MSc in Financial Economics (Thesis) (in English)

MSc in Financial Economics (in English)

The role of financial markets in shaping global economic architecture has gained momentum by the rapid improvements in information and communication technologies. Globalization has led to standardization of products and technological infrastructure and thus integration and interdependence of the financial markets. Today financial transactions in banking, capital markets and the other financial services take only seconds. This also brings a huge competition among the markets. Any small event or crisis in any corner of the World easily affects many financial markets.

Global competition requires high quality human resources who know financial markets, their structures and operations very well. This issue is particularly important for Istanbul as many cities and regions have been competing to be an Intenational Financial Center. Besides more education and training programs are always needed to increase the financial literacy as well as a good understanding of the financial markets for the whole community in general and for decision makers in particular.

Financial Economics MA Program to be run by the cooperation of the Departments of Economics and Management of Ibn Haldun University is designed for the participants who wish to develop their knowledge and understanding of the financial markets and the global economy.

Program Coordinator:

Assistant Professor Nihat Gümüş

Financial Economics MA Program aims to focus on case studies and econometric analysis in addition to core courses in finance, business and economics.

Who should participate?

The Program may serve particularly useful for;

  • Those who have graduated from different majors but wish to continue their carriers in economics and finance,
  • The professionals who work in various organizations and wish to improve their skills and abilities in economics and finance,
  • Those who wish to improve their abilities to understand, interpret and analyze the changes in local as well as global financial markets,
  • The academicians who wish to be equipped with various subjects in economics and finance prior to their further graduate degrees.

 

1st Semester
Code Code Name Theory Practice Credit AKTS
EFIN 501 Research Methods 3 0 3 8
ECON 503 Microeconomic Analysis 3 0 3 8
EFIN 505 Corporate Finance 3 0 3 8
…. … Elective Course 3 0 3 8
Total 12 32
2nd Semester
Code Code Name Theory Practice Credit AKTS
ECON 506 Macroeconomic Theory 3 0 3 8
EFIN 506 Financial Econometrics 3 0 3 8
EFIN 500 Seminar 3 0 0 3
…. … Elective Course 3 0 3 8
…. … Elective Course 3 0 3 8
Total 12 35
3rd Semester
Code Code Name Theory Practice Credit AKTS
EFIN 599 Master Dissertation 3 0 0 30
Total 0 30
4th Semester
Code Code Name Theory Practice Credit AKTS
EFIN 599 Master Dissertation 3 0 0 30
Total 0 30
Grand Total 24 127
COMPULSORY COURSES
Fall Term
Code Code Name Theory Practice Credit AKTS
EFIN 501 Research Methods 3 0 3 8
ECON 503 Microeconomic Analysis 3 0 3 8
EFIN 505 Corporate Finance 3 0 3 8
Spring Term
ECON 506 Macroeconomic Theory 3 0 3 8
EFIN 506 Financial Econometrics 3 0 3 8
EFIN 500 Seminar 3 0 0 3
ELECTIVE COURSES
Code Code Name Theory Practice Credit AKTS
EFIN 510 Capital Markets and Financial Institutions 3 0 3 8
EFIN 511 Financial Statements Analyses 3 0 3 8
EFIN 512 International Financial Markets and Globalization 3 0 3 8
EFIN 513 Derivative Markets 3 0 3 8
EFIN 514 Risk Management in Financial Institutions 3 0 3 8
EFIN 515 Alternative Finance Channels 3 0 3 8
EFIN 516 Market Microstructure and Trading 3 0 3 8
EFIN 517 Selected Topics in Financial Economics 3 0 3 8
MAN 506 Strategic Management 3 0 3 8
ECON 513 Monetary Economics 3 0 3 8
ECON 512 Game Theory 3 0 3 8
ECON 523 Islamic Economics and Finance 3 0 3 8

ECON 503 Microeconomic Analysis

The aim of this course is to provide students an ability to command of the basic concepts, theories and applications of microeconomics and to apply this knowledge to practical problems. For this purpose, first of all, under the topic of individual decision; consumer theories, demand theory, production theory and uncertainty will be discussed. Continuing with game theory, this course will end with analysis of free market structure, public goods and economic externalities.

