master of finance course catalogue 2009 · i. compulsory courses 1st and 2nd semester mathematics...

Master of Finance (M.Sc) 1 Course Catalogue 2009

Master of Finance Course Catalogue 2009


Content I. Compulsory Courses 1st and 2nd Semester5

Mathematics for Business and Finance.............................................................................. 5 Statistics for Business and Finance ................................................................................... 9 Principles of Financial Accounting.....................................................................................13 Principles of Finance.........................................................................................................15 Principles of Economics....................................................................................................18 Principles of Management.................................................................................................22 Financial Products ............................................................................................................26 Outdoor Campus ..............................................................................................................30 Monetary Economics ........................................................................................................32 Corporate Finance ............................................................................................................36 Principles of Management Accounting ..............................................................................40 Business and Corporate Ethics.........................................................................................42 Risk Management I ...........................................................................................................45

II. 1. Concentration Courses „Capital Markets“, 2nd and 3rd Semester48

Structured Products & Interest Rate Models .....................................................................48 Arbitrage Theory ...............................................................................................................51 Market -oriented Evaluation ..............................................................................................54 Risk Management II ..........................................................................................................56 Asset Management...........................................................................................................58 Credit Risk Default Models & Credit Derivates ..................................................................61 Treasury Management......................................................................................................63

II. 2. Concentration Courses „Bank Management“, 2nd and 3rd Semester65

Strategic Management......................................................................................................65 Business Engineering .......................................................................................................70 Leadership Management ..................................................................................................74 Operational Risk ...............................................................................................................78 Distribution and Sales Management .................................................................................81 Process Management .......................................................................................................84 Strategic Modelling & Simulation.......................................................................................88

II. 3. Concentration Courses „Accounting & Taxation“, 2nd and 3rd Semester93

International Taxation .......................................................................................................93 Advanced International Accounting and Analysis..............................................................95 Internal Audit.....................................................................................................................97 Supervisory Risk Assessment...........................................................................................99 Advanced Management Accounting................................................................................101 Financial Instruments in A&T ..........................................................................................103 International Tax Planning ..............................................................................................105


II. 4. Concentration Courses „Development Finance“, 2nd and 3rd Semester107

Development Finance I ...................................................................................................107 Development Finance II ..................................................................................................112 Project Management I.....................................................................................................117 Microfinance ...................................................................................................................119 SME & Housing Finance.................................................................................................123 Project Management II....................................................................................................126 Internship........................................................................................................................129

III. Free Elective Courses, 3rd and 4th Semester132

Private Wealth Management...........................................................................................132 Mergers & Aquisitions .....................................................................................................135 Financial Sector Stability.................................................................................................137 LAW I - Int. Private & Commercial Law ...........................................................................142 Econometrics for Business and Finance .........................................................................145 Global Financial Architecture ..........................................................................................148 LAW II - Advanced Corporate Law..................................................................................152 Building Capital Markets .................................................................................................155 Advanced Microeconomics .............................................................................................158 Public Finance ................................................................................................................161 Corporate Valuation........................................................................................................164 International Corporate Finance......................................................................................166 Bank Controlling .............................................................................................................170 Advanced Strategic Modelling and Simulation ................................................................173 Private Equity and Venture Capital .................................................................................176 Management of Innovations............................................................................................178 Project & Infrastructure Finance......................................................................................181 Principles of Business Intelligence..................................................................................184 Development Finance III .................................................................................................187 Methods of Project Evaluation ........................................................................................191 Renewable Energy Finance ............................................................................................194 IT in Development Finance .............................................................................................197 Entrepreneurship in Developing Countries......................................................................201 LAW III - Compliance......................................................................................................206 Master Thesis .................................................................................................................209


I. Compulsory Courses 1st and 2nd Semester

Mathematics for Business and Finance

Module: Mathematics for Business and Finance (Level 7 EQF)

Module code: 750QUM

Module coordinator: Stotz, Olaf

Last update: 15/02/10

Programme(s): MSc MF

Study Term: 1st Semester

Compulsory/Elective Module:

Compulsory Module

Duration: 1 Semester

Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none

Usability in other mo-dules/programmes:

This course is also a part of the Master of Interna-tional Business programme.

Course list of module: Mathematics for Business and Finance

Brief description of module:

This module will provide the students with a sound basis of mathematical skills required to understand current economic and business processes as well as literature. It will help them to better cope with mathematical challenges in their further studies or real life economic problems. Since experience shows that the mathematical skills of students who specialize in economics and finance differ substantially because of different backgrounds, this module is supposed to provide a common mathematical ground for all of them as a starting platform.

Learning outcomes: The module “Mathematics for Business and Finan-ce” focuses on learning basic mathematical princi-pals. More specifically, the learning outcomes of this module include: Knowledge: Students learn to understand and to apply general mathematical principles with a special focus on economic and financial applications. Areas which are covered include differential calculus and integration. Skills: Being able to understand the logical and mathematical issues behind economical and


financial problems, translating them into an abstract, universal language, and, after solving the appropriate equations, come to the proper solutions by using the correct methodology. Competence: The combination of theoretic know-ledge and analytic skills enables students to critically evaluate business and financial proposals they may have to assess when dealing with clients, donors, partners or financiers as well as scientific articles

Type of Examinati-on(s) in the Module and Performance Points:

Type of Examination

Duration or Length

Credits Performance Points

Due Date or Date of Exam

Written Test 80 min 4 80 Tbd

Examination Requirements: Relevant for the exam are the content of the lectu-res. Written test, closed book exam, non-programmable calculator.


Mathematics for Business and Finance

Course: Mathematics for Business and Finance

Course Coordinator: Stotz, Olaf


Workload: 100 h Presence: 30 h Self-Learning: 70 h Interactive:

Language: English

Aim of the course and/or Course Con-tents:

1. Basics 1.1 Introduction of Different Sets of Numbers 1.2 Properties of Real Numbers 1.3 Ordering the Real Numbers 1.4 Exponents, Roots and Logarithms 1.5 Absolute Value 1.6 Sums and Products 1.7 Factorials, Binomial Coefficients and the Binomial Theorem 2. Classical Finance 2.1 Simple and Compound Interest 2.2 Annuities 2.3 Loan Repayments 2.4 Depreciation 3. Functions 3.1 Introduction and Representations of Functions 3.2 Properties of Functions 3.3 Elementary Functions 3.4 Selected Functions 4. Differential Calculus 4.1 Difference Quotient and Differential Quotient 4.2 Differentiation Rules 4.3 Maxima and Minima 4.4 Monotony 4.5 Curvature and Inflection Points 4.6 Limits 4.7 Analysing Functions 5. Economic Application of Differential Calculus 5.1 Production Functions 5.2 Duration 5.3 Elasticity 6. Integration 6.1 Indefinite Integrals 6.2 Definite Integrals 6.3 Improper Integrals

Forms of teaching, methods, and sup-port:

Lecture with integrated worked examples and eco-nomic applications.


Recommended (or Required) Literature Frank Werner and Yuri

N. Sotskov

Mathematics of Eco-nomics and Business, Routledge 2006

Sydsaeter, K. and Hammond, P.J

Mathematics for Eco-nomic Analysis, Engle-wood Cliffs,NJ:Prentice Hall 1995

Capinski,M.,Zastawniak, T.

Mathematics for Fi-nance: An Introduction to Financial Engineer-ing, 4th ed., Springer 2007

Zima, P

Schaum’s outline on Mathematics of Finance, 2nd ed. Mcgraw-Hill 1997


Statistics for Business and Finance

Module: Statistics for Business and Finance (Level 7 EQF)

Module code: 752QUM






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


This course is also a part of the Master of Interna-tional Business programme

Course list of module: Statistics for Business and Finance


Students are able to understand and to apply ge-neral statistical principles which will be found use-ful in all areas of economics and finance. The combination of theoretic knowledge and analytic skills enables students to critically evaluate busi-ness and financial proposals they may have to assess when dealing with clients, donors, partners or financiers. Since experience shows that the mathematical and statistical skills of students who specialize in eco-nomics and finance differ substantially because of different backgrounds, this module is supposed to provide a common ground for all of them as a star-ting platform.

Learning outcomes: The module “Statistics for Business and Finance” focuses on learning basic statistical principals. Mo-re specifically, the learning outcomes of this modu-le include: Knowledge: Students learn to understand and to apply general statistical principles with a special focus on economic and financial applicati-ons. Areas which are covered include descriptive and inductive statistics.


Skills: The statistical methods are taught theoreti-cally and are applied to examples and cases from practical finance. Students are also provided with data to apply their knowledge practically on the basis of spreadsheets. Competence: The combination of theoretic know-ledge and analytic skills enables students to critically evaluate business and financial proposals they may have to assess when dealing with clients, donors, partners or financiers as well as scientific articles.


Type of Examination

Duration or Length




Examination Requirements: Relevant for the exam are the content of the lectu-res. Written test, closed book exam, non-programmable calculator.


Statistics for Business and Finance

Course: Statistics for Business and Finance


Study Term: 1st

Workload: 100 h Presence: 30 h

Self-Learning:

70 h

Interactive: 0 h

Language: English


The aim of this lecture is to learn widely used con-cepts of statistics. In particular, descriptive statistics and inductive statistics are teached. After the lectu-re a student should be able to understand statistics from scientific publications as well as practical artic-les. A student should aslo be able to conduct indivi-dual statistical analysis on the basis of own data sets.

Contents:

1. Descriptive Statistics 1.1 Properties of variables 1.2 Frequency distribution 1.3 Empirical density function, distribution function 1.4 Distribution parameters: location, quantiles,

dispersion 1.5 Relationship between two variables: contingen-

cy tables, correlations, regressions 1.6 Applications 2. Inductive Statistics 2.1 Estimation and probability theory 2.2 Point estimates and interval estimates 2.3 Gauss-test 2.4 t-test 2.5. x2-test 2.6 F-test 2.7 Applications and exercises


Explanation, Questioning, Homework, Discovery Learning, Exam Preperation, Peer-Teaching


Recommended (or Required) Literature

- Murray R. Spiegel and Larry J. Stephens (2008): Schaum’s Outline of Theory and Problems of Sta-tistics. 4th ed., Schaum’s Outline Series, McGraw-Hill.

- Murray R. Spiegel, John Schiller and R. Alu Srini-vasan (2000): Schaum’s Outline of Theory and Problems of Probability and Statistics. 2nd ed., Schaum’s Outline Series, McGraw-Hill.

- Additional material will be distributed in the cour-se


Principles of Financial Accounting

Module: Principles of Financial Accounting (Level 7 EQF)

Module code: 808ACC

Module coordinator: Hölscher, Luise; Wagner, Hermann A.





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: None


This course is also a part of the Master of Internati-onal Business programme

Course list of modu-le:

Financial Accounting


Students understand structure, details and inter-connections between balance sheet, income state-ment/ P& L statement and cash flow statement ba-sed on IAS/ IFRS.

Learning outcomes: - Knowledge: about the constituent parts of a IFRS annual balance sheet, the approach and the evaluation

- Skills: Being able to read a IFRS annual balan-ce sheet

- Competences: in Application and interpretion of IAS and IFRS


Type of Examination

Duration or Length





Principles of Financial Accounting

Course: Principles of Financial Accounting

Course Coordinator: Hölscher, Luise; Wagner, Hermann A.


Workload: 100 h Presence: 30h Self-Learning: 70 h Interactive:

Language: English


Students understand structure, details and inter-connections between balance sheet, income sta-tement and cash flow statement based on IAS / IFRS Course Content: 1. The accounting and business environment 2. Basic financial statements 3. An introduction to financial statements analysis 4. The financial statements of multinational compa-nies 5. Advanced financial statement analysis


Lecture & Practice


Robert Libby/Patricia A. Libby/Daniel G. Short: Fi-nancial Accounting, 6th edition, McGraw-Hill 2009, New York Peter Walton / Walter Aerts: Global Financial Accounting And Reporting 2th edition, Cengage 2009-09-15


Principles of Finance

Module: Principles of Finance (Level 7 EQF)

Module code: 802FIN

Module coordinator: Packham, Natalie





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


This course is also a part of the Master of Interna-tional Business programme

Course list of module: Principles of Finance


The aim of the module is to introduce the prin-ciples of corporate finance and finance theory: - the financial system - valuation and capital budgeting - valuation under uncertainty (Portfolio Theory, CAPM)

- principcles of market valuation (efficient market hypothesis, principle of no-arbitrage)

- to review probabilistic concepts required for valu-ation under uncertainty

Learning outcomes: Knowledge: - Knowledge of capital budgeting and related deci-sion-making techniques

- Knowledge of the foundations of finance theory (Portfolio Theory, CAPM, Principle of No-arbitrage, Efficient Market Hypothesis)

Skills: Make decisions for capital budgeting Apply statistical methods for optimal porfolio se-lection Competence.

Appreciate the fundamental ideas of finance (effi-cient markets, no-arbitrage) upon which finance theory builds



Written exam or case studies (in groups) Type of Examination

Duration or Length





Principles of Finance

Course: Principles of Finance

Course Coordina-tor:

Packham, Natalie


Workload: 100h Presence: 30h Self-Learning:

60h Interactive: 10h

Language: English


Introducing the principles of corporate finance and finance theory: - the financial system - valuation and capital budgeting - valuation under uncertainty (Portfolio Theory, CAPM)

- prinipcles of market valuation (efficient market hypothesis, principle of no-arbitrage)

- to review probabilistic concepts required for valua-tion under uncertainty

Course Contents:

- Goals of financial management; the financial sys-tem

- Valuation and capital budgeting - Valuation under uncertainty: the CAPM - Principles of market valuation (Arbitrage and the law of one price, EMH)


Lectures and case studies


• Course script • S.A. Ross, R.W. Westerfield, J.F. Jaffe, and Jor-

dan B.D. Modern Financial Management. Mc-Graw-Hill, 8th edition, 2008.

• Z. Bodie and R.C. Merton. Finance. Prentice Hall, 2000.

• Zvi Bodie, Alex Kane, and Alan J. Marcus. In-vestments. McGraw-Hill, 6th edition, 2005.

• R.A. Brealey, S.C. Myers, and F. Allen. Prin-ciples of Corporate Finance. McGraw- Hill, 8th edition, 2008.


Principles of Economics

Module: Principles of Economics (Level 7 EQF)

Module code: 803ECO

Module coordinator: Herrmann-Pillath, Carsten





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none






The course Principles of Economics adopts a new approach to teaching basic micro- and macroeco-nomics conjointly and in a highly condensed fa-shion. It is based on a problem-centered approach, which means that it does not follow the conventio-nal textbook systematics, but builds on a series of problems which are presented to the students, briefly discussed in the classroom to raise the awa-reness, and with the solution and theoretical con-cepts and tools presented by the lecturer. The fundamental assumption of the course is: For students with a non-economics background, it is essential to understand how economists think. Most economics textbooks are burdened with the details of specific modelling approaches in economics, which often distract from the essentials. These es-sentials can be condensed into a set of fundamen-tal notions that underly economic explanations and modelling approaches.

Learning outcomes: Knowledge: Students learn to understand the mea-ning and the use of six central theoretical notions in economics, which are: RATIONALITY, EFFICIEN-CY, EQUILIBRIUM, INFORMATION, ORGANIZA-TION and INSTITUTIONS. They grasp the concep-tual linkages among those notions and how they


converge into a specifically economic approach to markets and their embedding systems.

Skills: In the classroom, the central notions are con-tinuously applied on analytical and practical prob-lems. Problems are presented first, in order to gui-de the students towards an understanding of the effective use of analytical tools in which the respec-tive notions play a central role.

Competence: Students develop the competence to assume the position of the „economist“ in looking at real world issues. They know that this is a particular perspective that might differe from the perspective of politics or religion. They understand that the eco-nomist’s way of thinking implies the adoption of certain values and analytical benchmarks, which by themselves can be open to criticism.


Type of Examinati-on

Duration or Length



Written Exam

80 min 4 80 Tbd



Course: Principles of Economics

Course Coordinator: Herrmann-Pillath, Carsten


Workload: 100h Presence: 30h Self-Learning: 60 h

Interactive: 10 h

Language: English


Understanding six fundamental theoretical notions and organizing conceptual principles of economics and how to apply them on analytical and practical problems.

Learning Contents:

1. Rationality: Economists always assume that peo-ple act rational, or, that competition drives peo-ple to behave rationally. So, the question is, what does „rational“ mean? We will develop funda-mental criteria for rationality, such as the oppor-tunity cost principle, the notion of expected value and risk, or strategic rationality.

2. Efficiency: Economic competition drives efficient solutions in markets and organizations. What does efficiency mean? Economists use the uni-versal tool of marginal analysis in order to identi-fy the efficient states, both of firms and of entire economic systems. We study the production function on both the nicro- and the macro-level to understand why simple economic concepts apply universally.

3 Equilibrium: The market is a system which is based on the fundamental idea of the gains from trade. But when do we know that the gains from trade have been realized? This is the state of equilibrium, in which no economic agent faces incentives to change her decisions. The equi-librium is also the yardstick that economists apply to analyze into the effects of government intervention. We try to understand the forces that drive the economy towards equilibrium, and why this might be a preferable state.

4. Information: All the concepts discussed so far build on the assumption that economic agents have the necessary information at hand. Very often, this fails to be the case. Economics offers tools to understand how economic agents cope


with incomplete and imperfect information. The-se actions also affect macro-economic proces-ses. Thus, the concept of information is central to understand the link between micro- and macro phenomena. For example, we use the concept to explain why people might be unemployed.

5. Organization: Another qualification results from the fact that markets are not always the optimal form of economic organization. Firms and other forms of organization may be better solutions precisely because of information problems. At the same time, they create new problems, espe-cially in the context of rational behavior within the organization. Thus, economics may help us to decide when and why we organize transactions via markets, and when and why to create more complex organizations.

6. Institutions: Finally, the economy does not con-sist of markets alone, but also of many forms of public organizations, in particular, the govern-ment. Again, we ask why and when governments are needed for economic action, and we try to understand the problems inhering these soluti-ons.


In advance of a session, students are requested to read articles taken from the „Economist“ in which the respective notion plays an implicit role. In the classroom, problems are presented and solutions are discussed. After the discussion, the lecturer presents analytical details. Students are requested to deepen their understanding by some readings of pertinent textbook chapters after a session.


The course relies on selected chapters from the following textbooks - Robert Barro, Macroeconomics. A Modern Appro-ach, Thomson / South-Western 2008

- James A. Brickley / Clifford W. Smith / Jerold L. Zimmerman, Managerial Economics and Organi-zational Architecture, 4th edition, McGraw-Hill 2007

- Robert S. Pyndick / Daniel L. Rubinfeld, Microe-conomics, 6th edition, Pearson Education Interna-tional, 2005.


Principles of Management

Module: Principles of Management (Level 7 EQF)

Module code: 804MGT

Module coordinator: Moormann, Jürgen





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-

Course list of module: Principles of Management


The course consists of 7 blocks with 4 hours of lecture each. In addition to this, an exam will be written at the end of the course. The course will deal with the foundations of mana-gement studies, including basics of strategic ma-nagement, competition and organization. In additi-on, the course will deliver insights into modern approaches to management and new forms of organization, which are of high relevance in today’s constantly and fast changing environment. It will further be dealt with New Institutional Economics, Value Chain Management and Business Process Management. The course touches many different topics and will give a basic overview on the most important prin-ciples of management. Active participation during the lectures is an essen-tial element of the course, which is supported by assignments to be prepared and presented by groups of students during the lectures.


Learning outco-mes:

Knowledge: The students will learn about topics in com-petition, organization and strategic management, New Institutional Economics, Value Chain Management and Business Process Management. Skills: The students will get to know how to apply the theoretical concepts to practical examples which will be discussed during the lecture. Furthermore, they will learn to write a paper and to give a presentation. In ad-dition, they will read a number of academic articles and study how to interpret and apply scientific knowledge. Since the course is taught in English, they can improve their language skills. Competence: The students will review group interaction during the lecture and how to organize the group work for their assignments. They will also work independently by preparing for the exam.

Type of Exami-nation(s) in the Module and Per-formance Points:

Type of Ex-amination

Duration or Length



Exam 60 min 4, total 56 Tbd Paper and Presentation

Tbd 4, total 34 Paper: End of course, Presentation: during lectu-res

Relevant for the exam are all required literature, the content of the lectures and the topics of all student as-signments. The required literature will be accessible in the library.


Principles of Management

Course: Principles of Management

Course Coordinator: Moormann, Jürgen



Self-Learning:

60 h

Interactive: 10 h

Language: English


The objective of the course is to receive a compre-hensive understanding of different management, strategic and organizational approaches in corpora-tions.

Contents:

1. The Organization’s Environment Competition and Industrial Organization

2. Vision and Strategy 3. Organization and Management 4. New Institutional Economics 5. New Forms of Organisation and Value Chain

Management 6. Basics of Business Process Management 7. Organizational and Process Improvement


The method of instruction is primarily based on lec-tures and group discussions during the lectures. In addition, the students have to write a paper and deliver a presentation in small groups of students.


A full list of required and relevant literature will be provided at the beginning of the course. Here is a selection: - Goddard, J.A.; Molyneux, P.; Wilson, J.O.S. (2001) “European Banking”, John Wiley & Sons, 2001.

- Prahalad, C.K.; Hamel, G. (1990) “The Core Competence of the Organisation”, in: Harvard Business Review, May-June 1990, pp. 79-91.

- Porter(1981) “The Contributions of Industrial Or-ganization to Strategic Management”, in: Acade-my of Management Review, Vol. 6, No. 4, pp. 609-620.

- Porter (1985) “Competitive Advantage”, New York Press, 1985.

- Furubotn, E.G.; Richter, R. (1997) “Institutions and Economic Theory”, Michigan University


Press, 1997. - Becker, J.; Kugeler, M.; Rosemann, M. (2003) “Process Management: a guide for the design of business processes”, Springer, 2003.


Financial Products

Module: Financial Products (Level 7 EQF)

Module code: 806FIN

Module coordinator: Walther, Ursula





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-


Financial Products

Brief description of module

The course introduces and discusses the most im-portant financial instruments. These include stocks, bonds and derivatives like swaps, FRAs, futures, options and credit derivatives. Hereby, it also lays the foundations for the more specialised courses in the further program.

Learning outcomes: Knowledge: The result of the processing of informa-tion through learning. Knowledge constitutes entire facts, fundamentals, theories, and practise in a sub-ject or field of work. In the European Qualifications Framework, knowledge refers to theoretical and factual knowledge. Students become acquainted with the most impor-tant financial instruments and learn how to value and apply them in a risk management context. Skills: The ability to apply knowledge and know-how, to perform duties, and solve problems. In the European Qualifications Framework, skills refer to both cognitive skills (logic, intuition, and creative thinking) and practical skills (dexterity and the use of methods). Students learn to analyze and assess financial in-


struments of low and medium level complexity. In a given financial risk management situation they are able to find an appropriate solution and know how to implement it using standard instruments. Competence: Evident abilities, knowledge, skills as well as the personal, social, and/or methodological ability in the workplace or place of study and usabil-ity in career and/or personal development. In the European Qualifications Framework, competence is described as the ability to take on responsibility and to work independently. Students are qualified to analyse and use financial instruments with respect to risk management prob-lems. They acquire the fundamental background to assume a responsible position in the area of in-vestment banking, financial risk management, asset management or corporate finance.


Type of Examination

Duration or Length





Financial Products

Course: Financial Products

Course Coordinator: Walther, Ursula



Self-Learning:

50h Interactive: 20 h

Language: English


The course introduces and discusses the most im-portant financial instruments. These include stocks, bonds and derivatives like swaps, FRAs, futures, options and credit derivatives. For all instruments we will clarify the cash flows and positions, intro-duce basic valuation methods and discuss possible applications, primarily with respect to financial risk management.

