquired key test taking strategies●

To understand math and English language terminology of the GMAT●

To have taken a full practice Kaplan test online in preparation for the GMAT examination●

PREREQUISITES Bachelor’s degree

COURSE CONTENTSemester 1 – 6 hours of test practice focusing mainly on the Quantitative Section (DataSufficiency and Problem Solving). The Quantitative section will be tested in a 1-hour examinationat the end of the semester.Semester 2 – 6 hours of test practice focusing on the Verbal Section (Reading Comprehension;Critical Reasoning and Sentence Correction) as well as the Analytical Writing Assessment and theIntegrated Reasoning sections. All sections of the GMAT will be tested in a Kaplan PreparationTest at the end of semester 2.

TEACHING & LEARNING METHODS Lectures, workshops, exercises,Online support via Blackboard course – GMAT PreparationAll students are required to buy the following book: Kaplan GMAT Premier 2014 with 6Practice Tests: book + online + DVD + mobile [June 2013 edition] (available from onlineretailers and in all good bookstores)

ASSESSMENT METHODS Assessment(s) during the course:

Participation in course obligatory and 1-hour written exam in December 2013 – 50%●

Final exam: 50%●

RECOMMENDED READINGKaplan GMAT Premier 2014 with 6 Practice Tests: book + online + DVD + mobile (June 2013edition)GMAT Website: http://www.gmac.com/http://www.mba.com/IR section explained: http://www.veritasprep.com/gmat/integrated-reasoning/

http://www.mba.com/

http://www.veritasprep.com/gmat/integrated-reasoning/


ED-MScFIN-S1-FIN-CC: FIXED INCOME ANALYSIS (3447) NUMBER OF HOURS: 30SEMESTER 1INTERNATIONAL PROGRAMME - 4 ECTSCOURSE COORDINATOR: Joelle MIFFRE

COURSE OBJECTIVESOnly for visiting Students - See MSc in Finance Book.

COURSE CONTENT


ED-M1FE-S2-FIN-CC: INTRODUCTION TO FIXED INCOME (631) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Joelle MIFFRE

COURSE OBJECTIVESThis course gives students the skills necessary to understand the pricing and management offixed income securities. It is about interest rates, risk measurement and risk management in fixedincome markets. The course develops insights into different bond portfolio strategies and providescoverage on the techniques for valuing and hedging bonds.

PREREQUISITESCourse “Principles of corporate & market finance” & Basics of financial calculus (and discounting).

COURSE CONTENT6 lessons x 3 hours each.

Lecture 1: Bond Markets and Instruments• Overview of Bond Markets• Issuers of Bonds• Money Markets

Lecture 2: Bond Prices and Yields• Bond Pricing• Bond Rates

Lecture 3: Term Structure of Interest Rates• Empirical Properties of the Term Structure (TS)• Deriving the Zero-Coupon Yield Curve: Bootstrap Method• Theories of the Term Structure

Lecture 4: Hedging Interest Rate Risk via Duration• Pricing and Hedging Principles• $Duration, Modified Duration and Macaulay Duration• Hedging with Duration

Lecture 5: Hedging Interest Rate Risk with Duration and Convexity• $Convexity and Relative Convexity• Duration-Convexity Hedging• Exercise on Pricing Fixed Income Securities and on Measuring and Hedging Interest Rate Risk• Spreadsheet Exercise using Real-Life Data

Lecture 6: Active Bond Portfolio Strategies• Market Timing: Trading on Interest Rate Predictions

– Riding the Yield Curve– Timing Bets Based on Interest-Rates Level– Bets on Specific Moves of the Yield Curve: Barbell, Bullet, Butterfly• Bond Picking: Arbitrage Opportunity• Exercises

TEACHING & LEARNING METHODSThis course will mix lectures and exercises

ASSESSMENT METHODS100% Final exam

RECOMMENDED READINGFixed-Income Securities: Valuation, Risk Management and Portfolio StrategiesAuthors: Lionel Martellini, Philippe Priaulet, Stéphane Priaulet; Publisher: John Wiley


ED-M1FE-S2-FIN-CC: ANALYSIS OF RISK & PERFORMANCE (632) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Gideon OZIK

COURSE OBJECTIVES This course aims to develop the basic principles of asset pricing and introduces to thefundamentals of risk and performance measurement in an asset management context.

PREREQUISITES Course “Principles of corporate & market finance” & Basics of financial calculus (and discounting).

COURSE CONTENT

Course contentLesson 1, 2 & 3Asset Pricing Model I: The Capital Asset Pricing Model (4.5 hours)

Derivation●

Empirical tests●

General predictions of the model●

Two-step methodology●

Early tests: Fama and McBeth (1973)●

Roll’s critic (1977): The CAPM is untestable●

Anomaly literature: Is beta dead? Fama and French (1992)●

Asset Pricing Model II: The Arbitrage Pricing Theory (4.5 hours)Derivation●

Empirical tests●

Factor analysis●

Macroeconomic and financial variables: Chen, Roll and Ross (1986)●

The 3-factor model: Fama and French (1993)●

The 4-factor model: Carhart (1997)●

Barra model●

The APT versus the CAPM●

Lesson 4The Efficient Market Hypothesis (3 hours)

Weak form: Serial correlation tests, Momentum and Contrarian strategies●

Semi-Strong form: Value and size anomalies●

Strong form: Insider trading, Passive versus active portfolio management●

Lesson 5 & 6Portfolio Performance Evaluation (6 hours)

Arithmetic, geometric and time-weighted mean returns●

Basic risk-adjusted measures●

Treynor ratio, Sharpe ratio, M² measure, Sortino ratio, Information ratio●

Jensen (1968) 's alpha●

Advanced risk-adjusted measures●

Sensitivity of alpha to the choice of the benchmark: Grinblatt and Titman(1994)

●

Market timing: Treynor and Mazuy (1966), Henriksson and Merton (1981)●

Conditional performance evaluation: Ferson and Warther (1996)●

Performance attribution: Sharpe (1992)●

Persistence in performance●

TEACHING & LEARNING METHODS This course will mix lectures (9 hours) and tutorials (9 hours).

ASSESSMENT METHODS 30% Continuous Assessment70% Final exam


ED-M1FE-S2-FIN-CC: CORPORATE SOCIAL RESPONSIBILITY (1033) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Björn FASTERLING

COURSE OBJECTIVES In this course we question the role and legitimacy of business organisations in society. We discussif and in which respect business has social responsibilities. We also discuss different strategicmotivations for CSR and provide an overview of the idea of “shared value”. Finally we deal withsocial and environmental reporting and corporate communications.


make a well-founded and critical appraisal of corporate practices that run under “CSR”●

assess the relevance of non-financial business objectives in the finance, insurance andbanking sector context

●

PREREQUISITES

Bachelor degree●

Proficiency in English●

Advanced use of data search●

COURSE CONTENT Lecture 1 (3 h) The Role of Business Enterprise in Society

Business enterprise, corporate form and corporate objective●

CSR origins and export of CSR in Europe●

The so called business case of CSR & shared value●

Critical appraisal of CSR●

Human rights and business ●

Lecture 2 (3 h) Investment, Communication and Reporting in CSRManagement of CSR Communication●

SRI and reporting●

Reporting and social / ethical audit ●

The lectures are followed by 4 tutorials of 3 hours each, in which we analyse cases.

