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FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-FIN-CC: FINANCIAL INSTITUTIONS AND MARKETS (625)

NUMBER OF HOURS: 9
SEMESTER 1
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE COORDINATOR: Frank CANOSA



COURSE OBJECTIVES
This is an introductory course that will describe how the financial system operates. It is orientated
to providing an understanding of the principle of financial intermediation and an overview of the
different types of institution that participate in the industry. It will assess the diverse nature of the
requirements posed by individual and institutional investors. The course will also study the range
of financial products that are available to investors through financial intermediaries and how they
serve to channel funds to participants in the real economy.
PREREQUISITES
None
COURSE CONTENT
SESSION I
The Financial Market
Definition of the financial system; the role of financial institutions as intermediaries between
investors and borrowers; the concept of a financial market; the loanable funds theory and interest
rates; the role of monetary authorities; the money markets and the capital markets.
SESSION II
Participants in the Financial System
The intermediaries: Deposit-taking institutions (DTIs): symbiosis with the real economy and the
creation of liquidity; Non-Deposit Taking Institutions (NDTIs; the different types of investor (natural
persons, companies, pension funds, private equity/venture capital etc.); borrowers from both the
public and private sectors; the rating agencies; types of borrowing and issuance; the role of
intermediation: direct lending, bond underwriting, Initial Public Offerings, etc.; the primary and
secondary markets;
SESSION III
Regulating the Financial System
Regulation as a natural reactive process; regulations twin aims of ensuring systemic health and
client protection; the need for international regulatory coherence; the Bank for International
Settlements and the Basel Accords; the Financial Stability Board, the International Monetary Fund
and the World Bank; working towards a healthier financial system.



ASSESSMENT METHODS
A written examination that will consist of multiple choice questions.
RECOMMENDED READING
Ferguson N., The Ascent of Money. London U.K. Penguin Books (2009);
Howells P. and Bain K. , Financial Markets and Institutions 5t h edition. Essex, U.K. Pearson (2007).
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-FIN-CC: CORPORATE FINANCE & ASSET MARKETS (626)

NUMBER OF HOURS: 45
SEMESTER 1
INTERNATIONAL PROGRAMME - 6.5 ECTS
COURSE COORDINATOR: Pierre MELLA BARRAL


COURSE OBJECTIVES
The objective of this course is to provide a solid grounding in the principles and practice of finance and develop the
understanding 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 Value 1.
Readings: Chapter 3 of Brealey and Myers.
Assignment 1 [Individual work].
!
Problems with Solutions 1.
!
Section 3: Project Appraisal and Capital Budgeting 1.
Readings: Chapters 10, 11 of Brealey and Myers.
Assignment 2: Case Study United Metal [Group work].
!
Section 4: Introduction to Risk and Return 1.
Readings: Chapter 7 of Brealey and Myers.
Section 5: Portfolio Selection 1.
Readings: Chapter 8 of Brealey and Myers.
Section 6: The Capital Asset Pricing Model 1.
Readings: Chapter 9 of Brealey and Myers.
Assignment 3: Case Study Boeing 777 [Group work].
!
Problems with Solutions 2.
!
Section 7: Financing and Capital Structure 1.
Readings: Chapter 17 of Brealey and Myers.
Assignment 4 [Individual work].
!
Section 8: Interest Rates and the Valuation of Bonds 1.
Readings: Chapters 3, 24 of Brealey and Myers.
Assignment 5: [Individual work].
!
Problems with Solutions 3.
!
Section 9: Valuation of Companies and Stocks 1.
Readings: Chapter 4 of Brealey and Myers.
Assignment 6 [Individual work].
!
Problems with Solutions 4.
!



Section 10: Options and Real Options 1.
Readings: Chapter 20 of Brealey and Myers.
Assignment 7: Case Study Penelopes Phones [Group work].
!
Assignment 8 [Individual work].
!
Problems with Solutions 5.
!
TEACHING & LEARNING METHODS
This course will mix lectures and cases with 4 groups
ASSESSMENT METHODS
Assignments: They consist of 5 problem sets and 3 case studies. These assignments enable you
to 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- determined
groups (see the list of study groups). Do not hand-in your work. A class discussion will then
follow.
!
Problem Sets with Solutions: There are 5 problem sets provided with detailed solutions. The
purpose of this optional material is only to help you consolidate your understanding and handling
of 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, which
determines 1/3 of the overall course grade. There is a 3h long exam in December, on parts 1, 2
and 3 of the course, which determines 2/3 of the overall course grade. Material covered: Lecture
notes and problem set assignments (not cases). The exam is closed book. Bring an accepted
pocket 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 a
maximum of 100 points. This is then scaled to constitute 1/3 of the course grade. The final exam
grade 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 READING
The 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 finance
Recommended resources:
Bodie, Kane and Marcus, Investments, McGraw Hill
Welch, Corporate Finance, Pearson International
Damodaran, Damodaran On Valuation, 2nd Edition, Wiley Publishing, 2006.
http://pages.stern.nyu.edu/~adamodar/
http://www.exinfm.com/free_spreadsheets.html
The economist, The Wall Street Journal, Les Echos, Financial Times




FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-FIN-CC: FINANCIAL ECONOMETRICS (627)

NUMBER OF HOURS: 18
SEMESTER 1
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE 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, and
forecasting 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 appropriate
financial models.
!
Have a comprehensive understanding of how information from observed financial data could
be processed.
!
Have a comprehensive understanding of how information from observed financial data could
be processed.
!
Appreciate the range of more advanced techniques that exist and have the foundations for
further study of econometrics.
!

PREREQUISITES
Review of probability and statistics: Random variables and probability distributions: The c2 ,
Students 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; The
multiple linear regression model; Single hypothesis tests; Joint hypotheses tests; Testing
the overall significance of a model.
Main reading reference: Chapters 2, 3 and 4 in Brooks, C., Introductory Econometrics for
Finance, 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 for
structural 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 Conditional
Heteroscedasticity (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 METHODS
The course will comprise 4 lectures of 3 hours contact time each. Students are also expected to
attend six hours of scheduled workshops. The latter are intended to demonstrate the use of the
econometric techniques for the practical implementation of the theoretical material covered during
the lectures.
ASSESSMENT METHODS
There will be one piece of group coursework, and a written examination that will be weighted as
25% and 75%, respectively. The coursework is highly empirical, and the students will have to
apply their theoretical and quantitative skills to investigate a given problem in finance. The
coursework should demonstrate a sufficient understanding of the issues analyzed during the
course.
RECOMMENDED READING

Main recommended textbook:
!
Brooks, C., Introductory Econometrics for Finance, Cambridge University Press (second
edition)
Other recommended textbooks:
!
Gujarati, D., Basic Econometrics, McGraw-Hill.
Wooldridge, J. M., Introductory Econometrics, Thomson

FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-FIN-CC: FINANCIAL ANALYSIS & REPORTING (628)

NUMBER OF HOURS: 36
SEMESTER 1
INTERNATIONAL PROGRAMME - 5 ECTS
COURSE COORDINATOR: F.FARRIAUX & A.GERARD




COURSE OBJECTIVES
To know and analyse the implementation of International Accounting Standards including the
Balance Sheet (Assets, Liabilities & Shareholder Equity), the Income Statement and the
Statement 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 - exercises 1.
Balance sheet analysis - exercises 2.
Cash flow statement analysis case on cash flow 3.
Difference between profitability and cash flow generation -exercises 4.
Case n1 - 5.
Case n2 Iliad Free 6.
Case n3 - Montupet 7.
Case n4 - Safran 8.
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 exam 12.



