Advanced Finance (H)

This course provides an in-depth look at some of the main theoretical and research perspectives that have contributed to the academic literature in finance. Students will develop their ability to critically review issues in financial economics and corporate finance. Financial economics topics include asset pricing models, market efficiency, behavioural finance, trading mechanisms, and volatility. Corporate finance topics include capital structure, signalling models, executive compensation, and takeovers. This is a readings-based course in which students will critically review scholarly research articles each week. It will be the responsibility of students to select additional readings for each session. It is suggested that this should be a shared responsibility with students taking turns to choose an disseminate material among course lecturers and other class members ahead of time, for each class. Students are to come to each session prepared to summarise and comment on what they have read. It is anticipated that a minimum of five to eight hours of preparation time will be required. Class presentations are expected to be comprehensive, requiring not only mastery of the arguments, but also to be supported by visual material. Participation marks will be awarded for the demonstration of effective reading and an understanding of the arguments presented.