TEACHING & LEARNING METHODS

COURSE LECTURER: Julie BAYLE CORDIER, Björn FASTERLING, Tobias GOSSLING,Alain VIAL PRADEL

Course lectures●

Case studies in tutorial discussions●

ASSESSMENT METHODS Written examination at the end of the course (60%) 1h30Continuous assessment of oral participation in case study exercises (40 %)

RECOMMENDED READING

Crane et al. (2009), "The Oxford Handbook of Corporate Social Responsibility", OUP●

Donaldson and Preston (1995), "The stakeholder theory of the corporation: concepts,evidence, and implications", Academy of Management Review 20, 65-91

●

Freeman, R. Edward, and William Evan, (1990), "Corporate Governance: A StakeholderInterpretation." The Journal of Behavioral Economics 19 (4): 337-359

●

Friedman, M. (1970), "The Social Responsibilty of Business is to Increase Its Profits", TheNew York Times Magazine, September 13, 1970

●

Ghoshal, S. (2005), "Bad Management Theories Are Destroying Good ManagementPractices", Academy of Management Learning & Education, 2005, Vol. 4, No. 1, 75–91

●

Matten, D. and J. Moon (2008), “Implicit and explicit CSR: A Conceptual Framework for aComparative Understanding of Corporate Social Responsibility", Academy of ManagementReview 2008, Vol. 33, No. 2, 404–424

●


ED-M1FE-S2-FIN-CC: INTRODUCTION TO OPTIONS , FUTURES &DERIVATIVES (805) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Laurent DEVILLE

COURSE OBJECTIVESDerivatives play a key role in transferring risks in the economy. They are now commonly used ininvestment and corporate financial management. This course offers an introduction to basicderivatives securities such as futures, forwards, swaps and options. The objective is to provide afirst understanding of how these instruments trade, how they can be valued and how they shouldbe used.


build derivatives portfolios that correspond to specific needs●

value the main types of derivatives●

PREREQUISITESBasic knowledge of cash-flow discounting, statistics and traditional financial instruments (stocks,bonds, indices …). Chapter 1 from Hull’s “Options, Futures and other Derivatives” must be readbeforehand.

COURSE CONTENT1) Trading futures / Hedging with futures - Readings:OFoD: Chapters 2 & 3 (Fund: Chapters 2 & 3)2) Pricing forwards and futures - Readings: OFoD: Chapter 5 (Fund: Chapter 5)3) Mechanics of swaps / Options fundamentals - Readings: OFoD: Chapter 9 (Fund: Chapter 8)4) Trading strategies / Arbitrage relationships - Readings: OFoD: Chapters 10 & 11 (Fund:Chapters 9 & 10)5) Binomial option pricing - Readings: OFoD: Chapters 12 & 20 (sections binomial trees) (Fund:Chapters 11 & 16)6) Introduction to Black-Scholes-Merton model / Course review - Readings: OFoD: Chapter 14(Fund: Chapter 12)

TEACHING & LEARNING METHODSTechnical developments will alternate with examples and applications. The course will require asignificant amount of calculation and/or computer spreadsheet work. Exercises and applicationswill be solved in class in Excel and posted on the Blackboard.

ASSESSMENT METHODS

Class participation: 15%●

Mid-term exam: 35%●

Final exam: 50%.●

Both mid-term and final exam will be closed book.Class participation will be graded in function of student involvement in classroom trading gameand exercises.

RECOMMENDED READINGWe will use the following book:John C. Hull, Options, Futures and Other Derivatives, 8th ed, Prentice Hall (2011), ISBN-10:0132164948 (OFoD)Those who already own the short version of the same text may use it although it does not covertopics of interest for students intending to follow more advanced derivatives classes:John C. Hull, Fundamentals of Futures and Options Markets, 6th ed, Prentice Hall (2008), ISBN-10: 0132242265 (Fund).


ED-M1FE-S2-FIN-CC: INTERNATIONAL CORPORATE FINANCE &GOVERNANCE (762) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Florencio LOPEZ DE SILANES

COURSE OBJECTIVESThe course will analyze strategic financing decisions, adverse selection, and agency problemsassociated with the three main firm policies: financing, investment and payout distribution. Theeffects of different corporate governance arrangements will be explored in the context of debt andequity financing, initial public offerings and dividend payout policies across countries. By the endof the course, students should be familiar with some of the main finance issues faced bymultinational corporations.

LEARNING OUTCOMESBy the end of the course, students should be familiar with some of the main finance issues facedby multinational corporations.

PREREQUISITESNone.

COURSE CONTENT1) Agency & Corporate Governance (part 1)2) Agency & Corporate Governance (part 2)Firm Ownership Structures3) Case: Koito Ltd.Raising Capital: Issuing Equity in Global Markets4) Case: Samsung .Dividend Policy: Relevance(part 1)5) Dividend Policy: Relevance (part 1)Dividend Policy: Irrelevance (part 2)6) Case: Huaneng .Dividend Policy: Irrelevance (part 2)International Corporate Finance and Governance in the Future

TEACHING & LEARNING METHODSThe course will be graded on participation, exam, presentation and casework. Illustrative caseswill be developed in groups and discussed in class. Teams presenting their case solutions in classwill get higher grades.Groups: There are several cases and/or assignments throughout the course that can be prepared

and worked out in groups. You have a week to form your group and inform us of the names of thepeople in your group. By the end of the first week of classes, you need to form your groups andsend and email to me, Nathalie CHOISEZ-BARRALIS, and Catherine Mathieu with the names ofall the participants in your group. The maximum number of people in a group is five. You cannotswitch groups in the middle of the course: groups are permanent for the duration of the course.Cases There are several cases that will be part of your grade. You are expected to have preparedyour case in groups and to have turned in your answers (via the procedure outlined below) 10minutes BEFORE the beginning of the first lecture where the case will be discussed (see thespecifics under each case). I recommend that you also bring an additional printout of your answersinto class to work through our discussion, ask questions to the groups that are presenting, andtake further notes. The answers to the case have to be in one single PDF file (which canincorporate whatever documents you want from word, excel, pictures, photocopies, power-points,etc…). You can use whatever you want to use to answer the questions and back up your answers.But the important thing is that you put all of those documents together in one single PDF file pergroup. So, remember: only one file per group per case.All groups need to turn in answers to all cases The only exception will be for the groups that arepresenting orally a specific case. The groups that are orally presenting a specific case should turnin their power-point answers. They will count as the equivalent of the pdf that the rest of thegroups are turning in. Case discussions and oral presentations Each group will be required topresent orally at least one case (depending on the number of groups in each class). I am allowinggroups to choose the case they want to present on a first-come-first-served basis. So, in the sameemail where you sent me the name of the people that form your group, you should also rank thecases according to your preference for presenting orally to the class. As I said above, I will assigncase presentations on a first-come-first-served basis as much as possible, but you may not beable to get your first choice. If by the second lecture you have not given me the information, I willassign you to groups randomly and/or chose the case that you will present.For the casediscussions in class, the groups that are presenting need to prepare a power point presentation(which can include excel calculations, pictures, pdfs, etc…). This power point should include allyour answers to the case and should be turned in before class in the exact same schedule as therest of the class is turning in the written answers to the case (see below for the specific dates andtimes). There will be several groups preparing each case for presentation in class at each time,depending on the number of students, etc...The rest of the students who are not presenting thecase, are expected to be ready to participate actively in questioning the results presented by theother groups and making additional contributions. Participation is part of the final grade and agood participation through the course could earn you extra points.Procedure for delivery of yourassignments, power points, and exams: Hard Copies: All hard copy deliverables should be handedinto Anne Gac office or put on the designated in-tray before the allocated time limit.