TEACHING & LEARNING METHODS
Lectures & Case Study Method with interactive student/team participation, Practical Application
ASSESSMENT METHODS
10% starting MCQ

30% Mid-term exam
60% Final written exam
RECOMMENDED READING
Principles 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 York
Times Best Seller, 2nd Edition
Vernimmen letter and Vernimmen web site : http://www.vernimmen.com/html/glossary/
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-FIN-REM: PRE-REQUISITE - INTERNATIONAL ACCOUNTING
(3536)

NUMBER OF HOURS: 15
SEMESTER 1
INTERNATIONAL PROGRAMME - 0 ECTS
COURSE COORDINATOR: Pascale TADDEI




COURSE OBJECTIVES
The course is designed to give the students the basic knowledge in International accounting that
will allow them to evolve through the following courses they will have as part of their Masters
program. At the end of the course, students should understand how accounting information is
needed by various users, the role of standards professional, the accounting equation and the
interrelationship of the financial statements. They should understand the accounting cycle and
prepare the financial statements.
LEARNING OUTCOMES
Upon 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
!
PREREQUISITES
No prerequisites
COURSE CONTENT
The course has weekly steps, and students are expected to make progresses as follows in the
table below. The Pre and Post tests are available under Homework and Tests Sample Tests and
Quizzes while Study Plan Exercises are available under Study Plan View all chapters.

Week N Course content Requirements
#29
(16 to 19/July)
Chapters 1, 2 and 3 of the
textbook.
!
All Pre and Post tests
and al l St udy Pl an
exercises.
#30
(22 to 26/July)
Chapt er s 4 and 5 of t he
textbook.
!
All Pre and Post tests
and al l St udy Pl an
exercises.
#31
( 29/ Jul y t o
2/August)
Chapters 6, 7 and 8 of the
textbook.
!
All Pre and Post tests
and al l St udy Pl an
exercises.

#32
(5 to 9/August)
Chapt ers 9 and 10 of t he
textbook.
!
All Pre and Post tests
and al l St udy Pl an
exercises.
#33
( 1 2 t o
16/August)
Chapters 11 and 12 of the
textbook.
!
All Pre and Post tests
and al l St udy Pl an
exercises.
#34
( 1 2 t o
16/August
Chapters 13 and 14 of the
textbook.
!
All Pre and Post tests
and al l St udy Pl an
exercises.


TEACHING & LEARNING METHODS

This e-learning course includes readings assignments, quizzes and exercises in E-learning to do
before September 1s t . . This is an e-learning course such that students will have to follow the course
through the AccountingLab online platform. Students can get in touch with the course coordinator
via e-mail when particular points are not clear. The course coordinator will make sure students are
evolving along the course as scheduled on a regular weekly basis.
You could ask your questions by mails at any moment to Pascale.taddei@edhec.edu. I will answer
at 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 course
In order to join this course, you will need to:
Register for MyAccountingLab 1.
Enroll in the course 2.
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 Student
button, 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. Youll be directed to http://www.myaccountinglab.com, where you can
enter the user name and password you just created. Click the login button. The first time you
enter the site youll 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 login
and anytime you use a new computer. You will be alerted to any new software required for your
course, such as Flash. You will need administrative rights to install any new software on your
computer.
2) Enrolling in the course
After registering, login to MyAccountingLab at www.myaccountinglab.com with your username and
password. To enroll in the appropriate course, use the Course ID for this course: XL18-P14O-
001Z-3VM2

ASSESSMENT METHODS
There will be a single on-campus exam on the 7th of September. You will not be officially graded
by the exercises you do online (on the AccountingLab platform) but they will allow the course
coordinator to check your progress and let you know how you are progressing through the course
contents (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, 9t h edition. This book is provided online through the e-
learning platform.2013
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-FIN-REM: PRE-REQUISITE - MATH/STATS (3538)

NUMBER OF HOURS: 15
SEMESTER 1
INTERNATIONAL PROGRAMME - 0 ECTS
COURSE COORDINATOR: Carlos CAMPANI




COURSE OBJECTIVES
The course is designed to give the students the basic knowledge in statistics (and in math) that will
allow them to evolve through the following courses they will have as part of their Masters
program. The course was built to meet the need for an introductory e-learning course providing
strong mathematical skills to realistic problems faced by Finance practitioners.
LEARNING OUTCOMES
After having taken this e-learning course participants are expected to understand the concepts
underlying 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.
!
PREREQUISITES
Basic mathematics.
COURSE CONTENT
The course has weekly steps, and students are expected to make progresses as follows in the
table below. The Pre and Post tests are available under Homework and Tests Sample Tests and
Quizzes while Study Plan Exercises are available under Study Plan View all chapters.

Week Number Course content Requirements
#1
( 2 9 / J u l y t o
4/August)
Chapters 0, 1 and 2 of the
textbook.
!
All Pre and Post tests and
all Study Plan exercises.
#2
(5 to 11/August)
Chapters 3, 4 and 5 of the
textbook.
!
All Pre and Post tests and
all Study Plan exercises.
#3
(12 to 18/August)
Chapters 6, 7 and 8 of the
textbook.
!
All Pre and Post tests and
all Study Plan exercises.
#4
(19 to 25/August)
Chapt ers 9 and 10 of t he
textbook.
!
All Pre and Post tests and
all Study Plan exercises.
#5 Chapters 11 and 12 of the
!
All Pre and Post tests and


( 2 6 / A u g u s t t o
1s t /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 get
in touch with the course coordinator via e-mail when particular points are not clear. The course coordinator will make sure students
are evolving along the course as scheduled on a regular weekly basis.
How to Register for mathlab and enrol in the course
In order to join this course, you will need to:
Register for MyMathLab Global 1.
Enrol in the course 2.
To register, you will need a student access code and a course ID, which is XL00-B1OZ-4020-24L4
for this course.
1) Registering for MyMathLab Global
Go to the MyMathLab Global home page at http://www.mymathlab.com/global and click the
Student 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. Youll be directed to http://www.mymathlab.com/global, where you can
enter the user name and password you just created. Click the login button. The first time you
enter the site youll 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 login
and anytime you use a new computer. You will be alerted to any new software required for your
course, such as Flash. You will need administrative rights to install any new software on your
computer.
2) Enrolling in the course
After registering, log in to MyMathLab Global with your username and password. To enrol in the
appropriate 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 online
platform. Students can get in touch with the course coordinator via e-mail when particular points
are not clear. The course coordinator will make sure students are evolving along the course as
scheduled on a regular weekly basis.

