Finansų ekonomika

THE AIM OF THE COURSE: 

 The course aims to provide students with an understanding of the concepts of game theory and its application in the context of economics, especially when analysing the effects of external factors on economic systems. Students will acquire skills needed to address fundamental issues as well as to solve practical challenges in economics through a combination of lectures, seminars and hands-on use of game theory in their project work. The work will focus on first laying and understanding the foundations on game theory and then looking at specific studies to understand how game theory is applied by researchers and how it can be used in practice. 

Aims of the course

The course provides an advanced introduction to research methodology and techniques in applied economics and finance. It covers an introduction to research and science; main issues related to research design; quantitative and qualitative research approaches and related methods; selected number of research techniques in finance, integrated with appropriate financial theory and evidence. The course is designed to provide students a solid foundation for designing and conducting their own research and to enable them to become knowledgeable consumers of prior academic research results.

Learning outcomes

On completion of this course successful students will:

• Appreciate the methodology of positive economics as applied to research in the fields of finance and financial economics.
• Have a critical awareness of research issues, methodologies, and methods in finance and financial economics; obtain a systematic knowledge and understanding of issues at the forefront of empirical research in finance; have a knowledge and understanding of research skills in finance.
• Apply the fundamental concepts of research design.
• Demonstrate in-depth skills and experience in conducting problem-based empirical research and interpreting empirical results.

Course description:

This course guides students to prepare for their thesis writing process by surveying various topics in the field of Financial Economics. The three main foci are: literature review, research methodology, and hypotheses. First, by systematically highlighting the differences between the annotated bibliography and the literature review, we emphasise the link between the existing literature and the research questions at hand. Second, by skimming through the preliminary data, we check the data availability and the feasibility of the chosen research method. Third, by articulating the hypotheses, we evaluate the proposed research design. The course lasts throughout the semester and concludes with the thesis proposal defence.

Course objectives:

Upon successful completion of this course, students will be able to:

• Identify a gap in the financial economics literature and cultivate interests in topics relevant to students’ career paths.
• Critically evaluate various research methods, especially given the data availability.
• Formulate a series of hypotheses relevant to the given research questions and develop a habit to continuously assess the progress of own research.
• Strengthen communication skills both in the written form as well as in presentation in order to stimulate discussions in the field of financial economics.

Annotation

The course will deal with the question of who is responsible for the ethical behavior in business. The dominance of US based literature, has suggested the concept of Corporate Social Responsibility as the main doctrine. However, considering the historical, economical and political context – the situation in Europe is fundamentally different. Unlike in the United States, the question of philanthropy plays only a minor role in Europe. On the other hand, the question of social, legal, environmental, and economic responsibility – within the context of a welfare state – dominates daily business life.

This course will be taught within the MSc in Financial Economics – however deals by nature more with philosophical issues. The first lectures will therefore deal with basic theories of Ethics and Capitalism. The second part deals with Corporate Social Responsibility, Stakeholder Theory and the Creating Shared Value Theory – which became important issues in the Financial Industry. Last but not least, the course will cover various issues related to ethical issues in finance. In order to add more applied content – the seminars are covering various cases studies which are relevant in the world of finance.

Course Aims and Objectives

The aim of the course is to raise awareness for the participants that corporations have a responsibility towards all stakeholders – not just towards increasing shareholder value. Moreover, it will deal with the question to what extent selfregulation and corporate responsibility can satisfy the idea of a more sustainable economy.

Learning Outcomes

• Be able to describe the forces which are driving ethical behavior in a European Context
• To explain the impact of the government and the capitalistic system which drives the role of the corporation in a society
• To explain the philosophical background of current ethical theories
• To apply ethical concepts in practical business situations
• To demonstrate critical thinking and problem solving skills in the analysis and resolution of ethical dilemmas in finance and economics

Aims of the course

Applied valuation course builds on advanced corporate finance, and offers in-depth treatment of business valuation issues. It explores the main concepts, methodologies and tools of valuation through main theories, academic papers and case studies. The aim is to provide students with up-to-date knowledge of fundamental valuation techniques and its applications.

Learning outcomes

On completion of this course successful students will be able to:

• Apply new tools and concepts needed for business valuation
• Assess managerial incentives, finance decisions and their impact on firm value
• Research and produce a professional valuation report and verbally communicate and defend the outcome

Objective of the course

This course aims to encourage both theoretical inquiry and practical questioning and understanding.  Emphasis is placed on interpreting theoretical models of how monetary policy is formulated and implemented and placing those models in the context of real-world economic systems and practical policy-making. In addition to learning from lectures and reading, students will learn how to use a simple method to diagram monetary theories and how to use simulation models to deepen understanding of the macroeconomic dynamics of monetary policy.  The students will also gain practical experience in team-structured research and organizing and delivering professional presentations.