Course Contents:

1. Introduction 2. Stocks, Capital Markets and Trading 3. Bonds, Interest Rates and Yields 4. Introduction to Derivatives 5. Basic Interest Rate Derivatives: FRAs and

Swaps 6. Forwards and Futures

a. Definition and Valuation b. Using Futures for Risk Management

7. Options a. Definition and Types of Options b. Option Valuation by the Cox-Ross-

Rubinstein Approach c. Using Options for Risk Management

8. Credit Instruments a. Bond Contracts b. Convertible Bonds and Warrants c. Credit Derivatives (CDS, CLN) d. Asset Backed Securities


Lecture with integrated exercises, practical group work using Excel, student presentations


Recommended (or Required) Literature Hull, John C.: Options, Futures and other Deriva-

tives, 7th. ed., Pearson, 2008

Ross/ Wester-field/ Jaffe/ Jordan:

Modern Financial Management, 8th ed., Mc.Graw Hill, 2008

Stoll/ Whaley Futures and Options. Theory and Applications, South-Western Pub-lishing Co. Cincinnati, 1993

Wilmott, Paul Paul Wilmott introduces Quantita-tive Finance. 2nd ed., John Wiley & Sons, 2007


Outdoor Campus

Module: Outdoor Campus (Level 7 EQF)

Module code: 801PHI

Module coordinator: Jansen, Detlef; Barthel, Erich





Compulsory Module


Credits: 2

Workload: 50 h

Frequency: Annually

Prerequisites: None




Outdoor Campus

Learning outcomes: Students will develop in an open environment per-sonal, social and action competences that will im-prove their ability to contribute to the success of a team. The main objectives therefore are:

• develop a team spirit • increase awareness of individual responsi-

bility • develop self-confidence in mastering new

challenges


Students have to participate and give an active in-put to the group process. Groups will present their learning outcomes. The active participation will be noted down by the course coordinator. The marks will be “passed” or “failed”.


Outdoor Campus

Course: Outdoor Campus

Course Coordinator: Barthel, Erich


Workload: 50 Presence: 25 Self-Learning: Interactive: 25 h

Language: English


Activities will be adapted to the capacities of the groups. Depending on physiological fitness of par-ticipants elements of the campus will be selected from the following repertoire:

• Leaving the comfort zone: Tasks that do not fit into the routines of students increase their self competence, e.g. Crossing a piranha sea

• Building Trust: Tasks that can only be fulfilled if you trust your team colleague, e.g. trust fall; Abseiling

• Expanding the boundaries: Develop a new un-derstanding of the capacity of the group in sol-ving complex tasks, e.g. Building a water pipe

Creating responsibility: while the goals of the tasks are described the groups have to develop action plans on their own, e.g. Spider web


Interactive team training, reflexion and transfer of lessons learned, simulation and games


None


Monetary Economics

Module: Monetary Economics (Level 7 EQF)

Module code: 805ECO

Module coordinator: Winkler, Adalbert



Study Term: 2nd Semester


Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-

Course list of module: Monetary Economics


This module introduces students to key principles of monetary economics on a theoretical level as well as policy-related issue, based on an interacti-ve lecture. Moreover, the module includes a larger section on monetary issues facing developing countries and emerging market economies, which will be taught – if the number of students permit – in form of a seminar with students involved in sin-gle- and/or group work on case studies.

Learning outcomes: Knowledge: Students will be able to explain and differentiate between monetary theories and their implications for the conduct of monetary policy in mature and emerging market economies

Skills: Students will be able to apply monetary theories to analyse the conduct of monetary poli-cies in mature and emerging market economies

Competence: Students will be able to analyse the conduct of monetary policies in mature and emer-ging market economies



Type of Examination

Duration or Length



Group-Presentation

(if less than 35 students)

4 40 Tbd

Closed-Book Exam

4 40 Tbd

or Closed-Book Exam

(if more than 35 students)

4 80 Tbd


Monetary Economics

Course: Monetary Economics

Course Coor-dinator:

Winkler, Adalbert


Workload: 100 h

Presence: 30 h Self-Learning: 70 h Interactive: -

Language: English


This course aims at familiarizing students with the theoretical background and policy-relevant issues of monetary economics, including monetary issues facing developing countries and emerging markets economies.

Course Contents:

1. What is money? 1.1 A microeconomic approach to the definition of money 1.2 Defining money by its functions 1.3 Defining money by its statistical properties

2. The demand for money 2.1 The quantity theory of money and the Cambridge approach 2.2 The interest rates as a determinant for money demand 2.3 The money demand function of Cagan

3. The money supply process: starting point of the transmissi-

on process 3.1 Creation and control of the monetary base by the central

bank 3.2 Consolidated balance sheet of the banking system and the

supply of the money stock 3.3 The mechanistic multiplier process

4. Monetary policy transmission 4.1 Limited knowledge about the transmission process 4.2 The quantity theory channel 4.3 Interest rate channels 4.4 Expectations channels (the ‚Phillips curve’) 5. The ultimate goal and the final targets of monetary policy 5.1 The long-term view: prices stability 5.2 Inflation and output growth in the short run 5.3 Operational issues of a ‚stability-oriented monetary policy’

6. The institutional framework for menetary policy 6.1 Rules versus discretion in monetary policy 6.2 The independence of monetary policy


7. Strategies (‚simple rules’) for a stability-oriented monetary

policy 7.1 The function of simple rules 7.2 ‚Simple rules’, intermediate targets, and indicators of mone-

tary policy 7.3 Monetary targeting 7.4 Inflation targeting 7.5 The Taylor rule: a rule for an operating target

8. Seigniorage 8.1 Monetary seigniorage and fiscal seigniorage 8.2 Macroeconomic stability and seigniorage financing

9. Monetary policy in an open economy 9.1 The exchange rate as an operating target of monetary poli-

cy 9.2 The exchange rate as an intermediate target of moneatry

policy 9.3 The control of the price level in an open economy 9.4 Monetary policy strategies in small open economies with

targeted exchange rates

Forms of tea-ching, me-thods, and support:

Interactive lecture (with single and/or group work to case su-dies if less than 35 students)


- Bofinger, P. (2001), Monetary Policy, Oxford - Mishkin, F. S. (2006) The Economics of Money, Banking, and Financial Markets, 8th edition, Boston et al

- Krugman, P. and M. Obstfeld (2009), International Economics, Theory & Policy, Boston et al. 8th edition, chapters 17 and 19

- Fischer, S. (2001), Exchange Rate Regimes: Is the Bipolar View Correct? Distinguished Lecture on Economics in Go-vernment, American Economic Association and the Society of Government Economists, Delivered at the Meetings of the American Economic Association, New Orleans, January 6, 2001; http://www.imf.org/¬external/np/speeches/2001¬/010601a.htm

- Frankel, J. A. (1999), No Single Currency Regime is Right for All Countries or At All Times, National Bureau of Economic Research (NBER), September 1999, NBER Working Paper No. W7338


Corporate Finance

Module: Corporate Finance (Level 7 EQF)

Module code: 807FIN

Module coordinator: Bannier, Christina E.





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Principles of Finance


-


Corporate Finance


This course focuses on financial decision-making related to the corporation’s choice of which invest-ments to make or how to raise the capital required to fund an investment. It balances the latest advan-cements in research and practice with thorough coverage of core finance topics. It presents corpo-rate finance as an application of a small set of simple core ideas (no-arbitrage, law of one price, time value of money etc.). Throughout the course, we will apply the concepts studied to several firms in various industries and countries.

Learning outcomes: Knowledge: The course teaches the core concepts of financial decision making, i.e. companies’ choi-ces of which investments to undertake and how (and where) to find the financial means to underta-ke them. We will cover the basic concepts of valua-tion and capital budgeting, capital structure and dividend policy, long-term and short-term financing and aspects of corporate governance.

Skills: The course balances both latest achieve-ments in financial theory and quantitative finance with practical examples. Students will be asked to employ their knowledge to solve several case stu-


dies that rely on real-life data from various firms (small and large companies, in different industries and from different countries).

Competence: Students will learn how to study and use - both individually and in groups - research pa-pers and applied studies on corporate finance. Using this information, they will have to prepare solutions to case studies and present them to the audience. This will provide them with hands-on ex-perience on how to find creative and convincing solutions to complex problems in the area of corpo-rate finance (and, hence, in the area of their future prospect jobs) in a relatively short time period.



Duration or Length



Written Exam

40 min 4 40 Final Exam

Case Study Tbd 2 40 Over the course


Corporate Finance

Course: Corporate Finance

Course Coordinator: Bannier, Christina E.


Workload: 100 h Presence: 30 h Self-Learning: 70 h Interactive:

Language: English


The course aims at familiarizing the students with the core concepts of corporate finance and tea-ching them how to employ their knowledge in order to solve complex problems arising in firms’ financial decision making.

Course Contents:

1. Introduction

2. Capital Budgeting a) Payback b) Internal Rate of Return c) Net Present Value d) Case Study Siemens

3. Risk and Return a) Pricing of Risk b) Capital Market Efficiency c) The CAPM in Practice d) Alternative Models

4. Valuation a) Valuation with Leverage b) Financial Modelling

5. Capital Structure a) Capital Structure in a Perfect Market b) Debt and Taxes c) Financial Distress, Managerial Incentives and

Information d) Payout Policy

6. Long-term Financing a) Raising Equity b) Debt Financing c) Leasing 7. Short-term Financing


a) Working Capital Management b) Short-term Financial Planning

8. Corporate Governance, Agency Costs and Re-

gulation


The course interactively teaches the principles of corporate finance. Students individually have to prepare the lectures’ contents by studying the rele-vant literature. Contents will then be discussed in the class. Additionally, students have to present their solutions to several case studies in groups.


- Ross/Westerfield/Jaffe/Jordan, 2008, Mordern Financial Management, 8th Edition, McGraw-Hill International Edition

- Berk/DeMarzo, 2007, Corporate Finance, Pear-son Addison Wesley International Edition

- Damodaran, 2005, Applied Corporate Finance: A User’s Manual, Wiley & Sons


Principles of Management Accounting

Module: Principles of Management Accounting (Level 7 EQF)

Module code: 795ACC

Module coordinator: Wagner, Hermann A.; Strohhecker, Jürgen





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: None


-

Course list of module: Principles of Management Accounting


Introduction into the relevant sections of Manage-ment Accounting including Cost Accounting - In-formation for Decision-Making - Planning, Control and Performance Management - Strategic Man-agement Accounting.

Learning outcomes: Knowledge: Methodical Knowledge about Mana-gement Accounting Skills: Ability to use different Management Accoun-ting tools Competence: Application of Management Accoun-ting in the decision making process


Type of Examination

Duration or Length





Principles of Management Accounting

Course: Principles of Management Accounting

Course Coordinator: Wagner, Hermann A.


Workload: 100 h Presence: 30h Self-Learning: 70h Interactive: -

Language: English


Students learn about management and cost ac-counting methods and get a clear understanding of how they are used as tools in the decision making process. Course Content: 1. Introduction to Management and Cost Accoun-ting 2. Cost Accumulation for Inventory Valuation and Profit Measurement 3. Information for Decision Making 4. Information for Planning, control and Performan-ce Measurement 5. Cost Management and Strategic Management Accounting 6. The Application of of Quantitative Methods to Management Accounting


Lecture and practice


Colin Drury: Management and Cost Accounting 7th edition, Cengage 2008


Business and Corporate Ethics

Module: Business and Corporate Ethics (Level 7 EQF)

Module code: 810PHI

Module coordinator: Barthel, Erich; Kliemt, Hartmut





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-



Brief Description: This module delivers substantial knowledge about basic ethical issues and various ethical positions. It also gives inside views to ethical questions that may occur in business environments. These ques-tions will be discussed, on the one hand, in the course Business Ethics, and illustrated by specific problems like corruption or hostile takeovers.

Learning outcomes: Knowledge: Participants learn basic ethical posi-tions as well as characteristic ethical problems.

Skills: Participants know how to search for a wide reflective equilibrium on specific ethical problems.

Competence: Faced with an ethical argument in business, participants can work out a defensible solution based on the knowledge and skills they have developed.



Duration or Length






Course: Business and Corporate Ethics

Course Coordinator: Barthel, Erich, Kliemt, Hartmut


Workload: 100h Presence: 30h Self-Learning: 70h Interactive: -

Language: English


Aim of the course:

This course aims to introduce students to ethics and ethical decision making in business. Students will be exposed to specific ethical questions in business and will be expected to present and to discuss case studies relating either to their own or the experience of others as related to this topic.

Course Contents:

1. Basic issues, examples and arguments of busi-ness ethics 1.1. Market economy as an answer to ethical ques-tions (Adam Smith, Vernon Smith) 1.2. Businesses and social Responsibility (Fried-man, Freeman) 2. Rational ethical argument as search for reflective equilibrium (Hahn) 3. Ethical positions (eclectic) 3.1. Deontological ethics (Immanuel Kant, et al.) 3.2. Utilitarianism (Jeremy Bentham, et al.) 3.3. Justice as fairness (John Rawls et al.) 3.4. Discourse ethics (Habermas et al.) 4. Themes such as “corruption”, “individual respon-sibility”, “the role of corporate guidelines”, “equal treatment and diversity”, “corporate social respon-sibility”, “hostile takeovers”, “industrial espionage” etc. may be addressed in search of a reflective equilibrium.


-Lectures to impart the basics - Structured interac-tive teaching - Presentations by participants cove-ring selected topics, these presentations are meant to improve the understanding of theories and to link these theories with students´questions.



Essential Literature:

Frankena, W.K

Ethics. Prentice Hall. 1973 or later, (chaps. 1, 2, 3, and 6)

Hahn, S.

1998, Reflective Equilibrium-Method or Metaphor of Justification? Schriftenreihe der Wittgensteingesellschaft. Hölder-Pichler-Tempsky, Wien, pp. 237-243.

Kliemt, H 1990, Papers on Buchanan and related subjects. Munich: Accedo: „On ethics and economics“, pp. 9-36.

Hoffman, W.M.; Frederick, R.E.; Schwarz, M.S.(ed.

Business Ethics. Readings and Cases in Corporate Morality, Boston et al. 2001, pp. 53-86, ethics, pp. 117-138 – cases – pp. 156-168 – Friedman vs. Freeman.

Stodder, J.

(1998): Experimental Moralities. Journal of Economic Education, Spring, 127-138.

James Bohman:

http://plato.stanford.edu/entries/habermas/

Additional Literature:

Allhoff, F./Vaidya, A. (eds.): Business Ethics (Vol. 1-3). London 2005

Daniels, N.

(1979) "Wide Reflective Equilibrium and Theory Acceptance in Ethics." The Journal of Philoso-phy LXXVI: 265-282.

McIntyre, Alisdair. A Short History of Ethics

Moon, Chris/ Bonny, Clive (Eds.)

(2001): Business Ethics. Facing up to the Issues. London: The Economist.

Useful websites: http://www.managementhelp.org/ethics/ethics.htm http://www.ethicaledge.com/ Other Literature may be recommended during the course.


Risk Management I

Module: Risk Management I (Level 7 EQF)

Module code: 809FIN






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-


Risk Management I


- To understand the importance of risk manage-ment in a bank/financial institution for regulatory purposes and for management purposes

- To understand how financial products are used for hedging

- To understand how risk is measured on a bank-wide level

Learning outcomes: Knowledge: - managing and hedging trading book exposures - bank-wide risk management - regulatory requirements - risk management as a means of determining a bank’s profitability

Skills: - Ability to apply risk management concepts - Ability to compute various risk measures Competence: - Appreciate the importance of risk management in a financial institution

- Ability to act as an interface between risk mana-gers and other bank departments


- Apply risk measurement and risk management concepts for bank management purposes



Duration or Length



Written Test 80 min 4 80 Tbd Allowed aids in exam: pocket calculator


Risk Management I

Course: Risk Management I


Packham, Natalie




Language: English

Aim of the course and/or Course Contents:

To understand the importance of risk management in a bank/financial institution for regulatory purpo-ses and for management purposes

To understand how financial products are used for hedging

To understand how risk is measured on a bank-wide level Contents:

- Bank capital and risk management - Risk factors and risk mapping - Risk measures and Value-at-Risk - Computing Value-at-Risk - Credit Risk and Credit Value-at-Risk - Basel II and Regulation - Economic capital and RAROC


Lectures, written exam

Recommended (or Required) Literatu-re

Hull, J.: Risk management and financial institutions. Pearson Prentice Hall, 2007 Additional literature will be given in class.


II. 1. Concentration Courses „Capital Markets“, 2nd and 3rd Semester

Structured Products & Interest Rate Models

Module: Structured Products & Interest Rate Models (Level 7 EQF)

Module code: 783FIN

Module coordinator: Schmidt, Wolfgang





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Arbitrage Theory, Market-oriented Evaluation


-




• Fundamentals of arbitrage free valuation • Exotic options • Swaps, the swap curve and standard interest

rate derivatives • Factor analysis of the yield curve, yield curve

expectations and structured products • Term structure models (Gaussian models,

HJM, short rate models) • Quantifying the risks and hedging

Learning outcomes: Knowledge: Understanding the valuation, motiva-tion, modelling and risk management of structured and plain vanilla interest rate products. Skills: Assess appropriateness of methods of inter-est rate risk measurement in various contexts. Ap-plying interest rate derivatives and structured prod-ucts to manage risks. Competence: Ability to communicate and work with all departments of a financial institution involved in interest rate risk, from risk management and treas-


ury to trading and sales.



Duration or Length






Course: Structured Products & Interest Rate Models

Course Coordinator: Schmidt, Wolfgang



Self-Learning:

70 h

Interactive: -

Language: English


1. Fundamentals of arbitrage free valuation 2. Exotic options 3. Swaps, the swap curve and standard interest

rate derivatives 4. Factor analysis of the yield curve, yield curve

expectations and structured products 5. Term structure models (Gaussian models, HJM,

short rate models) 6. Quantifying the risks and hedging


Lecture with intergrated computer exercises


- Cairns, A.: Interest Rate Models- An Introduction Princeton University Press 2004

- James, J./Webber, N.: Interest Rate Modelling, Wiley 2000

- Hunt, P.J./Kennedy, J.E.: Financial Derivatives in Theory and Practice, Wiley 200

- Hull, E.G.: Options, Futures & Other Derivatives, Prentice-Hall International, London 2000


Arbitrage Theory

Module: Arbitrage Theory (Level 7 EQF)

Module code: 782FIN

Module coordinator: Tompkins, Robert G.


Programme(s): MSC MF



Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites:


-


Arbitrage Theory


This module considers static and dynamic arbitrage in Financial markets. In the static context, linear and non-linear arbitrage strategies are considered. This allows students to understand the law of one price for equivalent portfolios and boundary conditi-ons for asset valuation. Dynamic arbitrage includes Risk Neutral Pricing methods, Martingales, contin-gent claims pricing both in a discrete and continu-ous framework and measure changes. This con-cepts allow students to master the pricing of contin-gent claims in the Black and Scholes framework, employ Monte Carlo pricing approaches and to va-lue contingent claims in an incomplete market set-ting.

Learning outcomes: Knowledge“: Theoretical understanding of the Law of One Price obtained by concrete examples of static arbitrage. Knowledge of Risk Neutral Pricing, Martingale methods, Wiener Processes, Girsanov Change of Measure approaches, that allow stu-dents to employ modern methods of asset price determination in the financial markets. „Skills“: Ability to determine static arbitrage oppor-tunities in Financial Markets by worked examples. Determine the pricing of contingent claims using a variety of methods including numerical estimation


using Binomial processes and Monte Carlo simula-tions and analytic estimation approaches including the Black Scholes option pricing model. „Competence“: Upon successful completion of the course and mastery of the materials, students will be able to determine the fair and “arbitrage free” prices of securities in the Financial markets. This includes the construction of equivalent portfolios to define the value of securities, dynamic hedging to replicate contingent claim payoffs and to develop software solutions allowing computational estima-tion of contingent claim prices.



Duration or Length



Written Test 80 min 4 80 Tbd (to be determi-ned)


Arbitrage Theory

Course: Arbitrage Theory

Course Coordinator: Tompkins, Robert G.



Self-Learning:

25 h

Interactive: 45 h

Language: English


1. Classifications 2. Logic of Evaluation 3. Models in Discrete Time 3.1. Martingales 3.2. The Model 3.3. Applications (e.g. Binominal Model) 4. Models in Continuous Time 4.1. Brownian Motion 4.2. Martingales and Stochastic Integrals 4.3. The Model 4.4. Applications (e.g. Black / Scholes Model)


Lecture, case study


- Baxter, M./Rennie,A.: Financial Calculus, Cam-bridge University Press, Cambridge 1996

- Hull, J.: Options, Futures and other Derivative Securities, 2002

- Hunt, P.J./ Kennedy, J.E.:Financial Derivatives in Theory and Practice, 2004


Market -oriented Evaluation

Module: Market -oriented Evaluation (Level 7 EQF)

Module code: 781QUM

Module coordinator: Heidorn, Thomas





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


Concentration Capital Markets Only together with Treasury Management


Market-oriented Evaluation


- Understanding the use of derivative products - Theoretical understanding of forwards and options - Analysing and calculating hedges - Implementation in Excel

Learning outcomes: • Knowledge: Understanding evaluation and ar-bitrage in capital markets.

• Skills: Being able to evaluate complex products. • Competence: Apply these skills to any financial

evaluation.


Type of Examination

Duration or Length



Written Exam

80 Min. 4 80 End Sem.


Market-oriented Evaluation

Course: Market-oriented Evaluation

Course Coordinator: Heidorn, Thomas



Self-Learning:

40 h

Interactive: 30 h

Language: English


Understanding and applying the theory to evaluate financial products in the market.

Learning Contents:

1. Forward and future contracts (Introduction) 2. Behaviour of Stock Prices / Wiener Process 3. Black/Scholes vs. Cox / Ross / Rubinstein 4. Stock Options and Currency Options 5. Hedging Greeks (Delta, Gamma, Thea, Vega) 6. Implied Volatility / Volatility Smiles 7. Interest Rate Derivatives (Cap, Floor, European

Styled Swaption)


Lecture, discussion, computer simulations, case studies and questions


• John C. Hull: Options, Futures and other Deriva-tives, Prentice Hall International 6th Edition 2006

• Hans R. Stoll / Robert E. Whaley: Futures and Options, South Western Publishing Cincinatti 1993

• Heidorn Thomas: Finanzmathematik in der Bankenpraxis, Gabler 6. Auflage 2009


Risk Management II

Module: Risk Management II (Level 7 EQF)

Module code: 781FIN




Study Term: 3rd Semester


Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Risk Management I, Statistics


-

Course list of module: Risk Management II


- to deepen the knowledge of Risk Management I, in particular to understand the general concept of a coherent risk measure

- to provide a sound understanding of statistical methods applied in financial risk modelling

- to learn modelling approaches in-line with obser-ved empirical facts of financial time series, such as heavy tails in return distributions, and how to apply them

- to learn multivariate modelling approaches for treating the dependence in portfolios

Learning outcomes: • Knowledge: Advanced knowledge of risk mea-sures (coherent risk measures).

• Skills: Quantitative skills to apply statistical methods to financial risk modelling.

• Competence: Appreciate the importance of quantitative risk management. Ability to act as an interface between risk modellers and risk managers.