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

RECOMMENDED READING
TEXTBOOK: Statistics for Business and Economics by Paul Newbold, William L. Carlson and
Betty M. Thorne, 8t h edition. This book is provided online through the e-learning platform.
Introductory Mathematical Analysis for Business, Economics, and the Life and Social
Sciences: International Edition by Ernest F. Haeussler, Richard S. Paul and Richard J. Wood,
13t h edition. This book provides the introductory foundations of mathematical analysis that students
need in Finance. The contents of this book are not covered by this e-learning course, but students
should make sure that they are familiar with the topics discussed in this book.
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-FIN-CC: VALUATION (2702)

NUMBER OF HOURS: 18
SEMESTER 1
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE 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 of
these models and techniques;
!
Application of these models and techniques to contemporary market examples;
!
LEARNING OUTCOMES
After 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
PREREQUISITES
Expected Background Knowledge:
Comprehensive knowledge of Financial Accounting with an understanding of financial
statements including the Balance Sheet (Assets, Liabilities & Shareholder Equity), the Income
Statement and the Statement of Cash Flows;
!
Understanding of accruals, non-cash deductions such as depreciation and the material
difference between Net Income and Cash Flow;
!
Discounted Cash Flows
!
Financial Ratio Analysis
!
COURSE CONTENT
1) Introduction of Valuation Analysis, Discounting Techniques:
Discounted Cash Flows: Present Value of Dividends, Operating Free Cash Flow, Free Cash Flow
to Equity
Case Analysis: Apple: From the worlds most valuable company to Apples Luster Dims (analysis
to continue throughout course) - Reference & Source Materials: Brealey & Myers Chapters 2 & 3
Present Value
Financial Accounting Ratio Analysis

2) Valuation Analysis: Comparable, Fundamental & Relative Value Analysis
HBS Case: Corporate Valuation and Market Multiples by Timothy A. Luehrman - Reference & Source
Materials:Brealey & Myers Chapters 4 & 6 Valuing Common Stocks & Investment Decisions

3) NOPAT: Net Operating Profit after Taxes



ROIC-Return on Invested Capital
Case 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, ROE
Case 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 Rates
HBS Case: AN INTRODUCTION TO CASH FLOW VALUATION METHODS, Ruback - Reference &
Source Materials: Brealey & Myers Part V: Capital Structure

6) Analysis and comparison of Valuation Techniques
Case 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 METHODS
Lectures & Case Study Method with interactive student/team participation, Practical Application
ASSESSMENT METHODS
100% Final written exam
RECOMMENDED READING
Principles 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:
Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, Aswath
Damodaran (Wiley Finance)
Investments, Bodie, Kane, Marcus (McGraw-Hill)
CFA Investment Series: Equity Asset Valuation, Stowe, Robinson, Pinto,McLeavey (CFA Institute)
Security Analysis, Graham & Dodd

FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-STRAT-CC: STRATEGIC MANAGEMENT - PART.1 (629)

NUMBER OF HOURS: 18
SEMESTER 1
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE COORDINATOR: Charles LUMBERS




COURSE OBJECTIVES
Part 1 of the Strategic Management course introduces fundamental concepts and models of
business analysis. Both the internal and external contexts of firm dynamics are examined. With
respect to the internal context, the basic notions associated with the creation of value for ones
customers 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 macroscopic
factors and the industry-specific constraints of a given firms activities and options. These two
contexts meet directly at the business (as opposed to the corporate) level and this course will
conclude with an examination of the issues of industry evolution and strategy change at that level.
LEARNING OUTCOMES
After 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 CONTENT
Session 1 - Lecture 1: Introduction and Basic Notions: economic value; productivity; break-even
analysis; 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 and
2.
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 later
Session of concept confirmation and catch-up as necessary.
Session 4-Lecture 3:Resources and capabilities; organisation as structure and as implementation
dynamic. Readings: Grant (2013), Chapters 5 and 6.
Session 5-Lecture 4: Sources and dimensions of competitive advantage; industry evolution and
strategic 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 METHODS
Lectures, group discussions, case studies (attendance at tutorials is compulsory and will be
checked).
ASSESSMENT METHODS
30% Case studies (bonus or malus possible depending on class performance, especially during
tutorials)
70% Final Examination
RECOMMENDED READING
For both Parts I &II of Strategic Management: Robert M. GRANT, .Contemporary Strategic
Analysis (8th Edition) Chichester, UK: John Wiley &Sons, 2013.
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-ACC-CC: COST ACCOUNTING & MANAGEMENT CONTROL (630)

NUMBER OF HOURS: 36
SEMESTER 1
INTERNATIONAL PROGRAMME - 5 ECTS
COURSE COORDINATOR: Arnt VERRIEST



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

LEARNING OUTCOMES
After having taken this course participants will be able to:
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, process
costing, 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 CONTENT
Structure of the Course and Course Setup
There 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 students knowledge and insight in management and cost
accounting. The lecturers will provide course material presentations as well as discussions of
practical examples. The handbook by Bhimani et al. (BHDR, see above for details) serves as a
guidebook 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 good
and representative preparation for the written exam. This helps students to understand the
exercises thoroughly, to be better able to follow the tutorials and to be well prepared for the written
exam.

(3) Tutorial preparations made by student groups count for 15% of the grade. Students should
organize themselves in groups of 4 to 6 people. Before the start of tutorials 2, 3 and 4, every
group 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 made
available via Blackboard. This case assignment is part of the exam material and contributes for
15% of a students total grade. Students should register in groups of minimum 4 to maximum 6
people. This email should have the title case registration and should ONLY contain the table
below completed with the names of all group members. (Complete the table in this file and copy-
paste it in your email.)

(5) Course Schedule
For exact lectures and tutorials time and locations: see course slides and Blackboard!

Lecture 1: Sep-16
Lecture 2: Sep-17
Tutorial 1: Sep-23 and Sep-24
Lecture 3: Sep-25
Lecture 4: Sep-30
Tutorial 2: Oct-1 and Oct-2
Lecture 5: Oct-14
Lecture 6: Oct-15
Tutorial 3: Oct-16 ; Oct-17 and Oct-18
Lecture 7: Oct-21
Lecture 8: Oct-22
Tutorial 4: Nov-4 and Nov-5
TEACHING & LEARNING METHODS
Course Materials
1. Handbook: A. Bhimani, C. Horngren, S. Datar, G. Rajan (BHDR), Management and Cost
Accounting, 5th edition, 2012, Pearson (ISBN: 978-0-273-75745-0) MANDATORY!
2. Slides
3. 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.

