Master of Finance

This course is concerned with the application of quantitative tools to model, estimate and forecast financial variables. Topics considered include: the analysis of the properties of financial data (such as non-normality and non-stationarity); the application of estimation methods (such as unit roots and cointegration) to test the rational valuation model of share prices; the application of the GARCH class of models to estimate volatility and to test the capital asset pricing model.

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This subject examines important features of financial markets, illustrating how economic analysis can aid understanding of those features. Topics considered may include: payments systems (drawing on network economics); security issuance techniques (drawing on auction theory); credit rationing (drawing on asymmetric economics); financial market regulation (drawing on the theory of regulation); macroeconomic determinants of financial prices; flow of funds analysis and long term influences on saving, investment and financial markets (such as retirement incomes policy); international debt defaults and enforcement and international agencies.

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Financial Statement Analysis seeks to introduce students to the analysis and use of financial information for decision-making purposes. The subject considers how the information disclosed can be best utilised by creditors and investors in making their lending and investing decisions. Students consider the environment in which financial reporting exists, including the incentives faced by preparers of financial reports. From their assessment, students learn to adjust reported data as is typically done by analysts.

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The structure of the financial system; terminology, trading and pricing of money and capital market instruments; duration, value at risk, financial market volatility; term structure of interest rates; inflation, interest rates and indexed securities; regulation of securities markets and financial institutions; market; tax treatment of financial institutions; tax and company finance; futures markets; options markets; forward rate agreements; swaps; developments in retail financial markets.

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This subject examines mergers, acquisitions and other corporate restructuring techniques and the valuation issues which arise in this context. Topics include: mergers and acquisitions (motives, corporate voting and control, economic issues, strategic issues, legal issues); divestments (carve-outs, spin-offs, leveraged buy-outs); valuation techniques (cashflow-based approaches, multiples-based approaches); and investor activism.

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Machine learning has been revolutionizing the financial industry, offering the potential to disrupt traditional structures and practices. This subject is meticulously organized around several real-world issues to introduce fundamental economic and financial problems and demonstrate how machine learning can provide transformative solutions to these problems. Throughout the course, case studies will be used to illustrate these core concepts, allowing students to see the practical application of theoretical knowledge. The emphasis is on building a strong foundation in machine learning techniques and their financial applications, ensuring that students can confidently apply these concepts in novel situations they may encounter in their professional careers.

Additionally, students will engage in hands-on projects and exercises that reinforce the material covered in lectures. This practical approach ensures that they not only understand the theoretical underpinnings but also gain the skills needed to implement machine learning solutions in real-world financial contexts.

By the end of the course, students will have a comprehensive understanding of how machine learning can address various economic and financial challenges, preparing them to drive innovation and improvement in the financial industry.

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This subject examines the application of modern portfolio theory, capital asset pricing models, equity valuation models and interest rate theory in managing various types of investment portfolios containing cash, fixed interest securities and equities. Topics include: index funds, exchange-traded funds, factor investing, smart betas and international portfolio considerations. Students use investment software to solve practical problems.

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This subject introduces students to principles and applications of data analysis for finance. Concepts covered include data collection, processing and management, relevant theory in statistics, econometrics and machine learning, programming in relevant languages and data presentation. Specific topics include data sourcing, processing and cleaning, summarizing and visualizing data; multiple regression, time-series models, panel data techniques and causal inference; machine learning and classification methods, model selection and assessing model performance, unsupervised learning and textual analysis. Students will become proficient in relevant programming languages such as Python or R.

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This subject examines the key concepts and methodologies used in the management of a variety of financial risks including price risk, quantity risk, interest rate risk, credit risk and currency risk. Topics include: exchange-traded and over-the-counter instruments used to manage risk, value-at-risk and related concepts, agency problems, financial engineering, security design, securitisation. There will be an extensive use of real-world cases throughout the course to illustrate both successful and unsuccessful risk management practices.

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Ethical practices instil a public trust in the fairness of financial markets and transactions, allowing them to function efficiently. Ethical practices by finance and investment professionals benefit all market participants and stakeholders and lead to increased investor confidence in global capital markets. The perspectives acquired in this subject should be useful to students in their chosen finance profession as this subject presents a framework for ethical conduct in the investment profession by focusing on the CFA Institute Code of Ethics and Standards of Professional Conduct. Citing and discussing examples of the financial scandals that have shaken public confidence in the ethics of financial market participants, this subject explains the importance of ethics in the operation of financial institutions and in the personal conduct of finance professionals.

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The Applied Research Project is an ideal subject to further develop and strengthen students’ research skills by working on a semester-long independent research project. In the industry pathway students will be working on real-world projects. As such, this subject offers an ideal path to secure a job in the finance industry if students perform well on their project. In the academic pathway students will work on an academic research project which will develop skills for students wanting to pursue graduate research opportunities.

