Postgraduate Course: Global Financial Markets and Emerging Economies (CMSE11129)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | The aim of the course is to introduce students to key issues related to the interaction between international financial and capital markets and firms in emerging markets. By employing a blend of theoretical concepts, empirical evidence and some applications, the intention is to increase knowledge and promote an understanding of the behaviour of financial agents and global financial markets within the framework of modern finance theory. In addition, elements from other disciplines, notably aspects of new institutional economics and political economy are discussed.
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| Course description |
The course introduces the structure and functioning of equity, bond markets and foreign exchange markets with particular reference to emerging economies. It also focuses on specific topics that include raising capital in domestic and international equity and bond markets, currency markets, project finance and the microstructure of major financial markets. A key element underlying the analysis is globalization and its effects on markets, asset allocation and the real economy. The course touches on the institutional context of emerging economies' financial systems, their characteristics, weaknesses and constraints. The theoretical framework will be complemented by empirical evidence and by analysis of real-world financial instruments and financial policy issues.
One of the most important insights about the interaction of the global financial system and emerging economies is that you have to look at more than just the finance in evaluating investments in emerging markets. To be successful, the analyst needs to take into account insights from political Science (public policy), macroeconomics, demography, legal studies, environmental and cultural studies, among others.
Syllabus:
The Investment Environment
Portfolio Management: Mutual Funds & Hedge Funds
Risk, Return and Portfolio Theory
The Equity Markets (Capital Raising)
The Equity Markets (Valuation & Pricing)
Bond (Fixed Income) Markets
Issues in Emerging Market Investments
Foreign Exchange Markets & International Diversification
Derivative Markets
Financial Market Development & Course Review
Student Learning Experience:
Students will become acquainted with the structure of equity, bond and foreign exchange markets and the main instruments traded in these markets and key issues faced by emerging markets firms that seek to operate in the global capital markets. This will be achieved by a mix of lectures on the related theory and discussion of published research in the area.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
Students MUST have passed:
Accounting and Financial Management (CMSE11104)
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | For Business School PG students only, or by special permission of the School. Please contact the course secretary |
Course Delivery Information
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| Academic year 2015/16, Available to all students (SV1)
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Quota: None |
| Course Start |
Semester 2 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
150
(
Lecture Hours 20,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
127 )
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| Assessment (Further Info) |
Written Exam
70 %,
Coursework
30 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
70% final examination
30% group report and presentation
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| Feedback |
All students will be given at least one formative feedback or feedforward event for every course they undertake, provided during the semester in which the course is taken and in time to be useful in the completion of summative work on the course. Such feedback may be at course or programme level, but must include input of relevance to each course in the latter case.
Feedback deadlines
Feedback on formative assessed work will be provided within 15 working days of submission, or in time to be of use in subsequent assessments within the course, whichever is sooner. Summative marks will be returned on a published timetable, which has been made clear to students at the start of the academic year.
Students will gain feedback on their understanding of the material when they discuss their answers to the tutorial questions in the tutorials. Students may also ask questions in Lectures to assess their knowledge.
Feedback format:
Discussion of literature and lecture themes in tutorials
Formal presentations by the assignment groups and discussion of same
Feedback on group reports and presentations
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| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
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| Main Exam Diet S2 (April/May) | | 2:00 | | | Main Exam Diet S1 (December)Main Exam Diet S2 (April/May)Resit Exam Diet (August)Outwith Standard Exam Diets JanuaryOutwith Standard Exam Diets FebruaryOutwith Standard Exam Diets MarchOutwith Standard Exam Diets AprilOutwith Standard Exam Diets MayOutwith Standard Exam Diets JuneOutwith Standard Exam Diets JulyOutwith Standard Exam Diets AugustOutwith Standard Exam Diets SeptemberOutwith Standard Exam Diets OctoberOutwith Standard Exam Diets NovemberOutwith Standard Exam Diets DecemberResit Exam Diet (April/May Sem 1 resits only) | Exam | : | |
Learning Outcomes
On completion of this course, the student will be able to:
- Understand and critically discuss the relation between financial markets and firms.
- Understand and critically discuss how markets for equities, bonds, derivatives and foreign exchange function, how these instruments are traded and the role of global capital markets in raising finance for emerging market firms.
- Critically evaluate problems and issues related to institutions, legal frameworks, disclosure regimes and financial risk that must be considered when emerging market firms raise capital in international capital markets through equity and bond issues, cross-listing and other methods
- Critically appraise issues related the problems involved in raising capital internationally.
- Present and critically discuss academic and clinical research studies related to the question of emerging market firms and global capital markets.
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Reading List
'Investments' by Bodie, Z., Kane, E., and Marcus, A.J., 10th Edition
ISBN: 9780077161149
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Additional Information
| Graduate Attributes and Skills |
Cognitive Skills:
On completion of the course students should have demonstrated that they are able to:
-Acquire knowledge of the basic concepts of the structure and function of financial markets.
-Critically appraise issues related the problems involved in raising capital internationally.
-Present in an organised manner academic and clinical research studies related to the question of emerging market firms and global capital markets.
-Find and analyse relevant literature on issues related the role of international capital markets in providing capital for emerging market firms.
Key Skills:
On completion of the assessed course work students should be able to:
-Be able to present ideas and concepts in research in this area.
-Critically appraise the pros and cons about issues dealt with in this course.
-Write a concise report and present research on developments in emerging market corporate finance
Subject Specific Skills:
Students should be able to analyse and discuss important issues facing emerging market firms that wish to use international capital markets (including the effects of globalisation, the pros and cons of the raising capital globally, the costs and benefits of international disclosure and listing requirements and the management of risk etc.) as well as the understand related policy implications .
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| Keywords | IBEM-GFMEE |
Contacts
| Course organiser | Dr Wenxuan Hou
Tel: (0131 6)51 5319
Email: Wenxuan.Hou@ed.ac.uk |
Course secretary | Mr Peter Newcombe
Tel: (0131 6)51 3013
Email: Peter.Newcombe@ed.ac.uk |
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