Exams
The final exam is a closed book exam with multiple choice questions, exercise questions and open
questions (essay questions).
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-ECO-CC: INTERNATIONAL ECONOMICS (634)

NUMBER OF HOURS: 18
SEMESTER 1
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE COORDINATOR: Giuseppe BERTOLA




COURSE OBJECTIVES
Aiming to provide a basic but solid conceptual framework for understanding the mechanisms at
work in international macroeconomics and finance, the course reviews key definitions and
economic mechanisms relevant to balance of payments dynamics, foreign exchange rates, and
the 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 to
illustrate general principles and theoretical mechanisms, with particular attention to global
imbalances, to the sources and remedies of economic and financial crises and fluctuations, and to
the European economic and monetary integration experience.
LEARNING OUTCOMES
After taking this course, students will:
know where to find and how to read key exchange rate, output, inflation, and balance of
payments information for various countries;
!
understand what motivates different countries choices of exchange rate and macroeconomic
policy regimes;
!
Interpret, in terms of the underlying behavioural relationships, market reactions to shocks and
to policy moves.
!
PREREQUISITES
Students should be familiar with arbitrage-free pricing relationships; with the economic concepts of
demand, supply, and equilibrium; with economic models of consumption, investment, and
aggregate demand in closed economies.
COURSE CONTENT
1) Issues and methods
National Income Accounting
!
Current account, savings and investment
!
Balance of Payments accounting
!
2) Exchange rates and interest rates
Quotes, 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 fluctuations
Real and nominal appreciation/depreciation
!
Nominal exchange rates in the long run
!
Exchange rates, incomes, and aggregate demand
!
5) Macroeconomic fluctuations and policies
Aggregate 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 METHODS
Each lecture is organized around a few key issues and questions. Theoretical definitions and
mechanisms are illustrated with examples that students are encouraged to discuss interactively
with the instructor. Before and after the lectures, the students should develop and test their
understanding working on the additional material available on the courses Blackboard pages.
ASSESSMENT METHODS
Group home preparat i on of 5 sl i des ( sent at l east 24 hour s i n advance t o
giuseppe.bertola@edhec.edu ) and class exposition (10 minutes during the last meeting) of an
assigned 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 a
specific country). This portion of the assessment is the same for all members of the group, who
should prepare the slides together but do not all need to talk during the presentation. Evaluation
rewards study (the ability to apply material learned in class to a specific case) and professional
behaviour (respect of the time and length limits)
Interaction, including questions made and answered in class, participation in the Blackboard
discussion forums, and comments on other teams reports: 10%
Final exam (90, without any document) with exercises and questions based on the material
presented 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 and
Obstfeld (and Melitz from 9th edition), International Economics: Theory and Policy, Pearson;
only Part 3: Exchange rates and Open Economy Macroeconomics.
!
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S1-CCS-CC: SOCIAL-CULTURAL FRANCE (FOR VISITING STUDENTS
ONLY) (87)

NUMBER OF HOURS: 30
SEMESTER 1
INTERNATIONAL PROGRAMME - 4 ECTS
COURSE COORDINATOR: Anne WITTE





COURSE OBJECTIVES
To introduce international students to the socio-cultural complexity of the environments in
which 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 French
consumer and strategic behaviours

!
LEARNING OUTCOMES
After having taken this course participants will be able to:
Recognize and speak knowledgeably about contemporary France - its famous politicians, its
social 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, niche
markets, and sectors of excellence including luxury, military equipment, retail and food
!
COURSE CONTENT
Part I: A general introduction to France stereotypes, language, values and contemporary social
trends
Part 2: An overview of recent French history and geopolitical affairs
Part 3: French intellectual movements with special emphasis on sociology and post-modernist
social 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 METHODS
Lectures, student study cohorts, Socratic dialogue, reading.
ASSESSMENT METHODS
Project 30%

Participation 20%
Final Exam 50%

RECOMMENDED READING
BOURDIEU, 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, Free
Press. See particularly chapter 11 on French companies, trust in the private sector and the history
behind large state owned corporatios in France.
Hancke, B. (2001) Revisiting the French Model: Coordination and Restructuring in French
Industry, in P.A. Hall and D. Soskice (eds.) Varieties of Capitalism, Oxford, Oxford University
Press.
LANDES, David French Entrepreneurship and Industrial Growth in The Nineteeth Century
Journal of Economic History 9 (1949): 45-61.
MERMET, Grard, (2009) Francoscopie, Paris: Larousse.

FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-FIN: GMAT PREPARATION (2589)

NUMBER OF HOURS: 12
COURSE COORDINATOR: Vadim YEFREMOV





COURSE OBJECTIVES
To familiarize the students with the different sections of the GMAT examination (Integrated
Reasoning and the Analytical Writing Assessment, Quantitative section: problem solving and
data sufficiency and Verbal Section: reading comprehension; sentence correction; critical
reasoning).
!
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 in
each 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

Bachelors degree
COURSE CONTENT
Semester 1 6 hours of test practice focusing mainly on the Quantitative Section (Data
Sufficiency and Problem Solving). The Quantitative section will be tested in a 1-hour examination
at 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 the
Integrated Reasoning sections. All sections of the GMAT will be tested in a Kaplan Preparation
Test at the end of semester 2.
TEACHING & LEARNING METHODS

Lectures, workshops, exercises,
Online support via Blackboard course GMAT Preparation
All students are required to buy the following book: Kaplan GMAT Premier 2014 with 6
Practice Tests: book + online + DVD + mobile [June 2013 edition] (available from online
retailers 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 READING
Kaplan GMAT Premier 2014 with 6 Practice Tests: book + online + DVD + mobile (June 2013
edition)
GMAT Website: http://www.gmac.com/
http://www.mba.com/
IR section explained: http://www.veritasprep.com/gmat/integrated-reasoning/
FINANCIAL ECONOMICS
MASTER 2 2013/2014

ED-MScFIN-S1-FIN-CC: FIXED INCOME ANALYSIS (3447)

NUMBER OF HOURS: 30
SEMESTER 1
INTERNATIONAL PROGRAMME - 4 ECTS
COURSE COORDINATOR: Joelle MIFFRE



COURSE OBJECTIVES
Only for visiting Students - See MSc in Finance Book.
COURSE CONTENT


FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-CC: INTRODUCTION TO FIXED INCOME (631)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE COORDINATOR: Joelle MIFFRE



COURSE OBJECTIVES
This course gives students the skills necessary to understand the pricing and management of
fixed income securities. It is about interest rates, risk measurement and risk management in fixed
income markets. The course develops insights into different bond portfolio strategies and provides
coverage on the techniques for valuing and hedging bonds.
PREREQUISITES
Course Principles of corporate & market finance & Basics of financial calculus (and discounting).
COURSE CONTENT
6 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 METHODS
This course will mix lectures and exercises
ASSESSMENT METHODS
100% Final exam
RECOMMENDED READING
Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies
Authors: Lionel Martellini, Philippe Priaulet, Stphane Priaulet; Publisher: John Wiley
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-CC: ANALYSIS OF RISK & PERFORMANCE (632)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE COORDINATOR: Gideon OZIK