Written exam or case studies (in groups) Type of Examination

Duration or Length





Risk Management II

Course: Risk Management II


Packham, Natalie



Self-Learning:

60 h

Interactive: 10 h

Language: English


The aim of the course is - to deepen the knowledge of „Risk Management I“, in particular to understand the general concept of a coherent risk measure - to provide a sound understanding of statistical methods applied in financial risk modelling - to learn modelling approaches in-line with observed empirical facts of financial time series, such as heavy tails in return distributions, and how to apply them - to learn multivariate modelling approaches for treating the dependence in portfolios Contents: - Review of basic concepts of risk management - Advanced risk measures - Modelling dependence - EVT (extreme value theory) - Time series analysis - Capital allocation


Lectures and case studies


• Course script • John C. Hull. Risk Management and Financial

Institutions. Prentice Hall, 2007. • John C. Hull. Options, Futures and Other Deriva-

tives. Prentice Hall, 7th edition, 2009. • Additional literature will be given in class


Asset Management

Module: Asset Management (Level 7 EQF)

Module code: 784FIN

Module coordinator: Walther, Ursula





Compulsory Module


Credits: 4

Workload: 100 h

hFrequency: Annually

Prerequisites: none


-

Course list of module: Asset Management


The course provides a concise overview of the most important aspects of asset management. The starting point is a short introduction to the instituti-onal environment and the basic formal techniques of portfolio management and capital market theory.

Learning outcomes: Knowledge: Students become acquainted with the institutional environment of asset management, basic formal methods and models, important strategies and performance evaluation methods. Skills: Students learn to apply and implement ba-sic portfolio construction methods and investment strategies. They are able to assess and classify important investment strategies. Competence: Students are qualified to critically asses basic investment strategies and products. They acquire the fundamental background to work in an asset management position.


Type of Examination

Duration or Length





Asset Management

Course: Asset Management


Walther, Ursula




Language: English


The course provides a concise overview of the most important aspects of asset management. The star-ting point is a short introduction to the institutional environment and the basic formal techniques of port-folio management and capital market theory. Based on this, we will discuss the prospects of active ma-nagement (efficient market hypothesis) and impor-tant active and passive investment strategies. The focus will be on equities and bonds. Finally, we will look into the measurement and assessment of in-vestment success. Student presentations on a variety of specific topics are an essential part of the course. Most of these topics include practical work with real data in Excel. These group presentations are graded and form the complete examination of the course. Course Contents:

• Asset Management: Products and Institutions • Classical Portfolio Theory and Capital Market

Theory • Portfolio Construction and the Single-Index

Model • The Efficient Market Hypothesis and its Impli-

cations • Active Asset Management • Equity Portfolio Management • Managing Bond Portfolios • Portfolio Performance Evaluation


Teaching discussion, practical group work using Ex-cel


Recommended (or Required) Literature Bodie/Kane/Marcus:

Investments, seventh edition, McGraw Hill, 2008

Elton/Gruber/Brown/ Goetzmann:

Modern Portfolio Theory and Investment Analy-sis. 7th Ed. Wiley, 2007

Grinold/Kahn: Portfolio Management, 2nd Ed, McGraw Hill, 2000

Litterman, Bob

Modern Investment Management, An equi-librium approach, Wiley, 2003.

Sharpe/Alexander/Bailey Investments, Pearson, 1999.


Credit Risk Default Models & Credit Derivates

Module: Credit Risk Default Models & Credit Derivates (Level 7 EQF)

Module code: 785FIN

Module coordinator: Schmidt, Wolfgang





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-

Course list of module: Credit Risk Default Models & Credit Derivates


• Credit risk and default modelling • Credit risk management, credit value at risk

and Basel II • Industry models (KMV, CreditMetrics,

CreditRisk+) • Credit derivatives • Mark-to-market and the CDS curve • Basket Default Swaps and CDOs

Learning outcomes: Knowledge: Principles of valuation and manage-ment of credit risks. Modelling approaches for de-faults. Types of credit derivatives, their use and pricing. Skills: Assess appropriateness of methods of credit risk measurement in various contexts. Applying credit derivatives to manage credit risks. Competence: Ability to communicate and work with all departments of a financial institution involved in credit risk, from risk management to trading and sales.


Type of Examination

Duration or Length





Credit Risk Default Models & Credit Derivates

Course: Credit Risk Default Models & Credit Derivates

Course Coordinator: Schmidt, Wolfgang



Self-Learning:

70 h

Interactive: -

Language: English


1. Credit risk and default modelling 2. Credit risk management, credit value at risk and

Basel II 3. Popular credit portfolio models used in the indus-

try (KMV, CreditMetrics, CreditRisk+) 4. Credit derivatives 5. Markt-to-market and the CDS curve 6. Credit indices, CDOs and Basket Default Swaps


Lecture with integrated computer exercises


- Bluhm/Overbeck/Wagner: An Introduction to

Credit Risk Modelling, 2002 - O’Kane: Modelling Single-Name and Multi-Name

Credit Derivatives, Wiley 2008


Treasury Management

Module: Treasury Management (Level 7 EQF)

Module code: 781MGT






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Participation in Concentration Capital Markets


-

Course list of module: Treasury Management


• Using case studies to price, analyse, and sell to clients.

• Special talks on sale, hedge funds and operati-onal risk.

Learning outcomes: • Knowledge: Understand and evaluate complex financial products.

• Skills: Applying the knowledge of the con-centration course Capital Markets.

• Competence: Work in group under time pres-sure.


Type of Examination

Duration or Length

Credits Performance- Points


Graded Case Stu-dies

Tbd Tbd Tbd During Module


Treasury Management

Course: Treasury Management

Course Coordinator: Heidorn, Thomas



Self-Learning:

10 h

Interactive: 60 h

Language: English

A


Develop key copetence for investment banking (trading, sales, financial engeneering) Destructuring of products Understanding risk and implement hedges.

Learning Contents:

1. Key Competence 1.1. Structuring a Financial Package 1.2. Destructuring Products (Reverse Floater, Cal-

lable Bonds, Equity Linked Bonds, Credit No-tes)

2. Risk Management 2.1. Using Swaps, Forward Swaps and Swaptions 2.2. Portfolio Management 3. External Presentation 3.1. Investmentbanking Sales 3.2. Hedge Fonds 3.3. Operational Risk


Transfer of the elements of investment banking with the help of case studies.


John C. Hull Options Futures, and other Derivative Securities Prentice Hall 2006


II. 2. Concentration Courses „Bank Management“, 2nd and 3rd Semester

Strategic Management

Module: Strategic Management (Level 7 EQF)

Module code: 782MGT






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-




The development and implementation of a profound corporate strategy is a major issue for a bank’s success as the chosen strategy delivers the foun-dation for all forthcoming activities of the bank. This holds especially true for the company’s process architecture. The latter is the basis for the usage of information technology and the human resources. During this course we will study and discuss the most important elements of strategic management. Furthermore, we will transfer these to banks in or-der to illustrate the application of the procedure and the instruments of strategic management.

Learning outcomes: Knowledge: You will deal with the most relevant theoretical foundations of strategic corporate plan-ning and the current situation in terms of competiti-on of the banking industry. Skills: You will get to know a variety of instruments useable for strategic management, their context within the proceeding of strategic planning, and their application for the development of strategies for banks.


Competence: You will exercise the application of theoretical strategic instruments on a case study of a real bank. For this purpose we will conduct a small-sized case study during the course.



Duration or Length



Assignment 10 p 4 30 before the course

Presentation of the as-signment

30 min 4 30 within 7 days befroe the course

Case Study Tbd 4 20 during course

The course offers 4 Credits. The evaluation is ba-sed on three elements – an assignment, a presen-tation, and a case study.

Generally, the assignment and the related presen-tation will be compiled in pairs. The grade for the assignment will be a collective one for both team members. For the presentation each member will get an individual grade. The case study will be con-ducted within a 4-person team receiving a collective grade for each member.



Course: Strategic Management




Self-Learning:

20 h

Interactive: 50 h

Language: English


During this course you will - deal with the most relevant theoretical foundations of strategic corporate planning and the current situation in terms of competition of the banking industry.

- get to know a variety of instruments useable for strategic management, their context within the proceeding of strategic planning, and their applica-tion for the development of strategies for banks.

- exercise the application of theoretical strategic instruments on a case study of a real bank. For this purpose we will conduct a small-sized case study during the course.

The spectrum of topics and the viewpoints concer-ning strategic corporate (bank) planning are extre-mely broad. This course highlights methodological aspects of strategy development rather than speci-fic solutions. Thus, we deal primarily with the pro-cedure and the instruments of strategic bank plan-ning.

Course Content:

1. The rational-decision oriented approach of stra-tegic planning versus Mintzberg

2. The industrial-economic approach 3. The resource-based view 4. Futurology and its relevance for banks 5. Scenario-method: Methodology and its applica-

tion to banks 6. Value chain analysis and its application to

banks 7. The world is flat – Consequences for the ban-

king sector 8. Experience curve and transaction cost theory:

Implications for the bank strategy 9. Blue Ocean Strategy


10. Strategic planning in multinational banks 11. Strategic monitoring – Strategy maps 12. Game theory and strategic management 13. Strategic Monitoring – Strategy maps


On the one hand the course consists of a number of lectures and on the other hand of group work by the students. Within the group work the students compi-le a term paper and a related presentation to speci-fic topics within strategic planning. Furthermore, a case study will be conducted during the course. In order to connect the topic closer to the reality in banks, there will be a presentation performed by an expert – usually a top manager – of a major bank.

Recommended Lite-rature:

- Al-Ani, A Das Neue Strategische Management: Strategieentwicklung in der Post Reengineering Ära, in: Hinterhuber, H.H. et al. (Hrsg.), Das Neue strategische Management“, Wiesbaden: Gabler 2000, S. 51-71 (German)

- Anderson, J./Kupp, M. Entrepreneurs on a dance floor, in: Business Strategy Review 17 (2006), Nr. 4, S. 26-31

- Börner, C.J. Strategisches Bankmanagement, München: Oldenbourg, 2000 (German)

- Camphausen, B. Strategisches Management, 2., überarb . u. erweit. Aufl., München Wien: Olden-bourg (German)

- Grünig, R./Kühn, R. Process-based Strategic Planning, Berlin: Springer 2005

- Hinterhuber, H.H. Strategische Unternehmensfüh-rung, Band 1, 7., grundlegend neu bearb. Aufl., Berlin: de Gruyter 2004 (German)

- Hinterhuber, H.H. Strategische Unternehmensfüh-rung, Band 2, 7., grundlegend neu bearb. Aufl., Berlin: de Gruyter 2004 (German)

- Hungenberg, H. Strategisches Management in Unternehmen, 5., überarb. u. erw. Aufl., Wiesba-den: Gabler 2008

- Hungenberg, H./Wulf, T. Strategisches Manage-ment – Was die Wissenschaft für die Praxis leis-ten kann, in: Hungenberg, H./Meffert, J. (Hrsg.), Handbuch Strategisches Management, Wiesba-den: Gabler 2003, S. 165-188 (German)

- Johnson, G./ Scholes, K. Exploring Corporate Strategy, 7. Aufl., New York: Prentice Hall 2005

- Moormann, J. Strategieentwicklung in Banken: Vorgehensweise und Erfahrungen zur erfolgrei-chen Neuausrichtung, in: Kompetenz. Das Die-bold Management Journal o.J. (1993), Nr. 22, S. 26-36 (German)

- Müller-Stewens, G./Lechner, C. Strategisches


Management, 2., überarb. u. erw. Aufl., Stuttgart: Schäffer-Poeschel 2003 (German)

- O´Brien, F.A./Dyson, R.G. Supporting Strategy, John Wiley: Chichester 2007

- Porter, M.E. Wettbewerbsstrategie, 7. Aufl., Frankfurt/M.: Campus 1992 (German)

- Saloner, G./Shepard, A./Podolny, J. Strategic Ma-nagement, New York: Wiley 2001

- Achenbach, W./Lange, T.A./Steffens, U. Strategisches Management in Finanzinstituten, in: Steffens, U./Westenbaum, A. (Hrsg.), Kom-pendium Management in Banking & Finance, Bd. 1, 6., überarb. u. erweit. Aufl., Frankfurt/M.: Frank-furt School Verlag 2008, S. 293-494 (German)

- Welge, M./Al-Laham, A. Strategisches Manage-ment, 5., vollst. überarb. Aufl., Wies¬baden: Gabler 2008 (German)

- Whittington, R. What is Strategy – and does it matter?, 2. Aufl., Thomson Learning 2001

- Wit, B. de/ Meyer, R. Strategy. Process, Content, Context. An International Perspective, 3. Aufl., London: Thomson 2004

Relevant journals: Business Strategy Review, Long Range Planning, Strategic Management Journal


Business Engineering

Module: Business Engineering (Level 7 EQF)

Module code: 783MGT






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Strategic Management Desirable: Leadership Ma-nagement


-




The ongoing restructuring of banks is radically changing the financial services sector. The aim of current national and international organizational projects is to considerably increase the efficiency of banks. The focus of these activities is the alignment of banks to their fundamental business processes. These sorts of projects are called Business Reen-gineering (BR) projects.

In this course we will go a step further. For many banks it is not only a question of restructuring, but also of a critical analysis of their business model. In this sense they deal with the transformation of a bank into a possibly completely new form of busi-ness. Therefore, not only the business processes within the company have to be scrutinized, but also the whole value chain – including all business part-ners – needs to be redesigned. This approach is characterized by the term Business Engineering (BE).

The course is strongly methodologically driven, and the main focus is set on the application of PRO-MET®BPR. This methodology, developed at the


University of St. Gallen, deals with the procedure of a process-centered redesign of organizations. By using an integrated case study we will conduct a small BE project in our course.

Learning outcomes: Knowledge: You will acquire a comprehensive un-derstanding of what Business Engineering really is, how the concept can be classified and how it af-fects companies. Skills: You will become acquainted with a methodo-logy which is wide spread in the banking sector and learn how to apply the approach to a case study. Competence: You will use the methodology to con-duct your own small business engineering project. Additionally, you will learn how to use specific soft-ware supporting your work for a BE project.



Duration or Length



Paper- presentation

Tbd 4 80 during the course

Students participating in this course receive 4 Cre-dits. These can be obtained by successful team-work composed of a paper and a presentation of the teamwork. The grade will be a collective one for all members of the respective team. Each team should consist of 3 to 4 participants. The composition of each team will be announced at the first day of the course. The task will be explained during the course and developed step by step. The presentation will be held at the end of the week to show the progress made thus far. The deadline for submission of the final paper will be one week after the end of the course.



Course: Business Engineering




Self-Learning:

60 h

Interactive: 10 h

Language: English


During this course you will - acquire a comprehensive understanding of what Business Engineering is, how the concept can be classified, and how it affects companies.

- become acquainted with a methodology which is wide spread in the banking sector and then apply the approach to a case study.

- discuss several specific issues of Business Engi-neering in banks.

Having acquired this know-how, you will not neces-sarily be able to conduct a BE-project in a huge bank. You will, however, understand the concept, be able to discuss it thoroughly, and you will be equipped with a sound knowledge for carrying out such projects.

Course Contents:

- Concept of Business Reengineering - Methodology Promet® BPR - Process Modelling using the software SemTalk


The nature of the course is primarily experimental and will be conducted largely as a workshop. Thus, active participation of all participants is absolutely necessary.


- Bainbridge, C. Designing for Change. A Practical Guide to Business Transformation, Chichester: Wiley 1996

- Brecht, L./ Hess T./ Österle, H. Business Enginee-ring: Von einer Mode zur Methode, in: Harvard Business Manager 17 (1995), No. 4, p. 118-123 (German)

- Davenport, T. H. Process Innovation: Reenginee-ring Work through Information Technology, Har-vard Business School Press, Boston 1993

- Hammer, M. Don´t Automate, Obliterate!, in: Har-vard Business Review 68 (1990), No. 4, p. 104-


112 - Hammer, M. The Superefficient Company, in: Harvard Business Review 79 (2001), No. 9, p. 82-91

- Hammer, M. The Agenda, New York: Crown Bu-siness 2001

- Hammer, M./ Champy, J. Re-engineering the Corporation. A Manifesto for Business Revolution, New York: Harper Collins 1993

- Hammer, M./ Stanton, S.A. Die Reengineering Revolution, Frankfurt/M.: Campus 1995

- Harrington, H.J. Business Process Improvement, New York: McGraw-Hill 1995

- Hess, T./ Brecht, L. State of the Art des Business Process Redesign. Darstellung und Vergleich be-stehender Methoden, 2. ed., Wiesbaden: Gabler 1996 (German)

- Johansson, H.J./ McHugh, P./ Pendlebury, A.J./ Wheeler III, W.A. Business Process Reenginee-ring, Chichester: Wiley 1993

- Knights, D./ Willmott, H. (eds.) The Reengineering Revolution? Critical Studies of Corporate Change, London: Sage 2000

- Österle, H. Business Engineering. Prozess- und Systementwicklung, Vol. 1: Entwurfstechniken, 2., improved ed., Berlin: Springer 1995 (German)

- Österle, H./ Brenner, C./ Gassner, C./ Gutzwiller, T./ Hess, T. Business Engineering. Prozess- und Systementwicklung, Vol. 2: Fallbeispiel, 2. ed., Heidelberg: Springer 1996 (German)

- Österle, H./ Fleisch, E./ Alt, R. Business Networ-king, 2., revised and extended ed., Springer: Ber-lin 2001

- Österle, H./ Winter, R. (Hrsg.) Business Enginee-ring, 2., vollst. neu bearb. u. erweit. Aufl., Berlin: Springer 2003 (German)

- Strahringer, S. (ed.) Business Engineering, HMD – Praxis der Wirtschaftsinformatik 42, No. 241, 2005 (German)


Leadership Management

Module: Leadership Management (Level 7 EQF)

Module code: 784MGT

Module coordinator: Barthel, Erich





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-




Since the 80s of last century Leadership and Man-agement are often seen is completely different ways of getting things done. Whereas Management is often described as getting things done in an effi-cient way, leadership is often seen as the way out of a crisis or the even more the inspiring creation of visions that help others to transform to higher levels of motivation. Major schools and theories of leader-ship will be discussed showing that management and leadership are two sides of the same coin. Em-phasis will be on the uncovering of the underlying assumptions of different theories helping to identify the role of participation, power and dyadic ex-change for successful leadership in different situa-tions.

Learning outcomes: The module “Leadership Management” focuses on typical aspects of Leadership and Management. More specifically, the learning outcomes of this module include: Knowledge: Students get a comprehensive understanding of theories and schools in Leadership and Manage-ment

• Trait and skill oriented theories


• Contingency theories • Charismatic and transformational leadership

Students learn in particular paradigms and underly-ing assumptions behind:

• Participative leadership • Dyadic role making • transactional and transformational leader-ship

Skills: Students will be able to explain theories of leader-ship and management both from a scientific and from a practical perspective

Students will be able to discuss issues of leader-ship and management with specialists in a com-pany

Competence: Students will be able to transfer these theories to typical leadership and management situations, such as

• Change Management • Performance Management • Leading teams • Leadership development



Duration or Length



Group- Presentation

15 min 4 20 during the course

Group Paper 20 pages 4 60 30th of June

Examination Requirements Size of groups should be between 3 and 4 persons



Course: Leadership Management

Course Coordinator: Barthel, Erich



Self-Learning:

70 h

Interactive: -

Language: English


Students should understand

• Why there is no easy way to define leadership • The underlying assumptions of different theo-

ries • Consequences of different perspectives on

leadership and management Discussion and term paper will help to go deeper into the understanding of modern theories of lead-ership. Using a constructivist view will show the importance of a shared understanding in communi-cation both in explaining successful and unsuc-cessful leadership behaviour. 1. Introduction 1.1. What is Leadership Management? 1.2. How do we know what we believe to know? 2. Leadership theories 2.1. Transactional leadership 2.2. LMX theory of leadership 2.3. Transformational leadership 2.4. System theory and self-organisation 3. Performance management 3.1. Performance and motivation 3.2. Performance and payment 4. Teams and leadership 5. Leadership in an international context


Lectures, interactive teaching, case studies, pre-sentation of term papers


- Antonakis, J.; Cianciolo A. T.; Sternberg, R. J. (eds.) (2004): The Nature of Leadership. Sage. Thousand Oaks, London, New Delhi.

- Kotter, J. (1990-2001): What Leaders really do. Best of Harvard Business Review.

- Neuberger, O (2002): Führen und führen lassen. Ansätze, Ergebnisse und Kritik der Führungsfor-


schung. Stuttgart: Lucius & Lucius; 6. Aufl. - Northouse, P. G. (2004): Leadership: Theory and

Practice. Sage Publications; 4th edition. - Wegge, J. (2004): Führung von Arbeitsgruppen.

Göttingen. - Wunderer, R. (2006): Führung und Zusammen-

arbeit. Eine unternehmerische Führungslehre. Neuwied, Kriftel, Berlin: Luchterhand; 6. Aufl.

- Yukl, G. (2002): Leadership in organizations. Prentice Hall; 5th edition.


Operational Risk

Module: Operational Risk (Level 7 EQF)

Module code: 785MGT






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-


Operational Risk

Brief Description:

Learning outcomes: Knowledge: Skills: Competence:



Duration or Length





Operational Risk

Course: Operational Risk




Self-Learning:

20 h

Interactive: 50 h

Language: English


1. Operational Risk - definitions & dimensions 1.1. Operational Risk and corporate governance 1.2. Definition of Operational Risk 1.3. Loss categories 1.4. Boundaries of Operational Risk 2. Operational Risk in banking supervision 2.1. Basel II requirements 2.2. Sound practices, EU and FSA (UK) require-

ments 2.3. Relevance of requirements for the individual

bank 3. Introduction to the topics for term papers 4. Presentation and discussion of term papers 4.1. Internal loss data 4.2. External loss data 4.3. Key risk indicators 4.4. Self assessments 4.5. Scenario analysis 5. Quantification of Operational Risk 6. Management of Operational Risk 6.1. Operational Risk management goals 6.2. Operational Risk management alternatives 6.3. Precondition for Operational Risk manage-

ment 6.4. Organisation of Operational Risk management 6.5. Key risk indicators 6.6. Loss reduction


Interactive teaching with integrated exercises


Basel Committee on Banking Supervision International Convergence of Capital Measurement and Capital Standarts: a revised Framework, Basel 2004 Basel Committee on Banking Supervision Sound Practices for the Management and Supervi-sion of Operational Risks, Basel 2003 - Brink, G.J. van den: Operational Risk. The new


Challange for Banks, Basingstoke, Hampshire (UK), 2002

- Brink, G.J. van den: Quantifizierung operationeller Risiken und die Einbettung in den Management-Zyklus, in Risknews 01/2003, Freiburg, 2003

- Brink, G.J. van den: Implementing a Basel II Sce-nario-Based AMA for Operational Risk ( mit Dr. Ullrich Anders), in The Basel Handbook, A Guide for Finanacial Practicationers, Risk Books, Lon-don, 2004

- Eller, R./Gruber, W./ Reif, M. (Hrsg.): Handbuch Operationelle Risiken, Stuttgart 2002

- Jörg, M: Operational Risk - Herausforderungen bei der Implementierung von Basel II, Frank-furt/Main, 2002

- Geier, H./Piaz, J.M.: Indentifikation und Bewer-tung operationeller Risiken, in: Schierenbeck, H./ Rolfes, B./Schüller, S. (Hrsg.): Handbuch Bank-controlling, 2. Aufl., Wiesbaden 2001, S. 789-802

- Hofmann, M.: Indentifizierung, Quantifizierung und Steuerung operationeller Risiken in Kreditinstituten, Frankfurt/M. 2002

- King, J. L.: Operational Risk: measurement and modelling, New York 2001

- Münchbach, D.: Management der operationellen Risiken des Private Banking, Bern 2001

- Risk Books Advances in Operational Risk, London 2001


Distribution and Sales Management

Module: Distribution and Sales Management (Level 7 EQF)

Module code: 786MGT

Module coordinator: Georgi, Dominik





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-




This course focuses on the interface between bank and customer. Concepts and approaches for analy-sing and managing this interface are presented and discussed. One area of focus are customer interac-tions, i.e. single contacts between bank and custo-mer. Another area of focus are customer relations-hips as the aggregate of interactions between bank and customer.