ECON 506 Macroeconomic Theory

This course, which is the continuation of the course in the first semester, will be explained in more detail in terms of the functioning of money and foreign exchange markets and methods of struggling against inflation in an open economy. In this frame, Marshall-Lerner condition, Keynesian Theory, the function of money and capital markets in open and closed economies, macroeconomic models and rational expectations in these models, politics effectiveness and dynamics of macroeconomic modeling will be discussed.

EFIN 501 Research Methods and Publication Ethics 

This course is organized around the research process where students learn how to formulate a research question and define a research problem, decide upon a research design, assess data collection methods, define a sampling frame, determine types of data analyses, interpret data appropriately, and prepare a research report. The course will also provide theoretical as well as empirical basis for qualitative research methods such as focus groups and in-depth interviewing, content analysis, as well as quantitative methods such as survey research, basic regression and time series analysis.

 EFIN 505 Corporate Finance 

The course focuses on how companies select their projects, how they fund them, the channels through which the stock markets bond markets and other markets affect the real economy. Answering these questions is crucial for the understanding of the financial world. At the course,  the students will also learn how to analyse corporate investment decisions, examine corporate choices of capital structure and dividend policy, discover how conflicts of interests within a company shape financial decisions. Other topics that will be covered by this course include asset pricing, capital budgeting under risk, market efficieny and corporate governance.

EFIN 506 Financial Econometrics   

This course covers emprical analysis techniques used to investigate the relationships between financial and economic variables. Under this context, topics such as multivariate regression, maximum likelihood and methods of moments estimation, hypothesis testing, omitted variables and misspecification, asymptotic theory, measurement error and instrumental variables, time-series modelling; predictability of asset returns, event study analysis, econometric tests of the CAPM and multifactor models; volatility modelling, generalised method of moments estimation will be explained through emprical examples.

EFIN 500 Seminar 

This course provides a forum for students to discuss and generate ideas on issues related to a variety of applied social research. Students conduct an in-depth study of a research topic of their choice, discuss issues with experts in the field of research, work in discussion groups, debate and solve problem on selected issues. In the research seminar, the students are given an opportunity to integrate their knowledge, skills and practical experience gained in the program.

EFIN 599 Master Dissertation 

The Program culminates in an individual piece of research in which learning on the program is applied to an appropriate topic of interest/specialization, under the guidance of a supervisor.

Elective Courses

EFIN 510 Capital Markets and Institutions

The aim of this course is to provide the participants with a basic knowledge about capital markets and capital market institutions and their operations, together with the skills to make research on and analyze the developments in this realm. In this context, subjects such as stock market business in the World and in Turkey, different capital market instruments, trading and pricing in capital markets, indexation and the analyses of indices and the regulation and supervision of capital markets will be covered. In addition, the roles of various global and domestic capital market institutons and the role of capital markets in national economy will be discussed.

EFIN 511 Financial Statement Analyses 

This course primarily covers how financial statements should be read and benefited from, financial analysis techniques, the limitations and implications of financial accounting information and its effects on firm valuation and the importance of footnotes. Students also learn how to make forecasts through using financial statements, how to apply this ability in developing the firm’s business activities, how to assess firm valuation and how to analyze financial performance of companies listed at stock exchanges.

EFIN 512 International Financial Markets and Globalization 

The aim of the course is to introduce the participants to key issues related to the international financial markets which became much more integrated due to the globalization process and to develop the skills of the participants to understand and interpret the behavior of financial institutions and the operation of global markets within the framework of modern finance theory. The content of the course includes topics such as the structure and functioning of equity, bond markets and foreign exchange markets. It also focuses on specific topics that include raising capital in domestic and international equity and bond markets, project finance and the microstructure of major financial markets. In addition, the course will cover the impact of globalization on markets, asset allocation and the real economy. The theoretical framework will be supported by empirical evidence and by analysis of real-world financial instruments and financial policy issues.