Learning outcomes

• Compare monetary policy goals & instruments in the context of monetary theories.
• Predict monetary policy responses to changing economic conditions.
• Describe monetary policy transmission channels in the context of monetary theories.
• Identify constraints on monetary policy options, decision-making, and effectiveness.
• Compare monetary policy regimes.
• Translate monetary policy theories into causal links & feedback loops, and compare.
• Use simulation models of monetary policy processes & interpret simulation results.
• Deliver a professional presentation on a monetary policy research topic.

Course description

The course explores determinants of industrial competitiveness and successful economic development viewed from a bottom-up, microeconomic perspective. While sound macroeconomic policies and stable legal and political institutions create potential for industrial competitiveness, wealth is actually created at the microeconomic and firm levels. The sophistication and productivity of firms, the vitality of industrial clusters, and the quality of the business environment are the ultimate determinants of the productivity and innovation capacity of nations, regions and industries.

This course examines both advanced and developing economies and addresses competitiveness at multiple levels – nations, subnational units such as states or provinces, particular clusters, and neighbouring countries. The course is concerned not only with government policy but also with the roles that firms, industry associations, universities, and other institutions play in competitiveness. In modern competition, each of these institutions has an important and evolving role in economic development.

The course explores not only theory and policy but also the organizational structures, institutional structures, and change processes required for sustained improvements in competitiveness.

This is a distinctive graduate course offered in cooperation with prof. M. Porter and a team of his colleagues at Harvard Business School (HBS). It is designed to be taught to second year MBA students at HBS and affiliates of the Institute for Strategy and Competitiveness at Harvard Business School (http://www.isc.hbs.edu/moc.htm).

Course Aims

The main aim of the course is to enable the students to integrate and activate general knowledge on competitiveness in order to make analytical managerial decisions. The course focuses on the environment in which global strategy is developed at the corporate, business and operational levels. Particular attention is paid to the processes, competencies and vision of top management, competitive positioning, understanding comparative costs.

Part of the purpose of the course is to expose students to some of the most successful countries and regions. In addition to cases, there are readings, a series of lectures, and videotaped appearances by guests who are national, regional, or business leaders involved in the cases studied or experts on the issues discussed in class.

Learning Outcomes of the Course

On completion of this course successful students will enhance their skills for formulating strategy by developing an understanding of a firm’s operative environment. They will master a range of analytical tools and demonstrate the ability to take an integrative point of view in using these tools to perform in depth analyses of industries and competitors, predict competitive behaviour, analyse how firms develop and sustain competitive advantage over time.

Upon successful completion of this course, students will be able to:

• Understand the major elements of competitiveness.
• Understand the role of clusters.
• Understand the interaction between the micro level (entrepreneurial activity), meso level (regional clusters) and macro level (national policy).
• Understand the complex relationship between government activity and business activity within institutions for collaboration.
• Apply their knowledge in the framework of a concrete research project for a concrete country and cluster.

Course description

This introductory course surveys various mathematical concepts utilised in financial economics. Together with Financial Econometrics, it constitutes the foundation of the ‘research’ pillar in MSc Financial Economics at ISM. As such, some of the topics will be ‘repeated’, but more in depth, in other courses. As clients’ profiles and objectives have become increasingly global and complex over the past few decades, financial institutions have come up with more sophisticated and more structured products, alternatives, and approaches, some of which are reviewed in this course from a pricing and mathematical perspective. Given the current political environments (e.g. Brexit, transpacific trade war), we pay significant attention to the assumptions behind formulae and models, while we practice not only calculations but also explanations to prepare ourselves for the contemporary regulatory environment, most notably characterised by the MiFID II.

Learning outcomes

Upon successful completion of this course, students will be able to:

• Illustrate and utilise the axioms of rationality in pricing.
• Define and explain interest rates as they are applied to different types of debt instruments.
• Define and explain the structuring considerations for various derivative products.
• Identify issues and projects surrounding the rapidly changing world such as hybrid securities, financial engineering, and blockchain.

Objective of the course

This is applied course in advanced macroeconomics, which aims to analyze and develop the models describing macroeconomic dynamics, explain economic growth, fluctuations, and relationship between economic policies, macroeconomic variables and financial markets. Biggest part of the course will be based on comparative analysis of different macroeconomic aspects.  Discussions and analysis will focus on contemporary issues in the global economy.

Learning outcomes

On completion of this course successful students will be able to:

• Be able to indentify leading indicators of most macroeconomic variables.
• Explain the structure, dynamics and challenges of Lithuanian economy.
• Identify and explain main factors behind different economic growth rates across the world and how governments can influence growth.
• Explain relationship between macroeconomic variables and financial markets.

The Master’s Thesis is a culminating experience in graduate level education for the degree candidates. It is an individual endeavour of analytical nature, which contains elements of originality and is performed in conformity with general requirements of academic papers and scholarly projects. For the students, the Master’s thesis should be a learning activity that is stimulating and engenders a sense of pride and accomplishment.