Learning outcomes: Knowledge: Concepts and approaches of multi channel management, service quality and customer satisfaction, customer relationship management, customer loyalty, sales incentive systems

Skills: Deriving solutions for fulfilment of customer needs, development strategies for managing customer relationships, assessment of the value of customer relationships, segmenting the customer base

Competence: Analysing, planning and managing customer interactions and relationships



Duration or Length



Written Exam 80 min 4 80 Tbd



Course: Distribution and Sales Management


Georgi, Dominik



Self-Learning:

60 h

Interactive: 10 h

Language: English


- Understanding the interface between the bank and the customer

- Getting to approaches to analyse and manage customer interactions

- Understanding approaches of multi channel ma-nagement

- Learning about the relevance of a relationship orientation of banks and the levers of customer relationship management

Contents:

1. Challenges at the bank-customer interface 2. Multi channel management in banking 3. Managing customer interactions 4. Managing customer relationships 5. Controlling the customer interface


Class, group work, class discussion, presentation of external experts


Required Reading: - Moormann, J.: Bankvertrieb im digitalen Zeitalter,

in: Moormann, J./Roßbach, P. (Hrsg.), Customer Relationship Management in Banken, Frank-furt/M.: Bankakademie-Verlag 2001, S. 3-20

- Weil, M./Mazaheri, S.: Von der Vertriebsmaschine zum Einzelhändler, in: Die Bank (2002), Nr. 3, S. 166-170

Supplementary Reading: Ingram, T.N. / La Forge, R.W. / Avila, R.A. (2008):

Sales Management: Analysis and Decision Ma-king

Hair, J.F. / Anderson, R.E. / Mehta, R. / Babin, B.J. (2008): Sales Management: Building Custo-mer Relationships and Partnerships

- Marks, R. (2005): Personal Selling: A Relationship Approach, 7th edition


- Engelke,J/Lauszus,D.: Optimierte Geschäftsstel-lennetze für Banken, in: Die Bank (2002), Nr. 4, S. 265-269

- Helmke, S./Uebel,M./ Dangelmeier (Hrsg.): Effek-tives Customer Relationship Management, 2., überarb. und erweit. Aufl., Wiesbaden: Gabler 2002

- Hofferbert-Junge, B./ Wiemeyer, M.: Multi-Channel in Banken: Von der Eurphorie zum ren-tablen Geschäft, in: Diebold Management Report (2002), Nr. 1, S. 6-13

- Jacob H.-R./Klenk, P./Platzer, F.: Cross Buying - neue Ertragsfelder erschließen, in: Die Bank (2002), Nr. 4, S. 270-275

- Leist, S./Winter, R.(Hrsg.): Retail Banking im In-formationszeitalter, Berlin: Springer 2002

- Stahl, E./Wimmer, A.: Einsatz von SB-Internet-Terminals: Teil I - Stellung des Automaten Ban-kingin neuen Bertriebsstrukturen, in: BIT Banking and Information Technology 2 (2002), Nr. 2, S. 17-22


Process Management

Module: Process Management (Level 7 EQF)

Module code: 787MGT






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Strategic Management, Business Engineering


-

Course list of module: Process Management


Service companies like travel agencies, accountants, carrier, and banks have to deal with intense competiti-on in their respective markets. This forces these com-panies to reduce their costs significantly. In order to achieve this goal, the management of business pro-cesses is essential. Banks have already recognized this in the recent years but still face a long way in order to increase their efficiency. This proceeding includes several steps. Starting point of process management is the definition, implementation, and documentation of processes. Here, a major problem of banks is the prac-ticable and sustainable documentation and modelling. After processes have been implemented it is necessary to measure them. Here, a lack of applying relevant measurement methods exists. Furthermore, processes have to be controlled to ensure an efficient execution. Finally, the interrelation of processes with IT manage-ment has to be ensured. Thus, process management is the interrelating element between strategy and its exe-cution in IT systems. Consequently, this course will give you an overview on the specific aspects and prob-lems of process management in banks.


Learning outcomes: Knowledge: You will receive a comprehensive over-view on current structures, problems, applicability, and perspectives of process management in banks and gain insight into specific aspects of bank-related pro-cess management. This includes knowledge in the following topics: process design and documentation, process measurement, process control, and the con-nection of processes to IT systems. Skills: You will be able to apply the methods learned on a specific task in reality in the context of process ma-nagement. This holds especially true for a certain aspect of bank process management you will deal in-tensively with in your term paper. Competence: You will apply the knowledge and the skills of the course on a case-study by preparing a de-cision memo on your own.



Duration or Length



Term paper 12-15 p 4 30 1 week befo-re course

Presentation 20 min 4 30 Day of pre-sentation

participation 4 10 During cour-se

decision me-mo

5 p 4 10 1,5 week after course

Students participating in this course receive 4 Credits. These can be obtained by preparing and presenting the term paper, writing the decision memo as well as by actively participating in the course. In the case not every paper can be presented – due to time restrictions – the grading will be limited to the term paper and the student’s participation. The paper has to be written during the semester break before the course and must be submitted in written form (2 copies) approximately one week before the course starts. The presentation file must be submitted not later than one day after the respective date of pre-sentation. The decision memo has to be handed in ten days after the course.


Process Management

Course: Process Management




Self-Learning:

60 h

Interactive: 10 h

Language: English


During this course you will - receive a comprehensive overview on current

structures, problems, applicability, and prespecti-ves of process management in banks.

- gain insight into specific aspects of bank-related process management by one or more lectures delivered by external professionals.

- deal intensively with a certain aspect of bank pro-cess management on the basis of a term paper.

- apply the knowledge of the couse on a case-study by preparing a decision memo.

The course is not designed to quickly turn you into a process manager. The course is appropriate to help you to understand basic structures and the necessity of process management and techniques relevant to the banking business.

Course Contents:

1. Design and documentation of processes 2. Process Measurement 3. Process Control 4. Process and IT


The course is based on the basic knowledge that you have gained in practice or during previous courses (e.g., “Business Engineering“). Introductory lessons at the beginning of the course will provide a basic understanding of process management in banks. Other elements of the course are contributi-ons of the participants themselves (term papers). These contributions will deliver the opportunity for an intensive analysis of the respective issue. Term papers have to be written in pairs supervised by a lecturer. Additionally, teaching units might be given by practitioners. As usual the active participation of all students is absolutely necessary. In the end you will apply the whole knowledge on the preparation of a decision memo concerning a given case-study. This has to be done by each participant on his/her


own.


- Weske, M.Business Process Management. Con-cepts, Languages, Architectures, Berlin et al.: Springer, 2007

- Schmelzer, H.J./Sesselmann, W. Geschäftsprozessmanagement in der Praxis. Kunden zufrieden stellen, Produktivität steigern, Wert erhöhen, 6., vollst. überarb. u. erw. Aufl., München: Hanser, 2008

- Fischermanns, G.Praxishandbuch Prozessmana-gement, 7., überarb. Aufl., Gießen: Schmidt, 2008

- Fließ, S Prozessorganisation in Dienstleistungs-unternehmen, Kohlhammer: Stuttgart, 2006

- Gaitanides, M Prozessorganisation, 2. Aufl., Mün-chen: Vahlen, 2007

- Becker, J./ Kugeler, M./ Rosemann, M. Prozessmanagement. Ein Leitfaden zur pro-zessorientierten Organisationsgestaltung, 5., übe-rarb. u. erweit. Aufl., Berlin: Springer, 2005

- Goldratt, E./Cox, J. Das Ziel. Ein Roman über Prozessoptimierung, Campus: Frankfurt/M., 2001

- Osterloh, M./Frost, J. Prozessmanagement als Kernkompetenz, 5. Aufl., Wiesbaden: Gabler, 2005

- Allweyer, T. Geschäftsprozessmanagement, Herdecke: W3L, 2005

- Moormann, J./Hillesheimer, M./Metzler,C./ Zahn, C.M. Wertschöpfungsmanagement in Banken, 3., vollst. überarb. Aufl., Frankfurt/M.: Frankfurt School Verlag, 2009

Relevant Journals: - Business Process Management Journal - Journal of Process Control - The Journal of the Operational Research Society - International Journal of Service Industry Mana-gement


Strategic Modelling & Simulation

Module: Strategic Modelling & Simulation (Level 7 EQF)

Module code: 788MGT

Module coordinator: Strohhecker, Jürgen





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: None. Especially, no prior computer modeling ex-perience is needed.


Advanced Strategic Modeling and Smimulation

Course list of module: Strategic Modelling and Simulation


A company’s management fails easily when it co-mes to complex decision making. Psychological experiments and everyday experience show that managers intuitively often choose the wrong ac-tion. The reason for this inadequate kind of beha-viour lies in the fact that human beings in general fail to acknowledge that in a system, isolated acti-vities are just not feasible; in far too many cases the obvious action does not solve the real problem but cures the symptoms only. Thus, in the long run those activities are more likely to cause new prob-lems instead of permanently solving the real prob-lem at hand. The course “Strategic Modeling and Simulation“ uses the theory, techniques and tools of System Dynamics to support the solution of typical strate-gic bank management problems. Such strategic problems can occur in many areas and at different hierarchy levels of any bank. For example, they can refer to the strategic thrust of the company as well as to a new sales strategy in retail banking. The problem can be an old one, which was suppo-sedly solved, or a brand-new one representing a completely new kind of challenge. However, there


is one point in which all of those strategic problems are alike: They have a direct impact on the com-pany’s performance. System Dynamics addresses all dynamic and complex problems, where mutual effects and time delays cause unpredictable behaviour resulting in inadequately solved problems. In order to enhance decision quality, System Dynamics makes use of formal models and of computer simulations. In de-tail, this course has been designed to give answers to the following questions: - How can identify strategic-dynamic problems be identified? - How can such problems be formulated in a dy-namic way? - How can we identify strategic resources which are relevant for the problem? - How do we transform the problem step-by-step into a proper simulation model? - How can different solutions to the problem be evaluated? System Dynamics is not being treated as a purely abstract method. In class we will deal with several case studies including an in-depth study of a conc-rete problem of current bank management. You will apply System-Dynamics techniques in team-work settings to practice learning by doing.

Learning outcomes: Knowledge: Successful participants will have a basic un-derstanding of the system dynamics modelling and simulation methodology. Skills: You will have learned to visualize a business orga-nization in terms of the structures and policies that create dynamics and regulate performance. You will be able to create ‘microworlds’ where space and time can be compressed, slowed, and stopped so that the long-term side effects of decisions can be experienced, new strategies can be explored, and the understanding of complex systems can be developed. Competence: Having succesfully attendet this course, you will be able to increase you ability to think systemically and deal with dynamic complexity.




Duration or Length



Written exam 35 min 4, total 32 2 nd day of the course

Executive report

1.500 words

4, total 48 2 nd half of the block week

For successfully passing the exam, it is necessary that you have gone through all compulsory rea-dings. (For more details see the following pages.) The exam will deal with all the course subjects; it is not restricted to the contents of the first day. The objective is to examine your preparation for the course as a whole. Being well-prepared, will make your group work efforts much easier and contribute to reduce group dynamics. I am far from expecting that you know everything by heart. For successfully passing the test, you should know the basic concepts and you should be able to use John Sterman’s book as a work of reference. The-refore, you are allowed to use the book (or photo-copies of it) in the written exam. For your informa-tion and purposeful preparation, review questions will be provided via the CLM. The executive report shall principally be written in the second half of the block week. It is due four weeks after the block week. The report documents very briefly the application of System Dynamics to a practi¬cal case. The executive report’s size is limited to a maximum of 1.500 words. Additional information on the parti-cular requirements for the executive report will be made available in a separate document, which will be handed out during the course.


Strategic Modelling and Simulation

Course: Strategic Modelling and Simulation (Level 7 EQF)


Strohhecker, Jürgen



Self-Learning:

50 h

Interactive: 20 h

Language: English


Once you have finished this class successfully, you will be able to address the following key issues: - Why is performance following its current path? - Where will it be headed if we carry on as we are? - How can we design a robust strategy to radically improve this per¬formance into the future? Although you will not become professional simulati-on experts and you will not yet be experienced sys-tems thinkers, you should have under¬stood the advantages and limitations of system dynamics si-mulations and you should be able to apply the me-thod to practical problems of restricted complexity.

Course Contents:

1st Decision Making in Complex Systems 2nd System Dynamics – Overview of the Process 3rd Causal Loop Diagrams 4th Stocks and Flows 5th Simple Models and Molecules 6th Modelling Behaviour and Decision Making 7th Development and Testing of Alternative Prob-lem Solutions 8th Delays 9th Nonlinear Relationships 10th Introduction to the Group Work 11th Model Testing 12th Presentation of the Group Work’s Results


Reading (in advance), interactive teaching, group work (partly teamwork, partly computer based)



John D. Sterman: Business Dynamics: Systems Thinking and Modeling for a Complex World, Bos-ton u.a.: Irwin McGraw-Hill, 2000. A certain number of copies of this book are avai-lable in the library. Despite the fact that this book is fairly expensive, I can encourage you to buy one copy for your own library. Other essential readings will be made available as handouts or as PDF-files in the internet or extranet.


II. 3. Concentration Courses „Accounting & Taxation“, 2nd and 3rd Semester

International Taxation

Module: International Taxation (Level 7 EQF)

Module code: 781ACC

Module coordinator: Hölscher, Luise





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-

Course list of module: International Taxation


Tax effects on national and cross-border corporate financing and investment decisions are described and evaluated. Students learn to work with tax treaties and international tax law. Covered count-ries: Germany, USA, Switzerland, Ireland.

Learning outcomes: - Knowledge about the international law of taxa-tion and the double tax agreements relevant for Germany, Suisse, USA, and Ireland.

- Skills in application of double tax agreements

- Competence in treaty shopping and chain ar-rangements


Type of Examination

Duration or Length





International Taxation

Course: International Taxation

Course Coordinator: Hölscher, Luise



Self-Learning:

50 h

Interactive: 20 h

Language: English


1. International comparison of Company Taxation 2. Germany 3. United States 4. Switzerland 5. Ireland 6. Comparing Tax Burden


Interactive teaching with structural instructions


- Kesti, J. (ed): European Tax Handbook 2008, Amsterdam / Den Haag 2008

- Mennel, A. / Förster J. (ed): Steuern in Europa, Amerika und Asien, Herne / Berlin (Loose-Leaf-Collection)

Further literature will be announced during the course


Advanced International Accounting and Analysis

Module: Advanced International Accounting and Analysis (Level 7 EQF)

Module code: 782ACC






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Principles of Financial Accounting. Students must be able to read German accounting & tax laws


-




- Students are trained in corporate analysis based on IAS/IFRS accounts

Learning outcomes: - Knowledge of the constituent parts of an IFRS annual balance sheet

- Skills: Being able to analyse the balance sheet items and to diagnose the prospects and risks in the different items

- Comptentence: Analytical competence and competence to evaluate and quantify



Duration or Length



Written Test 60 min 4 60 Tbd Admission test

20 min 4 20 Tbd



Course: Advanced International Accounting and Analysis




Self-Learning:

60 h

Interactive: 10 h

Language: English


1. Introduction 2. Property, Plant, and Equipment; and Invest-

ment Property 3. Leases 4. Intangible Assets 5. Impairment of Assets (IAS36) 6. ConstructionContracts 7. Provisions 8. Employee Benefits 9. Financial Instruments 10. Equity 11. Deferred Taxes 12. Conolidated Financial Statements 13. Accounting Policies, Changes in Accounting

Estimates and Errors 14. Cash-flow Statements and Operating Segments


Lecture with case studies


Flick, P. / Weigel, W. et. al.: Bilanzanalyse-Kommentar nach IFRS, 2. Aufl., Heidelberg, 2009


Internal Audit

Module: Internal Audit (Level 7 EQF)

Module code: 783ACC






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Students must be able to read German accounting & tax laws


-


Internal Audit


Basis principles and regulatory framework of Inter-nal Audit are defined and explained by different sectors of auditing.

Learning outcomes: • Knowledge about the methods and relevant regulations of internal auditing

• Skills: Being able to plan internal auditing activi-ties

• Competence in evaluation of internal auditing results


Type of Examination

Duration or Length




20 4 20 Tbd


Internal Audit

Course: Internal Audit




Self-Learning:

50 h

Interactive: 20 h

Language: English and German


1. Introduction to Internal Audit 2. Strategic position and special tasks in the finan-

ce industry 3. Internal Audit and Corporate Rovernance 4. Structure and organisation 5. Internal Audit and Internal Control System 6. Defining Audit Areas under MaRisk, MaK, MaIR,

MaH 7. Steps of Internal Audit: Planing-Auditing-

Reporting-Controlling 8. Recent developments (e.g. SOA and Basel II)


Lecture


Amling, T./Bantleon, U.: Handbuch der Internen Revision, Berlin 2007 Füss, R.: Die Interne Revision, Berlin 2005


Supervisory Risk Assessment

Module: Supervisory Risk Assessment (Level 7 EQF)

Module code: 784ACC






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Students must be able to read German accounting & tax laws


-




Supervisory risk assessment for credit institutes is influenced by EC and national regulations. Those regulations are explained and their influence on up-to-date bank accounting and auditing techniques is shown.

Learning outcomes: Knowledge: Understanding risk management as a part of General Bank Management. Learn about relevant national and international supervisory re-gulations and how to apply them.

Skills: Detect, evaluate and assess market price risk, credit risk, operational risk, liquidity risk and other risks in bank management.

Competence: How to audit and certificate different types of bank risk. How to asses a risk manage-ment system from a supervisory perspective.


Type of Examination

Duration or Length




20 4 20 Tbd



Course: Supervisory Risk Assessment




Self-Learning:

50 h

Interactive: 20 h



1. Risk Management - a part of General Bank Ma-nagement

2. International legal and supervisory building blocks

3. Parts of an effective risk management organisati-on

4. Management of Market price Risk 5. Management of Credit Risk 6. Management of Operational Risk 7. Management of Liquidity Risk 8. Other risks in Bank Management


Lecture


• Kaiser, T.: Operationelle Risiken in Finanzinsti-tuten, Wiesbaden, 2004


Advanced Management Accounting

Module: Advanced Management Accounting (Level 7 EQF)

Module code: 785ACC

Module coordinator: Wagner, Hermann A.





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Students must have a strong command of German language


-


Introduction into the advanced techniques and methods of cost accounting, strategic accounting and other fields of management accounting with a special focus on Financial Institutions.

Course list of module: Advanced Management Accounting

Learning outcomes: Knowledge: Advanced Methodical Knowledge about Management Accounting for Financial Insti-tutions Skills: Ability to use different Management Accoun-ting tools for Financial Institutions Competence: Application of Management Accoun-ting in the decision making process of Financial Institutions


Type of Examination

Duration or Length





Advanced Management Accounting

Course: Advanced Management Accounting

Course Coordinator: Wagner, Hermann A.



Self-Learning:

60 h

Interactive: 10 h



Students learn about advanced methods in mana-gement accounting with a special focus on Financi-al Institutions. Course Content: 1. Advanced Management Accounting – Introducti-on 2. Cost Accounting 3. Market Interest Rate Method 4. Profitability Controlling 5. Profitability and Risk 6. Strategic Management Accounting 7. Integrated Management Accounting Systems


Lecture and Practice


Henner Schierenbeck: Ertragsorientiertes Bankma-nagement I 8th edition, Gabler 2003 Henner Schierenbeck: Ertragsorientiertes Bankma-nagement II 9th edition, Gabler 2008 Moormann/Hillesheimer/Metzler/Zahn: Wertschöp-fungsmanagement in Banken Frankfurt School Verlag 2006


Financial Instruments in A&T

Module: Financial Instruments in A&T (Level 7 EQF)

Module code: 786ACC






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Students must be able to read German accounting & tax laws. Advanced International Accounting and Analysis


-

Course list of module: Financial Instruments in A&T


Financial instruments are analysed regarding fi-nancial accounting following German–GAAP, fi-nancial accounting following IAS/IFRS and Ger-man tax accounting

Learning outcomes: - Knowledge of the relevant legislation for finan-cial accounting and evaluation of financial in-struments according to German Commercial Code (HGB), IFRS and Income Tax Act (EstG)

- Skills in application of the mentioned rules and regulations

- Competence in financial accounting and evalu-ation of financial instruments according to spe-cified objectives.


Type of Examination

Duration or Length




20 4 20 Tbd


Financial Instruments in A&T

Course: Financial Instruments in A&T




Self-Learning:

50 h

Interactive: 20 h



1. Development, markets and products 2. Organisational tasks of risk management with

Financial Instruments 3. Hedge Accounting: German GAAP 4. Hedge Accounting: IFRS and US-GAAP 5. Structured products 6. Financial Instruments and credit management 7. Tax effects of Financial Instruments


Lecture


Eigene Lehrmaterialien - Becker, K.: „Rechnungslegung nach IAS/IFRS: IAS 39 - Europäischer Alleingang oder weltweite Konvergenz?“, in: Der Konzern, Heft 5/2005, S.286-297

- Löw, E./Lorenz, K.: „Ansatz und Bewertung von Financial Instruments“, in: Edgar Löw (Hrsg.): Rechnungslegung für Banken nach IFRS, 2. Aufl., Wiesbaden 2005, S.415-604


International Tax Planning

Module: International Tax Planning (Level 7 EQF)

Module code: 787ACC






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Students must be able to read German accounting & tax laws. International Taxation


-

Course list of module: International Tax Planning


Based on the knowledge adopted in “International Taxation”, cross-border tax planning techniques are explained and used for real-data case studies.

Learning outcomes: - Knowledge about the instruments of internatio-nal tax planning

- Skills in application of double tax agreements - Competence in treaty shopping and chain ar-

rangements


Type of Examination

Duration or Length




20 4 20 Tbd


International Tax Planning

Course: International Tax Planning




Self-Learning:

40 h

Interactive: 30 h



1. Basic Principles of International Tax Planing 2. International Tax Structures 3. Tax Planning for Cross-border Transactions -

Some Examples 4. Tax Consolidation Rules („Group Taxation“) 5. Some Innovative Planning Techniques - An

Overview 6. Anti-Avoidance Measures 7. International Offshore Financial Centres


Lecture and Case Study


Jakobs, O.H. (Hrsg.): Internationale Unternehmens- besteuerung, 6.Aufl., München 2007 Endres, D.: 50 Musterfälle zum Internationalen Steuerrecht, Nordkirchen 2008


II. 4. Concentration Courses „Development Finance“, 2nd and 3rd Semester

Development Finance I

Module: Development Finance I

Module code: 787FIN






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-




This module familiarizes students with the topic development finance. After attending this course students will be able to answer the following questi-ons: - What does development finance actually mean? - What are the main drivers of economic develop-ment and growth? - Why is financial development a key ingredient in any growth process? - What are the implications for policy makers in de-signing measures to foster development and growth via the financial sector? To answer these questions, students will be intro-duced to the key concepts of development, growth and finance theory.