This subject is only available to students enrolled in the Master of Finance or Master of Finance (Enhanced). Students may enrol in this subject only with the prior permission of the Program Director.

Students have the option of two pathways:

Pathway A - Industry, is recommended for students in the Master of Finance. Students in Pathway A will spend time working directly with an Industry Partner. The exact time commitment will be agreed with each Industry Partner. For Pathway A, a list of industry projects will be advertised on Canvas and students can apply indicating their interest in specific topics. Students will be selected following an interview with the subject coordinator.

Pathway B - Academic Research, is recommended for students in the Master of Finance (Enhanced). Students in Pathway B are encouraged to select a research topic which aligns with their previous and/or future career activities or interests. For Pathway B, students must discuss possible proposals with the subject coordinator and then submit a detailed research proposal at least three weeks before the start of semester, and approval of the proposal must be finalised before the start of the semester.

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Balance of payments analysis, foreign exchange markets and terminology, international financial markets and international banking, international investments and portfolio allocation, measuring and managing foreign exchange exposure, international capital budgeting and counting risk analysis, international corporate financing decisions.

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This subject consists of a structured reading program and assignments and a series of seminars presented by practitioners on various aspects of Treasury Management and related themes. Topics covered include issues such as treasury functions, international borrowings, corporate ratings, foreign exchange exposure management, interest rate risk management, value based management, treasury performance measurement, liquidity management systems and controls, tax and accounting issues.

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Definitions and examples of project financing; analysis of the risks and potential returns associated with major projects; participants involved in projects financing deals - financing techniques used in project finance; case studies of specific project financing.

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This subject presents the principles, concepts and methods needed to analyse an investment in an existing property, to analyse a potential property development and to raise private and public debt or capital for property investment. Discounted cash flows and real estate economics are the basis of these analyses. The subject introduces students to principles of rent and vacancy determination; the application of real estate market analysis to the investment decision; the financial analysis of properties; mortgage financing and the role of public debt taxation; and raising private capital for property.

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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.

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This subject provides an insight into the complexities and challenges of making business decisions in an Australian setting. Working in small teams, students will conduct research, analyse, evaluate and propose practical solutions to an assigned business planning or business development exercise. This will be supported by online modules and seminar work equipping the students with knowledge of approaches, tools and techniques for completing the task and an understanding of report formats appropriate for conveying the results. During the practicum, in-depth research will be undertaken in identifying the scope, opportunities constraints and recommendations of the exercise. Students will learn to: work with unstructured and incomplete information in Australian business settings, to develop research and networks to support their enquiry, to work successfully in teams, to present their findings and seek and receive constructive feedback in a range of settings. Students will also be encouraged to plan, reflect and modify their approaches to improve the outcomes of their efforts in managing the business project.

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This subject provides an insight into the complexities and challenges of making business decisions in an international setting. Students will be assigned in small groups to research a business problem in an international context. Working in teams, they will conduct research, analyse, evaluate and propose practical solutions to an assigned business planning or business development exercise. This will be supported by online modules and seminar work equipping the students with knowledge of approaches, tools and techniques for completing the task and an understanding of report formats appropriate for conveying the results. During the practicum, in-depth research will be undertaken in identifying the scope, opportunities, constraints and recommendations of the exercise. Students will learn to work with unstructured and incomplete information in international business settings, to develop research and networks to support their enquiry, to work successfully in teams, to present their findings and seek and receive constructive feedback in a range of settings. Students will also be encouraged to plan, reflect and modify their approaches to improve the outcomes of their efforts in managing the business project.

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This subject provides an integrative learning experience and affords students the opportunity to apply the skills and knowledge acquired in previous subjects in a coherent way to solve business problems. In a business strategy simulation students are required to make decisions, assess outcomes, and compete with other management teams for resources, opportunities and markets. Each team develops a strategy for its firm and applies the subject’s concepts and frameworks, as well as the concepts and frameworks acquired in other subjects. In the process, students will discover the interaction of a firm’s production, marketing, research and development, human resources, and financial operations and observe the impact of key decisions on business performance within a competitive market.

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The subject will focus on estimating and testing nonlinear models in finance including volatility models, artificial neural networks, factor models of contagion and discrete models of financial behaviour. Special attention will be given to estimating and testing dynamic latent factor models using Principal Components and Kalman filters, modelling risk neutral dynamics in option markets, and fat-tailed behaviour in asset returns using extreme value theory and copulas. Estimation and testing methods are based on maximum likelihood methods. The R, RStudio and Excel computer programs will be used throughout the course. This subject also provides students with the experience of carrying out a research-based project on a specific topic in applied econometrics.

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This subject involves the completion of a professional work placement (internship) either:

off campus at an approved host organisation in Australia or overseas OR

on campus at the 'WorkHub'

Integrating academic learning in business & economics areas of study, students will gain an improved knowledge of employability skills, workplace culture, and career pathways. Students will be required to undertake pre-placement online modules designed to equip students with employability skills and techniques for creative problem solving, as well as learning tasks throughout the placement period. The placement will draw on students' specific discipline skills associated with the specialisation of their degree.