ASSESSMENT METHODSAssessment will be based on:50% Case reports by groups (at most 5 people).10% Group case presentation in class and/or individual in-class participation.40% Individual over-night take-home final exam.

RECOMMENDED READINGThe reference textbook for the course is Principles of Corporate Finance by Brealey and Myers,McGraw-Hill 9th Edition. You will also have an electronic or a hard copy of all the additionalreadings, assignments, and lecture notes


ED-M1FE-S2-FIN-E: CORPORATE LAW (660) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2 ECTS

COURSE OBJECTIVESTo Be Completed


ED-M1FE-S2-MKG-CC: MARKETING OF FINANCIAL SERVICES (284) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2 ECTSCOURSE COORDINATOR: Marie-Catherine MARS

COURSE OBJECTIVES The course aims at developing knowledge and understanding of:

The application of the theory of marketing to the financial services industry,●

New developments and trends in financial services marketing,●

Ethical issues that may arise in the marketing of financial services.●

PREREQUISITES P. Kotler & G. Armstrong (2012), Principles of Marketing, Chapters 1, 2, 3 & 5, PearsonEducation, 14th edition.

COURSE CONTENTLECTURE 1 - Introduction to the course and the Business Case Project with a company in thefinancial sectorLECTURE 2 - Financial Regulation Part 1 – L. Degabriel (ESMA)LECTURE 3 - Financial Regulation Part 2 – L. Degabriel (ESMA)LECTURE 4 - Business Case Project with a company in the financial sector - CompulsoryCoaching 1LECTURE 5:

The financial services marketing environment - Market Research to Innovate●

Business Case Project with a company in the financial sector - Compulsory Coaching 2●

LECTURE 6:Marketing strategy for financial services : STP Approach - The financial services mix : productstrategies - Pricing considerations and strategies

●


LECTURE 7 :Place / Distribution strategies for financial services - Promotion strategies for financial services●


LECTURE 8: Professional Presentations to Company Managers

TEACHING & LEARNING METHODS For this course, the teaching & learning methods will comprise lectures and applied coachings on

a real marketing project for a leading bank in the financial industry. This marketing orientation willbe supplemented by 2 specific lectures on Financial Regulation,provided the European Securitiesand Markets Authority.Besides the academic lectures, 4 compulsory coaching sessions will be scheduled, with thepresence of the bank staff. Students are encouraged to form their own personal support networksand meet regularly outside formal lecture and coaching sessions to develop their marketingproject.This group project will provide opportunities for enhancing the understanding of relevant conceptsand issues.The last session will be dedicated to the professional presentations of group’s project to thecompany board.Students are expected to adopt a professionnal behavior during the coaching sessions and thefinal presentation.

ASSESSMENT METHODS 30% Tutorials & Coachings70% Final Business Case Project-

RECOMMENDED READING Course HandoutsBooks

Ennew, C. T. and Waite, N. (2013) ‘Financial Services Marketing: An International Guide toPrinciples and Practice’, Second Edition, Elsevier

●

Estelami, H. (2012) ‘Marketing Financial Services,’ Second Edition, Dog Ear Publishing,Indianapolis

●

Farquhar, J. D. and Meidan, A. (2010) ‘Marketing Financial Services’, Second Edition,Palgrave Macmillan, Basingstoke

●

Kotler, P. & Armstrong, G. (2008), 'Principles of Marketing', Pearson Prentice-Hall 12th

(Chapter reviews can be downloaded to MP3 players via VangoNotes.com)●

Harrison, T. (2000) 'Financial Services Marketing', Pearson Education●

NewspapersFinancial Times; ft.com, financial / business pages of leading dailies Journals - ProfessionalThe Banker●

The Economist●

Financial World ●

WebsitesBank for International Settlements : www.bis.org●

Banque de France : www.banque-france.fr/●

Financial Services Authority: www.fsa.gov.uk●

European Securities and Markets Authority : http://www.esma.europa.eu/investor-corner●

Web sites of banks, insurance companies and other financial services providers

http://www.bis.org/

http://www.banque-france.fr/

http://www.fsa.gov.uk/


ED-M1FE-S2-IT-CC: INTRODUCTION TO EXCEL & VBA PROGRAMMING (633) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2 ECTSCOURSE COORDINATOR: Pierre TELLER

COURSE OBJECTIVESThe course is designed to give the students knowledge of how to use spreadsheets to solveproblems and how to develop applications in Visual Basic for Applications (VBA).


Record macros in a MS Excel environment●

Edit macros in the macro-editor●

Add user defined functions to Excel●

Use VBA and userforms to create real applications●

PREREQUISITESBasic knowledge about spreadsheets (references, simple formulas (maths, statistics, text , etc.),financial formulas)

COURSE CONTENT15 hours on three days, at the beginning of fall semester. Part1 : basic notions1. Introduction

What is computer programming●

What is VBA●

Security issues●

2. The macro recorderUsing the macro recorder●

Assigning a macro to a control●

Shortcomings of the macro recorder●

3. The macro editorSubroutines●

Data Types●

Arrays●

4. A closer look to VBA elementsVBA Objects●

Adding new functions●

Looping●

Flow control●

In-class Exercises:1. Macro recording2. The classic “Hello World”3. The InputBox4. Call remote subroutines5. Create a new function and use it in Excel6. Create, fill and browse arrays7. Create, rename, and browse worksheets8. Using the different looping structures9. Using conditional structures Part 2 : Advanced features

User forms●

Creating custom applications●

R1C1 references●

TEACHING & LEARNING METHODSThe courses will take place in computer rooms. There will be a lecture to explain the differentnotions, and every notion will be supported by one or several in-class exercises.