EFIN 513 Derivative Markets           

The course delivers the concepts and models underlying the analysis and pricing of financial derivatives. The main aim of the course is to provide the participants with basic skills to understand operation of derivative products and markets and to teach them how to use these products for different purposes. During the course, special emphasis will be given to the derivative products which are most commonly traded in World markets. The content of the course also includes basic properties of forwards, futures and options contracts and various product strategies that might be developed using those derivatives contracts. In addition, topics such as Black and Scholes Model, The Binomial Model, Arbitrage and Risk-Neutral Pricing, Greeks and Hedging Schemes, Structured Products, Historical and Implied Volatility will be covered.

EFIN 514 Risk Management in Financial Institutions 

This course will examine the way in which businesses make an assessment of, control and transfer risk. The goal is to engage the participants in active discovery of risk management principles. Students will be prepared to function in a business environment, developing an awareness of the challenges, the tools, and the process of designing and implementing a risk management program. The risk management process involves identification of risks and associated potential costs, analysis of the causes of financial loss, determination of various strategies to treat risk, selection of strategies appropriate to the goals and objectives of the business, implementation of the selected strategies, management and monitoring of results.

EFIN 515 Alternative Finance Channels 

This course covers alternative financial intermediation systems which are defined as non-bank and other than basic capital market instruments. In this context, alternative financing models such as microfinance, angel investments, venture capital, private equity, crowd funding, and Islamic finance instruments like Mudharabah / Musharakah that can be used for financing entrepreneurs will be covered by referring to some real practices.  The Private Market operating at Borsa Istanbul will also be analysed as an alternative way of fund raising for start-ups.

EFIN 516 Market Microstructure and Trading 

This course will help students to explore how trading in financial markets works from both a theoretical and a practical perspective. The course will help investigating the motives and strategies of traders, dealers, and other financial market participants. Topics covered include models of trading, trading strategies, empirical analysis of financial data, empirical market microstructure, market volatility, algorithmic trading, arbitrage trading, back-testing trading, execution strategies.

EFIN 517 Selected Topics in Financial Economics 

This course is intended to improve the knowledge base and skills of the students with respect to some special topics selected from financial economics .

MAN 506 Strategic Management 

The field of strategic management examines how organizations (both for-profit companies and not-for profit agencies) gain sustainable competitive advantages systematically and consistently. To be succesful, the organization’s strategy must permeate all departments and functional areas. As such, this course integrates knowledge and skills gained from your studies in the functional areas of business. In drawing on these tools, a general management point of view will be applied – decisions and strategies will be analyzed in light of the total enterprise. By the end of the course students will be able to: (i) explain the elements of the strategic management process; (ii) analyze industry structure and environmental trends to assess industry potential; (iii) assess a firm’s resources for their potential to generate a competitive advantage; (iv) be knowledgable about new business models and strategies for the internet economy

ECON 513 Monetary Economics 

This course offers a systematic analysis of monetary theories and the financial system by a special emphasis on the banking sector. The course will cover the structure and importance of the financial system, the concept of banking, the definition and functions of money, the determination of interest rates, the evolution and functions of central banks. In addition, subjects such as bank management, the risks faced by banks and various ways to manage them, regulations concerning the banking sector, the objectives and tools of monetary policy, monetary transmission mechanism and its effectiveness, the relationship between inflation and monetary aggregates, and rational expectations will be also handled.

ECON 512 Game Theory and Decision Making 

The main purpose of the course is to introduce the participants with the basic information about game theory as a model for rational decision making in addition to increasing their awareness on the limitations and biases that restrain rational decision making process. The course will cover non-cooperative normal or extensive games as classified according to whether they are complete or perfect information games and both theories and economic applications of these games will be introduced.  Experimental game theory and advanced topics such as Markov-perfect equilibrium will be discussed. In addition, concepts like rational decision making and bounded rationality will be analyzed.

ECON 523 Islamic Economics and Finance   

In this course, the main principles and contract types of Islamic finance which has grown at a remarkable pace in recent years will be covered by referring to various financial sectors and institutions in comparison to conventional finance. The main aim of the course is to improve the awareness and knowledge base of the participants about Islamic finance as an alternative financing model for both Turkey and for the World. The course will include contract types such as Musharakah, Ijarah, Musharabah, Musharakah, Salam and Istisna together with their usage, management, their risks. Furthermore, Islamic capital market instruments ans institutions suh as Sukuk and Islamic investment funds will be explained. The challenges for the further development of Islamic finance will also be discussed.

 

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