Business Finance MSc

About the Course

This MSc programme focuses on the financial decision making and financial analysis appropriate for the understanding of financial markets and institutions, and is particularly attractive to those students whose career choices are likely to lie in the financial sector.

The course also provides a sound foundation for those interested in continuing with research towards a PhD, and former students are now working as academics at institutions including the Australian School of Business, Glasgow University and Oslo Business School.

Aims

Through the core units, the aim of the course is to provide a rigorous treatment of the theory of corporate finance as well as to provide you with the econometric and mathematical techniques necessary to understand the literature and undertake empirical investigations in the area of finance.

Through a selection of optional units, the course is designed to offer you the opportunity to obtain more specialised knowledge of options such as Financial Engineering, International Finance, and Money and Banking.

Financial Engineering considers stock options and futures contracts on indices and how such assets might be used to hedge and evaluate risk.

International Finance is informative both from the perspective of the derivatives used to hedge exchange rate risk and of the macroeconomic understanding of what drives exchange rate behaviour in an open economy.

Enquiries

Course enquiries
Email sss-pgenquiries@brunel.ac.uk
Tel +44 (0)1895 265285

For applications already submitted
Contact Admissions online
Tel +44 (0)1895 265265

View the School of Social Sciences website

Related Courses

Special Features

Our range of general and specialist courses reflects our particular strengths in financial

markets and institutions, financial accounting, macroeconomics, econometrics and microeconomics.

Academic staff are involved in international research, reflected in a strong publications record and a vibrant PhD programme. In the 2008 RAE, 95% of academics were rated as conducting research of international standing.

Students in Economics and Finance benefit from the combination of specialist lecturer expertise, access to wider disciplinary expertise, and a multi‑disciplinary approach to course development that is a particular strength of the School of Social Sciences.

Economics and Finance Research Centres

Brunel Macroeconomic Research Centre
Centre For Economic Development and Institutions
Centre for Empirical Finance
Corporate Governance and Finance Research Centre
Centre for the Analysis of Risk and Optimisation Modelling Applications

What our students say

Joseph: “Brunel’s graduates have amongst the highest graduate starting salaries in the UK.”
Huong: “Something I love here at Brunel is the international environment, which enriches my understanding of different cultures.”
Jigar: “I found the tutors very friendly and they were ready to explain everything from scratch.”
Vidar: “Academic staff at Brunel are of a high standard and the University has first class facilities to offer its students.”
Enid: “The programme has equipped me to make a meaningful contribution to the development process in my country as a government analyst, particularly with regard to financial regulations, practices and institutions.”

Course Content

The Business Finance MSc analyses the theory and practice of business finance, focusing on financial decision making, financial analysis, and financial markets and institutions.

Through the core units, the aim of the course is to provide a rigorous treatment of the theory of corporate finance as well as to provide you with the econometric and mathematical techniques necessary to understand the literature and undertake empirical investigations in the area of finance.

Through the optional units the course is also designed to offer a broader perspective on the subject matter and allows you to specialise in an area of finance that is of particular interest to you.

Core Modules

Modelling Financial Decisions and Markets
This module aims to provide a firm foundation in the theory and practice of econometric modelling of financial decisions and markets. The first half of the course is mainly theoretical, with examples of academic and professional applications used to illustrate and elucidate; the second half reverses the emphasis. The emphasis throughout is on the rationale of the econometric methods analysed and their use in practical applications.

Advanced Financial Theory and Corporate Policy
This module is designed to provide students with a thorough knowledge of financial theory and corporate finance through the study of the interaction between firms, individuals and the macroeconomy. The module provides an opportunity for students to develop an understanding of capital markets through the study of portfolio theory, equilibrium asset pricing models, efficient market theory, option pricing theory, optimal capital structure, dividend policy and mergers. Students will be able to establish the appropriate investment criteria in a world of uncertainty, to price derivative securities, and to derive the optimal capital structure of firms.

Business Finance Workshop

The module provides the following: The characteristics of financial data and accounting information. The model building methodology applied to accounting data and financial market information. The main estimation techniques and theories of finance as they are applied in practice.

