MSc in Finance

The MSc in Finance is a one-year, full-time programme. It is both academically challenging, with input from world-leading academics, and practically focused, giving you the opportunity to develop the confidence, knowledge and skills needed for a successful career in finance.

Given the increasing integration of national capital markets, it is becoming more and more important to possess a high-quality postgraduate qualification in finance for those wishing to work for corporations and government bodies involved with stock markets, project investment and the finance industry.

Facilities at Cardiff Business School include a fully functioning trading room giving access to the latest market data. Students on the MSc in Finance make extensive use of the trading room, including Reuters 3000 Xtra and the TraderEx market simulation software, in a specially designed module on market structure and trading systems.

The first semester of the degree is to provide you with a sound theoretical foundation in finance as well as the quantitative and research skills required for a successful career in finance.

Autumn Semester

Four compulsory modules

Research Methods in Finance

This module develops your knowledge and understanding of the research methods used in the field of finance and reviews the potential limitations of existing methodology. While some mention of econometric techniques is inevitable, the focus is on methodologies, including measuring and benchmarking techniques that are specific to finance. The module also covers research design and implementation in finance. The module will provide you with a range of techniques and skills essential for your dissertation research.

Principles of Finance

This module will give you an overview of financial markets with particular emphasis on the portfolio investment decision process.

Quantitative Methods

The module provides a theoretical and practical training in econometric methods and their application to financial problems. The module makes extensive use of the School’s computer laboratories

Market Structure and Trading Systems

You will be taught the essentials of price discovery, trading strategies, market microstructure and the trading systems used in financial markets. You will be exposed to trading systems both in theory and in a simulated trading environment. The module will also review the role of various traders such as informed traders, noise traders and liquidity traders. Extensive use will be made of the School’s Trading Room.

Spring Semester

Two compulsory modules

Research Topics in Finance

The aim of this module is to provide you with an overview of the key issues arising in the classical and contemporary empirical finance literature. Specifically, you will be given insight into the motivation, methodologies employed and contribution of the papers in this literature and you will be provided with a critical evaluation of a selection of these papers. As part of this module, you will write a research proposal for your dissertation.

Research Topics in Accounting

The accounting literature covers a wide range of theoretical and empirical issues involving quantitative and qualitative methodologies. This module aims to develop a critical understanding of the various theoretical and empirical frameworks applied to the various areas of accounting research.

Empirical Finance

This module introduces you to the major times series econometric techniques that are widely used in the modelling of financial data and the testing of hypotheses concerned with the functioning of financial markets. It will provide you with the capacity for understanding and critically appraising applied work in financial econometrics. The module will enable you to undertake your own quantitative research projects.

At least one of the following two modules:

Corporate Finance

This module reviews advanced topics relating to the financing of corporate investments and corporate restructuring. The module examines the main issues relating to the financing of corporate investments when the assumptions underlying perfect capital markets are not upheld.

Financial Derivatives

This module focuses on the pricing of the major derivative securities and provides you with training in the use of derivatives in managing risk.

and at most one other module from the following list:

International Banking

In this module you will review the main principles and problem of international banking. The module is intended to cover both theoretical issues as well as the institutional background to international banking.

International Finance

This module aims to familiarise you with the important theories of exchange rate determination and international risk management.

Mathematical Finance

Suitable for students with a background in mathematics and other highly quantitative disciplines, this module gives an overview of modern mathematical finance theory and application. A particular emphasis is given to martingale pricing theory.

Marketing of Financial Services

The role of marketing in the financial services industry is becoming increasingly important. The aim of this module is to draw your attention to the development of a financial services strategy within an organisation and the diagnosis of the factors that may hinder its implementation.

Investment and Electronic Trading

This module will provide you with knowledge of investment valuation and trading in the financial markets. In particular, you will learn methods of investment valuation and how they relate to practice. The module will also enable you to understand modern electronic trading, both in theory and in a simulated trading environment. The module makes use of the School’s Trading Room.

Issues in Islamic Banking and Finance

The module gives an insight into the key features of Islamic banking and finance as well as the major challenges facing it. The first part introduces Islamic banking and outlines the key differences with conventional banking. The second part focuses on issues such as Islamic contracts. The final part reviews current issues and the challenges facing the Islamic banking and finance industry such as regulation, corporate governance and the role, function and effectiveness of Shariah Boards.
From June to September you will work on an individual, research based dissertation under the individual supervision of a faculty member.

Dissertation

Support is given from the outset in preparing for the dissertation via a range of first- and second-semester modules, including Research Methods in Finance and Research Topics in Finance. Examples of dissertation topics include: A test of the CAPM and the Fama-French three-factor model; market efficiency in the foreign exchange market of Hong Kong; shareholder lock-in agreements and insider trading in UK IPOs; interest rate fluctuations and implications for the banking sector; the day of the week effect in five European emerging stock markets; the accuracy of value at risk (VaR) models in US banks; longitudinal study in the importance of beta in capital asset pricing model; and testing for seasonals in the Athens Stock Exchange.

Assessment

Students are assessed through a range of procedures. These include the completion of individual and group assignments, formal written examinations, the preparation of a research proposal and the completion of a research-based dissertation. Members of the programme team will provide advice on revision and preparation for examinations.