2018-2019 / FINA0068-1

Applied Financial Instruments

Durée

45h Th

Nombre de crédits

 Bachelier en sciences économiques et de gestion4 crédits 
 Bachelier en ingénieur de gestion4 crédits 

Enseignant

Julien Hambuckers

Coordinateur(s)

N...

Langue(s) de l'unité d'enseignement

Langue anglaise

Organisation et évaluation

Enseignement au deuxième quadrimestre

Horaire

Horaire en ligne

Unités d'enseignement prérequises et corequises

Les unités prérequises ou corequises sont présentées au sein de chaque programme

Contenus de l'unité d'enseignement

A titre d'information: engagement pédagogique 2015-2016
Nouveau titulaire en 2018-2019

The 'Applied Financial Instruments' course provides an introduction to empirical methods that play an important role in finance and management. We will go over selected topics in asset pricing (portfolio theory, domestic versus international diversification, capital asset pricing model, event study analysis,...), fundamental analysis (bond pricing, discounted cash flow) and management decision-making (Net Present Value and investment decisions,  asset and liability management, sensitivity analysis, decision trees, ...) and related fields. 
The course is structured in two parts:
Part I: Fundamental analysis and applied tools in corporate finance
Part II: Asset pricing and portfolio analysis 
The course will be conducted in an interactive fashion. A topic will be selected for each session. The methodological framework will be outlined and we will accompany participants' first steps in the empirical implementation of the solution.

Acquis d'apprentissage (objectifs d'apprentissage) de l'unité d'enseignement

The course provides students with a deep understanding of management disciplines such as corporate finance and market finance. Through the assigned problem sets, students will develop analytical and modeling skills in finance as well as strengthen their communication skills in English. In particular, students will improve their skills in empirical analysis - competences that will turn out to be crucial not only for group and individual tasks to be delivered throughout their master studies but as well for the empirical work of their master thesis.
 
This course contributes to the following Intended Learning Outcomes : 
ILO-6: being able to use accounting, mathematical, statistical and IT tools to solve a management problem
ILO-7: being able to conduct research autonomously and methodically to obtain the information needed to solve this problem using a critical approach 
ILO-5: being able to speak 2 foreign languages at advanced levels:  C1 in English and B1/B2 in another language 
ILO-9 : being able to work within a team 
ILO-13: being able to communicate orally 

Savoirs et compétences prérequis

Basics of financial markets and financial mathematics
  
Students who need to acquire the prerequisites are invited to read the following chapters:
- Accounting statements and cash flows: working knowledge of key financial statements, i.e. income statement, balance sheet and cash flow statement. Please read Chapters 2 and 3 - Ross, Westerfield and Jaffe. 2008. Corporate Finance. New York: McGraw-Hill, 8th edition;
- Basics in capital budgeting: working knowledge of discounting/compounding. Please read Chapter 4 - Ross, Westerfield and Jaffe. 2008. Corporate Finance. New York: McGraw-Hill, 8th edition;
- Basics in financial markets: working knowledge of key concepts like risk and return as well as of the capital asset pricing model and the asset pricing theory. Please read Chapters 10 to 13 - Ross, Westerfield and Jaffe. 2008. Corporate Finance. New York: McGraw-Hill, 8th edition.

Activités d'apprentissage prévues et méthodes d'enseignement

The course is structured along two lectures per week: 2.5 hours lecture (including students' presentation) on Tuesdays, and 2 hours technical tutorial class on Fridays.
Each pair of sessions will be devoted to the methodological framework typically used to analyze a central question in finance and/or management. The goal is not to provide an exhaustive survey or coverage of empirical methods in finance and management. Instead, we will focus on understanding why a particular empirical methodology has been chosen, why is it best adapted to the problem at hand, and how is it used in practice. 
Participants will be expected to make a presentation outlining the empirical issues and the solutions proposed. This should train participants to collect data and, most importantly, to focus on the practical use of two major softwares (Excel and Eviews).

Mode d'enseignement (présentiel ; enseignement à distance)

Face-to-face lectures are designed to transfer the fundamental concepts in corporate finance and market finance. Technical tutorials are structured to enable students to apply the tools presented and explained in class on key financial problems.

Lectures recommandées ou obligatoires et notes de cours

Book chapters and scientific articles will be announced during the class.
  

Modalités d'évaluation et critères

Students' modeling skills and their ability to solve complex problems in financial management will on the one hand be tested on a continuous basis (60% of the final grade): group work will weight for 40% (of the final grade) and students will receive an individual grade based on their individual participation to case study presentations in class (20% of the final grade).
On other hand, an oral exam (40% of the final grade) will assess each student's understanding of financial theories and principles seen during the class as well as his analytical as well as methodological skills in the decomposition of a financial problem.

Stage(s)

Remarques organisationnelles

Contacts

Julien Hambuckers, PhD.
Rue Louvrex, 14, 4000 Liege
email: jhambuckers[at]uliege.be

Notes en ligne

online notes
Lecture notes will be available on the course web page. Other items such as problem sets will also be available on the course web page. Some additional readings on materials related to the course over the term may be provided throughout the course via the course web page. Please refer to LOLA to access the course web page.