The methods used to diagnostically evaluate statistical models as applied in practice. The ability to interpret and analyse financial methods and data. The ability to determine the appropriateness of method and theory applied to different data types and practical settings. The ability to select inferential procedures to appropriately assess financial problems. The ability to predict financial behaviour and assess models in a practical environment. The ability to evaluate empirical research in accounting and finance. The ability to value financial assets. Demonstrate generic and transferable skills

Dissertation

Recent examples of dissertations by students taking this course include:

Modelling and forecasting stock market volatility; a case study of FTSE-100 and DAX-30
Financial accounting data and their relevance in the biotech industry
The effect of financial liberalisation on the interest rate spread; the case of Greece

Elective Modules (three from)

Development Finance

One of the key areas of economics, has attracted interests of academics and practitioners alike. Only in the last five years the financial sector has gone through a number of remarkable structural changes as a result of the increasing financial integration worldwide. The general trend towards greater global financial integration has been bolstered by the increasing harmonisation of the regulatory framework and the increasing integration of the underlying financial infrastructure. The abovementioned financial developments create the need for economists, managers, traders and analysts to make rapid and often far-reaching decisions about their short term operations and long term strategies. The aim of this module is to provide a good grasp of both the key areas of development finance (the finance-growth relationship) and selected aspects of the applied economics of the modern financial institutions. The topics covered include financial development and economic growth. Special attention will be given to the topics of financial crisis and the need and role of regulation.

Capital Markets and Securities Valuation

This module is designed for those wishing to study the financial markets. The material begins with a “macro” view of the financial market by looking at the problem of investing in portfolios (combinations of securities) and then goes on to study the details of fixed interest and equity securities. It concludes with portfolio management and evaluation. Along the way the theory of finance is imparted via illustrations in portfolio theory, the analysis of fixed in terest and equity securities and advanced techniques for portfolio evaluation.

Derivative Securities

The aim of this module is to describe the theory and practice of financial engineering. Throughout this module we will show how to use financial theory to solve practical problems and also to illuminate the institutional material that students of financial engineering must absorb. Also to o enumerate and describe the various securities and markets in a clear and concise manner that accurately blends theory and practice.

Risk Management

This module provides an analysis of the ways in which risks are quantified and managed by financial institutions and market participants. Among the topics covered are the measurement, modelling, and management of market risk, volatility, value at risk and credit risk. A critical discussion of academic papers is an integral part of the module.

Course requirements: Time Series econometrics. Students will also need to be fairly competent users of Eviews.

Banking

The module aims to explore the nature of banking as well as links between financial intermediaries, risks and the broader economy. As a starting point we will use economic theories to justify the existence of banks and why they can perform certain roles better than other intermediaries. We then focus on the different risks associated with banking – whilst these are inevitable outcomes of banking activity their active management at a micro and macro level can reduce financial fragilities. In regards to the latter, the last part of the course focuses on bank regulators’ objectives and how these are accommodated in research and policy framework such as Basel III.

International Finance

This module analyses the international financial system. In particular, it considers the operation of foreign exchange markets, including forward, futures and option markets. Special attention is paid to the use of currency derivatives for hedging and pricing decisions, discussing issues of foreign exchange risk management and international capital budgeting. In addition, the use of such instruments in speculation is assessed, relating them to key equilibrium notions. The main theories of exchange rate determination are analyzed, discussing arguments in favor of fixed exchange rates/target zones and under which conditions these result in speculative attacks and/or currency crises.

Accounting and Corporate Policy

An evaluation of the mechanisms for corporate governance: The Cadbury Report and The Combined Code on Corporate Governance. A theoretical evaluation of key accounting areas in the context of investors’ information needs. For example: the economic role of accounting standards; provisions and contingent liabilities; group and joint venture accounting; intangible assets; accounting for executive share options; financial instruments.

Assessment

All modules are assessed by a combination of coursework and final examinations. Students who successfully complete the taught part of the course can proceed to the dissertation stage. Students are expected to work on their dissertation in the summer and to submit the final draft in mid-September.

Careers

The Department of Economics and Finance is proud to be celebrating 20 years of taught postgraduate education in Finance this year. The MSc in Business Finance started in October 1991: former students from this course are now themselves teaching in the Australian Business School, EdHec Business School, Nice, Glasgow University and Oslo Business School. Other MSc students hold senior positions in financial institutions and some students from the Business Finance degrees are at the Bank of Cyprus, HSBC in Istanbul, Standard Life in the UK and TD Bank Financial Group in Canada.

Fees for 2013/14 entry

UK/EU: £12,000 full-time

International students: £15,000 full-time

Read about funding opportunities available to postgraduate students

Fees quoted are per annum and are subject to an annual increase.

Entry Requirements

A 2.1 degree in Economics; Finance; Mathematics; Statistics; Physics; Engineering; or an equivalent qualification from overseas. All applicants would be required to have a minimum background in mathematics or statistics and economics or finance. However a strong background in mathematics or statistics could be a substitute for the required background in economics and finance.

English Language Requirements

IELTS: 6.5 (min 6 in all areas)
TOEFL Paper test: 580 (TWE 4.5)
TOEFL Internet test: 92 (R20, L20, S20, W20)
Pearson: 59 (51 in all subscores)
BrunELT 65% (min 60% in all areas)

Brunel also offers our own BrunELT English Test and accept a range of other language courses. We also have a range of Pre-sessional English language courses, for students who do not meet these requirements, or who wish to improve their English.