COURSE OBJECTIVES

This course aims to develop the basic principles of asset pricing and introduces to the
fundamentals 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 content
Lesson 1, 2 & 3
Asset 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)
!
Rolls 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 4
The 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 & 6
Portfolio Performance Evaluation (6 hours)
Arithmetic, geometric and time-weighted mean returns
!
Basic risk-adjusted measures
!
Treynor ratio, Sharpe ratio, M! 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 Assessment
70% Final exam
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-CC: CORPORATE SOCIAL RESPONSIBILITY (1033)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE COORDINATOR: Bjrn FASTERLING





COURSE OBJECTIVES

In this course we question the role and legitimacy of business organisations in society. We discuss
if and in which respect business has social responsibilities. We also discuss different strategic
motivations for CSR and provide an overview of the idea of shared value. Finally we deal with
social and environmental reporting and corporate communications.
LEARNING OUTCOMES

After having taken this course participants will be able to:
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 and
banking 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 CSR
Management 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, Bjrn FASTERLING, Tobias GOSSLING,
Alain VIAL PRADEL
Course lectures
!
Case studies in tutorial discussions
!
ASSESSMENT METHODS

Written examination at the end of the course (60%) 1h30
Continuous 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 Stakeholder
Interpretation." The Journal of Behavioral Economics 19 (4): 337-359
!
Friedman, M. (1970), "The Social Responsibilty of Business is to Increase Its Profits", The
New York Times Magazine, September 13, 1970
!
Ghoshal, S. (2005), "Bad Management Theories Are Destroying Good Management
Practices", Academy of Management Learning & Education, 2005, Vol. 4, No. 1, 7591
!
Matten, D. and J. Moon (2008), Implicit and explicit CSR: A Conceptual Framework for a
Comparative Understanding of Corporate Social Responsibility", Academy of Management
Review 2008, Vol. 33, No. 2, 404424
!
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-CC: INTRODUCTION TO OPTIONS , FUTURES &
DERIVATIVES (805)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE COORDINATOR: Laurent DEVILLE






COURSE OBJECTIVES
Derivatives play a key role in transferring risks in the economy. They are now commonly used in
investment and corporate financial management. This course offers an introduction to basic
derivatives securities such as futures, forwards, swaps and options. The objective is to provide a
first understanding of how these instruments trade, how they can be valued and how they should
be used.
LEARNING OUTCOMES
After having taken this course participants will be able to:
build derivatives portfolios that correspond to specific needs
!
value the main types of derivatives
!
PREREQUISITES
Basic knowledge of cash-flow discounting, statistics and traditional financial instruments (stocks,
bonds, indices ). Chapter 1 from Hulls Options, Futures and other Derivatives must be read
beforehand.
COURSE CONTENT
1) 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 METHODS
Technical developments will alternate with examples and applications. The course will require a
significant amount of calculation and/or computer spreadsheet work. Exercises and applications
will 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 game
and exercises.
RECOMMENDED READING
We 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 cover
topics 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).
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-CC: INTERNATIONAL CORPORATE FINANCE &
GOVERNANCE (762)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE COORDINATOR: Florencio LOPEZ DE SILANES





COURSE OBJECTIVES
The course will analyze strategic financing decisions, adverse selection, and agency problems
associated with the three main firm policies: financing, investment and payout distribution. The
effects of different corporate governance arrangements will be explored in the context of debt and
equity financing, initial public offerings and dividend payout policies across countries. By the end
of the course, students should be familiar with some of the main finance issues faced by
multinational corporations.

LEARNING OUTCOMES
By the end of the course, students should be familiar with some of the main finance issues faced
by multinational corporations.
PREREQUISITES
None.
COURSE CONTENT
1) Agency & Corporate Governance (part 1)
2) Agency & Corporate Governance (part 2)
Firm Ownership Structures
3) Case: Koito Ltd.
Raising Capital: Issuing Equity in Global Markets
4) 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 METHODS
The course will be graded on participation, exam, presentation and casework. Illustrative cases
will be developed in groups and discussed in class. Teams presenting their case solutions in class
will 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 the
people in your group. By the end of the first week of classes, you need to form your groups and
send and email to me, Nathalie CHOISEZ-BARRALIS, and Catherine Mathieu with the names of
all the participants in your group. The maximum number of people in a group is five. You cannot
switch 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 prepared
your case in groups and to have turned in your answers (via the procedure outlined below) 10
minutes BEFORE the beginning of the first lecture where the case will be discussed (see the
specifics under each case). I recommend that you also bring an additional printout of your answers
into class to work through our discussion, ask questions to the groups that are presenting, and
take further notes. The answers to the case have to be in one single PDF file (which can
incorporate 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 per
group. 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 are
presenting orally a specific case. The groups that are orally presenting a specific case should turn
in their power-point answers. They will count as the equivalent of the pdf that the rest of the
groups are turning in. Case discussions and oral presentations Each group will be required to
present orally at least one case (depending on the number of groups in each class). I am allowing
groups to choose the case they want to present on a first-come-first-served basis. So, in the same
email where you sent me the name of the people that form your group, you should also rank the
cases according to your preference for presenting orally to the class. As I said above, I will assign
case presentations on a first-come-first-served basis as much as possible, but you may not be
able to get your first choice. If by the second lecture you have not given me the information, I will
assign you to groups randomly and/or chose the case that you will present.For the case
discussions 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 all
your answers to the case and should be turned in before class in the exact same schedule as the
rest of the class is turning in the written answers to the case (see below for the specific dates and
times). 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 the
case, are expected to be ready to participate actively in questioning the results presented by the
other groups and making additional contributions. Participation is part of the final grade and a
good participation through the course could earn you extra points.Procedure for delivery of your
assignments, power points, and exams: Hard Copies: All hard copy deliverables should be handed
into Anne Gac office or put on the designated in-tray before the allocated time limit.
ASSESSMENT METHODS
Assessment 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 READING
The 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 additional
readings, assignments, and lecture notes
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: CORPORATE LAW (660)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2 ECTS


COURSE OBJECTIVES
To Be Completed
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-MKG-CC: MARKETING OF FINANCIAL SERVICES (284)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2 ECTS
COURSE 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, Pearson
Education, 14t h edition.
COURSE CONTENT
LECTURE 1 - Introduction to the course and the Business Case Project with a company in the
financial sector
LECTURE 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 - Compulsory
Coaching 1
LECTURE 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 : product
strategies - Pricing considerations and strategies
!
Business Case Project with a company in the financial sector - Compulsory Coaching 3
!
LECTURE 7 :
Place / Distribution strategies for financial services - Promotion strategies for financial services
!
Business Case Project with a company in the financial sector - Compulsory Coaching 4
!
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 will
be supplemented by 2 specific lectures on Financial Regulation,provided the European Securities
and Markets Authority.
Besides the academic lectures, 4 compulsory coaching sessions will be scheduled, with the
presence of the bank staff. Students are encouraged to form their own personal support networks
and meet regularly outside formal lecture and coaching sessions to develop their marketing
project.
This group project will provide opportunities for enhancing the understanding of relevant concepts
and issues.
The last session will be dedicated to the professional presentations of groups project to the
company board.
Students are expected to adopt a professionnal behavior during the coaching sessions and the
final presentation.
ASSESSMENT METHODS