The intent of the thesis is to provide an opportunity for the Master’s degree candidates to refine, in some cases acquire, a range of skills at an appropriate level to conduct a competent research project. A successful thesis is an evidence that the candidate has acquired the minimum level of research skills required and can therefore be accredited a Master’s degree. Skills required of thesis writers are those associated with research design, data collection, information management, analysis of data, synthesis of data with existing knowledge, and critical evaluation of the writer’s own ideas and those presented in the literature reviewed. The thesis should be written in English within a given period of time and comply with commonly accepted principles of academic ethics.

Learning outcomes:

• Identify a gap in the financial economics literature which is relevant to the continuously changing contemporary world.
• Cultivate a habit to critically test the up-to-date theories with empirical data.
• Critically evaluate various research methods and select appropriate ones for the given topic (with limitations and assumptions clearly outlined).
• Thoroughly analyse the available data with the theory-methodology-data triangle intact and well synthesised.

Develop communication skills both in the written form as well as in presentation to maintain attentions of the intended readers/audience and to sustain critical and constructive discussions in the field of financial economics.

Aims of the course

The course builds on introductory corporate finance courses and provides a more in-depth treatment of several more advanced topics. The main topics covered are basic portfolio choice and asset pricing models, derivatives and the investment and financing decisions of the firm. The aim is to provide students with a good understanding of investment choices, the cost of capital, risk management strategies and the effect of financing on the value of the firm.

Learning outcomes

On completion of this course successful students will be able to:

• Understand and be ready to use new tools and concepts needed for in-depth financial analysis.
• Acquire a more detailed knowledge of the costs of financing a firm.
• Understand some of the tools that firms can use to manage their risks.

Course description

The goal of the course is to provide students with basic econometric tools for the analysis of time series data for Finance, including models for stationary and non-stationary data, univariate and multivariate analysis. The course aims to improve students understanding of the main principles and concepts of applied time series analysis, selection of adequate modelling technique for a problem at hand, estimation of the model and its application for the problems in Finance: predicting returns on risky assets, forecasting volatility of bond returns, modelling exchange rates and commodity prices, testing the models in real-time and many other problems.

Learning outcomes

Upon successful completion of this course, students will be able to:

• Understand the key concepts and instruments of time series analysis, the role of time series models in financial econometrics.
• Demonstrate the ability to carry out the econometric project including: data preparation and diagnostics, specification of econometric model, selection of the appropriate time series technique.
• Present the model outcomes both at advanced and intuitive levels; interpret the estimation output from economic and statistical point of view.
• Apply estimated econometric time series models for forecasting and policy analysis.

Aim of the course

This course is advanced course on Financial Intermediation institutions. The aim of this course is to develop understanding of the theories of financial intermediation and provide insights into the best practices of risk management processes and techniques used by banks and other financial intermediaries. Recent developments in regulatory framework and crisis prevention and management techniques will also be discussed.

Learning outcomes

• Demonstrate knowledge and understanding of contemporary financial intermediation theories and their application in the practical and research field of financial intermediation institutions.
• Analyze and evaluate financial intermediation companies activities and financial condition from financial statements and key performance indicators.
• Analyse and critically evaluate the causes and consequences of financial crisis, behaviour of national and international financial markets and institutions during financial crisis, and be familiar with contemporary crisis management techniques.
• To express independent opinion on the needof financial regulation and  to formulate judgments and knowledged-based conculations on the impact of recent regulatory framework changes to the strategic development of financial intermediation institutions.
• Evaluate, choose, and systemically apply advanced risk management techniques and models in solving complex risk management problems in financial intermediation institutions.
• Analyse and assess changes in both micro- and macroeconomic environment of financial intermediation institutions.
• Develop a range of personal skills including argumentation, evaluation, problem identification and solving, interactive and group skills, self-appraisal, cross-cultural teamwork.
• Have abilities to communicate in English the knowledge to specialist and non-specialist audiences clearly and unambiguously.

Course Description

This course focuses on asset pricing and financial markets. The prerequisites for this course will have prepared you with an understanding of the theoretical foundations of the investment topics to be discussed. These same topics will be considered here from a more applied perspective.  Course discussions will cover the following topics: risk, diversification, interest rates, valuation theories, derivative securities (futures, forwards, and options), risk management, efficient markets, and portfolio management.

Course Objectives

At the end of this course, students should be able to:

• Analyze and evaluate financial data. Recommend and justify decisions, including decisions arising from ambiguous or unfamiliar information, or arising from ambiguous or incomplete directions.
• Illustrate the understanding of the relationship between tools and theories. In particular, demonstrate modern portfolio theory, characterize asset valuation models, demonstrate the CAPM, outline the Fama-French 3-Factor Model, and outline the Arbitrage Pricing Theory.
• Develop an ability to suggest solutions in corporate finance. In particular, demonstrate fixed-income security analysis for the development and monitoring of fixed-income portfolios. Additionally, demonstrate equity security analysis for the development and monitoring of equity portfolios. Furthermore, characterize derivative securities in portfolio management, particularly for the purpose of risk management.