Learning outcomes: Knowledge: Students will be able to classify diffe-rent theoretical approaches to economic growth and finance as well as the interrelationship between finance and growth. Against this background students will be able to appraise


the history of development finance and the respective approaches taken by government and international financial institutions to foster fi-nancial inclusion. Skills: Students will be able to apply theoretical concepts of finance and growth to real world data on the finance and growth experience of emerging markets and developing countries. Competence: Students will be able to analyse the finance and growth experience in emer-ging market and developing economies.



Duration or Length



Written Exam TBD 4 60 Tbd Presentation, Assignments, Course Parti-cipation

TBD 4 20 Tbd



Course: Development Finance I


Winkler, Adalbert


Workload: 100 h


Language: English


1. Development Finance – definitions 1.1 What is development finance? 1.2 Other definitions of development finance 1.3 Development finance and microfinance

2. Development and growth 2.1 Definitions 2.2 Theoretical approaches up to the 1980s 2.3 The Solow model and its implication for income con-vergence 2.4 Convergence empirics 2.5 Growth regressions

3. Finance 3.1 Functions of finance 3.2 Finance as an intertemporal and interpersonal re-source transfer: Investment, savings and finance 3.3 Finance and growth: theory 3.4 Finance and growth: empirics

4. The modern theory of finance 4.1 Perfect and asymmetric information 4.2 Adverse selection and moral hazard 4.3 Signalling, screening and self selection: Mechanisms to mitigate moral hazard and adverse selection 4.4 Implications for the finance – growth relationship

5. Approaches to development finance in the light of the theoretical developments in the theory of growth and finance 5.1 Development finance – a theory based historical re-view 5.2 The importance of institutions 5.3 The role of governments and donors

Forms of tea-ching, me-thods, and support:

Interactive lecture with bi-weekly individual and group assignments.



Addison, T. and G. Mavrotas (2008), Develop-ment Finance in the Global Economy: The Road Ahead, in: Addison, T. and G. Mavrotas (eds.), Development Finance in the Global Economy, Palgrave Macmillan, Houndmills, Basingstoke, pp. 1-23.

Akerlof, G.A. (1970), The Market for „Lemons“: Qualita¬tive Uncertainty and the Market Mecha-nism, in: Quarterly Journal of Economics, Vol. 84, pp. 488 – 500.

Barro, R.J. and X. Sala-i-Martin (2003), Economic Growth. New York et. al., 2nd edition, Introducti-on and Chapters 1 and 12

Caprio, G. and L.H. Summers (1993), Finance and Its Reform: Beyond laissez-Faire, World Bank Policy Research Working Papers, Washing-ton, D.C.

Diaz-Alejandro, C. (1985), Good-Bye Financial Repression, Hello Financial Crash, in: Journal of Development Economics, Vol. 19, pp. 1- 24.

Easterly, W.H. (1997), The Ghost of the Finan-cing Gap: How the Harrod-Domar Growth Model Still Haunts Development Economics, World Bank Policy Research Paper 1807, The World Bank, Washington.

Gertler, M. and A. Rose (1994), Finance, public policy and growth, in: Caprio, G.; Atiyas, J. and J.A. Hanson (eds.), Financial reform, Theory and experience, Cambridge, pp. 13 – 48.

Krahnen, J.-P. and R.H. Schmidt (1994), Deve-lopment Finance as Institution Building, Westview Press, Boulder et. al., pp. 3 – 27.

Krugman, P. (1993), The Fall and Rise of Deve-lopment Economics, mimeo.

Levine, R. (2005), Finance and Growth: Theory and evidence, paper prepared for the Handbook of economic growth, mimeo

McKinnon, R.I. (1973), Money & Capital in Eco-nomic Development, The Brookings Institution, Washington DC, Chapter 6: The Demand for Mo-ney in Accumulating Capital: An Alternative View,


pp. 55-67.

Merton, R.C. and Z. Bodie (1995), A Conceptual Framework for Analyzing the Financial Environ-ment, in: Crane, D. B. (ed.), The global financial system: a functional perspective, Boston, pp. 3 – 32.

Mishkin, F. (2007), The Economics of Money, Banking, and Financial Markets, Pearson Educa-tion, Boston; Chapter 8: An Economic Analysis of Financial Structure, pp. 181 – 217 .

Perkins, D.H., Radelet, S. and D.L. Lindauer (2006), Economics of Development, W.W. Norton & Company, New York and London 6th edition, chapters 1-4

Ray, D. (2007), Development Economics, mimeo, prepared for Blume, L. and S. Durlauf (eds.), New Palgrave Dictionary of Economics.

Stiglitz, J.E. and A. Weiss (1981), Credit Ratio-ning in Markets with Imperfect Information, in: AER, Vol. 81, pp. 393 – 410

Winkler, A. (1998), Financial Markets and Eco-nomic Development, in: Menkhoff, L. and B. Res-zat (eds.), Asian Financial Markets – Structures, Policy Issues and Prospects, Baden-Baden, pp. 15 – 44

World Bank (1989), World Development Report, Washington DC; Chapters 4 and 5, pp. 54 – 83.

World Bank (2001), Finance for Growth, World Bank Policy Research Report, Washnigton DC, Chapter 3: Government Failure in Finance, pp. 123 – 156

World Bank (2008), Finance for All? Policies and Pitfalls in Expanding Access, Washington D.C., pp. 21 – 56, and pp. 143 – 188.


Development Finance II

Module: Development Finance II

Module code: 789FIN






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-




In this module students are confronted with the key factors driving (and hindering) financial develop-ment and the provision of financial services to the poor. To this end, students will be introduced to the history of financial development and development finance in mature economies, the main theories of financial intermediation and – in a seminar part with single- or group work papers – to the challenges of financial development and development finance in emerging market and developing economies.

Learning outcomes: Knowledge: Students will be able to describe, ana-lyse and appraise the history of financial develop-ment and development finance in mature econo-mies against the background of key contributions to the modern theory of financial intermediation Skills: Students will be able to assess challenges of financial development and development finance in emerging market and developing economies by making use of the benchmark provided by the histo-ry of today’s mature economies and by the insights of the modern theory of financial intermediation Competence: Students will be able to conduct their own research on different aspects of financial deve-


lopment and development finance in emerging market and developing economies


Type of Examination

Duration or Length



Written Exam

TBD 4 40 Tbd

Seminar paper

TBD 4 40 Tbd



Course: Development Finance II

Course Coordinator: Winkler, Adalbert



Self-Learning:

70 h

Interactive: -

Language: English


This course aims at making students aware of the main features of financial development in mature economies and the main approaches taken to fos-ter the development of inclusive financial systems in today’s mature economies. Against this back-ground, the course aims at introducing students to key contributions of the modern theory of financial intermedation and how the insights contained in these contributions can be applied to key issues of financial development and development finance facing emerging market and developing econo-mies. Course Contents: 1. Introduction 1.1 Introductory remarks 1.2 Financial intermediaries and financial markets 1.3 In search for a theory of financial development

2. Financial development in mature economies –

the empirical evidence 2.1 Why a model of ‚back to the future‘ is appropri-

ate – the socioeconomic background 2.2 Institutions: From “Private Bankers” to Joint

Stock Companies 2.3 Bank activities 2.4 Bank liabilities and equity 2.5 Summary and conclusions

3. The theory of financial intermediation – a se-

lective overview 3.1 Financial intermediaries vs. financial markets –

Why do financial intermediaries exist? 3.2 Financial intermediaries as delegated monitors 3.3 Equity and reputation as signalling mecha-

nisms 3.4 Financial intermediaries as organisers of matu-

rity transformation


3.5 Theories of financial intermediation and the empirical evidence on financial development in mature economies:

implications for a theory of financial develop-ment

4. The development of inclusive financial sys-tems– the empirical evidence in mature eco-nomies and theoretical foundations

4.1 The co-operative banking movement 4.2 Savings banks (Savings and loans) 4.3 A model of cooperative banking seminar

5. Financial development in developing countries

and emerging market economies 5.1 Changing financial structures in developing

countries and emerging market countries 5.2 Stock market development in developing

countries and emerging market countries 5.3 Ownership structure and financial develop-

ment 5.4 Rebuilding a financial sector after a crisis

6. The development of inclusive financial sys-

tems– the empirical evidence in developing countries and emerging market economies

6.1 Financial development and poverty reduction – an overview

6.2 Building an inclusive financial system – case studies

6.3 Assessing the access to finance – case studies

7. The theory of financial intermediation – some more seminal papers

Forms of teaching, methods and sup-port:

Interactive lecture and Single-/Group Work on a seminar paper.


- Barth, J.R., Caprio G. and R. Levine (2006), Rethinking Bank Regulation: Till Angels Govern, Cambridge University Press. (selected chapters and sections)

- Caprio, G. (1997). ‘Safe and Sound Banking in Developing Countries - We’re Not in Kansas Anymore’, World Bank Working Paper, No. 1739, Washington D.C

- Diaz-Alejandro, C. (1985), Good-Bye Financial Repression, Hello Financial Crash, in: Journal of Development Economics, Vol. 19, pp. 1- 24

- Freixas, X. and J.-C. Rochet (1997), Microecono-mics of Banking, MIT Press (selected chapters


and sections) - Krahnen, J.P. and R.H. Schmidt (1994), Deve-lopment Finance as Institution Building, Boulder et al. (selected chapter)

- McKinnon, R.I. (1973), Money and Capital in Eco-nomic Decelopment, Washington D.C.

- Winkler, A. (1999), Promotional Banks as an In-strument for Improving the Financing Situation of Small and Medium-Sized Enterprises in the Tran-sition Economies of Central and Eastern Europe – Some Observations Based on the Development of the German Financial System, Würzburg Econo-mic Papers No. 2. (section 5)

- World Bank (1989), World Development Report 1989, Washington, D.C.

- World Bank (2001), Finance for Growth, Policy Choices in a Volatile World, Washington D.C.

- World Bank (2008), Finance for All? Policies and Pitfalls in Expanding Access, Washington D.C.


Project Management I

Module: Project Management I (Level 7 EQF)

Module code: 789MGT

Module coordinator: Hillberg, Kerstin





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: -


-

Course list of module: Project Management I

Brief Description:

Learning outcomes: • Knowledge: Students will learn the fundamen-

tal theories related to project management, fi-nancing, development and accounting.

• Skills: Students will develop skills in regards to communication and negotiations, as well as in regards to project financing, assessing risk, applying quality control measures and problem-solving and analysis.

• Competence: Students should be able to suc-cessfully apply the knowledge and skills learned in utilizing standard tools of project management.


Type of Examination

Duration or Length



Written Exam

TBD 4 40 Tbd

Seminar paper

TBD 4 40 Tbd


Project Management I

Course: Project Management I


Hillberg, Kerstin


Workload: 100 h

Presence: 30 h

h Self-Learning:

40 h

Interactive: 30 h

Language: English


· Project components - Project fundamentals - Project teams and -organisation - Communication in and about projects - Presentation and negotiation skills - Project crisis · Project business plan (theory) - Project development - Standard project management tools and applicati-ons

· Fundamentals of Project Finance - Project finance - Risk management - Legal issues in connection with project finance · Tools of Project Accounting - Introduction into project accounting - Standard project management tools and applicati-ons

· Others - Quality of projects


Interactive Workshop Theory, Teamwork, Feedback, Role play


- The Wisdom of Teams: Creating the High-Performance Organization Jon R. Katzenbach, Douglas K. Smith

- Emotional Intelligence: Living. Effective Manage-ment for a new era Fredmund Malik

- Leading Change John P. Kotter - The Six Sigma Way: How GE, Motorola, and Other Top Companies are Honing Their Performance Pe-ter S. Pande, Robert P. Neumann, Roland R. Cava-na

- The Deadline: A Novel About Project Manage-ment Tom deMarco

- Projekte und Projektfinanzierung Ulf R. Siebel - Global Project Management Handbook: Planning, Organizing and Controlling International Projects David E. Cleland, Roland Gareis


Microfinance

Module: Microfinance (Level 7 EQF)

Module code: 788FIN






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-


Microfinance


This module builds on the foundations laid in “Intro-duction to Development Finance” and “Financial Development and Development Finance”. It will introduce students to the history and performance of modern microfinance and its key challenges and insights when providing financial services, in parti-cular credit and deposits, to microbusinesses and low-income households. It is based on the following questions: - What is microfinance? - Why has microfinance become a key tool in foste-ring financial development and providing access to financial services for the poor in many emerging markets and developing count-ries? - How and to what extent has microfinance been able to lower information and transaction costs in providing financial services to the poor?

Learning outcomes: Learning Outcomes:Knowledge: Students will be able to analyse and appraise different credit tech-nologies used in lending to microbusinesses on the basis of the modern theory of finance as well as theories of savings and the advantages of financial savings in the formof deposits for low-income hou-seholds. Skills: Students will be able to debate different ap-


proaches to microfinance based on the knowledge of the technologies and theories menti-oned above. Competence: Students will be able to apply the respective technologies and theoretical insights when assessing microfinance projects.



Duration or Length



Closed Book Exam

80 4 80 Tbd


Microfinance

Course: Microfinance




Self-Learning:

70 h

Interactive: -

Language: English

Aims of course: This course aims at providing students an overview about the main achievements of microfinance in providing financial services to micro businesses and low-income households. Moreover, it will intro-duce them to the main credit technologies that ha-ve been implemented to reduce risk and transacti-on costs in lending to micro businesses as well as the main factors that create a demand of low-income households for savings in the form of bank deposits.

Course Contents: 1. Introduction 1.1 Microfinance – a definition 1.2 The history of microfinance 1.3 Microfinance institutions 1.4 Microfinance – evidence on its performance 2. Credit technologies 2.1 Credit technologies – an overview 2.2 Group lending 2.3 Individual lending 2.4 Common characteristics: short-term loans, in-stallment loans, progressive lending (graduation principle)

3. Savings, deposits and funding 3.1 Savings motives 3.2 The challenge of providing deposit services to the target group 3.3 Funding microfinance institutions: the role of donors, IFIs and capital markets


Interactive lecture



Part I: Introduction - Cull, R., Demirguc-Kunt, A. and J. Morduch (2008), Microfinance Meets the Market, World Bank Policy Research Working Paper No. 4630, Washington DC - Fitch (2008), The Microfinance Sector: Its Suc-cess Could be its Biggest Risk, Special Report. - Helms, B. (2006), Access for all, Building Inclusi-ve Financial Systems, The World Bank, Washington DC - O’Donohoe, N.P., de Martz, F.R., Littlefield, E., Reille, X. and C. Kneiding (2009), Shedding Light on Microfinance Equity Valuation: Past and Present, CGAP Occasional Paper No. 14, CGAP and J.P. Morgan, Washing-ton DC. - Rosenberg, R., A. Gonzalez and S. Narain (2009), The New Moneylenders: Are the Poor Being Exploited by High Microcredit Interest Ra-tes? CGAP Occasional Paper No. 15, Washington DC

Part II: Credit technologies - Armendáriz, B. and J. Morduch (2007), The Eco-nomics of Microfinance, MIT Press, Cambridge (chapters 4 and 5) - Schmidt, R.H. and C.P. Zeitinger (1994), Critical Issues in Small and Microbusiness Finance, Working Paper No. 1, Internationale Projekt Consult (IPC) GmbH, Frankfurt (Chapter C: Credit).

Part III: Savings and Funding - Armendáriz, B. and J. Morduch (2007), The Eco-nomics of Microfinance, MIT Press, Cambridge (chapter 6) - Schmidt, R.H. and C.P. Zeitinger (1994), Critical Issues in Small and Microbusiness Finance, Working Paper No. 1, Internationale Projekt Consult (IPC) GmbH, Frankfurt (Chapter D: Savings).


SME & Housing Finance

Module: SME & Housing Finance (Level 7 EQF)

Module code: 790FIN






Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-

Course list of module: SME & Housing Finance

Brief description of the module:

This module is the final building block in the develop-ment finance canon: Starting from Development Fi-nance I and II, which analyze the macro-level, the ‘hands-on’ financing techniques to push ahead finan-cial development can be clustered in two broad cate-gories on the micro-level: Microfinance, on the one hand and other financial services that have recently gained prominence in development finance, namely housing finance and SME financing.

Learning outcomes: Knowledge: Students know the most important financ-ing techniques for SMEs and Housing in Developing Countries.

Skills: Students are able to analyze SME portfolios, spot incidents of window dressing and are able to construct various SME and housing financing models (e.g. leasing) themselves.

Competence: Students are able to apply the tech-niques learnt in a wide array of contexts including de-veloping countries.


Type of Exami- nation

Duration or Length



Case Study

2.500 words

4 80 End of semester


SME & Housing Finance

Course: SME & Housing Finance




Self-Learning:

50 h

Interactive: 20 h

Language: English


The purpose of this course is to provide insights into financing techniques used in investing in two types categories: business and housing in develo-ping countries.

Content:

The housing part of the course explores the fol-lowing topics: A. Housing and the Economy B. Housing Construction Finance C. The Business of Residential Housing Finance: Functions and Products D. Financing Mortgage Lending E. Housing policies F. Case study: Housing in Sub-Saharan Africa and Latin America The SME part of the course explores the follo-wing topics: A: Evaluation of the SME market including the key risks B: Detailed case study using Financial Analysis and Non Financial Analysis. C: Cash flow analysis techniques D: SME- Finance Portfolio E: An advanced SME lending case study in an emerging market


Front-teaching, discussion, group work, case stud-ies


• International Banking and Financial Market De-velopments”, BIS Quarterly Review. September 2008.

• Housing Finance in Emerging Markets. Editors: Chiquier, Loic and Lea, Michael. World Bank

• Duebel, Hans-Joachim, “Does Housing Finance


Promote Economic and Social Development in Emerging Markets?”, International Finance Cor-poration, 2007.

• Roy, Friedemann, “Primary Mortgage Market Development in Emerging Markets – Is the CEE Experience Replicable in Sub-Saharan Africa?”, KfW, Frankfurt. 2008

• Mayo, Steve, “Housing: Enabling Markets to Work”. Washington, DC. 2003.

• Glaeser, E.; Gyourko, J. and Saiz, Albert. “Hou-sing Supply and Housing Bubbles”. Journal of Urban Economics. July 2008.

• Pollok, Alex. “Simplicity versus Complexity in the Evolution of Housing Finance Systems”. Housing Finance International. March 1994

• Housing Finance International, Quarterly Jour-nal of the International Union for Housing Fi-nance.

• “Housing Finance, New and Old Models in Central Europe, Russia and Kazakhstan”, edited by J. Hegedüs and R. Struyk, LGI Books. 2005.

• R. Struyk (ed.), “Homeownership and Housing Finance Policy in the Former Soviet Bloc”, The Urban Institute, Washington DC, 2000.

• F. Roy, “Contractual Savings Schemes for Hou-sing (CSSH) – an assessment of past experien-ces and current developments”, paper prepared for World Bank/IFC conference “Housing Finan-ce in Emerging Markets”, Washington DC, 15 – 17 March 2006.

• EBRD, Mortgage Loan Minimum Standards Manual, April 2004

• European Mortgage Federation, EMF Hypostat 2006, a review of Europe’s mortgage and hou-sing markets, Brussels, November 2007. Bankers Lending Techniques – C N Rouse (ISBN 0-85297-587-2) - Financial World Publis-hing The Analysis and Use of Financial State-ments – Gerald I White Published by Wiley


Project Management II

Module: Project Management II (Level 7 EQF)

Module code: 790MGT

Module coordinator: Hillberg, Kerstin





Compulsory Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Project Management I


-

Course list of module: Project Management II

Brief Description: The goal of this couse is to gain knowledge about leading and controlling within the field of Project Management.

Learning outcomes: • Knowledge: Students will deepen their knowl-

edge base from Project Management I in re-gards to leading and controlling within the field of Project Management.

• Skills: Students will acquire skills in developing and managing the project team which includes tracking team member performance, providing feedback, resolvingi issues, and coordinating changes to enhance the project performance.

• Competence: Students will lead and facilitate international teams, utilize and apply skills and knowledge learned specifically in regards to cost management (estimating, budgeting, con-trolling) and risk management (planning, identi-fication, response, monitoring and controlling).



Type of Examination

Duration or Length



Exam TBD 4 40 Tbd Seminar paper

TBD 4 40 Tbd


Project Management II

Course: Project Management II

Course Coordinator: Hillberg, Kerstin



Self-Learning:

70 h

Interactive: -

Language: English


· Project Finance · Public-private-partnership investment projects in developing countries

· Political economy of public/private contracts · Theory of public goods · Catalytic Growth effects infrastructure · Special contractual features of PPP · Risk Management for Large Ticket Projects · PPP financial contracts and accounting


Interactive Workshop Theory, Teamwork, Feedback, Role play


- ADB: The truth about managing people - Project Management Body of Knowledge


Internship

Module: Internship (Level 7 EQF)

Module code: 791MGT

Module coordinator: Drexler, Barbara





Compulsory Module


Credits: 10

Workload: 250 h

Frequency: Annually

Prerequisites: Semester 1 & 2 Master of Finance: Concentration Development Finance


This module is only available for the concentration development finance.

Course list of module: Internship


In their third semester, students will undergo an 6-week project immersion worldwide for the comple-tion of which they shall be awarded 8 ECTS credit points. Students will be placed with employers such as International Advisory Services Frankfurt School, Connective Capital Frankfurt School and these organizations’ customers and clients (e.g. KfW, DEG, EIB, Austrian Development Bank, Pro Credit etc.) It is strictly required that the projects students will be working on be thematically closely linked to the theoretic curriculum of the Master of Finance Con-centration Development Finance. Under supervisi-on of a project coordinator approved by Frankfurt School staff, students are to perform tasks that revolve around development economics, develop-ment management and/or development finance. They shall also be required to provide written proof thereof on a regular basis. Specifically, students will be asked to keep a log-book of their activities in which they reflect their experiences. Students must submit log-book entries electronically every two weeks.


Learning outcomes: Knowledge: In-depth knowledge of one particular development finance project; improve ability to identify the appropriate procedures, inlcuding the relevant technical steps, for managing projects in developing countries.

Skills: Improve ability to identify the appropriate procedures, inlcuding the relevant technical steps, for managing projects in developing count-ries.

Competencies: Have gained real world practical experience that can be applied to later work as-signments.


Type of Examination

Duration or Length



Log-Book 1 A4 page every two weeks to be submitted electronically to the modu-le coordina-tor

10 200 During the interns-hip


Internship

Course: Internship

Course Coordinator: Drexler, Barbara



Self-Learning:

0 h

Interactive: 0 h

Language: English


The aim of the course is to resolve the classical dilemma: in order to get experience – i.e. an in-ternship – one needs to have experience. This is particularly pronounced in the development finance field where many positions require field experience and local expertise.

Learning Contents: Students will be placed with employers such as International Advisory Services Frankfurt School, Connective Capital Frankfurt School and these or-ganizations’ customers and clients (e.g. KfW, DEG, EIB, Austrian Development Bank, Pro Credit etc.) where they will perform tasks such as project ma-nagement assistance, loan officer assistance, do-nor-relationship support, coporate strategy as-sistance.


Practical Training


none


III. Free Elective Courses, 3rd and 4th Semester

Private Wealth Management

Module: Private Wealth Management (Level 7 EQF)

Module code: 781ECO




Study Term: 4th Semester


Compulsory Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-

Course list of module: Private Wealth Management


This module is geared entirely towards the re-quirements of wealth management. Topics focus on major issues of wealth management, ranging from the asset management perspective of a fi-nancial institution to the perspective of a private investor. Additionally, topics are discussed that cover the academic findings of various investment strategies and their underlying theories.

Learning outcomes: Knowledge: Students gain theoretical knowledge in concepts of wealth management and learn how to apply this knowledge to practical problems. Skills: Solving problems and discussing case stud-ies develop logical and creative thinking as well as the practical application of scientific skills. Competence: The understanding and the applica-tion of academic research in relation to real world problems is practised by group work and individual training.