30% Tutorials & Coachings
70% Final Business Case Project-
RECOMMENDED READING

Course Handouts
Books
Ennew, C. T. and Waite, N. (2013) Financial Services Marketing: An International Guide to
Principles 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 12t h
(Chapter reviews can be downloaded to MP3 players via VangoNotes.com)
!
Harrison, T. (2000) 'Financial Services Marketing', Pearson Education
!
Newspapers
Financial Times; ft.com, financial / business pages of leading dailies
Journals - Professional
The Banker
!
The Economist
!
Financial World
!
Websites
Bank 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
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-IT-CC: INTRODUCTION TO EXCEL & VBA PROGRAMMING (633)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2 ECTS
COURSE COORDINATOR: Pierre TELLER




COURSE OBJECTIVES
The course is designed to give the students knowledge of how to use spreadsheets to solve
problems and how to develop applications in Visual Basic for Applications (VBA).
LEARNING OUTCOMES
After having taken this course participants will be able to:
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
!
PREREQUISITES
Basic knowledge about spreadsheets (references, simple formulas (maths, statistics, text , etc.),
financial formulas)
COURSE CONTENT
15 hours on three days, at the beginning of fall semester.

Part1 : basic notions
1. Introduction
What is computer programming
!
What is VBA
!
Security issues
!
2. The macro recorder
Using the macro recorder
!
Assigning a macro to a control
!
Shortcomings of the macro recorder
!
3. The macro editor
Subroutines
!
Data Types
!
Arrays
!
4. A closer look to VBA elements
VBA Objects
!
Adding new functions
!



Looping
!
Flow control
!

In-class Exercises:
1. Macro recording
2. The classic Hello World
3. The InputBox
4. Call remote subroutines
5. Create a new function and use it in Excel
6. Create, fill and browse arrays
7. Create, rename, and browse worksheets
8. Using the different looping structures
9. Using conditional structures

Part 2 : Advanced features
User forms
!
Creating custom applications
!
R1C1 references
!
TEACHING & LEARNING METHODS
The courses will take place in computer rooms. There will be a lecture to explain the different
notions, and every notion will be supported by one or several in-class exercises.

ASSESSMENT METHODS
Take-home assignment (after the end of the last class) = 100%
RECOMMENDED READING
Recommended textbook:
VBA and Macros: Microsoft Excel 2010, Bill Jelen and Tracy Syrstad
Mr Excel library - QUE Publishing
ISBN-13: 978-0-7897-4314-5
ISBN-10: 0-7897-4314-0
FINANCIAL ECONOMICS
MASTER 1 2013/2014

DEVELOPPING MANAGERIAL SKILLS (2308)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE COORDINATOR: Monique VALCOUR



COURSE OBJECTIVES
In order to successfully launch your career as a finance professional, it is essential to develop and
demonstrate strong personal and interpersonal competencies, including self-awareness, emotional
and 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. Without
these 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 that
you desire. Specifically, the course will help you enhance your ability to appeal to recruiters, your
effectiveness on the job, your career success, and your ability to craft a life that is both
professionally 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 the
hiring process.
!
Develop and project an effective professional personal brand in person and online through
social networks.
!
Analyze self-assessments and critical incidents in your work experience in order to identify
strengths 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 get
hired 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 CONTENT
1)

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 Instructions
Goals of Assignment:
Roadmap of where youve been and where youre going in developing your skills and
preparing to launch your career.
!
Formalization and summary about your understanding regarding your: Strengths and
competenciesValues, 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 relevant
to 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 didnt know before? How
has 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 primary
developmental needs in the area of self-awareness, interpersonal skills, and communication
of your value to potential employers? (Explain what you need to learn, accomplish and
demonstrate in order to launch your career successfully.)
!
What action steps will you take to achieve this development? Please be specific.
!
Appendices
Please include the following 2 documents as appendices to your self-assessment and
development plan: the Peaks and Valleys exercise and your interview story. I would like to
see 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 in
these documents (these make up part of my research on career success). If there is
information of a sensitive nature that you do not want me to read, please keep a copy of the
full document for yourself, and redact it as needed to suit your desire for privacy before
submitting it to me.
!
Important instructions for submitting your assignment:
Your self-assessment and development plan, Peaks & Valleys exercise, and interview story
should 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 METHODS
Your final grade will be determined by your performance on each of the following course
components:
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 on
an online quantitative skills assessment. You are encouraged to take practice tests and will be
able to retake the online test until you pass it in the computer lab.
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-STRAT-CC: STRATEGIC MANAGEMENT - PART.2 (304)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 2.5 ECTS
COURSE COORDINATOR: Charles LUMBERS




COURSE OBJECTIVES
Building on the concepts and analytical frameworks presented in Part 1, Part 2 of the Strategic
Management course introduces the basics of corporate-level strategy, and the options and
efficiency considerations relevant to a diversified company. The relative attractiveness and
implementation dynamics of the following options will be examined: technological innovation,
vertical integration, globalisation, and external growth. The nature of the creation of value at the
corporate level will be a recurring theme.
LEARNING OUTCOMES
As with Part 1 of the Course, the overall objective is to arm the students with the diagnostic tools
and skills necessary to undertake critical business analysis.
PREREQUISITES
A priori, students taking this Course will have competed Strategic Management Part 1, or the
equivalent.
COURSE CONTENT
Session 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 in
multinational business.
Readings: Grant (2013), Chapters 11 and 12.

Session 3 (Tutorial 1) Case Study: text and assignment to be announced later
Session 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 METHODS
Lectures, group discussions, case studies (attendance at tutorials is compulsory and will be
checked).
ASSESSMENT METHODS
30% Case studies (bonus or malus possible depending on class performance, especially during
tutorials)
70% Final Examination

RECOMMENDED READING
For both Parts I & II of Strategic Management: Robert M. GRANT, .Contemporary Strategic
Analysis (8th Edition) Chichester, UK: John Wiley & Sons, 2013.
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1 FE-S2-BC-CC: RESEARCHING FRANCE (2368)

NUMBER OF HOURS: 30
SEMESTER 2
INTERNATIONAL PROGRAMME - 7 ECTS





COURSE OBJECTIVES
To introduce international students to the socio-economic environments in which French
business takes place and will take place over the next decade
!
To use independent research to acquaint students with available sources to investigate
industry, services and entrepreneurship within France
!
To analyze France by combining demographic, social, and economic indicators
!
LEARNING OUTCOMES
After having taken this course participants will be able to:
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 the
next decade
!
PREREQUISITES
Three years of general business courses or Bac + 3 Business Administration.
A working knowledge of French is helpful, but not required.
COURSE CONTENT
This is an independent study module requiring participants to explore a number of recommended
data sources to identify a subject of study over one semester. An online research methods course
underpins this learning to prompt good data collection habits. The cohort will meet once a month
to 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, or
citizens (use SWOT, competition analysis, country risk etc.). Students are invited to undertake
surveys using Qualtrics to provide personalized field data when possible
Part 3: Research project moving from description, then analysis to recommendations; interpreting
survey data
Part 4: Feedback on the research process and the analysis of France
TEACHING & LEARNING METHODS
Lectures, student study cohorts, Socratic dialogue, reading.