ASSESSMENT METHODSTake-home assignment (after the end of the last class) = 100%

RECOMMENDED READINGRecommended textbook:VBA and Macros: Microsoft Excel 2010, Bill Jelen and Tracy SyrstadMr Excel library - QUE PublishingISBN-13: 978-0-7897-4314-5ISBN-10: 0-7897-4314-0


DEVELOPPING MANAGERIAL SKILLS (2308) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Monique VALCOUR

COURSE OBJECTIVESIn order to successfully launch your career as a finance professional, it is essential to develop anddemonstrate strong personal and interpersonal competencies, including self-awareness, emotionaland cultural intelligence, the ability to reflect, learn, and develop oneself on a continuous basis,motivation of self and others, networking and building high-quality relationships, communication,persuasion and influence, facilitation of team performance, and career self-management. Withoutthese key skills, you will have difficulty obtaining a good job in finance, performing at your peak,and building the career you want. This course is designed to help you achieve the success thatyou desire. Specifically, the course will help you enhance your ability to appeal to recruiters, youreffectiveness on the job, your career success, and your ability to craft a life that is bothprofessionally and personally rewarding.

LEARNING OUTCOMES

Know how to search for, identify and utilize valuable sources of career knowledge.●

Perform well at the online assessments you will face in the hiring process.●

Demonstrate the competencies you will need to perform well in assessment centers in thehiring process.

●

Develop and project an effective professional “personal brand” in person and online throughsocial networks.

●

Analyze self-assessments and critical incidents in your work experience in order to identifystrengths and weaknesses and develop strategies for continuous development and self-improvement.

●

Build a network of valuable relationships with recruiters and others who can help you to gethired and to manage your career.

●

Create and deliver persuasive messages and presentations.●

Perform well in job interviews.●

Motivate and manage yourself.●

Seek and provide constructive feedback.●

Work effectively in teams and facilitate team performance.●

Manage your career and work-life balance.●

COURSE CONTENT1)

Course Overview, Expectations●

Overview of the Hiring Process●

The Financial Careers Landscape●

Key Competencies●

What Predicts Career Success●

2)Developing Your Online Presence and Profile●

Searching, Identifying and Using Relevant Career Information●

3) Networking and Making High-Quality Connections●

INterpersonal Influence●

4)Communication●

Making Presentations●

5)Interviewing Workshop●

6)Managing Energy in Yourself and Others●

Career Self-Management●

Work-Life Integration●

Continuous Learning and Personal Development●

TEACHING & LEARNING METHODS Self-Assessment and Development Plan InstructionsGoals of Assignment:

Roadmap of where you’ve been and where you’re going in developing your skills andpreparing to launch your career.

●

Formalization and summary about your understanding regarding your: Strengths andcompetenciesValues, motivations, identity, purpose, energy sources.Developmental needs

●

Plan for developing your interpersonal skills and achieving career success.●

This should be a living document that you consult and update periodically.●

Data sources about yourself: Self-assessments & other tools:These are sources of data for you to consider in analyzing and integrating the information relevantto your interpersonal and career skills.

Peaks and Valleys exercise (include with your final assignment)●

Interview Story (include with your final assignment)●

Emotional Intelligence Inventory (DO NOT include with your final assignment)●

Energy Audit (DO NOT include with your final assignment)●

Structure of Assignment:Write a ONE PAGE summary that answers the following questions:

What have you learned about yourself during this course that you didn’t know before? Howhas your self-awareness changed?

●

What situations and conditions facilitate your motivation, performance, and satisfaction?●

As you prepare to embark on your professional career in finance, what are your primarydevelopmental needs in the area of self-awareness, interpersonal skills, and communicationof your value to potential employers? (Explain what you need to learn, accomplish anddemonstrate in order to launch your career successfully.)

●

What action steps will you take to achieve this development? Please be specific.●

AppendicesPlease include the following 2 documents as appendices to your self-assessment anddevelopment plan: the Peaks and Valleys exercise and your interview story. I would like tosee that you have taken the time to reflect on your life and identified important events,completed the two documents thoroughly, and am also interested in the themes present inthese documents (these make up part of my research on career success). If there isinformation of a sensitive nature that you do not want me to read, please keep a copy of thefull document for yourself, and redact it as needed to suit your desire for privacy beforesubmitting it to me.

●

Important instructions for submitting your assignment:Your self-assessment and development plan, Peaks & Valleys exercise, and interview storyshould be combined in a single document.

1.

Name the document as follows: YourLastName_FirstName_StudentID. (For example:Valcour_Monique_12345.docx)

2.

Upload the document to Blackboard by xx date.3.

ASSESSMENT METHODSYour final grade will be determined by your performance on each of the following coursecomponents:Course component Percent Due

Group case presentation 30%●

Oral presentation of self: telling a story that illustrates a skill 30% ●

Development of online profile (LinkedIn) 20%●

Self-assessment essay and development plan 20%●

Additionally, in order to receive credit for this course, you must obtain a score of 80% correct onan online quantitative skills assessment. You are encouraged to take practice tests and will beable to retake the online test until you pass it in the computer lab.


ED-M1FE-S2-STRAT-CC: STRATEGIC MANAGEMENT - PART.2 (304) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 2.5 ECTSCOURSE COORDINATOR: Charles LUMBERS

COURSE OBJECTIVESBuilding on the concepts and analytical frameworks presented in Part 1, Part 2 of the StrategicManagement course introduces the basics of corporate-level strategy, and the options andefficiency considerations relevant to a diversified company. The relative attractiveness andimplementation dynamics of the following options will be examined: technological innovation,vertical integration, globalisation, and external growth. The nature of the creation of value at thecorporate level will be a recurring theme.

LEARNING OUTCOMESAs with Part 1 of the Course, the overall objective is to arm the students with the diagnostic toolsand skills necessary to undertake critical business analysis.

PREREQUISITESA priori, students taking this Course will have competed Strategic Management Part 1, or theequivalent.

COURSE CONTENTSession 1 - (Lecture 1) Strategies specific to technology-based and to mature industries.Readings: Robert M. GRANT, .Contemporary Strategic Analysis (8th Edition) Chichester, UK:John Wiley & Sons, 2013.[Hereafter Grant (2013)], Chapters 9 and 10. Session 2 - (Lecture 2) Vertical integration; globalisation and competitive advantage inmultinational business.Readings: Grant (2013), Chapters 11 and 12. Session 3 (Tutorial 1) Case Study: text and assignment to be announced laterSession of concept confirmation and catch-up as necessary.Session 4 - (Lecture 3) Diversification strategy; implementation of corporate strategy.Readings: Grant (2013), Chapters 13 and 14. Session 5 - (Lecture 4) External growth; new directions in strategic management.Readings: Grant (2013), Chapters 15 and 16.

Session 6 - (Tutorial 2) Case Study: text and assignment to be announced later.Session of concept confirmation and catch-up as necessary.

TEACHING & LEARNING METHODSLectures, group discussions, case studies (attendance at tutorials is compulsory and will bechecked).

ASSESSMENT METHODS30% Case studies (bonus or “malus” possible depending on class performance, especially duringtutorials)70% Final Examination

RECOMMENDED READING For both Parts I & II of Strategic Management: Robert M. GRANT, .Contemporary StrategicAnalysis (8th Edition) Chichester, UK: John Wiley & Sons, 2013.