Type of Examination

Duration or Length





Private Wealth Management

Course: Private Wealth Management




Self-Learning:

70 h

Interactive: -

Language: English


This course is intended to provide students with the knowledge of wealth management. The student learns classical concepts in portfolio management, their advanced applications and their limitations in capital markets such as equities or hedge funds. In addition, aspects of wealth planning is tought with modern concepts such as behavioral finance and life cycle asset management. Students should have a sound understanding of quantitave methods. 1. Asset Management / Asset Allocation 2. Preferences of Investors / Behavioral Finance 3. Investment Strategies 4. Investment Products 5. Case Studies


Lectures, Case Studies, Self-Study, Group Work, Class Discussion


• Hens and Bachmann (2008) „Behavioral Finan-ce for Private Banking“

• Campbell and Viceira (2002) „Strategic Asset Allocation“


Mergers & Aquisitions

Module: Mergers & Aquisitions (Level 7 EQF)

Module code: 781LAW

Module coordinator: Grote, Michael H.







Credits: 2

Workload: 50 h

Frequency: Annually

Prerequisites: Basic valuation skills


Master of International Business

Course list of module: Mergers & Aquisitions

Brief Description of Module:

The course is structured along the value chain of an M&A-deal and provides a framework and tools to tackle the complex issues of the process. The course’s main perspective is that of an investment bank or M&A advisory boutique; additionally we discuss appropriate success measures.

Learning outcomes: Knowledge: Students gain knowledge about the process of M&A transactions that enable them to start working in an investment bank. Also they will have a basic knowledge about theories on merger waves and deal success factors. Skills: Students will have the skills to apply M&A processes in a variety of settings, in firms and con-sultancies for firms. Competence: Students will be competent to com-ment on and implement M&A strategies. They will be able to circumnavigate the most common pit-falls in M&A transactions.


Type of Examination

Duration or Length



Case Pre-sentation

Tbd 2 40 in class


Mergers & Aquisitions

Course: Mergers & Aquisitions

Course Coordi-nator:

Grote, Michael H.


Workload: 50 h Presence: 10 h Self-Learning: 40 h Interactive: -

Language: English

Aim of the cour-se and/or Cour-se Contents:

This course gives a comprehensive, hands-on over-view of the process of mergers and acquisitions. The field continues to be of extreme importance, especially in today’s dynamic economic environment. Companies are increasingly using M&A as the fastest way to take advantage of market opportunities or to restructure their businesses. However, M&A transactions are not always successful. The course is structured along the value chain of an M&A-deal and provides both, a framework and tools to tackle the complex issues of the process. The course’s main perspective is that of an investment bank or M&A advisory boutique. With the help of a set of current, real-life case studies participants get a thorough blue print of an M&A transaction. Participants will be prepa-red to start working in an investment bank or M&A ad-visory firm. The course builds upon the value chain of M&A tran-sactions. It starts with analyses of current market deve-lopments and the so-called merger-waves. A typical transaction process is examined and tools for industry analysis and target identification are discussed. Real-life case studies are used for due diligence and the application of several valuation methods (multiples, dcf, valuation of start-ups). We discuss techniques for hostile takeovers and defences. Some time is spend on measuring and analyzing success factors of M&A tran-sactions.

Forms of tea-ching, methods, and support:

lectures, case studies, students’ presentations, and guest speakers

Background Literature

• DePamphilis, Donald (2008): Mergers, Acquisitions, and Other Restructuring Activities, fourth edition, Burlington: Academic Press

• Weston, Fred J. / Mulherin, J. Harold / Mitchell, Mark (2008): Takeovers, Restructuring, and Corpo-rate Governance, Upper Saddle River: Pearson

• Additional literature will be posted well before class starts


Financial Sector Stability

Module: Financial Sector Stability (Level 7 EQF)

Module code: 782ECO

Module coordinator: Schmidt, Paul G.





Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: None


-

Course list of module: Financial Sector Stability


The course provides theoretical concepts and in-depth empirical analyses on the causes, triggers and catalytic factors of financial crises around the world as well as the mechanisms and channels of cross-national contagion of financial stress.

Learning outcomes: Knowledge: Knowledge regarding the structural, macroeconomic and institutional weaknesses of financial systems, the potential triggers of financial crises as well as the channels and mechanisms of cross-national contagion of financial stress

Skills:Concepts and tools for the analysis of hidden systemic risks

Competence: Ability to assess the degree of finan-cial sector stability under various institutional set-tings and recommendation of measures to en-hance financial sector stability and consolidation in periods of financial stress at the macro and micro level.



There will be an oral presentation plus a written assignment, in which students in groups are asked to investigate some specific financial crisis, present their results in class and write a term paper about the same topic to be delivered until the end of the current term.

Type of Examination

Duration or Length



Presentation

10 minu-tes per team member

2 40 in class

Term Paper 6 pages per team member

2 40 end of term


Financial Sector Stability

Course: Financial Sector Stability

Course Coordinator: Schmidt, Paul G.



Self-Learning:

40 h

Interactive: 30 h

Language: English


The aim of the course is to provide an understand-ing of theoretical models on the causes, triggers and catalytic factors of financial crises as well as approaches explaining the channels and mecha-nisms of cross-national contagion of financial stress. These concepts are applied in a series of empirical country case studies.

1. Varieties of Financial Crises – Stylized Facts in Historical & Cross-national Perspective

2. Causes of Financial Fragility – Structural De-terminants of Financial Sector Soundness

3. Triggers & Catalysts of Financial Crises – Cross-national Evidence on the Role of Shocks

4. Forecasting Currency Crashes – A Survey of Early Warning Systems

5. Cross-National Contagion of Financial Crises – Theory, Evidence, and Policy Implications

6. The Financial Crisis of Indonesia 1997-2000 – A Case Study

7. The Financial Crisis of Russia 1998-1999 – A Case Study

8. The Financial Crisis of the People’s Republic of China 1998-1999 – A Case Study

9. The Financial Crisis of Argentina 2000-2002 – A Case Study

10. The Current Financial Crisis of Iceland – A Case Study

11. The Current Financial Crisis of Ukraine – A Case Study

12. The Current Financial Crisis of the USA – A Case Study

13. The Current Crisis of the United Kingdom – A Case Study

14. The Current Financial Crisis of Spain – A Case Study

15. The Great Depression & the Present World


Financial Crisis – A Comparison


Lecture, case studies, team presentations


Bell, James, and Darran Pain (2000), „Leading Indi-cator Models of Banking Crises: A Critical Review“, Bank of England Financial Stability Review, De-cember, pp. 113-129

Caprio, Gerard, and Daniela Klingebiel (1996), “Bank Insolvency: Bad Luck, Bad Policy, or Bad Banking?”, in: Michael Bruno and Boris Pleskovic (Ed.), Annual Worldbank Conference on Develop-ment Economics, Washington, DC: Worldbank, pp. 79-104

Caprio, Gerard, James E. Hanson, and Robert E. Litan (2005), Financial Crises: Lessons from the Past, Preparation for the Future, Washington, DC (Brookings Institution Press)

Dornbusch, Rudiger, Yung Chul Park, and Stijn Claessens (2000), “Contagion: Understanding How It Spreads”, The World Bank Research Observer, Vol. 15 (August), pp. 177-197

Goldstein, Morris, and Philip Turner (1996), Bank-ing Crises in Emerging Economies: Origins und Policy Options, Basle (Bank for International Set-tlements)

Hardy, Daniel C., and Ceyla Pazarbasioglu (1999), “Determinants and Leading Indicators of Banking Crises: Further Evidence”, International Monetary Fund Staff Papers, 46 (September), pp.247-258

Hawkins, John, and Marc Klau (2000), “Measuring Potential Vulnerabilities in Emerging Market Economies”, BIS Working Papers, No. 91, Basle: Bank for International Settlements

Hernández, Leonardo F., and Rodrigo O. Valdés (2001), “What Drives Contagion: Trade, Neighbor-hood or Financial Links?”, IMF Working Papers, No.01/29, Washington, DC (International Monetary Fund)

Hilbers, Paul, Qin Lei, and Lisbeth Zacho (2001), “Real Estate Market Developments and Financial Sector Soundness”, International Monetary Fund Working Papers, No. 01/129, Washington, DC

Kaminsky, Graciela L., and Carmen M. Reinhart (1999), “The Twin Crises: The Causes of Banking and Balance-of-Payments Problems”, The Ameri-can Economic Review, Vol. 89, pp. 473-500

Kindleberger, Charles (1986), Manias, Panics, and


Crashes: A History of Financial Crises, third edition, New York, N.Y. (John Wiley & Sons)

Lindgren, Carl-Johan, Gillian García, and Mathew I. Saal (1996), Bank Soundness and Macroeconomic Policy, Washington, DC (International Monetary Fund)

Pericoli, Marcello, and Massimo Sbracia (2001), “A Primer On Financial Contagion”, Banca d’Italia Te-mi di Discussione, No. 407, June, Rome (Bank of Italy)

Rosenberg, Christoph et al. (2004), “Debt-Related Vulnerabilities and Financial Crises: An Application of the Balance Sheet Approach to Emerging Market Countries”, IMF Discussion Paper, Washington, DC (International Monetary Fund)

Santor, Eric (2002), “Banking Crises and Conta-gion: Empirical Evidence”, Bank of Canada Working Paper, unpublished manuscript, Toronto (Bank of Canada).


LAW I - Int. Private & Commercial Law

Module: LAW I - Int. Private & Commercial Law (Level 7 EQF)

Module code: 782LAW

Module coordinator: Halfmeier, Axel; Hölscher, Luise





Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: - Basic knowledge of contract law, Bachelor level - Good command of German language


-




This module deals with legal aspects of transnatio-nal commercial transactions. It will give students an overview over the most important terms, rules and concepts. In particular, the concept of private inter-national law is explained which deals with the de-termination of the applicable substantive law in transnational commercial transactions. In addition, the UN Convention on the International Sale of Goods will be studied as the most important example of harmonized substantive law. Further-more, basic concepts of European Union law are studied since EU law has harmonized private inter-national law to a large extent and is also relevant in almost all other aspects of commercial law.

Learning outcomes: Knowledge: Students will know the basic terms and concepts of private international law as well as of the UN Convention on the International Sale of Goods; they will also know the basic principles and institutional set-up of the European Union. Skills: In the described areas of the law, students will be able to solve simple legal problems by them-selves with the use of appropriate legal materials


and literature. In addition, they will be able to identi-fy more complex issues and discuss them with a lawyer. Competence: The main goal of this module is to provide a competence of inter-disciplinary interac-tion. In a typical business or corporate environment, legal questions play a large role and must be dealt with in many cases. The aim of the module is not to make legal specialists out of the student, since for such tasks, there will usually be law firms or in-house lawyers at hand. However, in order to work successfully with these specialists, a certain basic understanding of legal terms and concepts is ne-cessary and helpful for all participants. This level of legal competence shall be reached with this module with regard to the described areas of the law.



Duration or Length






Course: LAW I - Int. Private & Commercial Law




Self-Learning:

70 h

Interactive: -



A) International Private Law 1) Scope of Application 2) Contractual Obligations 3) Non-contractual Obligations 4) Property Law B) International Commercial Law (Contracts for the International Sale of Goods - CISG) 1) Prerequisites for Application 2) Legal distinctions C) Basics of Community Law 1) Sources of Law 2) Law Instruments 3) Procedure of Legislation 4) System of Remedy


Lectures and case study


Koch, Harald/Magnus, Ulrich/Winkler von Mohren-fels, Peter: IPR und Rechtsvergleichung (4. Aufl. 2010); Schlechtriem, Peter/Butler, Petra: UN Law on In-ternational Sales (2008); Schroeder, Werner: Grundkurs Europarecht (2010)


Econometrics for Business and Finance

Module: Econometrics for Business and Finance (Level 7 EQF)

Module code: 782QUM






Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Students should have a good knowledge of ma-thematics and statistics.


-

Course list of module: Econometrics for Business and Finance


This course covers widely used econometric tech-niques such as the classical linear regression mo-del, time series analysis and panel data analysis. Students learn the theory of these topics, they are provided with real data to apply these techniques, and they are confronted with scientific articles to interpret the econometric results of others.

Learning outcomes: Knowledge: Students learn to understand and to apply general econometric principles with a special focus on financial applications. Areas which are cove-red include regression analysis, time series analysis and panel analysis. Skills: The econometric techniques are applied to examples and cases from practical finance. Students are also provided with data to apply their knowledge practically on the basis of spreadsheets. Competence: The combination of theoretic knowled-ge and application to financial issues enables stu-dents to critically evaluate financial analyses as well as scientific articles.



Type of Examination

Duration or Length



WrittenExam 80 min 4 80 Tbd

Examination Requirements: Relevant for the exam are the content of the lectu-res. Written test, closed book exam, nonprogram-mable calculator.


Econometrics for Business and Finance

Course: Econometrics for Business and Finance




Self-Learning:

70 h

Interactive: 0 h

Language: English


The aim of this lecture is to learn widely used eco-nometric approaches. In particular, students should be able to apply these methods to their individual problems (in practice and in academia), they should be able to understand and to interpret economotric results of other studies (practically oriented and research oriented).

Course Contents:

1. Introduction into econometrics 2. A brief overview of the classical linear regression

model 3. Generalising the simple model to multiple linear

regression 4. Classical linear regression model assumptions

and diagnostics 5. Univariate time series modeling and forecasting 6. Panel data analysis


Lecture with integrated worked examples and eco-nomic applications, discovery learning, interpretati-on of scientific articles.


- Brooks, Chris (2008): Introductory econometrics for finance, 2nd ed, Cambridge University Press.

- Campbell/Lo/MacKinlay (1997): The econometrics of financial markets. Princeton University Press

- Various scientific articles, distributed in class


Global Financial Architecture

Module: Global Financial Architecture (Level 7 EQF)

Module code: 783ECO

Module coordinator: Drexler, Barbara





Elective Module


Credits: 2

Workload: 50 h

Frequency: Annually

Prerequisites: none


-

Course list of module: Global Financial Architecture


The module consists of the elective course Global Financial Architecture.

Learning outcomes: Knowledge: Students know the history, functions and organizational strucutures of the International-Financial Organizations such as the World Bank Group and the International Monetary Fund. Stu-dents know the fundamentals of New Intstitutional Economic Theory which explains the governance patterns of these institutions. Students are familiar with the basics of electronic and cash payment systems in developed as well as developing count-ries and explain the various payment habits against the backdrop of network theory.

Skills: Students are able to apply theoretic know-ledge to current political issues, such as fror in-stance the G 8 or G 20 summits, reform of global payment system regulation or debates about insi-tutional reform of World Bank or IMF.

Competence: Students can differentiate the diffe-rent players in the global financial architecture and will be able to decipher which interests which insti-tution pursues.




Duration or Length

Credits Accum- Points


Essay 1500 words

2 20 6 weeks after last session

Presentation 20 min 2 20 during the semester


Global Financial Architecture

Course: Global Financial Architecture


Drexler, Barbara

Study Term: 4th

Workload: 50 h Presence: 10 h Self-Learning:

10 h Interactive: 30 h

Language: English


The course aims to equis students with a solid un-derstanding of current players and trends in global financial markets.

Learning Contents:

▪ International Financial Relations ▪ International financial order (IMF, Word Bank etc)

- Washington Consensus - Aims, Structure and Funds Worldbank - Aims, Structure and Funds IMF - Instruments of the IMF - Agenda for Reform * International Payment Systems - Cash - Electronic Payment Systems


Interactive lecture


- Rawi Abelal (2003): Malaysia – Capital and Control, Harvard Business School Publishing

- R. Abdelal (2007): The International Finance Archi-tecture, Harvard Business School Publishing

- Anonymus (1999), „The Case Against the Internati-onal Monetary Fund“, The Hoover Institution Essays in Public Policy, 11/99, Stanford University.

- Eiras, Ana I. (2003), „IMF and World Bank Interven-tion: A Problem, Not a Solution“, The Heritage Foundation Research Papers, September 17.

- Fischer, Stanley (1999), „Reforming the Internatio-nal Financial System“, The Economic Journal, 109 (November), S. F557-F576.

- McQuillan, Lawrence, und Peter Montgomery (1999), The International Monetary Fund: Financial Medic to the World?, Stanford: The Hoover Instituti-on Press.


- Meltzer, Allan H. (2000), Report of the International Financial Institution Advisory Commission, U.S. Congress, Joint Economic Committee, Washington, D.C.

- Meltzer, Allan H. (2003), „What Future for the IMF and the World Bank?“, Carnegie Mellon Quarterly International Economics Report, July.


LAW II - Advanced Corporate Law

Module: LAW II - Advanced Corporate Law (Level 7 EQF)

Module code: 783LAW






Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: - Basic knowledge of corporate law, Bachelor level - Good command of German language


-

Course list of module: LAW II - Advanced Corporate Law


This module deals with legal aspects of enterprise organisation both on a national and on a transnati-onal level. Students will get an overview of the ap-plicable rules for corporate structures in German and European law. It builds on basic knowledge of German corporate law and extends this knowledge to more complex situations such as corporate groups and transnational situations as well as forms of corporate organisation under European law.

Learning outcomes: Knowledge: Students will know the corporate forms of European law with their basic principles as well as the main principles of German and Eu-ropean law on corporate groups and corporate restructuring. Skills: In the described areas of corporate law, stu-dents will be able to solve simple legal problems by themselves with the use of appropriate legal materials and literature. In addition, they will be able to identify more complex issues and discuss them with a lawyer. Competence: As in the other „Law“ modules, the main goal of this module is to provide a competen-ce of inter-disciplinary interaction. In a typical busi-


ness or corporate environment, legal questions play a large role and must be dealt with in many cases. The aim of the module is not to make legal specialists out of the student, since for such tasks, there will usually be law firms or in-house lawyers at hand. However, in order to work successfully with these specialists, a certain basic understan-ding of legal terms and concepts is necessary and helpful for all participants. This level of legal com-petence shall be reached with this module with regard to the problems of corporate law that are dealt with in this course.


Type of Examination

Duration or Length





LAW II - Advanced Corporate Law

Course: LAW II - Advanced Corporate Law


Hölscher, Luise



70 h Interactive: -



1) European Company Law a) EWIV / EEIG (Eurropean Economic Interest

Grouping) b) SE (Societas Europaea) c) SCE (Societas Cooperativa Europaea) 2) Group Law (German) a) Introduction b) Controlling and dependent company c) Corporate groups (Vertragskonzern) d) De facto - groups (Faktischer Konzern) e) Limited liability group (GmbH - Konzern) f) Merger Control 3) Law of Conversion (German & European) a) Introduction b) Change of form • Partnerships • Corporations c) Merger • Types • Merger contract • Merger report and Merger audit d) Demerger • Types • Procedure e) Communication (Cross-border)


Lectures and Case Studies


Eisenhardt, Ulrich: Gesellschaftsrecht (14. Aufl. 2009); Emmerich, Volker/Habersack, Mathias: Konzern-recht (9. Aufl. 2008); Kuhlmann, Jens/Ahnis, Erik: Konzern- und Um-wandlungsrecht (2. Aufl. 2007); Habersack, Mathias: Europäisches Gesellschafts-recht (3. Aufl. 2006)


Building Capital Markets

Module: Building Capital Markets (Level 7 EQF)

Module code: 784ECO

Module coordinator: Cheshire, Graham Keith





Elective Module


Credits: 2

Workload: 50 h

Frequency: Annually

Prerequisites: none


-

Course list of module: Building Capital Markets


The module provides an introduction to the devel-opment of capital markets. Yield curves and inter-est rate products are described, together with credit risks and their mitigation. Given the devel-opment nature of the course, focus is made on political risk. Procedures and methods to manage bond issuance are discussed and the importance of long maturity financial instruments to both pen-sion funds and infrastructure financing are high-lighted.

Learning outcomes: Partcipate in negotiations of bond purchases or is-sues in support of capital market development.

Knowledge: The students will learn about topics in the development of capital markets for developing economies, such as yield curves, interest rate prod-ucts, credit risk, bond issuance methods and the im-portance of long maturity financial instruments.

Skills: The students will get to know how to apply the theoretical concepts to practical examples which will be discussed during the lecture. In addition, they will read and be taught a number of practitioners’ exam-ples to support their knowledge. Since the course is taught in English, they can improve their language skills.


Competence: The students will gain knowledge and skills to add to their competence when dealing with Development Finance issues in their future careers. They will further experience working independently by preparing for the exam.


Type of Examination

Duration or Length





Building Capital Markets

Course: Building Capital Markets


Cheshire, Graham Keith




Language: English


The course provides an introduction to the develop-ment of capital markets. Yield curves and interest rate products are described, together with credit risks and their mitigation. Given the development nature of the course, focus is made on political risk. Procedures and methods to manage bond issuance are discussed and the importance of long maturity financial instruments to both pension funds and infrastructure financing are highlighted.


Lectures, reading list, practical examples, discussion


- Lating American Shadow Committee Statements: Fi-nancial Regulatory Committee Meeting (Buenos Aires) Resolution of Argentina’s Financial Crisis, 2002

- J.F. Hornbeck: Chronology of Argentina Financial Cri-sis, CRS Report 2002

- Manuel Conteh: Developing Government Bond Mar-kets, IMF 2000

- Kenneth Kletzer: Sovereign Debt, Volatility and Insu-rance in Ricardo Calderon: External Vulnerabilities, Central Bank of Chile 2006

- Barclays Capital: The AAA Handbook 2008: Riding out the storm - Barclays Capital AAA Issuers 2008

- European Investment Bank: New Member and Acces-sion State Debt Management Handbook, EIB 2004

- HSBC: Asia’s Bonds Markets August 2008, HSBC The View August 2008

- Roger Donnelly: Risk Assessment Indonesia, Austra-lian Government Export and Insurance Corporation 2004

- United Kingdom Debt Management Office: Formulae for Calculating Gilt Prices from Yields, June 2002


Advanced Microeconomics

Module: Advanced Microeconomics (Level 7 EQF)

Module code: 785ECO

Module coordinator: Feess, Eberhard





Elective Module


Credits: 2

Workload: 50 h

Frequency: Annually

Prerequisites: none


.-

Course list of module: Advanced Microeconomics


This course applies the tools of modern microeco-nomics such as Game Theory, Principal Agent Theory and Incomplete Contract Theory to prob-lems of asymmetric information such as moral ha-zard and adverse selection. Many currently impor-tant topics both from Business Administration and Economics are discussed and policy conclusions are drawn. Examples include auction theory and vertical relationships. Theoretical results are confronted with insights from Experimental Eco-nomics.

Learning outcomes: Knowledge: Sound knowledge in Game Theory, the theory of asymmetric information. Contract Theory, Auction theory and Experimental Econo-mics.

Skills: The ability to structure incentive problems under asymmetric information and to apply Mic-roeconomics to economic, political and social prob-lems.

Competence: Expertise and the interpersonal skills to solve economic problems via group work and to present the results in a structured and comprehen-sive way .




Duration or Length





Advanced Microeconomics

Course: Advanced Microeconomics


Feess, Eberhard




Language: English


Applaying modern microeconomics to problems of asymmetric information that are virulent in many fields of Business Administration and Economics. Understanding of incentive structures.

Content:

1. Fundamentals of Game Theory and Asymmetric information

2. The Dynamic Nature of Game Theory with asym-metric Information

3 Auctions and Incentives 4. Incomplete Contracts 5. Experimental Economics


Lectures, Self-Study and Teamwork (Presentation)


- Feess, E. (2004): Mikroökonomie: Eine spieltheore-tisch- und praxisorientierte Einführung, 3. Auflage, Marburg 2005

- Biermann, H. Scott and Luis Fernandez: Game Theory with Applications, 2nd Edition, Indiana 2004.