ASSESSMENT METHODS
Final Research Project - 100% (country analysis proposal and argumentation 7 000 - 10 000
words).
RECOMMENDED READING
BOURDIEU, 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, Free
Press. See particularly chapter 11 on French companies, trust in the private sector and the history
behind large state owned corporatios in France.
Hancke, B. (2001) Revisiting the French Model: Coordination and Restructuring in French
Industry, in P.A. Hall and D. Soskice (eds.) Varieties of Capitalism, Oxford, Oxford University
Press.
LANDES, David French Entrepreneurship and Industrial Growth in The Nineteeth Century
Journal of Economic History 9 (1949): 45-61.
MERMET, Grard, (2009) Francoscopie, Paris: Larousse.
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: M&A DEALS WITH PWC (612)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE COORDINATOR: O.MARION & H.DEMOY




COURSE OBJECTIVES
All companies, whether they are corporate players or financial investors, are considering
acquisition opportunities as part of their growth or investment strategy. A transaction represents a
significant step in the life of a company. But the route from identifying a target to completing a
transaction and making it successful is paved with many risks and challenges. The course focuses
on understanding the several steps of the Deal Continuum (from identification to completion and
integration) 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 investment
decision.
PREREQUISITES
None.
COURSE CONTENT

Lesso
n N
Course content
1
The Deal Continuum (2h)
Steps and services across the Deal Continuum (1h)
2
The 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+)
6
Case Study (1h+)
Presentation of an assignment (1h)
Questions & Answers (1h)

TEACHING & LEARNING METHODS

This course is taught by Transaction Services professionals from PricewaterhouseCoopers. It
includes 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 a
team, when addressing a case study (prepared at the end of day 1, and presented to the other
teams on day 2).
An individual written final exam will be organised & each student will be expected to participate
actively in class.
ASSESSMENT METHODS

30% Group assignments
!
70% Final examination
!
RECOMMENDED READING

1re partie du Mmento Fusions & Acquisitions Francis Lefebvre - Editions Francis Lefebvre
!
Further knowledge: Mergers, Acquisitions, and Other Restructuring Activities, Fifth Edition: An
Integrated 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 stratgiques et oprationnels
!
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: MICRO FINANCE (637)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE COORDINATOR: Sbastien DUQUET




COURSE OBJECTIVES

Get an overview of the financial exclusion and of the current status of the microfinance
sector
!
Understanding what innovation the microfinance sector brings to the mainstream financial
sector
!
Presentation on how works a microfinance institution (MFI) and how to analyze a
Microfinance institution (from an investor point of view) both qualitative and quantitative
analysis
!
Presentation of the landscape of foreign international investments in microfinance and of a
specialized 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 is
a +)
Course and exam in English
COURSE CONTENT
Les s on
N
Course content



1
4 hours : sector presentation
From 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 microfinance
Why 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 institution
3 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 financial
indicators
!

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 sector
What 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 methodology
Exercise scenario / case study
ASSESSMENT METHODS

100% written exercise at the end of the course
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: ACCOUNTING & TAXES FOR HOLDING COMPANIES (638)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE 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 CONTENT
Part 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.
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: THEORY OF FINANCIAL CRISES (1) (691)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE COORDINATOR: N.NENOVSKY



COURSE OBJECTIVES
The main objective of the course is to provide students with a full understanding of the historical
experiences and conceptual framework of monetary and financial crises, their causes, their
mechanisms, their consequences, and the economic policy measures to deal and to prevent the
crises. It aims at putting into perspective past monetary and financial crises so as to understand
the financial fragilities of the modern world and to develop with students a certain number of alert
signals.
At the core of the lectures is placed the analysis of today's global crisis, its chronology, its different
theoretical interpretations, the various policy measures, and scenarios for the future development
of the global and European economy.
PREREQUISITES
Basic knowledge on monetary economics, economics of banking, international finance, monetary
history and geopolitical economics
COURSE CONTENT
1) Current global crisis
Chronology (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 theory
National, regional, global disequilibria
China/USA/North and South Europe/BRIGS
Policy reactions at national and international level
European and euro zone crisis (the model of two Europes)
Euro zone future and different scenarios
Reading : History [16], [17], Theory [16], [17], [19], [20]
2) Crisis and cycles, basic theoretical concepts
Monetary systems and monetary regimes
Exchange rate regimes
Balance of payments
Risk and term structure of interest rates
Monetary policy
Cycles and crisis
Types of crisis
Empirical issues (crisis duration and its depth)

Two theoretical interpretation (monetary (Hayek) versus real (Keynes))
Fishers debt deflation theory
Reading : History [1] [6], Theory [16], [18], [19], [1], [8], [10]
3) Exchange rate crisis
Nominal and real exchange rates
Exchange rate, wages and competitiveness (the case of China)
Exchange rate regimes (panorama)
Fixed exchange rate and convertibility
Currency boards and dollarization
Exchange 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 net
Empirical issues on exchange rate crisis
Reading : History [8], [11] , Theory [3] -[7], [9]
4) Banking and Twin Crises
Banking crisis
Twin crisis (III generation) and the question of causality
Moral hazard and informational issues/Dooley model
Coordination problem/ Diamond Dybvig model
Contagion/panics
Systemic risk and safety net (LOLR, Deposit insurance, banking regulations)
Empirical issues on banking and twin crisis
Early warning indicators
Reading : History [1], [6], [10], [11], Theory [1], [11] - [13]
5) Monetary and Financial Crisis: case studies from different eras
John Laws financial bubble (1716-1720)
Gold standard experiences and monetary stabilization at 1890s
Cold-exchange standard at interwar period
(Hyperinflations: Hungary/Germany; Poincare stabilization;
Soviet gold currency)
Great Depression 1929/1933 and economic nationalism
Developing countries debt crisis
EMS crisis 1991/2, Mexico 1994
Asia 1997, Argentina 2001/2002
Post communist crises (Bulgaria 1996/7, Russia 1998, Albania 2000)
Reading :History [1] - [16], Theory [16]
TEACHING & LEARNING METHODS
Lectures, 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: Princeton
University 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, Economic
Systems, 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), ICER
Working Paper, 2006, N 22
[14] The rise and fall of Albanias 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 Dcouverte, 2010
ASSESSMENT METHODS
25% Case studies & Participation in the workshop
75% Final Exam
RECOMMENDED READING
REFERENCES :
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, European
Journal 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 the
European 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. ECB
WP 842 , 2007
[16] Alchemist of Loss. How Modern Finance and Government Intervention Crashed the Financial
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
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: INTERPRETING MACRO ECONOMIC SIGNALS (2) (662)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE COORDINATOR: Tristan PERRIER