Internships may be paid, or unpaid provided they comply with the Fair Work Act.

This subject is intended to provide students with the opportunity to apply their business knowledge in an industry setting under the joint supervision of an industry and an academic mentor. Students can either apply for a University-sourced internship or apply to have a self-sourced internship approved for credit. Applications should be submitted by the due dates published on the MBS website. Selection into this subject is based on suitability of the placement, and demonstrated motivation to benefit from the program, and timely submission of the application.

The on-campus 'WorkHub' provides a modern collaborative and supportive office environment for students to complete internship tasks in groups, and connect with industry professionals both on-campus, virtually, and at the host organisation.

Students will either enrol in the off campus or on campus availability following selection.

The subject coordinator will have final approval of all selected students. Enrolment will be capped and subject to meeting the relevant academic program requirements and availability of appropriate internship opportunities.

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Almost all financial phenomena are a consequence of human decision-making. Elucidating the psychological nature of decision-making is therefore critical for understanding many issues in finance. This subject provides students with knowledge of major trends in this interdisciplinary research field which combines elements of both psychology and finance. The subject introduces methods of examining psychological mechanisms underlying human decision-making, and how these mechanisms can explain anomalies in financial behaviour that cannot readily be explained by existing methods in the finance discipline.

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Sustainability is an increasingly important consideration in the finance sector. This subject will examine how Environmental, Social and Governance (ESG) risks, including climate change and human rights, can be integrated into investment decisions and ongoing management. Topics will include: how investors vote and actively engage with investee companies to ensure long-term value creation, ethical investing, social activist divestment campaigns and financial market innovations to address sustainability objectives. This subject will also outline why, how and where investment is used to intentionally drive social and environmental impact in alignment with the UN Sustainable Development Goals. Topics will include: a practical overview of best practice in strategically managing impact, embedding impact considerations into all elements of fund management, and how various elements of global and national financial systems help and hinder the flow of capital to impact.

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This is a practice-based capstone subject which enables students to develop their skills in the researching and production of a substantive piece of work (written, video and/or multi-media based) whilst also engaging with finance practitioners to identify current issues of interest to the broader society. The piece produced by each student will make use of the technical skills that they have developed during the first semester in the Master of Finance program and is designed to be consumed by a non-specialist audience. The subject would be team-taught by faculty from both the Department of Finance in the Faculty of Business and Economics and the Centre for Advancing Journalism in the Faculty of Arts. Department of Finance faculty will be responsible for coordinating the guest lectures by finance practitioners that occur in the first half of the course. It is anticipated that the practitioners chosen would represent a diverse range of market participants including; regulators, financial institutions, consultants, industry bodies, corporates and consumer rights organisations. Faculty from the Centre for Advancing Journalism will take responsibility for the development of the technical research and writing skills necessary for the students to successfully produce their final piece of work.

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This is a capstone subject for the program consisting of selected case studies from topics including: financial management, investment management, portfolio analysis, derivatives and risk management, mergers and acquisitions, raising capital and other topical issues. The case studies describe actual business situations faced by financial managers, which requires analysis and decision-making.

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The Applied Research Project is an ideal subject to further develop and strengthen students’ research skills by working on a semester-long independent research project. In the industry pathway students will be working on real-world projects. As such, this subject offers an ideal path to secure a job in the finance industry if students perform well on their project. In the academic pathway students will work on an academic research project which will develop skills for students wanting to pursue graduate research opportunities.

This subject is only available to students enrolled in the Master of Finance or Master of Finance (Enhanced). Students may enrol in this subject only with the prior permission of the Program Director.

Students have the option of two pathways:

Pathway A - Industry, is recommended for students in the Master of Finance. Students in Pathway A will spend time working directly with an Industry Partner. The exact time commitment will be agreed with each Industry Partner. For Pathway A, a list of industry projects will be advertised on Canvas and students can apply indicating their interest in specific topics. Students will be selected following an interview with the subject coordinator.

Pathway B - Academic Research, is recommended for students in the Master of Finance (Enhanced). Students in Pathway B are encouraged to select a research topic which aligns with their previous and/or future career activities or interests. For Pathway B, students must discuss possible proposals with the subject coordinator and then submit a detailed research proposal at least three weeks before the start of semester, and approval of the proposal must be finalised before the start of the semester.

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The Advanced Applied Research Project further develops and strengthens students' research skills for students wishing to pursue further graduate research opportunities by working on a semester-long independent academic research project for which the foundations were developed in FNCE90081 Applied Research Project (Pathway B).

Specifically, students will plan and execute a research project by developing a theoretical framework, performing an empirical investigation, and writing up a research essay of their findings.

The research topic must be approved by the Program Director.

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