- Dixit, A.K. and Nalebuff, B.J.: Thinking Strategically - The Competitive Edge in Business, Politics, and Everyday Life, New York / London 1993.

- Gardener, Roy: Games for Business and Econo-mics, 2nd Edition, Hoboken (NJ) 2003.


Public Finance

Module: Public Finance (Level 7 EQF)

Module code: 786ECO

Module coordinator: Schmidt, Paul G.







Credits: 2

Workload: 60 h

Frequency: Annually

Prerequisites: none

Usability in other modu-les/programmes:

-


Public Finance


In this module, which is compulsory for students of the spe-cialization in accounting and taxation, we provide a brief introduction to the principles, instruments and methods of public finance, an in-depth discussion of government tax policies and studies of the impact and consequences of fiscal stabilization programs on public debt, inflation, eco-nomic growth and employment, respectively.

Learning outcomes: • Knowledge: Regarding the structure and development

of government expenditure, tax revenues, budget defi-cits, and public debt in cross-national comparison

• Skills:Ability to use analytical tools and methods of pub-lic finance, with particular reference to taxation of in-come, consumption, business activities, and financial market transactions, respectively

• Competence: Assessment of government measures and their impact on the whole economy, various eco-nomic sectors and economic agents, respectively


Type of Exami-nation

Duration or Length



Presentation & term paper

10 min & 6 pages per team mem-ber

2 40 presentation in class, paper to be delivered until end of term


Public Finance

Course: Public Finance


Schmidt, Paul G.


Workload: 50h Presence: 16 h

Self-Learning:


Language: English


The course provides a brief introduction to the princi-ples, instruments and methods of public finance the justification, impact and efficiency of government tax policies and the impact of the current financial crisis on fiscal stabilization policies, economic growth, em-ployment, inflation and public debt in mature and emerging economies.

1. The Dynamics of Government Expenditure & Social Transfers – A Cross-national Comparison

2. Tax Revenues & Tax Policy Trends – A Cross-national Comparison

3. Income Taxation – Justification, Efficiency, and Impact

4. Consumption Taxation – Justification, Efficiency, and Impact

5. Business Taxation – Justification, Efficiency, and Impact

6. Taxing Financial Market Transactions – The Renaissance of Tobin’s Tax

7. Tax Evasion & Capital Flight – Evidence & Policy Options

8. Budget Deficits, Public Debt, and Inflation 9. The Economic Impact of Fiscal Stabilization Pro-

grams During the Recent Financial Crisis 10. The Post-crisis Public Debt Explosion – Chal-

lenges & Policy Options


Lectures, team presentations, case studies & discus-sion


Recommended (or Required) Literature Gruber, Jonathan

Public Finance and Public Pol-icy, second edition, New York (Worth Publishers), 2007

Hyman, David N.

Public Finance: A Contempo-rary Application of Theory to Policy with Economic Applica-tions, 8th edition, Mason, Ohio et al. (Thomson / South-Western), 2005

Messere, Ken, Flip de Kam & Christopher Heady

Tax Policy: Theory and Prac-tice in OECD Countries, Oxford (Oxford University Press), 2003

Organization for Economic Co-operation & De-velopment

Recent Tax Policy Trends and Reforms in OECD Countries, Tax Policy Studies No. 09, Paris (OECD) 2004

Donijo, Robbins (Ed.)

Handbook of Public Sector Economics, Boca Raton (Tay-lor & Francis), 2005


Corporate Valuation

Module: Corporate Valuation (Level 7 EQF)

Module code: 789ACC






Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Corporate Finance, Principles of Financial Accoun-ting


-


Corporate Valuation


Different methods for corporate valuation are explained and used in case studies. Interconnecti-ons between corporate analysis and corporate va-luation are highlighted.

Learning outcomes: - Knowledge of the current practised methods in business evaluation and data sources

- Skills in business evaluation

- Competence in critical consideration of the dif-ferent evaluation principles and their impact on the entrepreneurial decisions


Written exam, might be partially substitutable by business game. Type of Ex-amination

Duration or Length





Corporate Valuation

Course: Corporate Valuation


Hölscher, Luise




Language: English


1. Introduction: Situations and functions of valuation 2. Valuation methods at a glance 3. Basic principles of valuation 4. Method of IDW S1 (Ertragswertmethode) 5. DCF-Methode 6. Substance- and mixed valuation 7. Valuation by multiples 8. Specific features of partnership valuation, valuation

of intangibles and start-ups


Lecture, group work and discussion


Brealey, R.A./Myers, S.C./Allen, F.: Principles of Cor-porate Finance, International Edition, New York 2008 Damodaran, A.: Corporate Finance - Theory and Practice, 2nd ed., New York 2001 Koller, T./Goedhart, M./Wessels, D.: Valuation - Mea-suring and Managing the Value of Companies, 4th ed., New York 2005 Palepu, K.G./Healy, P.M./Bernrad, V.L./Peek, E.: Bu-siness Analysis and Valuation, IFRS edition, London 2007


International Corporate Finance

Module: International Corporate Finance (Level 7 EQF)

Module code: 791FIN

Module coordinator: Biswas, Rita







Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none

Usability in other modu-les/programmes:

-




The objective of this course is to equip students with the tools necessary to manage corporations in a global business environment. It is a blend of theory and ap-plications – the theory of multinational business fi-nance is presented through lectures while applications are learned by the students through Harvard Business School cases analyzed and discussed in class and also presented by students.

The success of a multinational company continues to depend on its managers’ ability to recognize and benefit from imperfections in the various markets for the factors of production, financial assets and final products. As such, the theory of this course is de-signed to present an understanding of exchange rate fluctuations – its sources, its implications, the risks it might present for the business enterprise and the profit opportunities that might also be presented. The cases solidify the theory by presenting the managerial per-spective.

Specific topics include the identification, measurement and management of transactions exposure, translation exposure, economic exposure, political and country risk. The global cost of capital and global capital budg-eting is presented in details along with global working


capital management with special emphasis on multina-tional cash management. Finally, the course con-cludes with examining the international tax environ-ment and transfer pricing.

Learning outcomes: Knowledge: (i) explain the characteristics and func-tioning of a multinational business enterprise and the risks they face, (ii) apply appropriate techniques and tools to manage those risks, (iii) evaluate the various investment alternatives available with a specific capital budget, (iv) identify and analyze fac-tors related to various financing alternatives (v) manage the tax implications of conducting business in a global environment

Skills: (i) assimilate and apply the techniques learned through the theory and solve problems faced by real firms in the past, through live case studies (ii) work in teams and demonstrate appro-priate leader/follower behaviour (iii) address a mid-sized group, present and defend a case analysis.

Competence: demonstrate mastery of both the knowledge-objectives and skills-set objectives of this course through live cases analyses and presen-tations and defending critique.


Type of Examination

Duration or Length

Credits Performance_ Points

Due Date or Date of Examina-tion

Case analy-sis and in-class presentation and defence

60 min 4 45 By the end of the lectures week.

Take-home case analy-sis and re-port

5000 words or less

4 45 By the end of the examina-tion month



Course: International Corporate Finance


Biswas, Rita


Workload: 100 h


Language: English


1. Measuring and managing international exposure for an MNC

1.1. Translation (accounting) exposure 1.2. Economic (operating) exposure 1.3. Political risk exposure 2. Financing the global firm 2.1. The global cost of capital 2.2. Sourcing equity globally 2.3. Sourcing debt globally 3. Foreign investment decisions 3.1. Corporate strategy and foreign investment 3.2. Capacity hedging and real options 3.3. Principles of multinational tax arbitrage 4. Multinational capital budgeting & valuation 4.1. Principles of cross-border valuation of projects 4.2. Cross-border valuation of firms 4.3. Cross-border valuation of mergers & acquisitions 5. World Corporate Governance 5.1. Corporate Governance in the U.S.- Sarbanes Oxley 5.2. Corporate Governance in China

Forms of tea-ching, methods and support:

Interactive lectures, case discussions and case presentations


The Financial Times Handouts posted online on first day of class Harvard Business School Cases - to be announced http://harvardbusinessonline.hbsp.harvard.edu/b01/en/cases/ - Primary Textbook: Eiteman, D.K., Stonehill A.I., Moffett, M.H. Multinational Business Finance, 11th edtion, Addison-Wesley, 2006

Alternate Sources of Reference: - Eun, C.S./Resnick,B.G.: International Financial Management, 4th edition, Irwin McGraw-Hill, 2007

- Levich, R.M.: International Financial Markets, Prices and Poli-cies, 2nd edition, Irwin McGraw-Hill, 2001

- Sercu, P./Uppal, R.: International Financial Markets and the Firm, Southwest Publishing Company/Chapman and Hall,


1999 - Solnik, B.: International Investments, 5th edition, Addison Wes-ley, 2004


Bank Controlling

Module: Bank Controlling (Level 7 EQF)

Module code: 792FIN






Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Good command of German language. Verständnis der Abläufe einer Bank und Grundver-ständnis von Kapitalmarktprodukten (Swap, Swap-tion, CDS)


-


Bank Controlling


Mit Hilfe von Fallstudien wird die Steuerung und Bewertung einer Bank analysiert. Externe Spezia-listen ergänzen durch Vorträge die Veranstaltung.

Learning outcomes: Kenntnisse: Transferpreise und Kennzahlen von Banken berechnen und interpretieren können

Fertigkeiten: Transferpreise und Kennzahlen sinn-voll zur Steuerung einsetzen

Kompetenzen: Komplexe Zusammenhänge zer-gliedern und interpretieren können



Duration or Length





Bank Controlling

Course: Bank Controlling


Heidorn, Thomas


Workload: 100 h

Presence: 30 h Self-Learning:


Language: German


Die Studierenden sollen in der Lage sein, die Kenn-zahlen einer Bank zu interpretieren und ihr Wissen im Rahmen von Aufgaben und Fallstudien umzusetzen zu können.

Lerninhalte:

1. Konzept der Gesamtbanksteuerung 1.1. Marktzinsmethode 1.2. Strukturbeitrag 1.3. Konditionsbeitrag 1.4. Elastizitätenansatz 2. Risikomessung 2.1. Value at Risk für Marktrisiken 2.2. Risikoadustierte Performancemessung 2.3. Erfahrung von Bonitätsrisiken 2.4. Margenkalkulation 2.5. Aufsichtsrechtliches vs. Ökonomisches Eigenka-

pital 3. Steuerungskennzahlen 3.1. Return on Equity 3.2. Risk Adjusted Return on Capital 3.3. Economic Value Added 4. Vorträge 4.1. Optimising Retail Sales 4.2. Quantifying Synergies of Bank Mergers 4.3. Value Based Management 4.4. Loan Exposure Management 4.5 Optimising the Bank Liquidity 4.6. Securitisation for Bank Balance Optimisation 4.7. Optimising the Banks Capital Structure


Lehrgespräch, Diskussion, Vorträge, Fallsutdien



- Schierenbeck, H.: Ertragsorientiertes Bankmana-gement, Bände 1-3. Gabler, Wiesbaden 2008

- Schierenbeck, H./Rolfes, B./Schüller, S.: Hand-buch Bank-Controlling, Gabler Wiesbaden 2001


Advanced Strategic Modelling and Simulation

Module: Advanced Strategic Modelling and Simulation (Level 7 EQF)

Module code: 792MGT

Module coordinator: Strohhecker, Jürgen





Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Strategic Modeling and Simulation


-




This module focuses on the theoretical and practi-cal basis for selecting, building, validating, analy-sing and communicating a system dynamics model. It covers advanced modelling and simulation tech-niques, which facilitate the solution of more complex real world problems. Participants acquire knowledge and skills in the practice of System Dy-namics.

Learning outcomes: Knowledge: Upon completion of this course stu-dents will have extended knowledge of - the possibilities and limitations of the System Dy-namics modelling method; - the relevant scientific literature on selected topics such as the use of data, model structure and beha-viour, model validation, communicating modelling results and group model building in the field of Sys-tem Dynamics.

Skills: Participants will have the skills: - to analyse and understand system dynamics models; - to apply the theoretical knowledge on building, validating and communicating models in a prob-


lem situation;

- to understand current literature and recent advances in the field of system dynamics.

Competence: Participants will increase their ability to tackle dynamically complex problems such as evaluating business strategies.


Type of Examination

Duration or Length


Due Date or Date of Examination

Individual Modeling exercise

Tbd 4 30 Tbd

Calibration excercise (team work)

Tbd 4 10 Tbd

Optimization exercise (team work)

Tbd 4 10 Tbd

model en-hancement exercise, policy optimization and presen-tation (team work)

Tbd 4 30 Tbd

A notebook computer running Windows XP is requi-red. Simulation software Vensim will be provided.



Course: Advanced Strategic Modelling and Simulation


Strohhecker, Jürgen




Language: English


Aim of the course: The course comprises the following topics: concep-tualisation, use of data, explaining structure-behaviour relationship, validation, interactive lear-ning environments and choice of modelling method.

Course Contents:

1. Using advanced modeling constructs 2. Use of data 3. Sensivity simulation 4. Simulation based optimization 5. Choice of modeling method


This course is not a sequence of lectures. For be-coming skilled at System Dynamics learning-by-doing is essential. Therefore, again, a more work-shop-like format is used. Students are expected to design and implement a strategy for communicating the structure, behaviour and results of their models and to use this in their presentations.


- Sterman, J.: Business Dynamics: Systems Thin-king and Modeling for a Complex World, New York u.a., 2000.

- Oliva, R., and Sterman, J. D.: Cutting Corners and Working Overtime: Quality Erosion in the Service Industry. Management Science, 2001, p. 894-914.


Private Equity and Venture Capital

Module: Private Equity and Venture Capital (Level 7 EQF)

Module code: 793FIN

Module coordinator: Grote, Michael H.





Elective Module


Credits: 2

Workload: 50h

Frequency: Annually

Prerequisites: Basic valuation skills


-




The course gives an overview of the economics of Private Equity and Venture Capital investments. Fund raising, set up of firms and conflicts of inter-est, investment decisions, monitoring and leverag-ing as well as exits are covered.

Learning outcomes: Students gain knowledge about the process of Pri-vate Equity and Venture Capital investments and their success. Students will have the skills to apply Private Equity and Venture Capital financing from the viewpoint of an investor as well as from that of a firm seeking capital. Students will be competent to comment on and advise in case of PE/VC investments.



Duration or Length



Case Pre-sentation

Tbd 2 40 Tbd



Course: Private Equity and Venture Capital

Course Coordinator: Grote, Michael H.


Workload: 50h Presence: 16h Self-Learning: 34h Interactive: -

Language: English


This course gives a comprehensive overview of the Private Equity (PE) and Venture Capital (VC) in-vestment cycle. After a brief history of PE/VC in-vestments, the economics of fundraising in the business are discussed. We examine the structure of funds, compensation issues and possible con-flicts of interests. Next step is the selection of investments. Deal origination, due diligence & valuation, syndication of deals and deal terms are covered. The specific techniques of value creation and control are dealt with, i.e. monitoring, financing in rounds and stages, leveraging as well as buy and build strate-gies. Finally, the “cash events”, recapitalizations, trade sales & secondaries as well as IPOs are con-sidered.


lectures, case studies, students’ presentations, and guest speakers


World Economic Forum (2008): The Global Eco-nomic Impact of Private Equity Report, Geneva Gompers, P. / Lerner, J. (2004): The Venture Capi-tal Cycle, 2nd edition, Cambridge Fenn, G. / Liang, N. / Prowse, S. (1995): The Eco-nomics of the Private Equity Market, Washington More literature will be communicated in class.


Management of Innovations

Module: Management of Innovations (Level 7 EQF)

Module code: 793MGT

Module coordinator: Heimer, Thomas





Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-

Course list of module: Management of Innovations


The module aims at making students aware of the most recent approaches to analyse the emergence and the diffusion of innovations. Based on theories of social science origin the module will show stu-dents that innovation is not the result of technical or scientific knowledge. In the module innovations will strictly be understood as the results of social shaping. The module transfers theories of innovation gene-rated to analyse the emergence and diffusion of innovations in the industrial sector to the financial industry. It will be shown that the financial sector will benefit from enhancing in particular basic re-search into financial innovations.

Learning outcomes: Knowledge: Understand how innovation emerge and disperse in a market

Skills: Using modern innovation theory to manage the emergence and diffusion of financial innovati-ons

Competence: The competency to organise and design the innovation process in financial instituti-ons


Type of Examination(s) in the Module and Per-formance Points:

Type of Examination

Duration or Length



Paper and Presentation

12-15 pages

4 80 Presentation at the end of lecture. Paper at the end of Ja-nuary.


Management of Innovations

Course: Management of Innovations


Heimer, Thomas



70 h Interactive: -

Language: English


Aim of the course: It is the main objective of the course to make stu-dents aware of the most recent theories to un-derstand the mergence and diffusion of innovations. A special focus is laid on financial innovations. The course is based on the assumption that innovations are subject to a social shaping process. It will be shown that even in the industrial sector social fac-tors mainly shape the emergence of innovations. In the course a transfer of theories designed for the industrial sector into the financial sector will be in the focus

Course Contents:

1. The importance of innovations for modern socie-ties

2. Theories to explain the emergence of innovations 3. Theories to explain the diffusion of innovations 4. Strategies to manage innovations


The course is split into two sections. The first part (16h) is subject to interavtive lectures. The second part (14h) is subject to the students presentation and the discussion of their results.


- Bierfelder, W.: Innovationsmanagement, Oden-bourg Verlag, München, Wien 1994

- Bijker, W.E. et al. (Hrsg:): The social construction of technological system, MIT Press, 1987

- Dosi, G. et al.: Technological Change and Econo-mic Theory, Printer Publisher 1988

- Zink, K.J.: TQM als intergrati-ves Managementkonzept: das europäische Quali-tätsmodell und seine Umsetzung, 2. Auflage, Mün-chen, Wien 2004


Project & Infrastructure Finance

Module: Project & Infrastructure Finance (Level 7 EQF)

Module code: 794FIN

Module coordinator: Cheshire, Graham Keith; Lucius, Hakan





Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-

Course list of module: Project & Infrastructure Finance


The module will provide a first exposure to the fi-nancial and legal aspects of Project and Infra-structure Finance. An introduction will be made to describe in which sectors these techniques are applied, who are the interested parties, what are the interests of debt and equity investors, risk identification and management, a simple cash-flow model, legal aspects, financial instruments for PF.

Learning outcomes: Knowledge: The students will learn about the top-ics Project and Infrastructure financing for devel-oping economies. Debt and equity interests, risk identifiction and management, procurement and contractual issues, cashflow modelling, and finan-cial instruments for project finance.

Skills: The students will get to know how to apply the theoretical concepts to practical examples which will be discussed during the lecture. In addi-tion, they will read and be taught a number of practitioners’ examples to support their knowl-edge. Since the course is taught in English, they can improve their language skills.


Competence: The students will gain knowledge and skills to add to their competence when dea-ling with Development Finance issues in their futu-re careers. They will further take in to work inde-pendently by preparing for the exam.


Presentations will be developed by small groups of participants and these will be delivered and dis-cussed Type of Examination

Duration or Length



Presentation 80 min 4 80 Tbd


Project & Infrastructure Finance

Course: Project & Infrastructure Finance

Course Coordinator: Cheshire, Graham Keith; Lucius, Hakan



Self-Learning:

60 h

Interactive: 10h

Language: English


Lays the foundation for knowledge building in Pro-ject and Infrastructure Finance. Participants will be partly equipped to participate in negociations lead-ing to the financing of projects. Course Contents: 1) Introduction and overview

• A definition of Project Finance • PPP and PFI –differences • Why and when should Project Finance tech-

niques be used? • What constitutes a project?

2) Project Cycle Risks • Phases, Completion, Formal Permissions,

Resources and Raw Materials 3) Sponsor and Financier Interests

• Project’s Sponsor- Investment return – IRR • Project’s Financier– Cash Available for Debt

Coverage and ADSCR 4) Free Cash flow and Project Cash flow Models 5) Contractual Issues and Risk Coverage

• Concessions for Supply, Construction, Throughput

• Project Finance contracts 7) Financial Instruments for Hedging/Funding Pro-jects


Lectures, practitioner examples, reading material, case study.


Andrew Fight “Introduction to Project Finance” But-terworth-Heinemann books.elsevier.com/finance ISBN 0-7506-5905-x


Principles of Business Intelligence

Module: Principles of Business Intelligence (Level 7 EQF)

Module code: 794MGT

Module coordinator: Roßbach, Peter


Programme(s): MSc MD



Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-




The complexity of decision making in business is steadily growing. Reasons for that are that they have to be made successively faster and that the underlying decision relevant data are increasing rapidly. As a consequence, an appropriate support is essential to make “good” decisions.

The term “Business Intelligence” (BI) covers con-cepts and methods to support managerial decision making and to improve the quality of the decisions. They play an increasingly important role in today’s business. One part of BI deals with the decision-oriented preparation and provision of data. Basic concepts here are the Data Warehouse concept and the OLAP concept. A second part deals with the decision-oriented analyses of the data, e.g. to discover unknown coherences in the data or to pre-pare optimal decisions. Here, methods of Data Mi-ning and Optimization are used.

Learning outcomes: Knowledge: The students learn how to retrieve and structure decision-relevant information and how to apply methods to transform the data into knowledge needed for making high quality managerial decisi-ons.


Skills: The students learn the contents on a theore-tical basis and they learn how to apply the concepts and methods by performing many practical exerci-ses concerning real business situations. This will be done using computers and several types of com-monly used software.

Competence: After finishing the modul, the students are able to apply the learned content to real practi-cal problems.



Duration or Length






Course: Principles of Business Intelligence

Course Coordinator: Roßbach, Peter



Self-Learning:

50 h

Interactive: 20 h

Language: English


The course aims to impart these concepts and me-thods in theory and practice. Additionally to the the-oretical teaching many practical PC exercises will be incorporated.

Learning Contents:

1. Subject of Business Intelligence 2. Data Warehouse Technologies 3. Data Mining 4. Optimization Techniques


Lecture, practical exercises, case studies


- Golfarelli, M.; Rizzi, S.: Data Warehouse Design: Modern Principles and Methodologies, McGraw-Hill 2009

- Michalewicz, Z.; Schmidt, M.; Michalewicz, M.; Chiriac, C.: Adaptive Business Intelligence, Sprin-ger 2006

- Michalewicz, Z.; Fogel, D. B.: How to solve it: Mo-dern Heuristics, Springer 2004

- Olson, D. L.; Delen, D.: Advanced Data Mining Techniques, Springer 2008

- Tan, P-N; Steinbach, M; Kumar, V.: Introduction to Data Mining, Addison-Wesley 2006


Development Finance III

Module: Development Finance III (Level 7 EQF)

Module code: 795FIN








Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Development Finance I & II


-

Course list of module: Development Finance III


This module focus on key issues in development finance. The seminar form provides students with the opportunity to deepen their factual and theore-tical knowledge in development finance by indivi-dually drafting a paper on selected issues in deve-lopment finance, thereby preparing fort the master thesis.

Learning outcomes: Knowledge: Students will be able to assess and summarise the literature and evidence on a key issue in development finance.