COURSE OBJECTIVES

The main objective of the course is to introduce the basic knowledge necessary to be able to
appropriately use macroeconomic information that is regularly disseminated by national institutes
of statistics, international agencies or central banks to analyze the current economic situation. The
first parts of the course will be dedicated to the notion of economic growth and it components as
well 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 more
complex interactions between economic players. Finally, students will learn to interpret
macroeconomic signals within the context of a countrys long term strengths, weaknesses and
position in the global economy. As a conclusion, concepts and tools covered by the course will be
used to assess the current state and outlook of the global economy.
PREREQUISITES

Basic economics and statistics
COURSE CONTENT
1) Measuring a countrys 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 components breakdown : country exemples
!
2) Calculation and reporting of economic growth and inflation
Growth 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 cycle
What 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 sector
Investment/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 countrys strengths and weaknesses to interpret macro signals
Government 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 organizations growth forecasts for the world and major countries
!
Major international organizations 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 class
75% Final Exam
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: FINANCIAL LAW & ECONOMICS (3) (678)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE COORDINATOR: Bjrn FASTERLING & F.LOPEZ DE SILANES




COURSE OBJECTIVES
The students will learn about the economic and non-economic rationales for the legal framework
of a market economy. We will focus on the regulation of capital markets and financial law. The
objective of the course is to provide students with basic insights why economic activity needs to be
regulated, and to which extent. We will also discuss current issues, case studies and reform
projects.
COURSE CONTENT

Lesso
n N
Professor Course content
1 Bjrn FASTRELING
Introduction to financial law

!
2 Bjrn FASTRELING
Rationales of regulation
The perspective of Law & Economics
!
Pol i cy obj ecti ves and real i ty of fi nanci al
regulation
!

3 Bjrn FASTRELING

Regulatory reform and current developments
4 Bjrn FASTRELING Case studies
5 Bjrn FASTERLING Group work presentations
6
Fl orenci o LOPEZ DE
SILANES
Law, finance and institutions

TEACHING & LEARNING METHODS
Class lectures and discussions on assigned readings and case studies. Active participation in
class discussion is highly recommended.
ASSESSMENT METHODS


The assessment methods depend on the number of attending students. In principle we envisage
the following grading scheme:
30% Group Work and Presentation
+ Oral Bonus for competent in-class participation
70% Final examination
RECOMMENDED READING
Obligatory readings and recommended readings will be posted in Blackboard
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: INFORMATION SYSTEM & GOVERNANCE (4) (611)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE COORDINATOR: Pierre CALVANESE




COURSE OBJECTIVES

The Information Systems (IS) and IT Governance & Management (ITG) course addresses first the
strategic position of IS thus the benefits of a sound IT governance framework and finally explains
how to realize effective IT governance using the COBIT processes oriented best practices
framework. 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, Technical
Architecture concepts and of course audit apply to the IT Assessment. The course helps students
understand the basis of IS, how to use IT Governance and its key component in a logical and
understandable way and validates this knowledge using an interactive approach.
Practical classroom exercises and practical examples (case studies, videos) support the
classroom presentations.
PREREQUISITES

There are no formal prerequisites for this course, but it is recommended that the participants have
some basis in the management of Information Systems or read some key books before the
session.
COURSE CONTENT
Lesson N Course content
1 Introduction : How to link Finance, Governance and IT
2
I nf ormat i on Syst ems wi t hi n t he organi zat i on and
Management of IS (MIS)
3 What is an IT strategic approach and an IT plan ?
4 The key principles of IT Governance and Performance
5 Introduction of the COBIT Framework
6 Other component of IT Governance Risk IT and Val IT
7
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 COBIT
framework 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)
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: INSURANCE INDUSTRY WITH MAZARS (602)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE COORDINATOR: Christophe BERRARD



COURSE OBJECTIVES

The main objective of this course is to cover the various aspects of the insurance industry, and
finance professions that are directly related. This is an opportunity to explore in detail the business
of 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 it
comes to home or car insurance, but also applies to large companies, international transport
and major risks such as terrorism or natural disasters.
!
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 actuarial
aspects (use of mathematics to forecast future events) through the use of probability and statistics
as part of the audit of insurance companies. The particularity of Mazars is that its teams are not
compartmentalized but are multidisciplinary, combining the financial and actuarial competencies
which enable them to apprehend the financial reporting of large groups in their entirety. Thus, we
will review the methodology to price insurance contracts and to challenge estimates of
commitments made in non-life and in life insurance business. The valuation of assets will also be
discussed.
In addition, we will study the financial audit aspects in general and more specifically the methods
used 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 particular
case of a valuation of a portfolio in the case of a transaction between companies.
LEARNING OUTCOMES

After having taken this course participants will be able to:
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 Insurance
companies
!
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 studies
75% Final Exam
FINANCIAL ECONOMICS
MASTER 1 2013/2014

ED-M1FE-S2-FIN-E: CFA PREPARATION (668)

NUMBER OF HOURS: 18
SEMESTER 2
INTERNATIONAL PROGRAMME - 1.5 ECTS
COURSE COORDINATOR: Michael PAYTE




COURSE OBJECTIVES

The CFA certification program is highly challenging and the objective of the CFA
Preparation is to create a continuously focused learning environment that is compatible with
the students academic responsibilities;
!
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 professional
credential;
!
The course is focused on dedication to knowledge, professional competence, and high
ethical standards.
!
LEARNING OUTCOMES

After having taken this course participants will be able to:
Have an appreciation of the structure and methods of the CFA certification examination
process;
!
Develop a learning and study environment to progressively acquire the knowledge and skills
for the Level I Examination
!
PREREQUISITES

Comprehensive knowledge of Financial Accounting: Financial Statements including the
Income Statement, Balance Sheet and Statement of Cash Flows;
!
Comprehensive knowledge of Time Value of Money and Bond Market computational skills
including PV, NPV, Discounted Cash Flow, Duration, Yields and Credit Spreads;
!
Comprehensive knowledge of Business & Financial Statistics including Mean Returns,
Variance, Standard Deviation, Covariance, Correlation and Regression;
!
Macro-Economics including Supply/Demand Curves, Monetary, International Trade and
Capital flows
!
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 exam
questions for each of the above concepts and topics.
!
ASSESSMENT METHODS

Comprehensive final exam in the CFA format of multiple choice questions weighted at 100%
of class performance
!
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, the
higher the fee;
Candidate Body of Knowledge (CBOK), this is the complete set of study texts required
for 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
!
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Cambrldge unlverslLy ress (second edlLlon)
(8Lh LdlLlon) ChlchesLer, uk: !ohn Wlley & Sons, 2013.
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8th ed, Prentice Hall (2011), ISBN-10: 0132164948 (OFoD)

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