Current Trends and a Minor in Finance D, 30 Credits

Contents

The course gives the opportunity to further develop within the major subject in a module on the latest development and in a module on research methodology. The course also gives a Minor subject in Finance.

Module 1. Research Methodology in Business Research, 7,5 ECTS
Module 2. Advanced Corporate finance, 7.5 ECTS
Module 3. Investments, 7.5 ECTS
Module 4. Current Trends in Business Administration, 7,5 ECTS

Module 1. Research Methodology in Business Research, 7,5 ECTS
The overarching aim of this course is to develop advanced knowledge of perspectives, strategies and design in research. This will increase the student’s ability to carry out and assess business research and investigations. Important building blocks are the problem formulation, frames of reference, scientific approaches, including the ontological and epistemological points of departure, and methods for data collection and analysis.

Expected learning outcomes:
After completing this module, the student should be able to:

• identify and discuss how fundamental assumptions, scientific ideals, perspectives and frames of reference influence a process of scientific knowledge creation
• formulate and argue for relevant research questions, including the theoretical relevance and positioning
• discuss characteristics of research strategies and approaches, critically review and assess literature, and discuss and evaluate the suitability of various methods to solve different research questions
• apply acquired knowledge in the planning, design, implementation and reporting of scientific studies
• demonstrate an ability to assess and discuss social, environmental and ethical dimensions of business research issues

Focus of instruction:
Lectures, seminars, practical assignment(s), individually or in groups, and the reading material complement each other to help students to develop deep knowledge of what scientific research in business and management fields is all about.

Examination modes
The final grade is based on a written exam and reporting of assignment(s). Participation at all seminars and presentations is compulsory to pass the module. The final grade is awarded when the student has passed all assignments and compulsory course elements.

See also note 6 below.

Module 2.   Advanced Corporate Finance, 7.5 ECTS
The primary purpose of this module is to provide an integrated overview of the most important concepts in Corporate Finance. The subject extends the student’s knowledge about the context in which corporations operate. Topics to be covered in this module include capital market imperfections and methods developed in finance to control risk and reduce uncertainty in the financial management of corporations. Issues in corporate policy and strategy, based on theoretical developments in finance are presented. Students will learn the processes involved in the valuation of debt and equity and the methods that have been used to manipulate external perceptions of business outcomes.

Expected learning outcomes
After completing this module, the student should be able to:

• assess the impact of information asymmetry on corporate financial policy decisions from the selection of particular modes of financing to dealing with the problems associated with financial distress
• explain the theoretical basis and applicable strategies applied in regard to issues of corporate control
• compare and contrast leverage strategies in ideal versus real capital markets and be able to explain the expected impact of alternative taxation systems on the use of debt in a firm’s capital structure
• argue for optimal levels of corporate debt and/or equity and be able to price an offering of either under different financing strategies
• formulate and logically defend a position in regard to current issues, such as corporate control and governance, which confront corporations today

Focus of instruction
The core topics of this module will be covered through lectures, as well as in smaller group workshops and seminars.

Examination modes
Examination is based upon a written comprehensive individual exam and group assignments. A passing grade is required for each part of the module.

Module 3. Investments, 7.5 ECTS
Students undertaking the Investments module are provided with an opportunity to learn relevant theories and models to acquire a specialization at an advanced level in investment analysis. In the module fixed income securities are reviewed in terms of valuation and portfolio management. This includes coverage of concepts as duration analysis, convexity and immunization. Derivative securities (options, futures, swaps and convertibles securities), their pricing and relevant parity-relationships are emphasized and studied within the module. The creation of synthetic securities and the construction and maintenance of various hedging strategies for both portfolios and individual securities using different derivatives are also discussed. The concept of Value at risk, an essential tool for modern risk management, is further covered in the context of investment management. The module, finally, also include coverage of portfolio management strategies and measurement of portfolio performance.

