Emerging Markets Finance

This subject has the following teaching availabilities in 2016:

144 hours per semester, including self-directed study/research

FNCE90018 Corporate financial Policy and

FNCE90056 Investment Management and

FNCE90016 International Financial Management

OR

Admission into MC-FIN or GD-FIN and

FNCE90016 International Financial Management;

Excel spreadsheeting

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

In today’s world economy, business is conducted in a global arena. As a result financial managers are expected to have a global perspective. Emerging economies are the engine of growth opportunities in the world economy: financial decision making at many levels is, hence, increasingly dealing with the developing world. This course offers a conceptual as well as an applied framework for analyzing emerging markets from multiple perspectives in order to prepare business leaders to make sense of the challenges and make the most of the opportunities of succeeding in a globalized world.

This course is intended for post-graduate (Masters) students specializing in Finance with an interest in exploring business opportunities and future work in emerging markets or in financial decision making involving investments or corporate relations with the developing world. The course builds on the finance concepts learnt in the first and second year finance courses and provides students with a different perspective of finance in an emerging markets context - vital for a modern finance professional. Expertise in emerging market finance will enhance students’ marketability at places like multinational companies, hedge funds and money management firms, commercial banks, investment banks, development banks, consulting firms and financial market regulators.

On successful completion of this subject students should be able to:

• Explain the key features of emerging financial systems;
• Identify the specific issues associated with financial intermediation in emerging markets;
• Explain and evaluate the concept of microfinance;
• Understand and evaluate the role of the IMF and World Bank in the context of emerging markets;
• Apply portfolio diversification principles to emerging equity and bond markets;
• Apply project and firm valuation techniques in the context of emerging markets;
• Understand the impact of country risk, credit risk, political risk and currency risk in an emerging market context; and
• Explain ownership and corporate governance issues relevant to emerging markets.

• 1-hour mid-semester examination, due weeks 6 - 8 (20%);
• 2-hour end-of-semester examination (50%);
• 2000 word Group Assignment due weeks 8-10 (20%);
• Class participation: 10 - 15 minutes of each class will be allocated to group presentation/discussion based on periodicals: Financial Times, The Wall Street Journal etc, due weeks 3 - 10 (10%).

No prescribed text

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Oral communication;
• Written communication;
• Collaborative learning;
• Problem solving
• Team work;
• Statistical reasoning;
• Application of theory to practice;
• Interpretation & analysis;
• Critical thinking;
• Synthesis of data and other information;
• Evaluation of data and other information;
• Using computer software; and
• Accessing data and other information from a range of sources.