Investment Research Methods 2
| Module title | Investment Research Methods 2 |
|---|---|
| Module code | BEFM014 |
| Academic year | 2019/0 |
| Credits | 15 |
| Module staff | Mr Jamie Stevenson (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 12 |
| Number students taking module (anticipated) | 87 |
|---|
Module description
The module focuses on further problems arising in econometric analysis for empirical research. It expands economic analysis to take in competing theories and policy implications of growth models. It develops themes in the use of accounting numbers, and the interpretation of different standards of financial reporting and disclosure.
Module aims - intentions of the module
This module adds to the material developed in Investment Research Methods 1 and Financial Statement Analysis. The first part covers quantitative valuation methods and the application of economic growth theory to markets and companies. The second part examines the analysis of assets, liabilities and the impact of alternative accounting methods on financial statements of profitability, liquidity and value. The third part highlights the techniques most frequently used by management to distort and obscure the accuracy of financial statements.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. Understand critically the limitations of standard regression-type models and offer appropriate solutions.
- 2. Understand critically different theories of economic growth
- 3. Analyse the policy implications in complex environments of various growth models
- 4. Understand US GAAP and IAS rules for treatment of investments, business combinations, inventory, long life assets, tax liabilities & assets, pension & other post-retirement liabilities
- 5. Analyse and adjust financial statements in line with accounting standards to achieve appropriate statements of comprehensive income and sustainable cash flow
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 6. the ability to develop rigorous theoretical arguments based on mathematical and analytical reasoning;
- 7. the ability rigorously to analyse problems in finance;
- 8. the ability to interpret financial data and problems in the light of established theories;
- 9. the ability to access a wide body of empirical research literature and critically appraise it;
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 10. an ability to plan and manage his/her own study both individually and within a group;
- 11. an ability to make appropriate use of learning resources, including sophisticated computer datasets;
- 12. an ability to analyse critically problems arising in both academic and practical contexts;
- 13. an ability to present effectively results and achievements of individual and collaborative projects as developed through the mode of instruction using both individual and group assignments.
Syllabus plan
• Economics & Statistics: Hypothesis testing;
• Correlation and regression;
• Multiple regression and issues in regression analysis;
• Growth and accumulation;
• Growth and policy;
• Analysing the firm’s environment;
• Accounting: Analysis of inter-corporate investments;
• Analysis of business combinations;
• Mergers, LBOs, divestitures and holding companies;
• Measuring accounting exposure;
• Analysis of multinational operations;
• Accounting bulletin #99;
• International Accounting Standards and US GAAP contrasted;
• Understanding retirement benefit accounting and disclosures for financial analysis;
• Accounting bulletin #69 Detecting lower earnings quality;
• Analysis of financial statements – a synthesis;
• Analysis of equity investments
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 36 | 114 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Contact hours | 24 | Lectures |
| Contact hours | 12 | Tutorials |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 20 | 80 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| One piece of assessed work | 20 | 3000 words | 1-13 | Written feedback |
| Examination | 80 | 2 hours | 1-13 | Exam grade |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Assessed work | Resubmission (20%) | 1-13 | Aug/Sep |
| Examination | Examination (80%) | 1-13 | Aug/Sep |
Indicative learning resources - Basic reading
Quantitative Methods for Investment Analysis, Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, and David
E. Runkle (AIMR, 2001) The Analysis and Use of Financial Statements, 2nd edition, Gerald I. White, Ashwinpaul C. Sondhi, and Dov Fried (Wiley, 1998)
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | None |
| Module co-requisites | None |
| NQF level (module) | 7 |
| Available as distance learning? | No |
| Origin date | 16/07/2014 |
| Last revision date | 25/07/2018 |