Skills: Students will be able to independently draft an academic paper on master level on a key issue in development finance Competence: Students will be able to reflect and evaluate the state of the art in development fi-nance, taken one area of research as an example, by structuring and screening the theoretical and empirical literature


Type of Examination

Duration or Length



Essay Tbd 4 60 Tbd Presentation Tbd 4 20 Tbd


Development Finance III

Course: Development Finance III




Self-Learning:

70 h

Interactive: -

Language: English


This course aims at confronting students with se-lected issues in development finance in seminar form Contents: - Outreach and sustainability - Commercial Drift and impact - Governance and ownership - Microdebt and microcredit - Foreign capital investment in microfinance - Microdeposits and microinsurance

Remittances and transfers


Seminar, presentation and critical discussion of student papers based on articles and book secti-ons, which will be specified before the actual cour-se starts


- Armendariz de Aghion, B., Szafarz, A. (2009), On Mission Drift in Microfinance Institutions, CEB Working Paper No. 09/015, Brussels Banerjee, A., Duflo, E., Glennerster, R. & Kinnan, C. (2009), The Miracle of Microfinance? Evidence from a Randomized Evaluation, mimeo Christen, R.P.(2001), Commercialization and Mission Drift: The Transformation of Microfinance in Latin America, CGAP Occasional Paper No. 5, Washington, DC Cull, R., Demrigüc-Kunt, A. and J. Morduch (2007), Financial Performance and Outreach: A Global Analysis of Lending Microbanks. Econo-mic Journal 117:517, 107-133 Cull, R., Demrigüc-Kunt, A. and J. Morduch (2008), Microfinance Meets the Market, World Bank Policy Research Paper 4630, Washington DC.

- DB-Research (2007): Microfinance: An Emerging Investment Opportunity, Frankfurt: Deutsche Bank


- Dichter, T. and M. Harper (eds), (2007), What’s Wrong with Microfinance? Helms, B. (2006), Ac-cess for all, Building Inclusive Financial Systems. The World Bank, Washington DC Fehr, D., Hishigsuren, G. (2004), Raising Capital for Microfinance: Sources of Funding and Oppor-tunities for Equity Financing. Journal of Deve-lopment Entrepreneurship 11:2, 133-143 Hartarska, V. (2005), Governance and Perfor-mance of Microfinance Institutions in Central and Eastern Europe and the Newly Independent Sta-tes, World Development 33:10, 1627-1648 Hartarska, V., Nadolnyak, D. (2007), Do Regula-ted Microfinance Institutions Achieve better Sustainability and Outreach? Cross-Country Evi-dence, Applied Economics 39:10, 1-16 Hermes, N., Lensink, R., Meesters, A. (2007), The Empirics of Microfinance : What Do We Know?, The Economic Journal 117:157, F1-F10 Hermes, N., Lensink, R., Meesters, A. (2008), Outreach and Efficiency of Microfinance Instituti-ons, SOM Reports, University of Groningen

- Karlan, D. and J. Zinman (2009), Expanding Mic-roenterprise Access: Using Randomized Supply Decisions to Estimate the Impacts in Manila, mi-meo. Labie, M. (2001), Corporate Governance in Mic-rofinance Organizations: A Long and Winding Road, Management Decision, 39:4, 296-302 Laeven, L., Majongi, G. (2003), Loan Loss Provi-sioning and Economic Slowdowns: Too Much, too Late?, Journal of Financial Intermediation 12:2, 178-197 Lieberman, I. et al. (2007): Microfinance and Ca-pital Markets: The Initial Listings/Private Offering of Four Leading Institutions, Calmeadow and the Microfinance Equity Fund

- McIntosh, C., de Janvry, A., Sadoulet, E. (2005), How Rising Competition among Microfinance Institutions Affects Incumbent Lenders, The Eco-nomic Journal 115:506, 987-1004 Mersland, R., Strom, R. (2009), Performance and Governance in Microfinance Institutions, Journal of Banking and Finance 33:4, 662-669 Morduch, J. (1999): The Role of Subsidies in Microfinance: Evidence from the Grammen Bank, Journal of Development Economics, 60, October, 229-248

- Reille, X./Foster, S. (2008): Foreign Capital In-vestments in Microfinance, CGAP Focus Note 44 Richardson, D. (2003), Going to the Barricades for Microsavings Mobilization: A View from the


real Costs of Trenches, MicroBanking Bulletin No. 9, 9-13 Schreiner, M. (2002), Aspects of Outreach: A Framework for the Discussion of the Social Bene-fits of Microfinance, Journal of International De-velopment 14:5, 591-603 Terberger, E. (2003), Microfinance Institutions in the Development of Financial Markets, CEPAL Review, No. 81, 187-202 Woller, G.M., Dunford, C., Woodworth, W. (1999), Where to Microfinance? International Journal of Economic Development 1:1, 29-64 Woller, G.M. (2002), The Promise and Peril of Microfinance Commercialization, Small Enter-prises Development 13:4, 12-21


Methods of Project Evaluation

Module: Methods of Project Evaluation (Level 7 EQF)

Module code: 795MGT

Module coordinator: Koch, Thomas





Elective Module


Credits: 2

Workload: 50 h

Frequency: Annually

Prerequisites: Principles of Finance


Course list of module: Methods of Project Evaluation


• Evaluation of private sector investments vs. public sestor investments.

• Methods of rating and evaluation for private sector investments: DEG method (GPR and its 4 yardsticks for private investment decisions).

• Ex-Ante vs Ex-Post rating • DEG- case studies: flower project / Kenia +

SME finance institution / Latin America. • Strength and Weaknesses of GPR.

Learning outcomes: Knowledge: Participants will know the motives for the existing types and the methods of evaluation for private sector investments of market oriented Develop-ment Finance Institutions (DFI); will be familiar with DEG´s rating approach GPR and evaluation meth-ods, will learn the evaluation results of DFI activi-ties (DEG, European, MDB like e.g. IFC); will know an innovative Corporate Social Responsibilty Rat-ing (CSR); will hear current DFI trends in evalua-tion Skills: Participants will be able to apply evaluation knowl-edge and know-how for project finance of a typical DFI; these will be cognitive skills (logic, creative


thinking) as well as practical skills (use of evalua-tion rating method GPR) Competence: Participants will work in independent working group and solve case studies on evaluation in manufac-turing and financial sector projects; participants will have self study experience


Presentation of results of case studies; Written class assignments (in case of partly “no show”) Type of Examination

Duration or Length



Written Test Tbd 2 20 Tbd Presentation Tbd 2 20 Tbd


Methods of Project Evaluation

Course: Methods of Project Evaluation

Course Coordinator: Koch, Thomas



Self-Learning: 30 h

Interactive: 5 h

Language: English


- Evaluation of private sector investments vs. public sector investments

- Methods of rating and evaluation for private sector investments: DEG method (GPR and its 4 yardsticks for private investment decisions), comparison to other methods

- Ex-Ante vs Ex Post rating - DEG- case studies: flower project / Kenia

+ SME finance institution / Latin America - Strength and Weaknesses of GPR - Evaluation trends in DFIs


- Simulations and case study Games - Explanations - Discovery-Learning + self study - presentations


Mandatory literature: - DEG Invest – Corporate Policy Project Rating

(GPR) – an overview, see: http://www.deginvest.de/EN_Home/About_DEG/

OurMandate/Development_Policy_Mandate/ DEG- GPR_Website_english.pdf - T. Koch: Messung von entwicklungspolitischen

Effekten langfristiger Projektfinanzierung in Ent-wicklungsländern, In: Zeitschrift für Evaluation, 2007, H. 1, S. 7 – S. 29

- T. Koch: Beyond the talk of a “locust´s plague” – SME finance, In: Journal Development + Co-operation, 2007, Vol. 34, No 9, page 340 – 341


Renewable Energy Finance

Module: Renewable Energy Finance (Level 7 EQF)

Module code: 796FIN

Module coordinator: Cheshire, Graham Keith





Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: Complete the Project and Infrastructure Module


-

Brief description of the module:

Financing for sustainable energy and wa-ter/sewerage projects. Equity/debt modelling, risk modelling, cashflow modelling ,building the PPP financing operation, legal, procurement, long term financing

Course list of module: Renewable Energy Finance

Learning outcomes: Be able to participate in the financing process of sus-tainable energy and water projects.

Knowledge: The students will learn about the topics sustainable energy and water financing for develop-ing economies. Debt and equity interests, risk iden-tifiction and management, procurement and contrac-tual issues, cashflow modelling, and financial instru-ments for project finance.

Skills: The students will get to know how to apply the theoretical concepts to practical examples which will be discussed during the lecture. In addition, they will read and be taught a number of practitioners’ exam-ples to support their knowledge. Since the course is taught in English, they can improve their language skills.

Competence: The students will gain knowledge and skills to add to their competence when dealing with Development Finance issues in their future careers. They will further take in to work independently by preparing for the exam.


Type of Examination(s) in the Module and Per-formance Points:

Written exam in the form of an essay Type of Examination

Duration or Length



Written exam

80 min 4 80 Tbd


Renewable Energy Finance

Course: Renewable Energy Finance


Cheshire, Graham Keith


Workload: 100 h Presence: 30h Self-Learning:

60 h

Interactive: 10h

Language: English


The course builds on the Project and Infrastructure Finance module to provide a deeper understanding of the financing and risk issues surrounding sus-tainable energy and water projects. Participants will be equipped to participate in negociations and risk modelling leading to the financing of projects. Overview: Oil, Electricity, Fusion, Renewable. Interested parties equity and debt Risk modelling and management for energy invest-ment. Procurement issues. Energy financial con-tracts. Financial Instruments for energy projects Water supply and drainage; Interested parties equity and debt; Risk modelling and management for water investment; Procurement issues; Water finance con-tracts; Financial Instruments for Project Finance.


Lectures, Group Case Studies and Excel Models, Practitioner examples.


• Integrated Resource Plan; publ. by PacifiCorp., Portland, Oregon, 2004

• Risks, Contracts and Private Sector Participati-on; R. Marques – Technical University Lisbon, S. Berg, University of Florida

• Case Studies of Bankable Water and Severage Utilities, publ. by USAID, 2005

• wte GmbH - Needs to involve the private in wa-ter and waste water sector, Dipl. Ing. Manfred Rauch, 2005

• Approaches to private participation in water ser-vices – a toolkit; published by Worldbank/PPIAF

• Geothermal energy Iceland; publ. by Reykjavik Energy, 2003


IT in Development Finance

Module: IT in Development Finance (Level 7 EQF)

Module code: 796MGT

Module coordinator: Lesieur, Christophe





Elective Module


Credits: 4

Workload: 100 h

Frequency: Annually

Prerequisites: none


-




Learning outcomes: Knowledge: Students should demonstrate knowledge - about banking technology basics from networ-

king topologies to core and ancillary banking applications,

- about pros and contras for the main processing options (manual / spreadsheet based / standard software),

- about typical operational risks as per Basel II definition and typical mitigations in the IT field (Business Continuity Planning, Disaster Reco-very etc)

- about existing and emerging delivery channels especially in the context of MFIs,

- about available technologies for banking chan-nels such as mobile banking, smartcards, roa-ming,

- about the substantial differences across regions with regard to all MFI technology relevant fac-tors.

Skills: Students should demonstrate ability to


- evaluate practicable MFI solutions and options and make appropriate recommendations for se-lecting IT solutions for a MFI

- while considering the main decision factors such as o Hard & soft regulations o Customers needs, habits & culture o Competition products & services o Current & future infrastructure o Providers & operators o Business targets o Technology & business trends Standards o Partners & possible alliances o Available resources

Competence: Students should show understanding of - the impact on MFIs of possible technologies

and channels across regions and target groups - the very fast development of MFI relevant ban-

king & channeling technologies They should be able to explain how current emer-ging and future technologies may impact MFI’s bu-siness models nd identify what opportunities and threats may result for a MFI out of right or wrong technology decisions.



Duration or Length






Course: IT in Development Finance

Course Coordinator: Lesieur, Christophe



Self-Learning:

70 h

Interactive: -

Language: English


Network Topologies - Distributed - Centralized - Roaming agents / mobile branches Core Banking systems - Components - Data flows - Batch processes - Taxonomy of most common / successful Banking systems

- Outsourcing banking system - Case studies: introduction of LMS / IBM Proces-sing hub model

Ancillary banking systems Security, fraud prevention, disaster recovery and business continuity New delivery channels - Bank cards (Local cards, international circuits, case study: VISA)

- Set up a of card business in an MFI. Online vs. Offline. Distributed or centralized scenario

- Fraud minimization - Smart cards - E-Banking Mobile Banking - Definitions, scenarios (business and technology), taxonomy of players

- Setting up of an agents network - Risks and fraud minimization - Regulatory frameworks


Most of the course will be delivered in a traditional fashion, lecturer and classroom. Most of out-of-classroom workload will be devoted to developing a simple loan tracking system or banking system for a simple MFI



- Advances in Banking Technology and Manage-ment: Impacts of ICT and CRM (Premier Source) (Hardcover) by Vadlamani Ravi (Editor) ISBN-13: 978-1599046754

- Electronic Safety and Soundness: Securing Fi-nance in a New Age (World Bank Working Pa-pers) (Paperback) by Thomas C. Glaessner (Author), Tom Kellermann (Author), Valerie McNevin (Author) ISBN-13: 978-0821357590

- Microfinance Core Mis Systems—The Business Case For Outsourcing microREPORT #114 Alice Liu

- Regulating Transformational Branchless Banking: Mobile Phones and Other Technology to Increase Access to Finance GCAP report No 43

- Banking on Mobiles: Why, How, for Whom? Igna-cio Mas and Kabir Kumar GCAP report No 48

- The Early Experiences with Branchless Banking Gautam Ivatury and Ignacio Mas GCAP report No 46

- Expanding Bank Outreach trough Retail Partners-hips Correspondent Banking in Brazil Anjali Ku-mar, Ajai Nair, Adam Parsons, Eduardo Urdapille-ta World Bank Working Paper No. 85


Entrepreneurship in Developing Countries

Module: Entrepreneurship in Developing Countries (Level 7 EQF)

Module code: 797MGT

Module coordinator: Qureshi, Shahid







Credits: 2

Workload: 50 h

Frequency: Annually

Prerequisites: Basic Management knowledge in the areas of Mar-keting, HR and Finance


This course is useful in developing management skills

Course list of module: Entreperneurship in Developing Countries


The emphasis of this course is on entrepreneurship as a manageable process that can be applied in virtually any organizational setting and in any part of the world. The principal focus will be on the creation of new ventures and the entrepreneurship process in the developing countries. This is an integrative course – one that combines material introduced in other courses. Therefore, the emphasis is on applying techniques learned from Organizational Behavior, Accounting, Financial Analysis, Marketing, Operations management and Human Resource Management. The objective is to have a greater understanding of the entrepreneurial process – a process of opportu-nity recognition, resource marshalling, and team building driven by communication, creativity and leadership. When process and passion collide, the seemingly unconnected become connected. New ventures are born, stagnating businesses grow, and failing businesses are reinvented.


Learning outcomes: By the end of the course students should: - have a clear understanding of the innovative role of the entrepreneur and the conditions of entrepreneurship in developing countries

- be able to analyze typical entrepreneurial challen-ges in developing countries

- Typologies of entrepreneurship (from low techno-logy: bakers, butchers, sewers to high technology: renewable energy, etc.)

- Dealing with adverse circumstances: lack of rule of law, cronyism, nepotism, crime


Type of Examination

Duration or Length



Case Study Tbd 2, total 20 During the course

Written Exam

Tbd 2, total 20 One week after the course

This will be an open book and open notes exam. The students can use calculators.


Entreperneurship in Developing Countries

Course: Entreperneurship in Developing Countries


Qureshi, Shahid



10 h

Interactive: 25h

Language: English


Entrepreneurship is considered the liberal arts of business education. Entrepreneurship means to keep an open mind, think outside the box, re-evaluate your own views of entrepreneurship, and intellectually challenge your peers. Entrepreneurs-hip is a way of thinking and acting.

The emphasis of this course is on entrepreneurship as a manageable process that can be applied in virtually any organizational setting and in any part of the world. The principal focus will be on the creation of new ventures and the entrepreneurship process in the developing countries.

This is an integrative course – one that combines material introduced in other MBA courses. Therefo-re, the emphasis is on applying techniques learned from Organizational Behavior, Accounting, Financial Analysis, Marketing, Operations management and Human Resource Management.

The objective is to have a greater understanding of the entrepreneurial process – a process of opportu-nity recognition, resource marshalling, and team building driven by communication, creativity and leadership. When process and passion collide, the seemingly unconnected become connected. New ventures are born, stagnating businesses grow, and failing businesses are reinvented. Learning Objectives By the end of the course students should:

- have a clear understanding of the innovative role of the entrepreneur and the conditions of entrepre-neurship in developing countries

- be able to analyze typical entrepreneurial challen-ges in developing countries


- Typologies of entrepreneurship (from low techno-logy: bakers, butchers, sewers to high technology: renewable energy, etc.)

- Dealing with adverse circumstances: lack of rule of law, cronyism, nepotism, crime

Course Contents: Inspired by the Austrian economist Joseph Schum-peter, entrepreneurship has played a key role in development economics for a very long time. While traditional economic theory attributed economic change and development to the availability of pro-duction factors and technology, Schumpeter argued that even if the right economic, technological and institutional conditions are present, the private sec-tor does not automatically become dynamic and sustainable. For that, a vibrant layer of entrepre-neurs that can manage and exploit innovation and technology is needed. The point of departure for this course is that entrepreneurship is in short supply in developing countries and that this constitutes a major impedi-ment to economic development. Consequently, in-fusion and facilitation of entrepreneurship may play a crucial role in spurring economic and social deve-lopment. The course will give students an un-derstanding of the nature and conditions of entrepreneurship in developing countries. The entrepreneur fills a number of key functions in economic development by basically showing an alertness of exploiting new opportunities, for instan-ce as a coordinator of production factors; as a deci-sion maker under uncertainty; as an agent of chan-ge; or as a gap filler. The entrepreneur may be mo-tivated with ‘doing good’, with making money, or with both. In developed countries, the entrepreneur is typically transforming new ideas and inventions into practical and commercial use, but in developing countries he/she typically imitate, adapt and modify existing ideas and inventions to fit the local market context. Sometimes the entrepreneur is coming out of the local business environment, but in other in-stances he/she may ‘spin out’ of MNC subsidiaries, or even be based in a developed country. Someti-mes the entrepreneur is creating a new firm, but in other instances, he/she operates within an existing firm (‘intra-preneurship’). The course ‘Entrepre-neurship for Development’ will explore, who are the entrepreneurs in developing countries; their gender orientation, culture, economic background, educati-on, etc; and their particular psychological traits.


The lack of entrepreneurship in developing count-ries is often not related mainly to the supply side of entrepreneurship (availability), but rather to the de-mand side (opportunity), e.g. the lack of technology, capital, infrastructure, information and supportive institutions to transform ideas and innovations into business. This course will direct attention to the conditions of entrepreneurship for example by iden-tifying the barriers in labour and capital markets for the creation of new firms; the impediments of entrepreneurship related to property right regimes; and the effectiveness of institutions and program-mes aimed at promoting and fostering entrepre-neurship.


The teaching method will be a combination of lectu-res, and case discussions. First, students will be introduced to theoretical perspectives on entrepre-neurship in developing countries based on the cour-se literature. Second, students will interview entre-preneurs from developing countries. Third, students will be required to put themselves in the entrepre-neurs place through case discussions.


- “New Venture Creation: Entrepreneurship for the 21st century”, by Jeffry Timmons, Stephen Spinelli, Jr. 8th edition

- The Entrepreneurial Venture. Readings selected by William A. Sahlman, Howard H. Stevenson, Michael J. Roberts and Amar Bhide

- A complete pack of reading material and research papers will be available. A list of reading material is attached


LAW III - Compliance

Module: LAW III - Compliance (Level 7 EQF)

Module code: LAW784






Elective Module


Credits: 2

Workload: 50 h

Frequency: Annually

Prerequisites: Law I & Law II


-


Law III - Compliance


This module puts together several aspects of cor-porate and capital markets law that are today often called „Compliance“ in the sense that they are de-signed to protect investors and creditors of the cor-poration. In particular, the course deals with issues of good corporate governance, with the correct in-formation of the capital markets regarding issued securities, and with the the law relating to insolven-cy proceedings.

Learning outcomes: Knowledge: Students will know the principle rules of corporate governce, of the law regarding capital markets information and of German insolvency law. Skills: In the described areas of corporate law, stu-dents will be able to solve simple legal problems by themselves with the use of appropriate legal mate-rials and literature. In addition, they will be able to identify more complex issues and discuss them with a lawyer. Competence: As in the other „Law“ modules, the main goal of this module is to provide a competen-ce of inter-disciplinary interaction. In a typical busi-ness or corporate environment, legal questions play a large role and must be dealt with in many cases.


The aim of the module is not to make legal specia-lists out of the student, since for such tasks, there will usually be law firms or in-house lawyers at hand. However, in order to work successfully with these specialists, a certain basic understanding of legal terms and concepts is necessary and helpful for all participants. Especially in the field of compli-ance and corporate governance it is important that there is an understanding of basic legal principles not only in the legal departments, but also in the management.This necessary level of legal compe-tence shall be reached with this module with regard to the problems of corporate governance, investor protection and insolvency law that are dealt with in this course.



Duration or Length





Law III - Compliance

Course: Law III - Compliance

Course Coordinator: Halfmeier, Axel; Hölscher, Luise



Self-Learning:

35 h

Interactive: -



A) Corporate Governance 1) Intorduction 2) German Corporate Gevernance Codex 3) Compliance Statement (§161 AktG) B) Laws Pertaining to Capital Markets 1) Introduction 2) Securities Trading Act (Wertpapierhandelsge-

setz) 3) Insider (Trading) Law (Insiderrecht) 4) Takeover Law (Unternehmensübernahme-

recht) C) Basics of Bankruptcy Law 1) Introduction 2) Disclosure of insolvency proceedings 3) Creditors and liabilities (Massegläubiger und

Masseverbindlichkeiten) 4) Segregation (Aussonderung), dissociation (Ab-

sonderung), self-off (Aufrechnung) 5) Effects of insolvency dislosure 6) Avoidance of insolvency 7) Management and realization of debtor’s assets 8) Registration, audit and statement of liabilities 9) Allocation and finalization 10) Insolvency plan


Lecture and case studies


Kübler, Friedrich/Assmann, Heinz-Dieter, Gesell-schaftsrecht. Die privatrechtlichen Ordnungsstruk-turen und Regelungsprobleme von Verbänden und Unternehmen (6. Aufl. 2006); Buck-Heeb, Petra: Kapitalmarktrecht (3. Aufl. 2009); Bork, Reinhard: Einführung in das Insolvenzrecht (5. Aufl. 2009).


Master Thesis

Module: Master Thesis

Module code: MF-MATHES

Module coordinator:

Last update:




Compulsory Module


Credits: 22

Workload: 660 h

Frequency: Annually

Prerequisites: -


-


Preparation for Master’s Thesis Master Thesis

Learning outcomes: The Master thesis is the coronation of the Master programme. Students are expected to demonstrate level 7 EQF knowledge, skills and competences. Preparation for Master’s thesis includes guidance in selecting an adequate topic, structuring of the the-sis, research methods, empirical questions, etc. Master’s Thesis should follow rules as stated in the Academic Regulations for the Master of Finance.



Duration or Length



Participation in Prep Course

TBD 2 40 TBD

Master’s Thesis

60 pages minimum

20 400 4 months from topic submission


Master Thesis

Course: Master Thesis

Course Coordinator:

Study Term: 4th

Workload: 600 h Presence: - Self-Learning: 500 h - Interactive: -

Language: English


Independent research activity, which is super-vised/coached by a member of the FS Faculty. Refer to Academic Regulations for the MoF for further details.


Independent, supervision of member of FS Faculty


-

master of finance course catalogue 2009 · i. compulsory courses 1st and 2nd semester mathematics...

Documents