ED-M1 FE-S2-BC-CC: RESEARCHING FRANCE (2368) NUMBER OF HOURS: 30SEMESTER 2INTERNATIONAL PROGRAMME - 7 ECTS

COURSE OBJECTIVES

To introduce international students to the socio-economic environments in which Frenchbusiness takes place and will take place over the next decade

●

To use independent research to acquaint students with available sources to investigateindustry, services and entrepreneurship within France

●

To analyze France by combining demographic, social, and economic indicators●


Find recent data on French companies●

Use data drawn from public and private resources to analyze growth and stagnation in France●

Propose implementation and exportation strategies concerning France●

Conduct industry specific country risk analysis concerning France●

Make forecasts about the evolution of French consumption and economic patterns over thenext decade

●

PREREQUISITESThree years of general business courses or Bac + 3 Business Administration.A working knowledge of French is helpful, but not required.

COURSE CONTENTThis is an independent study module requiring participants to explore a number of recommendeddata sources to identify a subject of study over one semester. An online research methods courseunderpins this learning to prompt good data collection habits. The cohort will meet once a monthto benchmark progress. The lead professor also offers on-line coaching throughout the semester.

Part I: Acquaintance with available on-line and book format resources (INSEE, Euromonitor,CETELEM)Part 2: Identifying and justifying a research topic with added value for investors, consumers, orcitizens (use SWOT, competition analysis, country risk etc.). Students are invited to undertakesurveys using Qualtrics to provide personalized field data when possiblePart 3: Research project moving from description, then analysis to recommendations; interpretingsurvey dataPart 4: Feedback on the research process and the analysis of France

TEACHING & LEARNING METHODSLectures, student study cohorts, Socratic dialogue, reading.

ASSESSMENT METHODSFinal Research Project - 100% (country analysis proposal and argumentation 7 000 - 10 000words).

RECOMMENDED READINGBOURDIEU, P. (1986) Distinction. Cambridge: Polity Press.

FOUCAULT, M. (1970) The Order of Things, London: Tavistock

FUKUYAMA, F. (1995) Trust: the Social Virtues and the Creation of Prosperity, New York, FreePress. See particularly chapter 11 on French companies, trust in the private sector and the historybehind large state owned corporatios in France.

Hancke, B. (2001) “Revisiting the French Model: Coordination and Restructuring in FrenchIndustry,” in P.A. Hall and D. Soskice (eds.) Varieties of Capitalism, Oxford, Oxford UniversityPress.

LANDES, David « French Entrepreneurship and Industrial Growth in The Nineteeth Century »Journal of Economic History 9 (1949): 45-61.

MERMET, Gérard, (2009) Francoscopie, Paris: Larousse.


ED-M1FE-S2-FIN-E: M&A DEALS WITH PWC (612) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: O.MARION & H.DEMOY

COURSE OBJECTIVESAll companies, whether they are corporate players or financial investors, are consideringacquisition opportunities as part of their growth or investment strategy. A transaction represents asignificant step in the life of a company. But the route from identifying a target to completing atransaction and making it successful is paved with many risks and challenges. The course focuseson understanding the several steps of the Deal Continuum (from identification to completion andintegration) as well as the motivations of each investor category. It also details the reasons for,and practical recipe to, performing a powerful due diligence before making any investmentdecision.

PREREQUISITESNone.

COURSE CONTENT Lesson N° Course content

1 The Deal Continuum (2h)Steps and services across the Deal Continuum (1h)

2The investors (1h)Due Diligence in the Deal Continuum (1h)How a Due Diligence assignment is run (1h+)

3 How a Due Diligence assignment is run (1h+)Focus Areas (2h)

4 Case Study (3h+)

5 Case Study (3h+)

6Case Study (1h+)Presentation of an assignment (1h)Questions & Answers (1h)

TEACHING & LEARNING METHODS This course is taught by Transaction Services professionals from PricewaterhouseCoopers. Itincludes theoretical description of the deal continuum, as well as opportunities for the students to

participate: on an individual basis during the focus areas / brainstorming sessions, and also as ateam, when addressing a case study (prepared at the end of day 1, and presented to the otherteams on day 2).An individual written final exam will be organised & each student will be expected to participateactively in class.

ASSESSMENT METHODS

30% Group assignments●

70% Final examination●

RECOMMENDED READING

1ère partie du Mémento Fusions & Acquisitions Francis Lefebvre - Editions Francis Lefebvre●

Further knowledge: Mergers, Acquisitions, and Other Restructuring Activities, Fifth Edition: AnIntegrated Approach to Process, Tools, Cases, and Solutions, Donald M. DePamphilis(Academic Press Advanced Finance Series).

●

Investment Valuation, Aswath Damodaran, Wiley Finance Editions●

Fusions & Acquisitions 2009 – Aspects stratégiques et opérationnels●

http://www.amazon.com/Donald-M.-DePamphilis/e/B001IYV5PG/ref=sr_ntt_srch_lnk_2?_encoding=UTF8&qid=1265470246&sr=8-2

http://www.amazon.com/Mergers-Acquisitions-Other-Restructuring-Activities/dp/012374878X/ref=sr_1_2?ie=UTF8&s=books&qid=1265470246&sr=8-2


ED-M1FE-S2-FIN-E: MICRO FINANCE (637) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: Sébastien DUQUET

COURSE OBJECTIVES

Get an overview of the financial exclusion and of the current status of the microfinancesector

●

Understanding what innovation the microfinance sector brings to the mainstream financialsector

●

Presentation on how works a microfinance institution (MFI) and how to analyze aMicrofinance institution (from an investor point of view) – both qualitative and quantitativeanalysis

●

Presentation of the landscape of foreign international investments in microfinance and of aspecialized asset management company that invest in microfinance

●

How to measure the Social performance of the microfinance industry.●

Is there a trade off between social and financial performance ?●

LEARNING OUTCOMES At the end of the course, the student will :

explain clearly what is microfinance and how a Microfinance institutions (MFI) works- identify current issues in the microfinance sector- differentiate products and actors in the microfinance sector- identify the steps for evaluating a demand for microcredit and risks of granting credit- distinguish different impact assessment in microfinance methodologies and issues

●

be able to calculate and analyze the financial indicators of a MFI- explain why and how microfinance can be a socially responsible investment

●

PREREQUISITES Basic financial skills are needed (understanding of a balance sheet and P&L structure of a bank isa +)Course and exam in English

COURSE CONTENT

L e s s o nN° Course content

1

4 hours : sector presentationFrom banking exclusion to microfinance- The principles of microfinance- The microfinance actors- The financial and non financial services in microfinance

●

How does a MFI work●

2

2 hours : Asset management in microfinanceWhy is microfinance a Social responsible investment●

Presentation of a specialized asset manager (responsAbility)●

The main guidelines of an investment policy (country risk allocation, pricing policy…)●

3

6 hours (in 2 groups) – how to analyze a microfinance institution3 hours : financial analysis of a MFI

Summary Presentation of the Balance sheet and P&L of a MFI●

Main financial indicators used to assess the financial strength of a MFI●

Exercises / business Cases : calculate and then comment the main financialindicators

●

3 hours : qualitative assessment of a MFI

Why assessing the management team, the board, the shareholders, the HR policy…?

