Duration
30h Th
Number of credits
| Advanced Master in Financial Risk Management | 5 crédits |
Lecturer
Language(s) of instruction
English language
Organisation and examination
Teaching in the second semester
Schedule
Units courses prerequisite and corequisite
Prerequisite or corequisite units are presented within each program
Learning unit contents
The goal of this course is to provide students with the necessary theoretical and conceptual tools used in sustainable investment analysis.
The course will cover, among others, the following topics:
- Investing for long-term value creation.
- Financing sustainability: equity, and bonds.
- Equilibrium models of sustainable investing without Environmental, Social and Governance (ESG) uncertainty.
- Equilibrium models of sustainable investing with ESG uncertainty.
- Empirical evidence.
Learning outcomes of the learning unit
At the end of this course students will be able to:
- Understand, explain, and synthetise the goals of sustainable finance.
- Understand the instruments to finance sustainable projects.
- Analyse firms' ESG performance and understand how it can be included in investment decisions.
- Understand equilibrium models of Sustainable Investing and explain these concepts.
- Criticize and assess the empirical evidence on Sustainable investing.
- Read and understand cutting-edge scientific research on Sustainable Finance.
- Apply theories to solve real-life case studies in Sustainable Finance.
- Ability to speak in English.
- Teamwork skills.
- Critical thinking.
- Professional oral communication.
- Professional written communication.
Prerequisite knowledge and skills
- Fundamentals in finance (notion of arbitrage, net present values, financial markets). A course like Financial Modeling and Portfolio Management (FINA9021) Market Finance in EU (FINA0091), or Applied Financial Instruments (FINA0068) is a good prerequisite.
- Fundamentals in statistics (introductory econometrics, notion of univariate regression models, how to conduct hypothesis tests). Courses like Empirical Methods in Financial Markets (FINA0060) or Advanced Econometrics (ECON0213) are good complement.
Planned learning activities and teaching methods
The course is primarily a lecture, based on academic articles and the book " Principles of sustainable finance ", by Schoenmaker & Schramade. During these sessions, the theoretical notions will be introduced and illustrated by practical exercises.
The in-person sessions will be dedicated to the solution of practical exercises. Some time will be given to students to work in groups on a real-life case study in Sustainable Finance. In the last in-person session, students are expected to present their solution to the case study.
Mode of delivery (face to face, distance learning, hybrid learning)
Blended learning
Additional information:
Distance learning on weekdays and Face-to-face on Saturdays
Recommended or required readings
Schoenmaker, D., & Schramade, W. (2018). Principles of sustainable finance. Oxford University Press.
Avramov, D., Cheng, S., Lioui, A., & Tarelli, A. (2022). Sustainable investing with ESG rating uncertainty. Journal of Financial Economics, 145(2), 642-664.
Pástor, L., Stambaugh, R. F., & Taylor, L. A. (2021). Sustainable investing in equilibrium. Journal of Financial Economics, 142(2), 550-571.
Pedersen, L. H., Fitzgibbons, S., & Pomorski, L. (2021). Responsible investing: The ESG-efficient frontier. Journal of Financial Economics, 142(2), 572-597.
Further readings will be communicated during the semester.
Exam(s) in session
May-June exam session
- In-person
written exam ( open-ended questions )
August-September exam session
- In-person
oral exam
- Remote
oral exam
Written work / report
Continuous assessment
Additional information:
The final grade will be determined by the following three parts:
Written test (60%)
Explain asset pricing models with responsible investors, what is the theoretical rationale behind, and what is the empirical evidence. Explain the financial instruments to finance sustainable projects.
Presentation and Participation (15%)
Per group, students are expected to present the equity evaluation of a company incorporating sustainability considerations. Each presentation will be followed by Q&A.
Slides of the presentation (25%)
Per group, students are expected to work on the feedback received during the presentation and improve their equity evaluation.
Work placement(s)
Organisational remarks and main changes to the course
Contacts
Caterina Santi, Ph.D. | Assistant Professor
HEC - Management School of the University of Liège (Belgium)
Office 104 Bat N1, Rue Louvrex, 14, 4000 Liège Belgium
email : Caterina.Santi[at]uliege.be
Association of one or more MOOCs
There is no MOOC associated with this course.