Course unit details:
Current Issues in Empirical Finance
| Unit code | BMAN70162 |
|---|---|
| Credit rating | 15 |
| Unit level | FHEQ level 7 – master's degree or fourth year of an integrated master's degree |
| Teaching period(s) | Semester 2 |
| Available as a free choice unit? | No |
Overview
The course currently covers the following eight topics:
- Proxy variables
- Event study analysis and assignment discussion
- Predictive models
- Qualitative research in finance
- Causation, endogeneity, and instrumental variable estimation
- Difference-in differences estimation
- Heterogeneity and self-selection
- Using micro data to test competing theories
Pre/co-requisites
Aims
This course explains key research methods in empirical finance, using academic finance papers as illustrations. Each lecture examines a different research technique in current finance research, e.g., event study analysis, qualitative research, instrumental variables, self-selection problems, etc. The course material comprises a set of carefully selected, recent papers in finance from top journals, covering a wide range of topics (mergers and acquisitions, securities issues, investment banking, asset bubbles etc.). The course also gives you a chance to conduct your own empirical analysis, through teamwork focusing on a finance related question. The course therefore gives you crucial skills for conducting your MSc dissertation. For the longer term, the course enhances your employability by teaching you how to interpret research findings, use important financial databases, and handle data-related problems, and by making you aware of the most recent advances and findings in finance research.
Learning outcomes
On completion of this unit successful students will have achieved the following learning outcomes:
• A knowledge and understanding of research techniques in finance and financial econometrics
• A knowledge and understanding of selected empirical issues in finance
• A critical awareness of research issues, methodologies, and methods in finance
• Skills in collecting and analyzing empirical data and interpreting empirical results
• An enhanced ability to participate constructively in groups
• The methods of assessment for this unit allow students to demonstrate achievement of all intended learning outcomes.
Assessment methods
Group Project (30%)
Written Examination (70%)
Feedback methods
Informal advice and discussion during a lecture.
Responses to student emails and questions from a member of staff including feedback provided to a group via an online discussion forum.
Specific course related feedback sessions.
Written comments on assessed coursework.
Generic feedback on Blackboard regarding overall examination performance.
Recommended reading
Reading for the course consists of selected journal articles from top finance journals, which we will post on Blackboard. Two examples are:
Bennedsen, M., Nielsen, K., Perez-Gonzalez, F., Wolfenzon, D., 2007. Inside the family firm: The role of families in succession decisions and performance. Quarterly Journal of Economics 122, 647-691.
Malmendier, U. and Tate, G., 2008. Who makes acquisitions? CEO overconfidence and the market's reaction. Journal of Financial Economics 89, 20-43.
Study hours
| Scheduled activity hours | |
|---|---|
| Assessment written exam | 1.5 |
| Lectures | 30 |
| Independent study hours | |
|---|---|
| Independent study | 118.5 |
Teaching staff
| Staff member | Role |
|---|---|
| Emiel Jerphanion | Unit coordinator |
| Wendi Huang | Unit coordinator |
Additional notes
Informal Contact Methods
Online Learning Activities (discussion boards)
Students can email the course lecturers to arrange an "office hour" meeting. Email addresses are in the course outline and on course slides. But we encourage students to post questions to relevant Blackboard discussion boards.
Timetable: http://pgthandbook.portals.mbs.ac.uk/MyProgramme/Teachingtimetables.aspx