●

How to assess some of those factors : theory and then example and exercise●

4

6 h : impact and Social performance of the microfinance sectorWhat is the Impact of the microfinance institutions and how to measure it ?●

Interest rates and over indebtedness issue●

How to protect the clients : the client protection principles●

How to measure the social performance of a MFI ?●

How to combine financial and social performance ?●

TEACHING & LEARNING METHODS Doctoral presentation of concept and main elements but participatory methodologyExercise scenario / case study

ASSESSMENT METHODS 100% written exercise at the end of the course


ED-M1FE-S2-FIN-E: ACCOUNTING & TAXES FOR HOLDING COMPANIES (638) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: M.DELVAUX

COURSE OBJECTIVES Objectives (ACCOUNTING):

Understand the objectives of a consolidation for public.●

Understand the technical basis : why, how and what to consolidate●

Understand the main consolidation journal entries●

Link with the audit of a consolidation ●

Objectives (TAX):Understand the context of international tax;●

Understand the main tax principles of international taxation (taxable person / tax residency);●

Understand the OECD model tax convention;●

Understand the parent / subsidiary directive;●

COURSE CONTENTPart I: Initiation to consolidation - monetary conversion

Introduction to consolidation●

methods of consolidation●

Elimination of internal operation●

Methods of evaluation●

Part II: taxation

basic principles of tax residence●

double tax treaties●

main EU directives●

acquisition structures and optimization of company's tax burden

TEACHING & LEARNING METHODS Each topic is illustrated by exercises.

ASSESSMENT METHODS 100% an in-class final exam.


ED-M1FE-S2-FIN-E: THEORY OF FINANCIAL CRISES (1) (691) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: N.NENOVSKY

COURSE OBJECTIVESThe main objective of the course is to provide students with a full understanding of the historicalexperiences and conceptual framework of monetary and financial crises, their causes, theirmechanisms, their consequences, and the economic policy measures to deal and to prevent thecrises. It aims at putting into perspective past monetary and financial crises so as to understandthe financial fragilities of the modern world and to develop with students a certain number of alertsignals.

At the core of the lectures is placed the analysis of today's global crisis, its chronology, its differenttheoretical interpretations, the various policy measures, and scenarios for the future developmentof the global and European economy.

PREREQUISITESBasic knowledge on monetary economics, economics of banking, international finance, monetaryhistory and geopolitical economics

COURSE CONTENT1) Current global crisisChronology (subprime crisis, public finance crisis, real economy crisis,Deflation/Inflation…)Countries notes (USA, Greece, Ireland, Spain, Italy, Portugal, Cyprus/Hungary…)Discussion on the causes (real factors, monetary factors, financial markets and regulation...)Moral hazard, risk management and modern financial theoryNational, regional, global disequilibriaChina/USA/North and South Europe/BRIGSPolicy reactions at national and international levelEuropean and euro zone crisis (the model of two Europes)Euro zone future and different scenariosReading : History [16], [17], Theory [16], [17], [19], [20]2) Crisis and cycles, basic theoretical conceptsMonetary systems and monetary regimesExchange rate regimesBalance of paymentsRisk and term structure of interest ratesMonetary policyCycles and crisisTypes of crisisEmpirical issues (crisis duration and its depth)

Two theoretical interpretation (monetary (Hayek) versus real (Keynes))Fisher’s debt deflation theoryReading : History [1] – [6], Theory [16], [18], [19], [1], [8], [10]3) Exchange rate crisisNominal and real exchange ratesExchange rate, wages and competitiveness (the case of China)Exchange rate regimes (panorama)Fixed exchange rate and convertibilityCurrency boards and dollarizationExchange rate and speculative attacks“Fundamental” exchange rate crisis (I generation)Gold standard/Krugman/IMF model“Self-fulfilling” and multiple equilibria exchange rate crisis (II generation)EMS 1992/Obstfeld/LOLR and safety netEmpirical issues on exchange rate crisisReading : History [8], [11] , Theory [3] -[7], [9]4) Banking and Twin CrisesBanking crisisTwin crisis (III generation) and the question of causalityMoral hazard and informational issues/Dooley modelCoordination problem/ Diamond – Dybvig modelContagion/panicsSystemic risk and safety net (LOLR, Deposit insurance, banking regulations)Empirical issues on banking and twin crisisEarly warning indicatorsReading : History [1], [6], [10], [11], Theory [1], [11] - [13]5) Monetary and Financial Crisis: case studies from different erasJohn Law’s financial bubble (1716-1720)Gold standard experiences and monetary stabilization at 1890sCold-exchange standard at interwar period(Hyperinflations: Hungary/Germany; Poincare stabilization;Soviet gold currency)Great Depression 1929/1933 and economic nationalismDeveloping countries debt crisisEMS crisis 1991/2, Mexico 1994Asia 1997, Argentina 2001/2002Post communist crises (Bulgaria 1996/7, Russia 1998, Albania 2000)Reading :History [1] - [16], Theory [16]

TEACHING & LEARNING METHODSLectures, seminar discussions (workshops) and case studies analyses:REFERENCES :History[1] Panics, and Crashes: A History of Financial Crises. Wiley, 2005, 5th ed.[2] The Great Crash 1929. Houghton Mifflin Harcourt, 1997 [1955][3] Globalizing Capital. A History of the International Monetary System. Princeton: PrincetonUniversity Press, 1996.[4] Is the crisis problem growing more severe? Economic Policy, 53-82, 2001[5] Growing up to Financial Stability, Bank of Greece WP N 85 2008[6] This time is different: A panoramic view of of eight centuries of financial crises, 2008.

[7] The Genesis of Macroeconomics: New Ideas from Sir William Petty to Henry Thornton(Paperback - Feb 2009), chapter on John Law[8] What went wrong in Argentina? Central Banking Journal, XII/3, 43-48, 2002[9] Economic Crisis: Causes and Cures. Joint Economic Committee US Congress, June 2003[10] Lending of First versus Lending of Last Resort: The Bulgarian Financial Crisis of 1996/1997,Comparative Economic Studies, 2004, 46(2): 245-271.[11] New Currency Boards and Discretion. The Empirical Evidence from Bulgaria, EconomicSystems, 2002, 26(1): 55-72[12] Credibility and Adjustment: Gold Standards versus Currency Boards. WDI WP 692, 2004[13] Lenin and the currency competition. Reflections on the NEP experience (1922-1924), ICERWorking Paper, 2006, N 22[14] The rise and fall of Albania’s pyramid schemes, IMF Quarterly Magazine, 37(1)[15] The End of Globalization. Lessons from the Great Depression, Harvard University Press,2001[16] Hautcoeur, P-C. La crise de 1929, La Découverte, 2010