Expected learning outcomes
After completing the module, the student should be able to:

• value fixed income securities and measure their associated risk.
• apply active and passive portfolio management techniques to fixed income securities
• calculate value at risk (VaR), as well as, perform backtesting for individual securities and portfolios
• value derivatives and explain the use of these in hedging investments and their impact on potential return and risk
• evaluate portfolio performance using, for example, risk-adjusted metrics

Focus of instruction
The core topics of this module will be covered by lectures, although seminars, cases and computer exercises utilizing Excel may also be used. Students are expected to play an active role in every aspect of the course module.

Examination modes
Examination is based upon a written comprehensive individual exam and group assignments. A passing grade is required for each part of the module. See also note 6 below.

Module 4. Current Trends in Business Administration 7,5 ECTS
The aim of this master course is to lead the students to explore, create greater far-sightedness and also readiness to meet emerging strategic trends in business environments.  The first part of the course focuses on general theories, practice, and methods related to future studies. Specific attention is paid to international “mega trends” which are predicted to have a long-term impact on society at large, e.g. climate change, globalization, and an aging population. The second part concentrates on the core areas of the five master programs at USBE, and will examine how “mega trends” may be transformed to strategies and management routines related to the business sector.  Emerging research questions and suggestions for future research in accounting, entrepreneurship, finance, management, or marketing will be discussed. In the last part of the course, but introduced at the beginning of the course, each student will apply acquired knowledge to develop a conceptual paper based on the identification of one future-oriented topic.    

Expected learning outcomes
After completing the course the student should be able to:

• evaluate emerging trends in society
• demonstrate familiarity with forecasting/scanning/scenario/monitoring methods
• formulate specific action plans of how to meet current trends in specific sub-disciplines in the business sector
• with a research approach evaluate the state of the art and identify and communicate future trends within the major field of the master program relevant for respective student

Focus of instruction
Teaching is conducted through lectures, seminars and course papers. The core topics will be covered by lectures and seminars, in which students will be expected to take an active part. Students are required to make oral presentations at seminars and to submit written course papers.

Examination modes
Examination is based upon the completion and defense of an individual conceptual

A passing grade is required for each part of the module.

Expected learning outcomes

See respective module.

Required Knowledge

University: Admitted to one of the following Master programs in Business Administration (Management, Accounting, Marketing or Business Development and internationalization) at Umeå School of Business and Economics.

Form of instruction

See respective module.

Examination modes

See also above under respective module.

The following grading system will be used:
Pass with distinction (Väl godkänd, Vg, 75% or more),
Pass (Godkänd, G, 50% or more)
Fail (Underkänd, U, less than 50%).

To receive the grade Pass with distinction (Väl godkänd) on the course, the student must have achieved that grade at three of the four modules.

Students who fail to present a photo ID at the occasion of a written examination cannot have their results registered.

In case of failure on seminar participation or individual and group assignments, compensating assignments must be completed in accordance with instructions given, no later than two weeks after the completion of the module.

Students who do not pass at the time of the normal written examination will be offered an opportunity to sit a further examination within a month. Beyond that, additional examination opportunities normally arise every academic year, one week prior to the start of the autumn term.

When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity.

Rules and regulations concerning the production of academic texts and correct referencing will be applicable to all written assignments. (see instructions in the Thesis manual. Thesis writing in Business Administration.) Urkund records may be used for control.

Lectures are normally not obligatory. However attendance is expected because the lectures are designed to facilitate students towards achieving course specific learning objectives. In addition lectures often provide insightful explanations of, and can supplement and provide contrast to, the course literature and other relevant course materials.

Student who has passed an examination cannot retake the examination to get a higher grading.

Grades on the course are awarded when students have passed all examinations and compulsory course elements.

Academic credit transfer
Academic credit transfers are according to the University credit transfer regulations.

Other regulations

This is a course at D-level (Advanced level) in the Masters program in Business and Administration at Umeå School of Business and Economics.