ASSESSMENT METHODS25% Case studies & Participation in the workshop75% Final Exam

RECOMMENDED READINGREFERENCES :Theory: [1] Understanding Financial Crises. Oxford University Press, 2007.[2] Bank runs, deposit insurance, and liquidity. Journal of Political Economy 91(3): 401-419, 1983[3] A Model of Balance-of-payments Crisis, Journal of Money, Credit and Banking, 11(3): 311-325,1978[4] Models of currency crises with self-fulfilling features. European Economic Review 40 (3/5):1037-1047, 1996[5] What happened to Asia? MIT, 1998[6] A Model of Crisis in Emerging Markets, NBER WP 6300, 1997[7] Collapsing exchange rate regimes: Some linear examples. Journal of International Economics,17(1-2): 1-13, 1984.[8] The Debt-deflation Theory if the Great Depressions, Econometrica, 1(4): 337-357, 1933[8] Time and Money: The Macroeconomics of Capital Structure, Routledge, 2001[9] Classifying Exchange Rates, http://users.erols.com/kurrency/classifying.pdf, 2007[10] The two concepts of money: implications for the analysis of optimal currency areas, EuropeanJournal of Political Economy, 14, 407-432, 1998[11] Systemic Risk (A survey), ECB Working Paper, 2000[12] Lender of Last Resort: A Review of Literature. Bank of England Financial Stability Review No.7: 151-167, 1999.[13] Coordination failures and the lender of last resort: Was Bagehot right after all? Journal of theEuropean Economic Association 2, 6 (2004), 1116-47.[14] Coordination of speculation. Journal of International Economics, 58(1):159-175, 2002[15] Saving Behaviour and Global Imbalances: The Role of Emerging Market Economies. ECBWP 842 , 2007[16] Alchemist of Loss. How Modern Finance and Government Intervention Crashed the Financial

http://users.erols.com/kurrency/classifying.pdf

System, Wiley, 2010[17] CATO Journal, Vol. 31 (3), Fall 2011[18] Stabilizing an Unstable economy, McGraw-Hill Professional, 2008 [1986][19] Global Imbalances and Financial stability, Banque de France Financial Stability Review,February 2011[20] The True Lessons from the Recession, Foreign Affairs, 91 (3): 69-79


ED-M1FE-S2-FIN-E: INTERPRETING MACRO ECONOMIC SIGNALS (2) (662) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: Tristan PERRIER

COURSE OBJECTIVES The main objective of the course is to introduce the basic knowledge necessary to be able toappropriately use macroeconomic information that is regularly disseminated by national institutesof statistics, international agencies or central banks to analyze the current economic situation. Thefirst parts of the course will be dedicated to the notion of economic growth and it components aswell as to the available tools and information sources to proceed with forecasts and calculations. Then, the course will focus to short term economic forecasting as well as understanding the morecomplex interactions between economic players. Finally, students will learn to interpretmacroeconomic signals within the context of a country’s long term strengths, weaknesses andposition in the global economy. As a conclusion, concepts and tools covered by the course will beused to assess the current state and outlook of the global economy.

PREREQUISITES Basic economics and statistics

COURSE CONTENT 1) Measuring a country’s output and wealth

GDP approaches and components●

The limits of GDP, proposed alternatives and complements●

Cross-country comparison : USD and PPP calculations●

World GDP : current situation and long-term trends●

GDP component’s breakdown : country exemples ●

2) Calculation and reporting of economic growth and inflationGrowth rates, prices indices and the treatment of seasonality●

Inflation indices : CPI, PPI, PCE and the GDP deflator●

Volume / current prices calculations and their uses●

National accounts reporting and dissemination policies●

International organization standards●

Cross-country comparison : reconciling different reporting standards●

Measuring contributions to growth and price movements ●

3) Short term economic signals and the business cycleWhat we already know : carry-over calculation●

Monthly coincident indicators●

Business and consumer surveys, their uses and limits●

Short term job market developments●

National leading indicators (financial & others)●

World leading indicators●

Elements of business cycle theory●

Business cycle : current situation (country exemples)●

The consensus : the forecasters’ community ●

4) Understanding the reaction of economic players-Government and central banks :

Fiscal stimulus vs austerity, automatic stabilisers●

Longer term structural economic policy measures●

Monetary stimulus and tightening●

Non-conventional monetary policies●

Exchange rate policies●

-Financial markets and banking system :Bond market●

Stock market●

Bank tightening/easing of credit terms and standards to the private sector●

-Non-financial corporate sectorInvestment/disinvestment, hiring/firing●

The inventory cycle●

-Households :Job market developments & wages●

Perception of government policies (the Ricardo effect)●

Stock market and real estate wealth effects●

The saving rate ●

5) Assessing a country’s strengths and weaknesses to interpret macro signalsGovernment debt, its currency denomination and the nature of lenders●

Private debt and risks of credit (and/or real estate bubble)●

Government tax base solidity●

Key international trade metrics : current balance and exports●

Productivity trend●

Price competitiveness trend & the real exchange rate●

Non-price competitiveness●

Rigidity vs flexibility of the employment, products & services markets 6) Conclusion : where is world growth going today ?

Major international organization’s growth forecasts for the world and major countries●

Major international organization’s assessment of current economic risks●

International organizations’ track records in terms of predicting growth and crises●

TEACHING & LEARNING METHODS Lectures and cases

ASSESSMENT METHODS 25% Case studies & presentation in class75% Final Exam


ED-M1FE-S2-FIN-E: FINANCIAL LAW & ECONOMICS (3) (678) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: Björn FASTERLING & F.LOPEZ DE SILANES

COURSE OBJECTIVESThe students will learn about the economic and non-economic rationales for the legal frameworkof a market economy. We will focus on the regulation of capital markets and financial law. Theobjective of the course is to provide students with basic insights why economic activity needs to beregulated, and to which extent. We will also discuss current issues, case studies and reformprojects.

COURSE CONTENT Lesson N° Professor Course content

1 Björn FASTRELING Introduction to financial law ●

2 Björn FASTRELING

Rationales of regulation The perspective of Law & Economics●

Policy objectives and reality of financialregulation

●

3 Björn FASTRELING Regulatory reform and current developments

4 Björn FASTRELING Case studies

5 Björn FASTERLING Group work presentations

6 Florencio LOPEZ DESILANES Law, finance and institutions

TEACHING & LEARNING METHODSClass lectures and discussions on assigned readings and case studies. Active participation inclass discussion is highly recommended.

ASSESSMENT METHODS

The assessment methods depend on the number of attending students. In principle we envisagethe following grading scheme:30% Group Work and Presentation+ Oral Bonus for competent in-class participation70% Final examination

RECOMMENDED READINGObligatory readings and recommended readings will be posted in Blackboard


ED-M1FE-S2-FIN-E: INFORMATION SYSTEM & GOVERNANCE (4) (611) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: Pierre CALVANESE

COURSE OBJECTIVES The Information Systems (IS) and IT Governance & Management (ITG) course addresses first thestrategic position of IS thus the benefits of a sound IT governance framework and finally explainshow to realize effective IT governance using the COBIT processes oriented best practicesframework. It explains the framework using practical examples and a case-study-driven approach.It also addresses all other components of IT Governance, such as IT strategy, TechnicalArchitecture concepts and of course audit apply to the IT Assessment. The course helps studentsunderstand the basis of IS, how to use IT Governance and its key component in a logical andunderstandable way and validates this knowledge using an interactive approach.Practical classroom exercises and practical examples (case studies, videos) support theclassroom presentations.

PREREQUISITES There are no formal prerequisites for this course, but it is recommended that the participants havesome basis in the management of Information Systems or read some key books before thesession.

COURSE CONTENTLesson N° Course content1 Introduction : How to link Finance, Governance and IT2 Information Systems within the organizat ion and

Management of IS (MIS)3 What is an IT strategic approach and an IT plan ?4 The key principles of IT Governance and Performance5 Introduction of the COBIT Framework6 Other component of IT Governance Risk IT and Val IT7 What is an Enterprise Architecture ?

How to apply Technical Architecture to IS ?8 Audit approach and IT assessement (tools, methodologies

and examples)

TEACHING & LEARNING METHODS Practical classroom examples, illustrations, videos support the classroom presentations.

Additionally, candidates learn the true meaning of MIS, IT Governance main concept and COBITframework and also all the key component as EA and audit

ASSESSMENT METHODS 50% Students will participate and give answer to practical situation bases on case studies(Groups of 40 people max.)50% Quizz and multiple choice question paper on the course content (Individual)


ED-M1FE-S2-FIN-E: INSURANCE INDUSTRY WITH MAZARS (602) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: Christophe BERRARD

COURSE OBJECTIVES The main objective of this course is to cover the various aspects of the insurance industry, andfinance professions that are directly related. This is an opportunity to explore in detail the businessof insurance, the different worlds that compose it and the risks of this market. Thus, in a first step, we will study the different components of the insurance industry:

The non-life insurance regarding property insurance, insurance known by everyone when itcomes to home or car insurance, but also applies to large companies, international transportand major risks such as terrorism or natural disasters.

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Life insurance with the problems of retirement and savings.●

Reinsurance allowing major global insurers to cover some major risks ●

As the hazard is an essential component of the insurance business, we also study the actuarialaspects (use of mathematics to forecast future events) through the use of probability and statisticsas part of the audit of insurance companies. The particularity of Mazars is that its teams are notcompartmentalized but are multidisciplinary, combining the financial and actuarial competencieswhich enable them to apprehend the financial reporting of large groups in their entirety. Thus, wewill review the methodology to price insurance contracts and to challenge estimates ofcommitments made in non-life and in life insurance business. The valuation of assets will also bediscussed. In addition, we will study the financial audit aspects in general and more specifically the methodsused to control the financial statements of an insurance company. Finally, a last part of the course will be devoted to the development of business and the particularcase of a valuation of a portfolio in the case of a transaction between companies.


Understand the Insurance market●

Analyse risk within this market●

Valuate commitments (Life and non-life) in the insurance business●

Understand the purpose of a financial audit and the specificity of working on Insurancecompanies

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Understand the issues of transaction within this activity●

COURSE CONTENT

Lesson N° Course content

1 Overview of the Insurance Market●

2 Pricing and commitments in the Non Life Business●

3 Princing and commitments in the Life Business●

4 Reinsurance●

5 Financial Audit●

Insurance specificities●

6 Transaction Services : Valuation of an Insurance portfolio●

TEACHING & LEARNING METHODS Lectures, paper discussions, theory explanations and case studies

ASSESSMENT METHODS 25% Case studies75% Final Exam


ED-M1FE-S2-FIN-E: CFA PREPARATION (668) NUMBER OF HOURS: 18SEMESTER 2INTERNATIONAL PROGRAMME - 1.5 ECTSCOURSE COORDINATOR: Michael PAYTE

COURSE OBJECTIVES

The CFA® certification program is highly challenging and the objective of the CFAPreparation is to create a continuously focused learning environment that is compatible withthe student’s academic responsibilities;

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The course is designed to assist the dedicated student to successfully complete this first step(CFA Level I) toward achieving this highly challenging and career enhancing professionalcredential;

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The course is focused on dedication to knowledge, professional competence, and highethical standards.

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Have an appreciation of the structure and methods of the CFA® certification examinationprocess;

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Develop a learning and study environment to progressively acquire the knowledge and skillsfor the Level I Examination

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PREREQUISITES

Comprehensive knowledge of Financial Accounting: Financial Statements including theIncome Statement, Balance Sheet and Statement of Cash Flows;

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Comprehensive knowledge of Time Value of Money and Bond Market computational skillsincluding PV, NPV, Discounted Cash Flow, Duration, Yields and Credit Spreads;

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Comprehensive knowledge of Business & Financial Statistics including Mean Returns,Variance, Standard Deviation, Covariance, Correlation and Regression;

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Macro-Economics including Supply/Demand Curves, Monetary, International Trade andCapital flows

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Calculator skills for Time Value of Money computations●

COURSE CONTENT

Professional & Ethical Standards,●

Quantitative Methods●

Economics●

Financial Reporting and Analysis●

Corporate Finance●

Equity Investments and Markets●

Fixed Income●

Derivatives●

Alternative Investments●

Portfolio Management and Wealth Planning●

TEACHING & LEARNING METHODS

Highly interactive with student participation expected;●

Combination of concept and technical skills presentations with reviews of sample examquestions for each of the above concepts and topics.

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ASSESSMENT METHODS

Comprehensive final exam in the CFA® format of multiple choice questions weighted at 100%of class performance

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RECOMMENDED READING CFA® 2013/2014 http://www.cfainstitute.org/

http://www.cfainstitute.org/cfaprog/register/●

The CFA® Fee schedule is based on a progressive rate where the later one registers, thehigher the fee;

Candidate Body of Knowledge™ (CBOK), this is the complete set of study texts requiredfor the preparation for the Level I examination, available in printed text or electronic format;

●

C a l c u l a t o r P o l i c i e s o f t h e C F A ®http://www.cfainstitute.org/about/governance/policies/Pages/calculator_policy.aspx

●

http://www.cfainstitute.org/

http://www.cfainstitute.org/cfaprog/register/

http://www.cfainstitute.org/about/governance/policies/Pages/calculator_policy.aspx

TEXTBOOK – 2013-2014

Master 1 Financial Economics Track

London U.K. Penguin Books (2009)

Essex, U.K. Pearson (2007)

McGraw-Hill 9th Edition

Cambridge University Press (second edition)

(8th Edition) Chichester, UK: John Wiley & Sons, 2013.

Publisher: John Wiley

8th ed, Prentice Hall (2011), ISBN-‐10: 0132164948 (OFoD)

5th edition, 2012, Pearson

Pearson

TEXTBOOK – 2013-2014

Master 1 Financial Economics Track

QUE Publishing

Kaplan (June 2013 edition)

book m1 fe

Documents

s1ecocc cc

e e elective

visiting students

rem rem

selected students

financial institutions

financial law economics

financial econometrics